Stingray Group (RAY-A) Q3 2026 earnings summary

Executive summary

• Q3 2026 revenues reached CAD 124.8 million, up 15.4% year-over-year, driven by the TuneIn acquisition, FAST channels, and in-car entertainment growth.

• Adjusted EBITDA hit a record CAD 44.5 million, up 5.7% year-over-year, with strong contributions from acquisitions.

• Net income for Q3 2026 was CAD 7.5 million, down from the prior year, mainly due to higher share-based and acquisition-related expenses, while adjusted net income rose to CAD 26.3 million.

• Integration of TuneIn exceeded expectations, delivering CAD 16 million in annualized revenue synergies and CAD 5 million in cost savings.

• Strategic partnerships with BYD, Mercedes, and Nissan expanded the in-car entertainment footprint.

Financial highlights

• Q3 2026 revenues: CAD 124.8 million (up 15.4% YoY); adjusted EBITDA: CAD 44.5 million (up 5.7% YoY); adjusted net income: CAD 26.3 million (CAD 0.38/share); net income: CAD 7.5 million (CAD 0.11/share).

• Adjusted free cash flow for Q3 2026 was CAD 34.8 million (CAD 0.50/share), up from CAD 28.6 million.

• Broadcasting and commercial music revenues grew 22% to CAD 88.1 million; radio revenues increased 2% to CAD 36.7 million.

• U.S. revenues surged 42.5% to CAD 60.3 million; Canadian revenues declined 1.1% to CAD 53.6 million.

• Adjusted EBITDA margin was 35.7% in Q3 2026, down from 38.9% in Q3 2025.

Outlook and guidance

• Focus on reducing leverage below 2x EBITDA by year-end through debt reduction and EBITDA growth.

• Expect accelerated EBITDA and free cash flow growth in upcoming quarters, with programmatic ad sales run rate targeted at $500,000/day and potential to double by year-end.

• Car business expected to double revenue from over $10 million in 2026 to $20 million in 2027.

• Strategic revenues from digital streaming, FAST channels, and advertising continue to outpace traditional cash flow revenues.

• Management expects continued momentum from the TuneIn acquisition, FAST channel expansion, and automotive partnerships.