Stingray Reports Third Quarter Results for Fiscal 2026

Key Takeaways:

• Revenues grew 15.4% to $124.8 million in Q3 2026
• Adjusted EBITDA rose 5.7% to $44.5 million
• Strategic acquisitions boosted advertising revenues, especially TuneIn
• New partnerships with automakers BYD, Mercedes, and Nissan signal global expansion
• FAST channels drew strong results and expanded Stingray’s advertising reach

Stingray’s Q3 Highlights

Stingray Group Inc., the world’s foremost connected streaming media company, reported notable growth in its third quarter of fiscal 2026, highlighted by a 15.4% increase in revenues to C$124.8 million compared to C$108.2 million in Q3 2025. The acquisition of TuneIn, along with a robust focus on FAST channels, proved instrumental in driving these revenues to record levels.

Financial Performance

The company’s adjusted EBITDA climbed 5.7% year-over-year, reaching C$44.5 million in the third quarter, while adjusted EBITDA margin stood at 35.7%. Stingray attributed the improvement to organic revenue gains and the positive impact of integrating recent acquisitions, although margins experienced slight pressure from lower gross margins tied to the TuneIn and Singing Machine acquisitions.

Net income was C$7.5 million, or C$0.11 per diluted share, down from C$15.7 million, or C$0.23 per share, the previous year—primarily because of higher share-based compensation costs and acquisition-related expenses. Adjusted net income, however, rose to C$26.3 million from C$23.4 million, reflecting the underlying strength of the company’s operations.

Regional Analysis

In Canada, revenues dipped slightly by 1.1% to C$53.6 million, partly due to lower digital signage equipment and installation sales. In the United States, a surge in advertising income from the TuneIn acquisition prompted revenues to jump 42.5% to C$60.3 million. Revenues from other regions slipped by 6.7% to C$10.9 million, largely reflecting lower subscription revenues but partially bolstered by more FAST channel proceeds.

Broadcasting and Commercial Music Gains

Stingray’s Broadcasting and Commercial Music segment grew by 22.0%, reaching C$88.1 million in Q3 2026. CEO Eric Boyko noted that FAST channels contributed significantly to the quarter’s earnings. In addition, equipment sales stemming from The Singing Machine acquisition further enhanced overall revenue totals.

CEO Perspective

“For Stingray’s third quarter of fiscal 2026, revenues, adjusted EBITDA, and adjusted free cash flow reached record levels,” said Eric Boyko, Stingray’s President, co-founder, and CEO. He also underlined the success of recent automotive alliances, citing partnerships with Nissan, Mercedes, and BYD as pivotal in advancing Stingray’s in-car entertainment strategy through a comprehensive suite, including Stingray Music, Karaoke, and now TuneIn.

Strategic Partnerships and Acquisitions

Continued partnerships reflect the company’s efforts to broaden its footprint. Recent milestones include:
• Closing the TuneIn acquisition in December 2025, a move quickly generating revenue and cost synergies.
• Collaborations with major automakers, including Nissan and Mercedes, to integrate Stingray services into vehicles.
• Expansion of the company’s FAST channels on several platforms such as LG Channels, Prime Video, Roku, and more.

Dividend Announcement

On February 10, 2026, Stingray declared a dividend of C$0.085 per share, payable March 13, 2026, for shareholders of record as of February 27, 2026. The Board of Directors emphasized that future dividends remain discretionary, dependent upon Stingray’s results of operations, available cash flow, and other factors deemed relevant by leadership.

Looking Ahead

With net debt to Pro Forma Adjusted EBITDA ratio improving to 2.49x from 2.54x, Stingray continues to pursue share buybacks, repurchasing and canceling 303,700 shares for C$3.8 million in Q3 2026. The company anticipates further opportunities in FAST channels and connected-car applications, bolstered by the TuneIn integration. As Stingray positions itself as a premier partner for in-car entertainment, its third-quarter performance underscores a broader strategy aimed at sustained global expansion.