Stingray Group (RAY-A) Q1 2026 earnings summary

Executive summary

• Revenue grew 7.4% year-over-year to $95.6M in Q1 2026, driven by strong FAST channel, advertising, and digital segment growth.

• Adjusted EBITDA increased 8.3% to $33.7M, with margin improving to 35.2%.

• Net income more than doubled to $16.8M ($0.24/share), and adjusted net income rose to $21.3M ($0.31/share).

• Strategic focus on high-growth areas: retail media, streaming services, and connected cars, with the acquisition of The Singing Machine Company expanding in-car and at-home entertainment.

• Board changes include nomination of Jean Charest and departure of co-founder François Girard.

Financial highlights

• Revenues reached $95.6M (+7.4% year-over-year); adjusted EBITDA: $33.7M (+8.3%); adjusted net income: $21.3M (+53%).

• Net income: $16.8M (+130.1% year-over-year); adjusted free cash flow: $18.8M (+21.6%).

• Cash flow from operations increased to $19M from $10.8M year-over-year.

• Repurchased and cancelled 342,000 shares for $3.1M; annual dividend of $0.30/share declared.

• Net leverage ratio improved to 2.24x from 2.77x, with $160.8M available on credit facility.

Outlook and guidance

• Management targets leverage ratio below 2x by year-end, with strong cash flow supporting organic growth and tuck-in acquisitions.

• Focus on increasing FAST channel ad fill rates from 20% to 60%, potentially tripling ad revenue run rate.

• Retail media and FAST channel advertising expected to grow 40% in Q1 and Q2.

• Sustained focus on advertising, retail media, and connected car markets to drive future growth.

• Disciplined approach to M&A, targeting strategic, accretive opportunities.