Stingray Group (TSE:RAY.A) reported a 51.3% increase in fiscal second-quarter revenue as advertising sales from its TuneIn acquisition and growth in free, ad-supported streaming television channels lifted results.
Revenue rose to C$171.4 million for the quarter ended September 30, 2026, from C$113.3 million a year earlier. Adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, increased 47.5% to C$58.3 million, although the adjusted EBITDA margin narrowed to 34% from 34.9%.
Interim Chief Financial Officer Marie-Hélène Fournier said the lower margin reflected lower gross margins on the recently acquired TuneIn and Singing Machine offerings, as well as a shift in product mix toward advertising revenue. Chief Executive Officer and Co-Founder Eric Boyko said the company is working toward an annual adjusted EBITDA margin target of 35%.
TuneIn and Streaming Advertising Drive Growth
Broadcasting and commercial music revenue climbed 69.8% to C$137.3 million, primarily due to TuneIn advertising and higher sales from free, ad-supported streaming television, or FAST, channels. Boyko said FAST channel revenue grew more than 85% year over year, while advertising revenue across TuneIn, FAST and retail media more than doubled.
Boyko said TuneIn integration had generated annualized revenue synergies of C$45 million and cost savings of C$12 million, exceeding internal expectations. He said the company sees further opportunities to cross-sell advertising and reduce costs over the next several quarters.
Stingray also secured rights during the quarter to monetize Samsung’s unsold advertising inventory. Boyko said the contribution was minimal in the quarter but that he expects Samsung to become a larger partner than Vizio over time. Stingray expanded its FAST distribution in Europe, launching 20 channels across 13 countries on LG smart TVs and 17 channels across nine countries on Rakuten TV.
In the United States, revenue more than doubled to C$109 million, driven primarily by TuneIn and FAST sales. Canadian revenue fell 2.1% to C$50.4 million, which Fournier attributed to a return to more normal digital-signage equipment and installation sales after an exceptionally strong prior-year period.
Radio Rebounds and In-Car Deals Expand
Radio revenue rose 5.3% to C$34.1 million, supported by national airtime and digital sales. Radio adjusted EBITDA increased 6% to C$10.8 million. Boyko said the result marked a recovery after a more difficult previous quarter and estimated that a Calgary radio acquisition contributed 0.8 percentage points to the segment’s growth.
Boyko said Stingray is testing technology to sell unsold radio inventory through programmatic advertising. He described the technology as a potential growth opportunity but said testing was still underway.
In in-car entertainment, Boyko said second-quarter revenue grew at a double-digit rate. The company announced Ford Streaming Radio and Lincoln Streaming Radio applications rolling out in select North American vehicles, and an agreement with Stellantis to bring the TuneIn app to select future vehicles. Boyko said Stingray’s in-car revenue would surpass C$20 million this fiscal year and that its products, including TuneIn, were in 31 million cars.
Debt Reduction Remains Capital Priority
Net income increased to C$16.2 million, or C$0.24 per diluted share, from C$11.8 million, or C$0.17 per share. Adjusted net income rose to C$34.7 million, or C$0.51 per diluted share, from C$21.9 million, or C$0.32 per share. Adjusted free cash flow increased to C$39 million from C$28.4 million.
Net debt fell by C$18.4 million from the preceding quarter to C$529.2 million. Fournier said the leverage ratio improved to 2.39 times from 2.63 times, and management remains focused on bringing it to around two times by the end of March 2027.
Boyko said debt reduction remains the company’s primary capital-allocation priority. Stingray also raised its annual dividend to C$0.40 per share from C$0.32 and renewed a normal course issuer bid allowing it to repurchase up to 4.4 million shares over one year.
Asked about future organic growth as Stingray begins to lap the TuneIn acquisition, Boyko said he was comfortable with double-digit growth or more, citing opportunities in FAST, advertising, in-car entertainment and radio. He did not provide advertising guidance for the third quarter, saying the company was entering its first November-to-December period with the expanded business.
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.
