Stingray Group Inc. (TSX: RAY.A; RAY.B) Q4 2025 Earnings Call | 06/11/2025

14 days ago

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Key Highlights from the Q4 2025 Earnings Call:

Strong Fiscal Year 2025: Stingray reported a highly successful fiscal year 2025, driven by strong execution and achievement of key milestones in its profitable growth strategy.
Advertising Revenue Growth: Advertising revenues from broadcast and recurring commercial music increased by more than 45% for the second consecutive year, fueled by the growth of FAST channels and retail media.
Strategic Initiatives: The company invested in its FAST channels platform, launched the Stingray Premium Ad Inventory Network, and solidified its leadership in the in-store audio advertising market.
Double-Digit Organic Growth: Stingray achieved double-digit organic growth for the second straight year (12.3% in fiscal 2025), driven by strategic and operational frameworks.
Debt Reduction: Net debt was reduced by more than $27 million in fiscal 2025, bringing the net debt to pro forma adjusted EBITDA ratio to 2.28.
Revenue Growth: Revenues in the fourth quarter of 2025 increased 14.8% to $96 million, driven by higher FAST channel revenues and a positive foreign exchange impact.
Profitability: Consolidated adjusted EBITDA rose 19% to $35 million in the fourth quarter of 2025, with an adjusted EBITDA margin of 36.5%.
Net Income: Net income was $7.7 million, or $0.11 per share, in the fourth quarter of 2025, compared to a net loss in the same period last year.
Cash Flow: Cash flow from operating activities was $39.7 million, and adjusted free cash flow was $18.4 million in Q4 2025.
Capital Allocation: Priorities include reinvesting in high-growth areas, lowering net debt leverage ratio, seeking accretive acquisitions, and rewarding shareholders with dividends and share buybacks.

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Stingray Group Inc. (TSX: RAY.A; RAY.B) reported Q4 2025 results on June 11, 2025, with revenue rising 14.8% year-over-year to $96.0 million, driven by 16.1% organic growth in Broadcast and Recurring Commercial Music revenues and continued momentum in its FAST channel and retail media advertising units. Net income swung to a positive $7.7 million ($0.11 per share), compared to a net loss of $46.3 million (–$0.67) in Q4 2024, which had included a one-time impairment charge related to the Radio segment. Adjusted EBITDA grew 19.0% to $35.0 million, exceeding analyst estimates, and adjusted net income improved to $18.6 million ($0.27 per share). The company’s adjusted EBITDA margin rose to 36.5%, while adjusted free cash flow increased 17.8% to $18.4 million. Cash flow from operating activities was $39.7 million, down from $44.3 million a year ago, primarily due to higher taxes and acquisition costs. Stingray repurchased and cancelled 275,000 shares for $2.3 million in the quarter, further reducing its net debt to pro forma adjusted EBITDA ratio to 2.28x. For the full year, Stingray delivered 12.0% revenue growth to $386.9 million and net income of $36.4 million, reversing a net loss of $13.7 million in fiscal 2024. The company highlighted a second consecutive year of 45%+ advertising revenue growth in its FAST channel and retail media units, and continued investment in connected TV platforms. Management reaffirmed its leadership in in-store audio advertising and outlined ongoing efforts to expand its digital signage and connected TV ad inventory. Outlook: Continued focus on FAST channel expansion, retail media, and connected TV ad growth Ongoing investments in digital signage and in-store audio advertising Commitment to shareholder returns through buybacks and disciplined capital management #Stingray #RAYA #RAYB #EarningsCall #Q42025 #FASTChannels #MusicTech #RevenueGrowth #EBITDA #Investing #InsideTicker

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