Stingray Group (RAY-A) Q3 2026 earnings summary

Executive summary

• Q3 2026 revenues rose 15.4% year-over-year to $124.8 million, driven by the TuneIn acquisition, FAST channel growth, and expanded in-car entertainment partnerships.

• Adjusted EBITDA reached $44.5 million, up 5.7% year-over-year, with record adjusted free cash flow of $34.8 million.

• Net income for Q3 2026 was $7.5 million, down 52.2% year-over-year due to higher share-based and acquisition-related expenses, while adjusted net income rose 12.2% to $26.3 million.

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

• Strategic partnerships with BYD, Mercedes-Benz, and Nissan expanded the in-car entertainment footprint globally.

Financial highlights

• Q3 2026 revenues: $124.8M (+15.4% YoY); year-to-date: $333.7M (+14.7%).

• Adjusted EBITDA: $44.5M (+5.7% YoY); margin 35.7%, down from 38.9% due to lower gross margins on acquisitions.

• Net income: $7.5M ($0.11/share), down from $15.7M ($0.23) in Q3 2025; adjusted net income: $26.3M ($0.38/share), up from $23.4M ($0.34).

• Adjusted free cash flow: $34.8M ($0.50/share), up from $28.6M ($0.42/share); cash flow from operations: $38.0M (+7.4% YoY).

• Net debt: $502.3M; net debt to pro forma adjusted EBITDA: 2.49x.

Outlook and guidance

• Focus on reducing leverage below 2x EBITDA by year-end through debt reduction and EBITDA growth.

• Management expects continued momentum from acquisitions, FAST channel expansion, and automotive partnerships.

• 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.

• Sufficient liquidity is anticipated from operations and available credit to meet foreseeable needs.