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Stingray stock keeps singing with a 3rd year of growth
Stingray Group (TSX:RAY) released its financial results for Q4 and fiscal year ended March 31, 2025, highlighted by strong organic growth, improved profitability, and share repurchases
In Q4 Stingray posted a 14.8 per cent year-over-year increase in revenues, reaching C$96.0 million, up from C$83.7 million in the same period last year
This growth was driven by a 16.1 per cent organic increase in broadcast and recurring commercial music revenues
Stingray stock (TSX:RAY) opened trading at C$9.70
Stingray Group (TSX:RAY) released its financial results for Q4 and fiscal year ended March 31, 2025, highlighted by strong organic growth, improved profitability, and share repurchases.
In the fourth quarter, Stingray posted a 14.8 per cent year-over-year increase in revenues, reaching C$96.0 million, up from C$83.7 million in the same period last year. This growth was driven by a 16.1 per cent organic increase in broadcast and recurring commercial music revenues.
The company reported a net income of C$7.7 million, or $0.11 per share, a significant turnaround from a net loss of C$46.3 million, or $0.67 per share, in Q4 2024. Adjusted EBITDA rose 19.0 per cent to C$35.0 million, with broadcasting and commercial music contributing C$28.1 million (43.6 per cent margin), Radio C$8.6 million (27.3 per cent margin), and corporate operations posting a loss of C$1.7 million.
Adjusted net income for the quarter improved to C$18.6 million, or $0.27 per share, compared to C$15.4 million, or $0.22 per share, a year earlier. While cash flow from operating activities declined 10.3 per cent to C$39.7 million, adjusted free cash flow rose 17.8 per cent to C$18.4 million.
Stingray also reduced its net debt to Pro Forma Adjusted EBITDA ratio to 2.28x, down from 2.76x, and repurchased 275,000 shares for C$2.3 million during the quarter. Full-year performance
For the full fiscal year 2025, Stingray reported revenues of C$386.9 million, a 12.0 per cent increase from C$345.4 million in 2024. Organic growth in broadcast and recurring commercial music revenues reached 12.3 per cent.
Net income for the year totalled C$36.4 million, or $0.53 per share, reversing a net loss of C$13.7 million, or $0.20 per share, in 2024. Adjusted EBITDA rose 13.0 per cent to C$142.2 million, with Broadcasting and Commercial Music contributing C$107.6 million (42.3 per cent margin), Radio C$42.1 million (31.8 per cent margin), and corporate operations showing a loss of C$7.5 million.
Adjusted net income climbed to C$72.7 million, or C$1.05 per share, from C$60.3 million, or $0.87 per share, in the prior year. Although cash flow from operations declined 11.4 per cent to C$105.0 million, adjusted free cash flow increased 3.5 per cent to C$83.6 million.
The company also ramped up its share buyback program, repurchasing and cancelling 1,186,800 shares for C$9.1 million in fiscal 2025, compared to 557,500 shares for C$2.9 million in 2024. Notes from the lead
'Fiscal 2025 was a highly successful year that checked many boxes in our profitable growth strategy. First, advertising revenues for our Broadcast and Recurring Commercial Music segment, which comprises our FAST channel and retail media advertising units, increased by more than 45 per cent for a second consecutive year as advertisers increasingly relied on connected TVs to maximize their advertising dollars,' co-founder, president and CEO Eric Boyko stated in a media release. 'Accordingly, we invested in our FAST channel platform in 2025, including the recent launch of channels like Cozy Café, Movie Music, Stargaze and Cityscapes, to position Stingray as the No. 1 supplier of musical and ambient channels for connected TVs. To take advantage of growing listening hours on FAST channels worldwide, we also introduced Stingray's Premium Connected TV Ad Inventory Network to enable alternative vendors to sell unsold inventory.'
Stingray Group Inc. is a leading global music, media and technology company.
Stingray stock (TSX:RAY) opened more than 8 per cent higher on Wednesday at C$9.70 and has risen 25 per cent since the beginning of the year and is up 23 per cent since June 2024.
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