Canada's Stingray Q1 revenue beats estimates but margins weigh on profit

Stingray

10/08/2026 11:41

Overview
Canada streaming media firm's fiscal Q1 revenue rose 65% yr/yr, beating analyst expectations
Adjusted EPS for fiscal Q1 missed analyst expectations
Company repurchased and cancelled 1.1 mln shares for C$17.1 mln in fiscal Q1

Outlook
Stingray confident that TuneIn and FAST channel will contribute to double-digit organic revenue growth for fiscal 2027
Stingray says TuneIn, FAST margins are modestly lower than avg, hence it is maintaining its optimistic outlook for adjusted EBITDA margin for the fiscal year
Company expects radio sales to remain relatively stable in fiscal 2027
Stingray aims to reduce net debt to Pro Forma Adjusted EBITDA ratio to about 2.0x by year-end

Result Drivers
TUNEIN ACQUISITION - Higher advertising revenue from the TuneIn acquisition was a major driver of revenue growth
FAST CHANNEL SALES - Increased sales in the FAST channel segment contributed significantly to revenue growth
LOWER RADIO REVENUE - Radio revenues declined due to reduced local and national airtime, partially offset by digital sales
MARGIN PRESSURE - Adjusted EBITDA margin declined due to lower gross margins from TuneIn and The Singing Machine product offerings, and a shift in product mix

Company press release: ID:nGNX8BRptK

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
C$158 mln
C$149.60 mln (4 Analysts)
Q1 Adjusted EPS
Miss
C$0.40
C$0.47 (5 Analysts)
Q1 Adjusted Net Income
Beat
C$27.90 mln
C$25.74 mln (2 Analysts)
Q1 Net Income
 
C$6.60 mln
 
Q1 Adjusted EBITDA
Slight Miss*
C$50.30 mln
C$50.32 mln (5 Analysts)
Q1 Operating Cash Flow
 
C$4.80 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the broadcasting peer group is "buy"
Wall Street's median 12-month price target for Stingray Group Inc is C$21.00, about 36.4% above its August 7 closing price of C$15.40
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)