- Total revenues rose 7.4 per cent year-over-year to C$95.6 million, driven by strong performance in FAST channels, especially in the U.S. market
- Net income more than doubled to C$16.8 million or $0.24 per share, boosted by unrealized gains on financial instruments and improved operating results
- Stingray launched multiple new FAST channels globally and acquired Singing Machine Company to enhance its karaoke platform
- Stingray stock (TSX:RAY) opened trading at C$11.26
Stingray Group (TSX:RAY) released its financial results for its Q1 of fiscal 2026, showing off revenue growth and improved profitability fueled by the expansion of its free ad-supported streaming television (FAST) channels.
Revenue growth across key markets
Revenues clocked in at C$95.6 million, a 7.4 per cent increase from C$89.1 million in the same quarter last year. The growth was mostly driven by a surge in FAST channel revenues, partially offset by declines in retail media advertising and digital signage-related equipment and installation sales.
In Canada, revenues rose modestly by 1.1 per cent to C$49.5 million, supported by higher radio revenues from increased airtime and digital sales. U.S. operations saw a significant boost, with revenues climbing 25.8 per cent to C$35.2 million, largely due to FAST channel performance. However, revenues in other international markets declined 9.5 per cent to C$10.9 million, impacted by lower in-store commercial and audio channel sales.
Segment performance
Broadcasting and commercial music revenues grew 8.0 per cent to C$61.4 million, driven by FAST channel expansion. Radio revenues also increased by 6.2 per cent to C$34.2 million, reflecting strong airtime and digital sales.
Profitability and cash flow
Consolidated adjusted EBITDA rose 8.3 per cent to C$33.7 million, with the adjusted EBITDA margin improving slightly to 35.2 per cent from 34.9 per cent. Net income more than doubled to C$16.8 million or $0.24 per share, compared to C$7.3 million or $0.11 per share in Q1 2025 and C$7.6 million in Q4 2025. The increase was attributed to an unrealized gain on derivative financial instruments, stronger operating results, and foreign exchange gains.
Cash flow from operating activities surged to C$19.0 million, up from C$10.8 million a year earlier, while adjusted free cash flow reached C$18.8 million, reflecting improved operating performance and reduced interest expenses.
Company developments and expansion
Stingray continued to expand its global footprint and digital offerings:
- August 4: Acquired all assets of the Singing Machine Company to enhance its home and in-car karaoke services.
- July 24: Launched six new FAST channels on VIZIO’s WatchFree+ platform.
- June 26: Rolled out new Stingray Music channels across Australia, New Zealand, and Southeast Asia via Samsung TV Plus.
- June 11: Introduced four new FAST channels on TCLtv+ in North America.
- April 15: Partnered with Zoox to provide curated music in autonomous robotaxis.
- May 13: Announced the closure of CITL-TV/CKSA-TV in Lloydminster, Alberta.
Stingray also nominated Jean Charest, former of Québec Premier and Deputy Prime Minister of Canada, for election to its Board of Directors at the upcoming AGM on August 6.
As of June 30, 2025, Stingray held C$11.5 million in cash and cash equivalents and had access to C$160.8 million in available credit under its C$500 million revolving credit facility.
Starting on a high note
“Stingray opened fiscal 2026 on a strong note with organic sales in broadcast and recurring commercial music revenues growing double-digits for the fourth time in the last five quarters, mainly driven by continued strength in FAST channel revenues,” Stingray’s president, co-founder and CEO Eric Boyko said in a news release. “Although our premium advertising network was implemented barely a quarter ago to leverage unsold FAST channel ad inventory, we already have sold more than 20 per cent of the remaining available hours and that percentage should rise as we build our platform with strategic vendors in the U.S and abroad. On the retail media side, we delivered a solid performance in the first quarter but faced a tough comparable since sales had soared 53 per cent on large orders in the same period last year. We still generated 40 per cent revenue growth for our Stingray advertising business, which combines FAST channel and retail media revenues, and are targeting a similar run-rate for the next quarter. We also experienced some delays in the deployment of large installation projects related to digital signage that pushed revenue recognition into the second quarter, but that didn’t prevent Stingray from achieving robust Adjusted EBITDA of C$33.7 million, or 35.2 per cent of sales, in the opening quarter.”
About Stingray
Stingray Group Inc. is a leading global music, media and technology company.
Stingray stock (TSX:RAY) opened trading more than 1.5 per cent higher at C$11.26 and has risen 43.84 per cent since the year started.
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