Stingray Reports Third Quarter Results for Fiscal 2026

Core Insights - Stingray Group Inc. reported exceptional third-quarter results for fiscal 2026, with record revenues, adjusted EBITDA, and adjusted free cash flow, driven by the acquisition of TuneIn and growth in FAST channels and in-car entertainment [3][4]. Financial Highlights - Revenues increased by 15.4% to CAD 124.8 million in Q3 2026 from CAD 108.2 million in Q3 2025 [4][8]. - Adjusted EBITDA rose by 5.7% to CAD 44.5 million in Q3 2026 from CAD 42.1 million in the same period of 2025 [4][13]. - Net income decreased by 52.2% to CAD 7.5 million, or CAD 0.11 per diluted share, compared to CAD 15.7 million, or CAD 0.23 per diluted share, in Q3 2025 [4][14]. - Adjusted net income increased by 12.2% to CAD 26.3 million, or CAD 0.38 per diluted share, from CAD 23.4 million, or CAD 0.34 per diluted share, in Q3 2025 [4][15]. - Cash flow from operating activities rose by 7.4% to CAD 38.0 million in Q3 2026 from CAD 35.4 million in Q3 2025 [4][16]. - Adjusted free cash flow increased by 21.5% to CAD 34.8 million in Q3 2026 from CAD 28.6 million in the same period of 2025 [4][17]. Segment Performance - Broadcasting and Commercial Music revenues grew by 22.0% to CAD 88.1 million in Q3 2026 from CAD 72.2 million in Q3 2025, driven by enhanced advertising revenues from the TuneIn acquisition [7][12]. - Radio revenues improved by 2.0% to CAD 36.7 million in Q3 2026, supported by higher digital advertising sales [7][12]. Geographic Performance - Revenues in Canada decreased by 1.1% to CAD 53.6 million in Q3 2026, attributed to lower equipment and installation sales [9]. - Revenues in the United States grew by 42.5% to CAD 60.3 million in Q3 2026, primarily due to enhanced advertising revenues from TuneIn [10]. - Revenues in other countries decreased by 6.7% to CAD 10.9 million in Q3 2026, mainly due to reduced subscription revenues [11]. Strategic Initiatives - The integration of TuneIn has exceeded expectations, creating significant synergies reflected in strong financial performance [5]. - Recent partnerships with automotive brands like BYD, Mercedes, and Nissan validate Stingray's in-car entertainment strategy, expanding its global footprint [6]. Shareholder Returns - The Corporation declared a dividend of CAD 0.085 per share, payable on or around March 13, 2026 [18].