Stingray Group Posts 51.3% Revenue Jump on TuneIn, FAST Push

By Grace Kim

Stingray Group (TSE:RAY.A) grew fiscal second-quarter revenue 51.3% to C$171.4 million, up from C$113.3 million a year earlier, as advertising sales from its TuneIn acquisition and free, ad-supported streaming television channels carried the quarter ended September 30, 2026.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) climbed 47.5% to C$58.3 million, though the adjusted EBITDA margin narrowed to 34% from 34.9%. The numbers are big, the direction is up, and the margin story is the one wrinkle.

What's behind the thinner margin?

Interim Chief Financial Officer Marie-Hélène Fournier said the lower margin reflected lower gross margins on the recently acquired TuneIn and Singing Machine offerings, plus a shift in product mix toward advertising revenue. Chief Executive Officer and Co-Founder Eric Boyko said the company is working toward an annual adjusted EBITDA margin target of 35%.

That target sits one full point above the current print, so mix and integration costs will need to keep improving.

How much is TuneIn and advertising doing the work?

A lot. Broadcasting and commercial music revenue climbed 69.8% to C$137.3 million, driven primarily by TuneIn advertising and higher sales from free, ad-supported streaming television (FAST) channels.

Boyko said FAST channel revenue grew more than 85% year over year, while advertising revenue across TuneIn, FAST and retail media more than doubled. TuneIn integration, he said, has generated annualized revenue synergies of C$45 million and cost savings of C$12 million — exceeding internal expectations — with further cross-sell and cost-reduction opportunities over the next several quarters.

Stingray also secured rights during the quarter to monetize Samsung's unsold advertising inventory. Boyko said the contribution was minimal in the quarter but expects Samsung to become a larger partner than Vizio over time. European FAST distribution expanded too: 20 channels launched across 13 countries on LG smart TVs, and 17 channels across nine countries on Rakuten TV.

Geographically, the split is stark:

• United States: revenue more than doubled to C$109 million, driven primarily by TuneIn and FAST sales.
• Canada: revenue fell 2.1% to C$50.4 million, which Fournier attributed to a return to more normal digital-signage equipment and installation sales after an exceptionally strong prior-year period.

What happened in radio and the car?

Radio revenue rose 5.3% to C$34.1 million, supported by national airtime and digital sales. Radio adjusted EBITDA increased 6% to C$10.8 million. Boyko called it a recovery after a more difficult previous quarter and estimated that a Calgary radio acquisition contributed 0.8 percentage points to the segment's growth.

He also said Stingray is testing technology to sell unsold radio inventory through programmatic advertising (automated, software-driven ad buying). He described it as a potential growth opportunity, but testing is still underway.

In-car entertainment revenue grew at a double-digit rate, Boyko said. The company announced Ford Streaming Radio and Lincoln Streaming Radio applications rolling out in select North American vehicles, plus an agreement with Stellantis to bring the TuneIn app to select future vehicles. Boyko said in-car revenue will surpass C$20 million this fiscal year, and that Stingray products including TuneIn are already in 31 million cars.

Where's the cash going?

Net income rose to C$16.2 million, or C$0.24 per diluted share, from C$11.8 million, or C$0.17 per share. Adjusted net income increased to C$34.7 million, or C$0.51 per diluted share, from C$21.9 million, or C$0.32 per share. Adjusted free cash flow grew to C$39 million from C$28.4 million.

The balance sheet moved the right way. Net debt fell by C$18.4 million from the preceding quarter to C$529.2 million. Fournier said the leverage ratio improved to 2.39 times from 2.63 times, and management aims to bring it to around two times by the end of March 2027.

Boyko said debt reduction remains the company's primary capital-allocation priority. Even so, Stingray raised its annual dividend to C$0.40 per share from C$0.32 and renewed a normal course issuer bid (a regulated share buyback program) allowing it to repurchase up to 4.4 million shares over one year.

Asked about future organic growth as Stingray begins to lap the TuneIn acquisition, Boyko said he's comfortable with double-digit growth or more, citing opportunities in FAST, advertising, in-car entertainment and radio. He declined to give advertising guidance for the third quarter, saying the company is entering its first November-to-December period with the expanded business.

The closer: a 51% revenue quarter, a shrinking leverage ratio and a raised dividend — with the margin gap to 35% as the metric to watch.