Stingray's Third Quarter Results: A Symphony of Growth and Expansion

As an investor, I've always been drawn to companies that can harmonize their operations and create a symphony of growth. Stingray Group Inc. (TSX: RAY.A; RAY.B), an industry leader in music and video content distribution, business services, and advertising solutions, has just released its third quarter results for fiscal 2025, and the performance is nothing short of a masterpiece.



Stingray's revenues increased by a remarkable 7.9% to $108.2 million in the third quarter of 2025, compared to $100.3 million in the same period last year. This growth was driven by a 3.5% year-over-year increase in Broadcast and Recurring Commercial Music Revenues, largely thanks to the company's FAST channel sales. Adjusted EBITDA also improved by 9.0% to $42.1 million, reflecting the company's strong operational efficiency.



Stingray's President, co-founder, and CEO Eric Boyko, shared his enthusiasm about the company's performance: "We continued to outperform Street expectations in the third quarter of fiscal 2025 with record adjusted EBITDA of $42.1 million on unprecedented revenues of $108.2 million. These outstanding financial results were mainly driven by ongoing strength in our FAST channel business, which has benefited from a pilot project with TV manufacturer VIZIO."

Stingray's focus on FAST channel sales has been a significant driver of its growth. The company's ability to leverage its expertise in personal care electrical appliance industry and promote consumer lifestyles has allowed it to drive the awareness of personal grooming and expand its reach. By optimizing pricing on measurable data, adding sales staff and channels to improve the sell-out rate of its current inventory, maximizing the number of ads per hour for retailers, and expanding its footprint, Stingray is poised for continued success in the FAST channel segment.



In addition to its FAST channel business, Stingray has also seen improved Radio revenues, with robust FAST channel revenue contributions, higher equipment and installation sales related to digital signage, and overall improvement in its Radio revenues. To maintain this momentum, the company plans to enhance the monetization of its audio retail media network, deploy in-store video advertising, and expand its in-car entertainment offerings.

Stingray's strategy to enhance the monetization of its audio retail media network and expand its footprint is a key growth vector for the company. By optimizing pricing, improving inventory management, and expanding its reach through in-store video advertising and in-car entertainment, Stingray is well-positioned to continue its impressive growth trajectory.

As an investor, I'm bullish on Stingray's prospects. The company's ability to harmonize its operations and create a symphony of growth, driven by its focus on FAST channel sales and strategic initiatives, makes it an attractive investment opportunity. With a strong balance sheet and a commitment to innovation, Stingray is poised to continue its impressive performance and create value for its shareholders.