Stingray Group (RAY-A) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenues rose 21% year-over-year to $113.3 million, driven by FAST channel, equipment sales, and retail media expansion.

• Net income more than doubled to $11.8 million ($0.17 per diluted share), up 102.5% year-over-year.

• Adjusted EBITDA increased 16.3% to $39.5 million, with a margin of 34.9%.

• Major acquisitions included TuneIn Holdings and DMI, expanding global reach and leadership in digital audio and retail media.

• Strategic partnerships and new channel launches with Roku, Amazon Fire TV, TELUS, LG, Hisense, and VIZIO expanded the FAST channel footprint.

Financial highlights

• Broadcasting and Commercial Music revenues grew 32.8% to $80.9 million; radio revenues declined 0.9% to $32.4 million.

• Adjusted net income reached $24.3 million ($0.35 per share), up 10.9% year-over-year.

• Cash flow from operations grew to $28.4 million; adjusted free cash flow to $28.4 million.

• Net debt decreased to $321.1 million, with net debt to Pro Forma Adjusted EBITDA ratio of 2.13x, down from 2.72x.

• Operating expenses increased 27.1% to $78.1 million, mainly due to higher cost of sales and share-based compensation.

Outlook and guidance

• Combined business with TuneIn expected to generate over $560 million in pro forma revenues and $200 million in pro forma Adjusted EBITDA.

• Free cash flow projected to increase by 50% and exceed $2 per share.

• Management anticipates significant revenue and cost synergies from TuneIn, with $10 million in cost synergies expected within 12-18 months.

• Net EBITDA leverage expected to be 2.8x post-acquisition, with a target below 2x within 12 months.

• Sufficient liquidity is anticipated from operating cash flow and available credit.