Core Insights - Stingray Group Inc. reported strong financial results for the fourth quarter and fiscal year ended March 31, 2025, highlighting significant revenue growth and a return to profitability [3][4][6]. Fourth Quarter Highlights - Revenues increased by 14.8% to $96.0 million in Q4 2025 from $83.7 million in Q4 2024, driven by higher FAST channel revenues and positive foreign exchange impact [4][9]. - Net income for Q4 2025 was $7.7 million, or $0.11 per share, compared to a net loss of $46.3 million, or ($0.67) per share, in Q4 2024, primarily due to a one-time impairment charge in the previous year [4][13]. - Adjusted EBITDA grew by 19.0% to $35.0 million in Q4 2025 from $29.4 million in Q4 2024, with an adjusted EBITDA margin of 36.5% [4][12]. - Cash flow from operating activities decreased by 10.3% to $39.7 million in Q4 2025 from $44.3 million in Q4 2024 [4][14]. - Adjusted free cash flow rose by 17.8% to $18.4 million in Q4 2025 from $15.6 million in Q4 2024 [4][15]. Full Year Highlights - Total revenues for fiscal 2025 increased by 12.0% to $386.9 million from $345.4 million in 2024, attributed to higher FAST channel revenues and equipment sales [4][16]. - Net income for fiscal 2025 was $36.4 million, or $0.53 per share, compared to a net loss of $13.7 million, or ($0.20) per share, in 2024 [4][18]. - Adjusted EBITDA improved by 13.0% to $142.2 million in fiscal 2025 from $125.9 million in 2024, with an adjusted EBITDA margin of 36.8% [4][17]. - Adjusted net income increased to $72.7 million, or $1.05 per share, in fiscal 2025 compared to $60.3 million, or $0.87 per share, in 2024 [4][19]. - The company repurchased and cancelled 1,186,800 shares for a total of $9.1 million in 2025, compared to 557,500 shares for $2.9 million in 2024 [4]. Business Strategy and Outlook - The company experienced a 45% increase in advertising revenues for its Broadcast and Recurring Commercial Music segment for the second consecutive year, indicating strong demand for connected TV advertising [6]. - Stingray's collaboration with IAB Canada and Leger has solidified its position as a leader in in-store audio advertising [6]. - The company aims to reduce its net debt level to a leverage ratio approaching 2.0 times and will continue to seek acquisitions opportunistically while rewarding shareholders through dividends [8].

Financial Data and Key Metrics Changes - The company achieved a real GMV growth of 12.1% in 2024, with an unadjusted inflation basis GMV growth of 74% year on year [5][6] - Gross contribution margin improved to 11.3%, reflecting a 2.1 percentage point increase compared to the previous year [6][17] - EBITDA as a percentage of GMV reached 1.1%, marking a 0.7 percentage point rise year on year [6][21] Business Line Data and Key Metrics Changes - Active customers increased by 235,000, totaling 12,200,000, with orders growing by 16 percentage points year on year to 131,400,000 [7][17] - The lending volume reached 16.2 billion, which is 2.6 times the total volume in 2023 [11] - The off-platform volume for HeftyJet increased by 89% year on year, with its off-platform share rising by 9.7 percentage points to nearly 34.6% of total volume [12] Market Data and Key Metrics Changes - Revenue grew by 6.4% in Q4, leading to an 11.1% growth for the full year compared to the previous year [19] - The revenue growth in Q4 was driven by a 15% rise in 3P revenue and an 18% increase in delivery service revenue [19] - The marketplace operations contributed to a 12% revenue growth in 2024 [20] Company Strategy and Development Direction - The company focuses on three strategic priorities: customer loyalty, enhancing delivery services, and expanding B2B services [8][10] - The loyalty program, Hexo Product Premium, reached a member base of 3.7 million, with expanded offerings through partnerships [10] - The company aims to capitalize on differentiation through lending solutions and improve merchant capabilities [11][12] Management Comments on Operating Environment and Future Outlook - The start of 2025 faced challenges due to macroeconomic headwinds and boycotts affecting consumer purchasing power [14][23] - The company expressed excitement about the potential value creation opportunities following the acquisition of a controlling stake by CASB [15][24] Other Important Information - Free cash flow decreased by 1.9 billion compared to the previous year, primarily due to a decrease in net cash from operating activities [22] - The company recorded a significant increase in advertising services revenues and premium subscription revenues [19][20] Q&A Session Summary - There was no Q&A session during this earnings call, and participants were encouraged to direct their questions to the Investor Relations team [24]