Stingray Group Inc.

Revenues reached $158 million in Q1 fiscal 2027, up 65.2% from $95.6 million in Q1 2026. Adjusted EBITDA improved 49.3% to $50.3 million, while adjusted EBITDA margin was 31.8% versus 35.2% a year ago. Reported net income was $6.6 million, or $0.10 per diluted share, compared with $16.8 million, or $0.24 per diluted share, in Q1 2026. Adjusted net income was $27.9 million, or $0.40 per diluted share, versus $21.3 million, or $0.31 per diluted share, last year. Cash flow from operating activities was $4.8 million versus $19 million, and adjusted free cash flow was $32.5 million versus $18.8 million. End-of-quarter cash and cash equivalents were $21.9 million, net debt was $547.6 million, and leverage was 2.53x. Management said it remains comfortable with revenue and EBITDA expectations for FY2027 and reiterated a goal of getting leverage below 2.0x by the end of fiscal 2027.

Eric Boyko framed Q1 as a continuation of Stingray’s growth story at a larger scale, led by TuneIn and FAST channels. He highlighted seamless integration, saying revenue synergies are running at $45 million and that the company is seeing strong momentum in programmatic audio and CTV, including audio ads on Vizio, LG and Samsung. His tone was upbeat and confident, with repeated emphasis that the next two quarters should be strong and that the company is comfortable with revenue and EBITDA expectations.

Marie-Helene Fournier walked through the quarter’s financials, including revenue of $158 million, adjusted EBITDA of $50.3 million, adjusted EBITDA margin of 31.8%, net income of $6.6 million, and adjusted free cash flow of $32.5 million. She noted the audited annual report included a $13.8 million reclassification tied to gross/net advertising presentation, with no impact on adjusted EBITDA, net income, or cash flow, but a favorable margin presentation change. She also pointed out cash of $21.9 million, credit facilities of $569.5 million, net debt of $547.6 million, and leverage of 2.53x, with the increase driven by share repurchases, incentive payouts, acquisitions, and timing of ad collections.

Analysts focused heavily on the $13.8 million revenue reclassification, asking whether it should be extrapolated into FY2027; management said it was a one-time accounting reclass related to programmatic gross/net treatment and would not affect this year’s revenue or TuneIn guidance. Questions also centered on margins, with management saying the company still targets around 35% for FY2027 and expects improvement as backfill economics get better and Singing Machine returns to shipping in Q2/Q3. Analysts pressed on retail media and FAST market conditions, and management said it is working on a multiplier model for in-store audio and expects that to become a catalyst, while also saying the FAST business is outperforming the market due to unique audio-ad inventory and broader platform access.