Stingray Group (RAY-A) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 marked a highly successful year with double-digit organic growth for a second consecutive year, strong execution of profitable growth strategy, and achievement of key milestones in FAST channel and retail media advertising revenues.

• Achieved third consecutive year of diversified growth and strong financial performance, with Broadcast and Recurring Commercial Music revenues showing double-digit organic growth.

• Net income rebounded to CAD 7.7 million in Q4 and CAD 36.4 million for FY2025, reversing prior year losses driven by a one-time impairment charge.

• Strategic investments in FAST channels, new channel launches, and a premium ad inventory network positioned the company as a global leader in musical and ambient channels for connected TVs.

• Net debt was reduced by over CAD 27 million, and the net debt-to-performance adjusted EBITDA ratio improved to 2.28, within the target range.

Financial highlights

• Q4 2025 revenues reached CAD 96 million, up 14.8% year-over-year, with full-year revenues up 12% to CAD 386.9 million, driven by FAST channel growth and positive FX impact.

• Broadcasting and commercial music revenues rose 20.9% to CAD 64.6 million in Q4 2025 and 17.8% for the year; radio revenues improved 3.9% in Q4 and 2.3% for the year.

• Consolidated adjusted EBITDA increased 19% to CAD 35 million in Q4 2025 and 13% for the year to CAD 142.2 million, with an adjusted EBITDA margin of 36.5% in Q4 and 36.8% for FY2025.

• Adjusted net income totaled CAD 18.6 million in Q4 2025, up 20.7%, and CAD 72.7 million for the year, up 20.5% year-over-year.

• Adjusted free cash flow was CAD 18.4 million in Q4 2025, up 17.8%, and up 3.5% for the year.

Outlook and guidance

• Plans to sustain momentum by reinvesting in high-growth areas, lowering net debt leverage below 2x EBITDA, pursuing opportunistic EBITDA-accretive acquisitions, and maintaining NCIB and dividend programs.

• FAST channel and retail media ad revenues are projected to grow above 40% in Q1 2026, with potential to double FAST channel revenues in fiscal 2026 due to programmatic backfilling.

• Retail media expected to deliver low double-digit growth in fiscal 2026, with ongoing efforts to enhance data-driven sales and ROI for advertisers.

• CapEx for fiscal 2026 anticipated to be similar to fiscal 2025, around CAD 15 million.

• Interest expense expected to decrease to about CAD 18 million in fiscal 2026.