Stingray Group (TSE:RAY.A) reported first-quarter fiscal 2027 revenue of CAD 158 million, up 65.2% from CAD 95.6 million a year earlier, as the TuneIn acquisition and higher FAST channel advertising sales drove growth. The quarter ended June 30, 2026.
Chief Executive Officer Eric Boyko said the company generated 27.5% organic growth on a pro forma basis, combining Stingray’s prior-year revenue with TuneIn’s revenue before measuring growth. He said the integration of TuneIn has been “seamless,” with revenue synergies reaching an annualized run rate of CAD 45 million nine months after the transaction.
Advertising and FAST channel momentum
Broadcasting and commercial music revenue more than doubled, rising 105.2% year over year to CAD 126 million. The increase reflected advertising revenue from TuneIn, higher FAST channel sales, and increased digital-signage equipment and installation sales.
Stingray’s premium advertising network posted nearly 70% revenue growth during the quarter, according to Boyko. The company has been selling unsold inventory for television manufacturers and adding audio advertising capabilities to connected-TV platforms.
Boyko identified Vizio, LG and Samsung as Stingray’s three largest U.S. original equipment manufacturer partners. He said the company’s premium ad network increased from approximately CAD 25,000 in daily sales during the fourth quarter of fiscal 2026 to about CAD 200,000 per day in the first quarter.
Stingray has also begun offering audio advertisements displayed with still images on connected televisions. Boyko said one platform had initially adopted the format, and that the company’s three largest platforms had agreed to carry audio ads in the second quarter. He described Stingray as the only company selling that product.
Combined programmatic sales for TuneIn and Stingray reached a daily high of CAD 550,000 in June, according to Boyko. He said the company expects advertising activity to benefit from the start of college football and NFL seasons, with strong momentum anticipated in the second and third quarters.
Margins, earnings and cash flow
Consolidated adjusted EBITDA increased 49.3% to CAD 50.3 million. Adjusted EBITDA margin declined to 31.8% from 35.2% a year earlier, primarily because TuneIn and Singing Machine sales carried lower gross margins and because of changes in product mix.
Broadcasting and commercial music adjusted EBITDA rose 75.7% to CAD 42.9 million, while radio adjusted EBITDA declined 15% to CAD 9.4 million. The radio business faced lower local and national airtime revenue, though higher digital sales partly offset the decline.
Radio revenue fell 6.5% to CAD 32 million. Boyko attributed the decrease to lower betting and government advertising, but said radio sales showed signs of recovery early in the second quarter and were pacing above 5% growth.
Net income was CAD 6.6 million, or CAD 0.10 per diluted share, down from CAD 16.8 million, or CAD 0.24 per diluted share, in the prior-year period. Interim Chief Financial Officer Marie-Hélène Fournier said the decline reflected higher acquisition costs, greater amortization of intangible assets and an unrealized loss on derivative financial instruments, compared with a gain a year earlier.
Adjusted net income rose to CAD 27.9 million, or CAD 0.40 per diluted share, from CAD 21.3 million, or CAD 0.31 per diluted share. Adjusted free cash flow increased to CAD 32.5 million from CAD 18.8 million, while cash flow from operating activities fell to CAD 4.8 million from CAD 19 million, largely because of accounts-receivable collection timing and acquisition costs.
Annual report reclassification and outlook
Fournier said Stingray’s newly filed fiscal 2026 annual report included a CAD 13.8 million reclassification related to the gross-versus-net presentation of advertising revenue, mainly associated with TuneIn. The change did not affect adjusted EBITDA, net income or cash flow, but improved fiscal 2026 adjusted EBITDA margin to 34.3% from the previously reported 30.8%.
Boyko said the accounting change affected only the prior year and would not affect TuneIn revenue, fiscal 2027 revenue expectations or the company’s revenue-synergy targets. He said the company was updating and clarifying contracts as part of the process.
Management maintained its goal of returning toward a 35% adjusted EBITDA margin over the coming quarters. Boyko said margins on advertising inventory purchased from OEM partners and resold by Stingray are improving as the company refines pricing and sales execution. He also said Singing Machine had negative EBITDA in the first quarter because it did not ship products during the period, with shipments expected in the second and third quarters.
Leverage, retail media and acquisitions
Stingray ended the quarter with CAD 21.9 million of cash and cash equivalents, CAD 569.5 million in credit facilities and net debt of CAD 547.6 million. Its leverage ratio increased to 2.53 times from 2.5 times, driven by share repurchases, long-term incentive compensation settlements, the Radioline and Westport acquisitions, and advertising-receivable collection timing.
During the quarter, Stingray repurchased 1.1 million shares for CAD 17.1 million. Boyko said the buyback is likely to delay the company’s goal of reducing leverage below 2 times until the end of fiscal 2027, rather than the end of calendar 2026.
In retail media, Stingray is working to introduce programmatic advertising using an audience-based multiplier model. Boyko said the model would account for multiple listeners in a retail environment rather than treating each advertisement as reaching only one person. He said Stingray estimates it has CAD 300 million to CAD 400 million of retail-media inventory and expects to make progress on the programmatic solution during the current fiscal year.
Boyko said the company continues to see potential acquisition opportunities, but its immediate priority is capturing additional positive revenue synergies from TuneIn rather than pursuing another major transaction.
About Stingray Group (TSE:RAY.A)
Stingray Group Inc is a music, media, and technology company. The company is a provider of curated direct-to-consumer and B2B services, including audio television channels, radio stations, SVOD content, 4K UHD television channels, karaoke products, digital signage, in-store music, and music apps. It operates through the following segments namely the Broadcasting and commercial music segment and Radio segment. The company generates maximum revenue from the Broadcasting and commercial music segment.
