Stingray Reports Second Quarter Results for Fiscal 2026

Executive Summary

• Stingray Group Inc. reported strong financial results for the second quarter of fiscal 2026, with revenues growing 21.0% year-over-year to $113.3 million and net income more than doubling to $11.8 million.
• The company highlighted significant momentum in its FAST (Free Ad-Supported Streaming TV) channel sales and retail media network, driven by recent acquisitions including The Singing Machine, DMI, and the pending acquisition of TuneIn.
• Strategic developments include the announcement of a definitive agreement to acquire TuneIn Holdings for up to US$175 million and the completion of the DMI acquisition, which expands Stingray's in-store audio advertising presence in the U.S. pharmacy sector.

Key Details

• Revenue Performance: Total revenues increased 21.0% to $113.3 million (from $93.6 million in Q2 2025). Broadcasting and Commercial Music revenues surged 32.8% to $80.9 million, while Radio revenues declined slightly by 0.9% to $32.4 million.
• Profitability: Net income rose 102.5% to $11.8 million ($0.17 per diluted share). Adjusted Net income increased 30.8% to $21.9 million ($0.32 per diluted share). Adjusted EBITDA improved 16.3% to $39.5 million, with an Adjusted EBITDA margin of 34.9%.
• Cash Flow: Cash flow from operating activities grew to $24.3 million. Adjusted free cash flow improved to $28.4 million.
• Balance Sheet & Capital Return: Net debt to Pro Forma Adjusted EBITDA decreased to 2.13x. The company repurchased and cancelled 311,500 shares for $3.1 million.
• Dividend: A quarterly dividend of $0.085 per share was declared, representing a 13.33% increase, payable around December 15, 2025.
• TuneIn Acquisition: Stingray entered a definitive agreement to acquire TuneIn Holdings for up to US$175 million (US$150 million at closing, up to US$25 million later). The transaction is financed by an additional US$150 million term loan under the existing credit facility, with the facility's maturity extended to November 2029.
• DMI Acquisition: Completed the acquisition of DMI, adding ~8,500 locations to its retail media network, bringing the total to 33,500 locations in North America, with a strong presence in the U.S. pharmacy sector.
• FAST Channel Expansion: Launched 29 FAST channels on Amazon Fire TV (U.S.), 7 channels on Roku (UK), and 6 channels on The Roku Channel (U.S. and Canada). Partnerships established with TELUS (7 new channels on TELUS TV+ and Stream+), LG (Loupe Art service on LG Gallery+), Hisense, and VIZIO.
• In-Car Entertainment: Launched an advanced karaoke experience for BYD vehicles, integrating Singing Machine’s Perfect Pitch technology.
• Board Appointment: Jean Charest nominated for election to the Board of Directors at the upcoming AGM.

Notable Quotes

• Eric Boyko, President, co-founder and CEO: “Stingray’s momentum accelerated in the second quarter with organic growth of 16.7% in Broadcast and Recurring Commercial Music Revenues, largely driven by rapidly increasing FAST channel sales... We are confident this highly transformative acquisition [TuneIn]—supported by significant revenue and cost synergies—will supplement our robust internal growth, deliver higher margins over time, and ultimately build shareholder value.”
• Eric Boyko, President, co-founder and CEO: “Stingray Advertising achieved remarkable growth of over 55%, significantly surpassing our 40% target. This outstanding performance was driven by a year-over-year revenue increase in retail media and strong growth in our FAST channel sales.”