Stingray Group Inc. Celebrates Strong Q1 Results for 2026

Stingray Group Inc. Celebrates Strong Performance in Q1

Stingray Group Inc. (TSX: RAY.A; RAY.B), recognized for its leadership in music and video content distribution, has announced noteworthy financial results for the first quarter of fiscal 2026. The company has experienced remarkable growth in various sectors, particularly in its Broadcast and Recurring Commercial Music Revenues, showcasing an organic growth rate of 12.5% year-over-year. Customers and stakeholders are likely to appreciate the updated results as the company continues to strengthen its market position.

Financial Growth and Performance Metrics

In terms of financials, Stingray reported a revenue increase of 7.4%, rising to $95.6 million in Q1 2026, compared to $89.1 million in Q1 2025. This surge reflects the company’s ability to capitalize on its diverse revenue streams, especially amid the evolving demands of the media landscape. One of the standout achievements was the rise in Adjusted EBITDA, which grew by 8.3% to $33.7 million during the same timeframe.

Impressive Adjusted Net Income

Another highlight of Stingray's performance is the leap in net income from $7.3 million in the previous year to $16.8 million in Q1 2026, representing an impressive increase in earnings per share from $0.11 to $0.24. Additionally, Adjusted Net income soared by 53% to $21.3 million, translating to $0.31 per share. Such significant growth in earnings showcases the effectiveness of the company’s operational strategies and its commitment to profitability.

Strategic Initiatives and Acquisitions

Stingray continues to build and enhance its offerings. This fiscal quarter saw the announcement of the acquisition of all assets from The Singing Machine Company. This strategic move aims to bolster the company's in-car karaoke capabilities by combining its extensive karaoke library with Singing Machine's renowned hardware. The collaboration promises to strengthen the consumer experience across their growing network.

Optimizing Advertising Revenue

Stingray leveraged its newly implemented Premium Advertising Network, successfully utilizing unsold FAST channel ad inventory. The company reported selling more than 20% of the available hours, indicating a strong trajectory for future sales. The retail media segment also reflected profitability, with an overall growth of 40% in Stingray Advertising by fusing FAST channel and retail media revenues, marking a profitable venture even amidst challenges.

Future Outlook and Market Positioning

Looking ahead, Stingray anticipates ongoing growth driven by constructive industry trends and its proactive strategic planning. The consolidation of operational platforms and services will allow Stingray to stay competitive in a market that values quality content and innovative advertising strategies, ensuring it remains a leader in music and media.

Robust Cash Flow and Shareholder Returns

Cash flows from operating activities also saw significant growth, increasing to $19.0 million, up from $10.8 million in Q1 2025. Adjusted free cash flow improved to $18.8 million, which positions the company favorably for potential reinvestment in growth initiatives and returns to shareholders. The board has declared a dividend of $0.075 per share, reflecting confidence in financial stability and the commitment to returning value to shareholders.

Market and Operational Insights

The comprehensive analysis of regional performance showed revenues in the U.S. soaring 25.8% to $35.2 million, primarily attributed to an increase in FAST channel revenues. However, revenues in other countries saw a slight decrease due to lower audio channel sales. This mixed regional performance highlights the need for continued adaptation and responsiveness to market dynamics.

Conclusion and Contact Information

Overall, Stingray Group Inc. is well-positioned to leverage its strengths and address challenges in the evolving media landscape. Investors and partners can expect a dedication to growth, innovative solutions, and enhanced performance metrics as the company progresses in the upcoming quarters. For further inquiries or detailed information, please reach out to:

Mathieu Péloquin
Senior Vice-President, Marketing and Communications
Stingray
(514) 664-1244, ext. 2362
mpeloquin@stingray.com

Frequently Asked Questions

What were Stingray's revenues for the first quarter of 2026?

Stingray reported revenues of $95.6 million for the first quarter of 2026.

How much did Stingray's net income increase?

Net income increased from $7.3 million in Q1 2025 to $16.8 million in Q1 2026.

What acquisition did Stingray announce recently?

Stingray announced the acquisition of The Singing Machine Company's assets to enhance its karaoke offerings.

How did cash flow from operating activities perform?

Cash flow from operating activities rose to $19.0 million in Q1 2026, up from $10.8 million in the previous year.

What dividend has Stingray declared for shareholders?

Stingray declared a dividend of $0.075 per share, reflecting its commitment to shareholder returns.

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