Stingray Group (RAY-A) investor relations material

Executive summary

• Q3 2026 revenues reached CAD 124.8 million, up 15.4% year-over-year, driven by the TuneIn acquisition, FAST channel growth, and automotive partnerships.

• 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 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 focus on digital, advertising, and global automotive partnerships expanded reach and accelerated growth.

Financial highlights

• Q3 2026 revenues: CAD 124.8 million (up 15.4% YoY); year-to-date: CAD 333.7 million (up 14.7%).

• Adjusted EBITDA: CAD 44.5 million (margin 35.7%), up 5.7% YoY; year-to-date: CAD 117.7 million (up 9.8%).

• Net income: CAD 7.5 million (CAD 0.11/share); adjusted net income: CAD 26.3 million (CAD 0.38/share).

• Adjusted free cash flow: CAD 34.8 million (CAD 0.50/share), up from CAD 28.6 million; year-to-date: CAD 81.3 million.

• Cash flow from operations reached CAD 38 million, up 7.4% year-over-year.

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, driven by digital and advertising expansion.

• Programmatic ad sales run rate targeted at $500,000/day, with potential to double by year-end.

• Car entertainment revenues expected to double from above $10 million in 2026 to $20 million in 2027.