Stingray Group (RAY-A) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 2025 revenue of $108.2 million, up 7.9% year-over-year, driven by FAST channel growth, digital signage, and strong radio performance.

• Adjusted EBITDA reached $42.1 million, a 9.0% increase year-over-year, with a margin of 38.9%.

• Net income rose to $15.7 million ($0.23/share), up 72.9% year-over-year; adjusted net income was $23.4 million ($0.34/share), up 26.7%.

• Strategic acquisitions, including Loupe Art and The Coda Collection, expanded digital signage, connected TV, and streaming offerings.

• Cash flow from operations increased 14.5% to $35.4 million, while adjusted free cash flow declined 10.9% to $28.6 million due to prior year tax recovery.

Financial highlights

• Q3 2025 revenue: $108.2M (+7.9% YoY); YTD revenue: $290.9M (+11.1% YoY).

• Adjusted EBITDA: $42.1M (+9.0% YoY); YTD: $107.2M (+11.1% YoY); margin 38.9%.

• Net income: $15.7M ($0.23/share, +72.9% YoY); adjusted net income: $23.4M ($0.34/share, +26.7% YoY).

• Cash flow from operations: $35.4M (+14.5% YoY); adjusted free cash flow: $28.6M (-10.9% YoY).

• Net debt to Pro Forma Adjusted EBITDA improved to 2.54x from 2.99x year-over-year.

Outlook and guidance

• FAST and retail media segments expected to grow by 40% in 2025, with strong momentum projected for the next 3–5 years.

• Retail media advertising and in-car entertainment remain key growth vectors, with new OEM launches and global partnerships expected in 2026–2027.

• Ongoing investment in technology, content, and international expansion to support long-term growth.

• Management expects cash from operations and available credit to be sufficient for foreseeable liquidity needs.