Core Insights - Stingray Group Inc. reported strong financial results for Q3 2026, with record revenues, adjusted EBITDA, and adjusted free cash flow, driven by the recent acquisition of TuneIn and growth in advertising revenues [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 [2][7]. - 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 [2][12]. - 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 [2][13]. - 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 [2][14]. - 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 [2][15]. - 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 [2][16]. 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 TuneIn and higher equipment sales [6][11]. - Radio revenues improved by 2.0% to CAD 36.7 million in Q3 2026, supported by higher digital advertising sales [6][11]. Geographic Performance - Revenues in Canada decreased by 1.1% to CAD 53.6 million in Q3 2026 from CAD 54.2 million in Q3 2025, attributed to lower equipment sales [8]. - Revenues in the United States grew by 42.5% to CAD 60.3 million in Q3 2026 from CAD 42.3 million in Q3 2025, primarily due to enhanced advertising revenues from TuneIn [9]. - Revenues in other countries decreased by 6.7% to CAD 10.9 million in Q3 2026 from CAD 11.7 million in Q3 2025, mainly due to reduced subscription revenues [10]. Strategic Developments - The integration of TuneIn has exceeded expectations, creating annualized synergies of USD 16.0 million in revenues and USD 5.0 million in cost savings [3][4]. - Recent partnerships with automotive brands like BYD, Mercedes, and Nissan validate Stingray's in-car entertainment strategy, expanding its global footprint [5].

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].

Core Viewpoint - Stingray Group Inc. will consolidate its subordinate voting shares and variable subordinate voting shares to trade under a single ticker "RAY" on the Toronto Stock Exchange (TSX) effective February 13, 2026, aimed at improving liquidity for the variable subordinate voting shares [1][3][4]. Group 1: Share Trading Changes - Currently, subordinate voting shares trade under "RAY.A" and variable subordinate voting shares under "RAY.B"; after the change, both will trade under "RAY" with a new CUSIP number 86084H407 [2]. - The consolidation is intended to enhance demand and liquidity for the variable subordinate voting shares, which have historically experienced lower trading volumes [3]. Group 2: Shareholder Restrictions - The subordinate voting shares can only be held by Canadians, while variable subordinate voting shares are restricted to non-Canadians, with automatic assignment based on the holder's status [5]. - Voting procedures for shareholder meetings remain unchanged, requiring shareholders to complete a Declaration of Canadian Status to comply with ownership restrictions [6]. Group 3: Company Overview - Stingray Group Inc. is a leading connected streaming media company, offering a wide range of audio and video content globally, including live audio stations, music channels, and wellness channels [9]. - The company reaches hundreds of millions of consumers monthly and is supported by a team of over 1,000 employees [9].

Core Insights - Stingray has launched a co-branded music, podcast, and radio solution named BYD Audio by Stingray in partnership with BYD, enhancing in-car entertainment experiences for automakers globally [1][4] - The new service offers a comprehensive infotainment platform that includes hundreds of curated music channels, over 4 million podcasts, and thousands of global radio channels, all tailored to automakers' brand identities [2][3] Company Overview - Stingray is a global leader in music, media, and technology, providing a wide range of services including TV broadcasting, streaming, radio, and advertising solutions [6] - The company operates in various sectors, offering commercial solutions in music, in-store advertising, digital signage, and AI-driven consumer insights, reaching 540 million consumers across 160 countries [6] Partnership Details - The collaboration with BYD aims to redefine in-car entertainment by integrating Stingray's full suite of audio products, including music, karaoke, and wellness features [4] - BYD Audio by Stingray is set to roll out over-the-air in European markets in early 2026, with plans for expansion to all BYD markets [5] Industry Impact - The introduction of this co-branded IVI product signifies a significant milestone in enhancing consumer entertainment experiences in vehicles [4] - The flexible platform supports both premium and ad-supported subscription models, catering to diverse customer needs and ensuring high-quality listening experiences [3]