Stingray Reports First Quarter Results for Fiscal 2026

Executive Summary

• Stingray Group Inc. reported strong financial results for the first quarter of fiscal 2026 (ended June 30, 2025), with revenues increasing 7.4% year-over-year to $95.6 million and net income more than doubling to $16.8 million ($0.24 per share).
• The company announced the acquisition of all assets of The Singing Machine Company to enhance its in-car and at-home karaoke offerings, alongside significant growth in FAST (Free Ad-Supported Streaming Television) channel revenues.
• Adjusted EBITDA rose 8.3% to $33.7 million, driven by strength in Broadcasting and Commercial Music, while the company also declared a quarterly dividend of $0.075 per share.

Key Details

• Revenue Performance: Total revenues increased 7.4% to $95.6 million (from $89.1 million in Q1 2025).
  • Broadcasting and Commercial Music: Revenues grew 8.0% to $61.4 million, driven by FAST channel strength, partially offset by lower retail media advertising and digital signage installation sales.
  • Radio: Revenues improved 6.2% to $34.2 million, supported by higher airtime and digital sales.
  • Geographic Breakdown:
    • Canada: $49.5 million (+1.1%).
    • United States: $35.2 million (+25.8%), primarily due to higher FAST channel revenues.
    • Other Countries: $10.9 million (-9.5%), due to lower in-store commercial revenues and audio channel sales.
• Profitability Metrics:
  • Adjusted EBITDA: Increased 8.3% to $33.7 million (35.2% margin). Segment breakdown: Broadcasting and Commercial Music $24.4 million; Radio $11.0 million; Corporate $(1.8) million.
  • Net Income: Rose to $16.8 million ($0.24 diluted EPS) from $7.3 million ($0.11 diluted EPS) in Q1 2025. The increase was driven by an unrealized gain on derivative instruments and higher operating results, partially offset by higher share-based compensation expenses.
  • Adjusted Net Income: Grew 53.0% to $21.3 million ($0.31 diluted EPS).
• Cash Flow and Balance Sheet:
  • Operating Cash Flow: $19.0 million ($0.28 per share), up from $10.8 million in Q1 2025.
  • Adjusted Free Cash Flow: Improved to $18.8 million ($0.27 per share) from $15.5 million in Q1 2025.
  • Net Debt to Pro Forma Adjusted EBITDA: Decreased to 2.24x from 2.77x at the end of Q1 2025.
  • Liquidity: Cash and cash equivalents stood at $11.5 million; available credit facilities were $160.8 million of the $500 million revolving line.
• Capital Allocation:
  • Repurchased and cancelled 342,000 shares for a total of $3.1 million.
  • Declared a dividend of $0.075 per share, payable around September 15, 2025, to shareholders of record as of August 29, 2025.
• Strategic Updates & M&A:
  • Acquisition: Announced the acquisition of all assets of The Singing Machine Company to bolster in-car karaoke offerings.
  • FAST Channel Expansion: Launched six new FAST channels on VIZIO’s WatchFree+ (July 24) and four new channels on TCLtv+ (June 11).
  • International Expansion: Launched new Stingray Music channels in Australia, New Zealand, Philippines, Singapore, and Thailand on Samsung TV Plus (June 26).
  • Partnerships: Announced a partnership with Zoox to provide curated music channels in robotaxis (April 15).
  • Corporate Governance: Nominated Jean Charest for election to the Board of Directors at the AGM on August 6, 2025.

Notable Quotes

• Eric Boyko, President, co-founder and CEO: “Stingray opened fiscal 2026 on a strong note with organic sales in Broadcast and Recurring Commercial Music Revenues growing double-digits for the fourth time in the last five quarters, mainly driven by continued strength in FAST channel revenues.”
• Eric Boyko, President, co-founder and CEO: “Although our Premium Advertising Network was implemented barely a quarter ago to leverage unsold FAST channel ad inventory, we already have sold more than 20% of the remaining available hours... We still generated 40% revenue growth for our Stingray Advertising business... and are targeting a similar run-rate for the next quarter.”
• Eric Boyko, President, co-founder and CEO: “Finally, earlier this week, we announced the acquisition of all the assets of The Singing Machine Company with a primary goal to bolster our in-car karaoke offering... We see tremendous potential in developing new microphone technologies, especially for the expanding in-car entertainment market, creating exciting new opportunities for growth.”