Core Insights - Stingray Group Inc. reported strong financial results for Q2 of fiscal 2026, with revenues increasing by 21.0% year-over-year to CAD 113.3 million, driven by higher equipment sales and FAST channel revenues [2][11][13] - The company achieved a net income of CAD 11.8 million, representing a 102.5% increase compared to the same period last year, and adjusted net income rose by 30.8% to CAD 21.9 million [2][17] - Stingray's organic growth in Broadcast and Recurring Commercial Music Revenues was 16.7%, indicating robust performance in its core business segments [3][4] Financial Performance - Revenues for the three months ended September 30, 2026, were CAD 113,262,000, compared to CAD 93,585,000 in 2025, marking a 21.0% increase [2] - Adjusted EBITDA for the same period improved by 16.3% to CAD 39,520,000, with an adjusted EBITDA margin of 34.9% [2][16] - Net income for Q2 2026 was CAD 11,772,000, or CAD 0.17 per diluted share, up from CAD 5,813,000, or CAD 0.08 per diluted share, in Q2 2025 [2][17] Cash Flow and Debt Management - Cash flow from operating activities increased to CAD 24,329,000 in Q2 2026 from CAD 19,183,000 in Q2 2025, reflecting improved operational performance [2][18] - Adjusted free cash flow rose to CAD 28,396,000, a 34.6% increase year-over-year [2][34] - The net debt to Pro Forma Adjusted EBITDA ratio decreased to 2.13x from 2.72x, indicating improved leverage [2][35] Strategic Acquisitions - Stingray announced the acquisition of TuneIn Holdings, Inc. for up to USD 175 million, which is expected to enhance its digital audio footprint and advertising capabilities [9][22] - The acquisition of DMI, a leader in music branding and in-store audio advertising, expands Stingray's retail media network to 33,500 locations in North America [8][10] - The company is focusing on integrating TuneIn's ad platform to create a comprehensive audio streaming and monetization powerhouse [7][9] Market Expansion and Growth Initiatives - Stingray launched 29 FAST channels on Amazon Fire TV and expanded its offerings on Roku, significantly increasing its content portfolio [4][24] - The company reported a 55% growth in its advertising segment, driven by retail media and FAST channel sales [5] - Broadcasting and Commercial Music revenues grew nearly 33% to CAD 80.9 million, while Radio revenues saw a slight decline of less than 1% [6][15]