Stingray Group (RAY-A) Q1 2026 earnings summary

Executive summary

• Revenue grew 7.4% year-over-year to $95.6 million in Q1 2026, driven by strong FAST channel sales, organic growth in broadcast and commercial music, and robust advertising and digital segments.

• Adjusted EBITDA increased 8.3% to $33.7 million, with a margin of 35.2% of sales.

• Net income more than doubled to $16.8 million ($0.24 per share diluted), mainly due to unrealized gains on derivatives and improved operating results.

• Adjusted net income rose 53% to $21.3 million ($0.31 per share diluted).

• Completed acquisition of The Singing Machine Company, expected to add $20 million in annual revenue and enhance in-car and at-home karaoke offerings.

Financial highlights

• Revenues reached $95.6 million, up 7.4% year-over-year; adjusted EBITDA was $33.7 million, up 8.3%.

• Net income was $16.8 million ($0.24/diluted share), up from $7.3 million ($0.11) last year.

• Adjusted net income totaled $21.3 million ($0.31/diluted share), up from $13.9 million ($0.20) year-over-year.

• Adjusted free cash flow rose to $18.8 million from $15.5 million year-over-year.

• 342,000 shares were repurchased and cancelled for $3.1 million.

Outlook and guidance

• Management targets a leverage ratio below 2x by fiscal year-end, with strong cash flow supporting organic growth and tuck-in acquisitions.

• Focus remains on increasing FAST channel ad fill rates and expanding advertising, retail media, and connected car markets.

• Retail media and FAST channel advertising expected to grow 40% in Q1 and Q2, with double-digit growth in retail media ongoing.

• Management expects sufficient liquidity from operations and available credit to meet foreseeable needs.