Stingray Reports Third Quarter Results for Fiscal 2026

Executive Summary

• Stingray Group Inc. reported financial results for the third quarter of fiscal 2026 (ended December 31, 2025), showing strong revenue growth driven by the recent acquisition of TuneIn and expansion in automotive partnerships.
• Revenues increased 15.4% year-over-year to $124.8 million, while Adjusted EBITDA rose 5.7% to $44.5 million. Adjusted Net Income per diluted share increased to $0.38 from $0.34 in the prior year period.
• The company highlighted significant synergies from the TuneIn acquisition, reaching an annualized run rate of $16.0 million in revenues and $5.0 million in cost savings, alongside new strategic partnerships with major automotive brands including Nissan, Mercedes-Benz, and BYD.

Key Details

• Revenue Performance: Total revenues grew 15.4% to $124.8 million (from $108.2 million in Q3 2025).
  • Broadcasting and Commercial Music revenues increased 22.0% to $88.1 million.
  • Radio revenues increased 2.0% to $36.7 million.
  • Geographic breakdown: US revenues grew 42.5% to $60.3 million; Canada revenues decreased 1.1% to $53.6 million; Other countries decreased 6.7% to $10.9 million.
• Profitability Metrics:
  • Adjusted EBITDA: $44.5 million (up 5.7% from $42.1 million), with a margin of 35.7%.
  • Net Income: $7.5 million ($0.11 per diluted share), down from $15.7 million ($0.23 per diluted share) in Q3 2025, primarily due to higher performance/deferred share unit expenses and acquisition-related costs.
  • Adjusted Net Income: $26.3 million ($0.38 per diluted share), up from $23.4 million ($0.34 per diluted share).
• Cash Flow & Balance Sheet:
  • Cash flow from operating activities: $38.0 million (up 7.4%).
  • Adjusted Free Cash Flow: $34.8 million (up 21.5%).
  • Net Debt to Pro Forma Adjusted EBITDA ratio improved to 2.49x (from 2.54x).
  • Cash and cash equivalents: $17.3 million; Credit facilities: $519.7 million.
• Share Repurchases: Repurchased and cancelled 303,700 shares for a total of $3.8 million.
• Dividend Declaration: Declared a dividend of $0.085 per share, payable around March 13, 2026, to shareholders of record as of February 27, 2026.
• Strategic Acquisitions & Synergies:
  • TuneIn acquisition closed on December 19, 2025.
  • TuneIn synergies reached an annualized run rate of $16.0 million in revenues and $5.0 million in cost savings.
  • Acquisition of The Singing Machine contributed to higher equipment sales.
  • Acquisition of DMI expanded the retail media network to 33,500 locations in North America.
• Business Highlights & Partnerships:
  • Nissan: Collaboration announced Feb 4, 2026, to bring TuneIn to select Nissan and INFINITI vehicles.
  • Mercedes-Benz: Partnership announced Dec 22, 2025, to pre-install Stingray Music and Karaoke in MBUX-equipped vehicles.
  • BYD: Launch of "BYD Audio by Stingray" announced Dec 10, 2025.
  • 3 Screen Solutions: Partnership announced Jan 6, 2026, to integrate Stingray Karaoke into next-gen in-car systems.
  • Jimi Hendrix: Agreement announced Feb 2, 2026, to release concert films and documentaries on The Coda Collection.
  • FAST Channels: Launched five music channels on Prime Video (Dec 8, 2025) and expanded presence on Roku, TELUS TV+, and LG Channels.
  • Radio Acquisition: Agreement to acquire CHUP-FM (C97.7) in Calgary from Rawlco Radio (Nov 26, 2025), subject to CRTC approval.

Notable Quotes

• Eric Boyko, President, Co-founder and CEO: “Stingray today announced exceptional third-quarter results for fiscal 2026, with revenues, adjusted EBITDA and adjusted free cash flow reaching record levels. This highlights the significant positive impact of its recent TuneIn acquisition and continued expansion in high-growth areas like FAST channels and in-car entertainment.”
• Eric Boyko: “Our recent agreements with world-class automotive brands like BYD, Mercedes, and Nissan are a powerful validation of our in-car entertainment strategy. By integrating our full suite of products... we are cementing our role as an essential partner for the connected car.”