Stingray Group (RAY-A) Q2 2026 earnings summary

Executive summary

• Achieved 21% year-over-year revenue growth in Q2 2026 to $113.3M, driven by FAST channel, equipment, and retail media sales.

• Net income more than doubled to $11.8M ($0.17/share), and adjusted EBITDA rose 16.3% to $39.5M.

• Major acquisitions: TuneIn (up to US$175M, largest U.S. deal) and DMI, expanding U.S. retail network to 33,500+ locations and global market leadership.

• Quarterly dividend increased 13.33% to $0.085/share; continued share buybacks and disciplined M&A.

• Strategic partnerships and new FAST channel launches with Amazon Fire TV, Roku, TELUS, LG, Hisense, and VIZIO expanded digital footprint.

Financial highlights

• Revenues reached $113.3M in Q2 2026, up 21% year-over-year; adjusted EBITDA: $39.5M (34.9% margin); net income: $11.8M ($0.17/share).

• Adjusted net income was $21.9M ($0.32/share); cash flow from operations grew to $24.3M; adjusted free cash flow reached $28.4M.

• Broadcasting and commercial music revenues rose 32.8% to $80.9M; radio revenues declined 0.9% to $32.4M.

• U.S. revenues surged 57.9% to $51.9M; international revenues fell 16.2% to $9.8M.

• Adjusted free cash flow up 34.6% year-over-year to $21.1M.

Outlook and guidance

• Combined business with TuneIn expected to generate over $560M in pro forma revenues and $200M+ in pro forma Adjusted EBITDA.

• Free cash flow projected to increase by 50% and exceed $2 per share; $10M in cost synergies expected within 12-18 months.

• Net EBITDA leverage expected to be 2.8x post-acquisition, with a target below 2x within 12 months.

• Focus on expanding digital audio, advertising, streaming, and in-car entertainment segments.