Stingray Group (RAY-A) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 saw strong execution with double-digit organic growth for a second consecutive year, driven by digital, advertising, and streaming segments, and significant expansion in FAST channel and retail media advertising revenues.

• Strategic investments in FAST channels, new channel launches, and a premium ad inventory network positioned the company as a global leader in musical and ambient channels for connected TVs and in-car entertainment.

• Net income rebounded to $7.7M in Q4 and $36.4M for FY2025, reversing prior year losses driven by a one-time impairment charge.

• Continued focus on high-margin, recurring revenue streams, disciplined capital allocation, and global partnerships.

Financial highlights

• Q4 2025 revenues reached $96.0M, up 14.8% year-over-year; full-year revenues rose 12.0% to $386.9M, driven by FAST channel growth and positive FX impact.

• Broadcasting and commercial music revenues rose 20.9% to $64.6M in Q4 2025; radio revenues improved 3.9% to $31.4M.

• Adjusted EBITDA increased 19.0% in Q4 to $35.0M and 13.0% for the year to $142.2M; Q4 margin was 36.5%.

• Net income was $7.7M in Q4 2025, compared to a net loss of $46.3M in Q4 2024, mainly due to a prior year goodwill impairment.

• Adjusted net income totaled $18.6M in Q4 2025, up 20.7%; full-year adjusted net income was $72.7M, up 20.5%.

Outlook and guidance

• Plans to sustain momentum by reinvesting in high-growth areas, lowering net debt leverage below 2x EBITDA, and pursuing opportunistic EBITDA-accretive acquisitions.

• FAST channel and retail media ad revenues are projected to grow above 40% in Q1 2026, with potential to double FAST channel revenues in fiscal 2026 due to programmatic backfilling.

• Retail media expected to deliver low double-digit growth in fiscal 2026, with ongoing efforts to enhance data-driven sales and ROI for advertisers.

• CapEx for fiscal 2026 anticipated to be similar to fiscal 2025, around $15M.

• Continued investment in technology, content, and global partnerships to support organic and acquisitive growth.