Bon matin. Good morning, everyone.

Thank you for joining us for Stingray's conference call for the first quarter of fiscal 2027 ended June 30, 2026. Today, Eric Boyko, President, CEO, and Co-Founder, as well as Marie-Hélène Fournier, Interim CFO, will be presenting Stingray's operational and financial highlights.

Our press release reporting Stingray's first quarter results was issued today before the market opened. Our press release, MD&A, and financial statements for the quarter are available on our investor website at stingray.com and on SEDAR+.

Today, the corporation also filed its 2026 annual report, including audited annual consolidated financial statements and MD&A for the year ended March 31, 2026. The 2026 annual report is available on SEDAR+ and on the Investor Relations section of Stingray's website.

I will now provide you with the customary caution that today's discussion of the corporation's performance and its future prospects may include forward-looking statements. The corporation's future operation and performance are subject to risk and uncertainties, and actual results may differ materially.

These risk and uncertainties include, but are not limited to, the risk factors identified in Stingray's Annual Information Form dated August 7, 2026, which is also available on SEDAR+. The corporation specifically disclaims any intention or obligation to update these forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required by applicable law.

Accordingly, you are advised not to place undue reliance on such forward-looking statements. Also, please be advised that some of the financial measures discussed over the course of this conference call are non-IFRS.

Refer to Stingray's MD&A for a complete definition and a reconciliation of such measures to IFRS financial measures. Finally, let me remind you that all amounts on this call are expressed in Canadian dollars unless otherwise indicated.

With that, let me turn the call over to Eric.

Okay. Good morning, Mathieu.

Good morning, everyone, and welcome to our first quarter results conference call for fiscal 2027. Stingray opened fiscal 2027 where it left off in 2026, only on a larger scale.

Driven by robust revenue contribution from TuneIn acquisition and FAST channels segment, we generated overall growth of 65.2% and organic growth of 27.5% year-over-year in the first quarter. The integration of TuneIn has been seamless, creating a spillover effect on our entire advertising business, with revenue synergies reaching a run rate of $45 million 9 months post-transaction.

On the FAST channel side, Stingray's premium ad network continued to outperform, with revenue rising nearly 70% in the first quarter, driven by our reselling of TV manufacturers' unsold inventory, including audio ads for some of our major OEM partners. Our unique ability to sell ads both on-platform and off-platform places Stingray in a strong competitive position, as we have demonstrated to our partners that we can help them enhance monetization of their FAST channels.

Looking ahead, we remain confident that our TuneIn and FAST channels business will contribute to another year of double-digit organic revenue growth in 2027. That said, the margin of these strategic assets are modestly lower than our corporate average, which is why we are maintaining our optimistic outlook for the adjusted EBITDA margin for fiscal 2027.

In terms of retail media, we are excited about the opportunity to bring programmatic advertising capabilities to our in-store business. We are actively working to enable a market solution for a new audience-based multiplier model, where one ad reaches a broader audience than one-on-one basis.

We see this evolution in our business model as a key catalyst for Stingray, and we expect to make progress on this front during the current fiscal year. Finally, our in-car entertainment segment continued to gain traction.

Building on the earlier Nissan partnership announcement last Friday last February, we continued deploying new features to our cars, in-car karaoke, and audio services, and to increase our footprint with existing car manufacturers. We remain optimistic, including new partnership in the coming months.

Altogether, broadcast and commercial music, or streaming division, revenues more than doubled to $126 million in the first quarter of 2027, mainly due to higher advertising revenues from the TuneIn acquisition and greater FAST channel sales. Radio revenues, which were adversely affected by reduced betting and government ads year-over-year in Q1, declined 6.5% to $32 million in the first quarter, but has shown great signs of recovery early in the second quarter.

We expect radio sales to improve in the second quarter, and we're pacing to be above to be above 5%. Before handing the call over to Marie-Hélène for her financial review of the quarter, I would like to say a few words about our capital allocation and our leverage ratio.

Some analysts will notice that our net debt EBITDA to pro forma adjusted EBITDA increased to 2.5 times in Q1 2027, but this is largely due because we make a strategic decision to repurchase 1 million shares from from la Caisse de dépôt for $15.5 million, the acquisition of Radio One and Westfort, and because of customary timing difference in collection of advertising revenues. The share buyback the share buyback will likely push our target of bringing our leverage ratio under 2.0 by the end of fiscal 2027 instead of the year-end calendar of 2026.

Nevertheless, we believe it is directly aligned with our commitment to actively manage Stingray's capital assets and maximize value for shareholders. In closing, our balance sheet remains healthy, providing us with the flexibility to invest in organic growth and pursue strategic acquisitions.

With this, I will now call call over to Marie-Hélène for her financial review.

Merci, Eric. Good morning, everyone.

Bonjour, tout le monde. Before reviewing our first quarter results, I am pleased to share that this morning Stingray filed its 2026 annual report.

The audited results are consistent with the preliminary figures previously reported, except for a $13.8 million reclassification related to the gross/net presentation of advertising revenues, namely arising from the TuneIn acquisition. This reclassification had no impact on adjusted EBITDA, net income, or cash flows, but resulted in a favorable improvement to our adjusted EBITDA margin from 30.8% to 34.3%.

No other material changes or restatements were made to the previously disclosed figures. We are glad to have this chapter behind us and to move forward.

Turning now to our first quarter 2027 results. Revenues reached $158 million in the first quarter of fiscal 2027, up 65.2% from $95.6 million in Q1 2026.

The year-over-year growth was mainly driven by higher advertising revenues from the recent TuneIn acquisition, along with greater FAST channel sales. Revenues in Canada decreased 1.7% to $48.7 million in the first quarter 2027.

The year-over-year decline can be attributed to lower radio revenues. Revenues in the US grew 180% to $98.4 million in Q1 '27, primarily due to higher advertising revenues from the TuneIn acquisition, improved FAST channel sales, as well as increased equipment and installation sales related to digital signage and the acquisition of Singing Machine.

Revenues in other countries remained stable at $10.9 million in the most recent quarter, with greater FAST channel sales largely offset by a decline in subscription revenues. Looking at our performance by business segment, broadcasting and commercial music revenues increased 105.2% to $126 million in the first quarter of 2027.

The growth mainly reflects higher advertising revenues from the TuneIn acquisition, greater FAST channel sales, as well as increased equipment and installation sales related to digital signage. For their part, radio revenues decreased 6.5% to $32 million in Q1 2027, largely due to lower local and national airtime revenues, and partially offset by increased digital sales.

In terms of profitability, consolidated adjusted EBITDA improved 49.3% to $50.3 million in the first quarter of 2027. Adjusted EBITDA margin reached 31.8% in Q1, compared to 35.2% in the same period last year.

The increase in adjusted EBITDA can be attributed to the TuneIn acquisition. The decline in adjusted EBITDA margin was largely due to lower gross margin on sales related to TuneIn and Singing Machine, combined with shifts in product mix.

By business segment, broadcasting and commercial music adjusted EBITDA grew 75.7% to $42.9 million in Q1, primarily driven by the TuneIn acquisition. Adjusted EBITDA for our radio business dropped by 15% year-over-year to $9.4 million in the first quarter of 2027.

The decrease was mainly due to lower revenues, along with changes in sales mix impacting gross margin. In terms of corporate adjusted EBITDA, it amounted to a negative $2.1 million in the first quarter, compared to a negative $1.8 million in the same period of last year.

Stingray reported net income of $6.6 million, or $0.10 per diluted share, in the first quarter of 2027, compared to $16.8 million, or $0.24 per diluted share, in Q1 2026. The year-over-year decline was primarily due to higher acquisition costs, increased amortization of intangible assets, and unrealized loss on the fair value of derivative financial instruments in the most recent quarter, compared to a gain in the prior-year quarter.

These factors were partially offset by improved operating results. Adjusted net income totaled $27.9 million, or $0.40 per diluted share, in Q1 2027, compared to $21.3 million, or $0.31 per diluted share, in the same period in 2026.

The increase was due to higher operating results, partially offset by unfavorable variations in foreign exchange and fair value of derivative financial instruments, as well as greater interest expense. Turning to liquidity and capital resources, cash flow from operating activities amounted to $4.8 million in Q1 2027, compared to $19 million last year.

The decline was mainly due to higher negative change in non-cash operating items related to the timing of accounts receivable collection in advertising, and greater acquisition costs. These factors were partially offset by improved operating results.

Adjusted free cash flow totaled $32.5 million in the first quarter of 2027, compared to $18.8 million in the same period of last year. The improvement can be attributed to enhanced operating results, and partially offset by higher interest paid.

From a balance sheet standpoint, Stingray had cash and cash equivalents of $21.9 million at the end of the first quarter, and credit facilities of $569.5 million. Net debt at the end of the first quarter of 2027 totaled $547.6 million, compared to $524.1 million in Q4 2026.

As a result, our leverage ratio increased to 2.53 times in Q1 2027. The increase in net debt primarily reflects the repurchase of 1.1 million shares during the quarter for $17.1 million, the settlement of long-term incentive compensation earned by our team in fiscal 2026, the Radio One and Westfort acquisitions, and a timing difference in the collection of advertising revenues.

This ends my presentation. I will now turn the call over to Eric.

Okay. This concludes our prepared remarks.

At this point, Marie-Hélène and I will be pleased to answer your question. Thank you.

Hi there. It's Sam Schmidt on for Stephanie Price.

I wanted to ask around the Q4 revenue restatement. How should we think about the revenue growth rate at TuneIn going forward and the gross versus net accounting?

Does this impact the TuneIn revenue synergies target? No,

no. This revenue recognition is with the new rules and the new accounting rules and the fact that we're doing this programmatic sales, which are instant sales, are very complex.

It was only impact for last year. We don't see any impact for this year, no impact for TuneIn revenues.

It's really a reclass. It's a reclass that for us of $13 million on revenues of close to $500 million.

No impact on that.

That's helpful. Thank you.

Then could we also get an update on the run rate cost synergies with TuneIn? I believe last quarter they were tracking at around $12 million.

Are you still comfortable with the adjusted EBITDA synergy target that you've discussed in the past? Then I'll pass the line.

Thank you.

Right now in terms of cost synergies, they're pretty much the same than last quarter. We haven't moved it.

For us, the most important number is the positive synergies. The fact that we hit $45 million this quarter and we see that number growing month by month, we're easily going to beat our target that we set ourselves for March '27.

We told the market $20 to $40 million US. Right now we're sitting close to $35 US, but we'll easily beat the $40 million over the next few quarters because the synergies are growing on a daily basis on the positive synergy side.

That's helpful. Thank you.

Thanks a lot. Good morning.

Maybe just building on Stephanie's first question, just to be very clear, Eric, we are not to extrapolate $13.8 million times four in the context of reducing F '27 current consensus estimates, let's say, right? Those still hold?

Okay.

Yes, please. Absolutely.

Like I said, it's all about gross and net and it's all about programmatic sales and how the contract's written. It's a lot of detail.

Now as we have the auditors of the auditors, you have the CPAB that audits the accounting firms. As accounting is getting complex.

The second point of clarification is just on the margin. I don't think you mentioned a specific margin number, but you have talked previously, I think, even going back to the prior call of trying to get to around 35% for F '27.

Is that still the target?

Our target is still to go there. The three things right now that affected us in this quarter, our gross margin on what we call the backfill.

Our gross profit is low, while working sales increasing fast, we're adjusting every day, and that we're getting better margin on the backfill. The backfill is now huge.

We are doing, Adam, 200 $200,100 a day USD. Our run rate is $100 million that we are selling on VIZIO, LG, and Samsung's platform.

Last year, we didn't even do $20 million, so that's where we're getting a lot of our growth. The margin on that product, because we're selling gross and a rev share, is lower right now, and we're getting better at it every day.

The second thing that affected this quarter is Singing Machine. Singing Machine we don't ship in Q1.

We had negative EBITDA, and then we'll have a positive EBITDA in Q2. That makes a big switch.

For sure the Singing Machine, because we sell to retailers, it affects our margin for this quarter.

No, that's helpful. I think going back to the prior quarter, you talked about trying to infuse some of the TuneIn programmatic advertising capabilities across the platform.

You were starting, of course, with initial traction around FAST, and then, ultimately, I think over the next 6 to 12 months, you're looking to do stuff within retail media and even the traditional radio business. Is that still tracking on plan?

Anything you can share on those coming initiatives?

The first initiative that we're still the only one in the world to do, we're the only company in the world that's doing audio ads on a CTV. Instead of having a video ad, you get a still image and you get an audio ad.

That really opens up the inventory that we can sell. Now we had one platform that agreed to it, and right now in Q2, we already have our top three platforms agreeing to do audio ads.

That's a really unique because we're the only one selling that product, there's no competition. We're not bidding anybody else like we are in a video space.

Very happy about that. Also what's exciting is in June, our programmatic sales TuneIn and Stingray together, we hit a high of $550,000 a day.

You do a run rate of that, that's $260 million a year. We're really doing well.

The last part for the next few months that is exciting, we have new platforms coming on board that we can do backfill, the platforms that have agreed to do audio ads, very exciting for us. The third thing that's most exciting, we're learning this with the advertising market, but the football season is starting, college football mid-August, then note the NFL is starting.

With the football season, the sports season, everybody in our space, everybody that works in programmatic sales, we expect to have August, September, October, and hit the record in November with the US Thanksgiving. We see the next two quarters very strong because we finish Q1 so strong in June, it gives you a good momentum for the next six months.

For us to achieve 27% organic sales is pretty incredible. We're confident with the margin also will be improving.

We are very very a good momentum for Q2 and Q3 right now.

Thanks, Eric. I'll hop back in queue again.

Appreciate it.

Thank you, Adam.

Oh, hi. A couple of questions.

Just a clarification on that 27.5% organic growth. Is that a pro forma number or is that what you did last year and then you add in the TuneIn revenue?

No, no. It's really adding our revenue last year plus TuneIn's revenue, and then the organic growth is on top of that.

It seems like it's a pro forma number. Then so you talked about selling inventory for some OEM partners.

Can you tell us which OEM partners you were representing in the quarter?

For us, we've always stated that we are partners with about maybe 25 OEM platforms on the TV side here. The top three that we work with in the US, and it's public information, the top three in the US is VIZIO, it's LG, and it's Samsung.

Our goal for us is to do more backfill with them, sell more audio ads, and be better partners. We're very excited.

Most of our programmatic sales still come from the US right now. Europe is starting, Latin America is starting, Canada is doing well, but most of it is from the USA.

Okay. When you look at the backfill or the premium ad network, is the revenue growing because you're just representing more inventory or you're just getting better sell-through rate, or is it both?

It's all the above. VIZIO right now is selling a million new TVs a month, they'll be adding 12 million TVs.

For sure the TV manufacturers are selling new models and the TV only lasts 4 years, it's a much difference than selling cars. Then after that, we're getting much better at selling more ads, which at the end makes our partners more money.

We become a big customer of them because we generate a lot of revenues. Then after that, these partners, because we're doing well, are giving us more inventory, and most importantly, they're giving us guaranteed inventory.

It's really a virtual circle of positive. That's why the premium ad network, we were doing $25,000 a day in Q4, and then after that we grew from $25,000 a day to $200,000 a day.

You can see the growth. We don't know right now, we can't predict where is that going to stop, but now the momentum is very strong in Q2 and in Q3, and we'll be happy in November to update you of how we're doing on those sales on our CTV partners.

Then lastly, maybe you could give us a read on just the FAST advertising market, because we've talked to some other players in the FAST business and they say the market's kind of tough. Clearly you're outperforming the market.

Maybe you could just give us an update on just the general market for FAST advertising. Now,

like I said, in our case, because we're having access to more inventory and also because we are the only ones selling the audio ads, the audio ads has been a great success. We're taking really the synergies.

TuneIn is probably the best audio ad seller in terms of programmatic, and now we're telling our customers, you can also have an ad on a connected TV. I think that in our case, as we mentioned, the FAST channel this quarter grew by 70%.

This quarter we didn't do plus 20%, we did 70% more. We're really in a strong momentum with the FAST channels.

Right now we are on the opposite side because we're getting so much more access.

Thank you.

Thank you, David.

Thanks very much. Morning.

First on the revenue recognition, Eric and Marie-Hélène, I absolutely understand the complexity of these contracts and accounting. Just wondering from quarter to quarter is the way you recognize revenue evolving that significantly, or is it more steady-state and what we see is just kind of the relative buckets of revenues and how that mix evolves, just trying to better understand what's moving here and what is kind of predictable from our perspective?

In terms of the consensus revenue that you have for the market, we are very comfortable for the revenue and the EBITDA for this year. Our budget and our forecast is well aligned with yours and we're very comfortable and even for FY 2028.

Right now based on the numbers we're getting, if you do the trend, we'll be in an incredible position. On that, a lot of it had to do with what contracts, Drew, that were written in 2015, 2018.

You read the contract, is it net, is it gross? Right now what we're doing is just re-establishing all our contracts to make sure every contract is clear.

All the new contracts with all of our customers are clear. It's more on that side, no impact on your revenue guidance or target for 2027.

Okay. No, that's helpful, Eric.

Thank you. Second on the audience-based multiplier model within retail media, can you just flesh that out for us, just how it works and yeah?

Our venture in retail media, and we're not the only ones, I can know all of our peers, Mood Media, other companies in Australia, other companies in Europe, other radio stations, a lot of radio stations want to be able to sell programmatic ads because the trend is going that way. I would say that we're working hard with a lot of our suppliers and with TuneIn to put that in place.

We estimate we have anywhere from $300 to $400 million of inventory on the retail media side. Now good news is all retailers maybe 2 years ago they weren't too warm to non-endemic, meaning selling ads that they not have in the stores, but I think now they're realizing that they're retailer, they're media, they're really media.

Now they're letting us sell audio ads about cars, ads about other retailers, like for example, Subway is doing ads in Dollarama. Now they're accepting to have a real media.

That's why we're excited, and I think the multiplier in the next two quarters we should have a solution for that, and that will open up a lot of doors because we'll be able to open up that market to the programmatic ads people and sell that to the agencies. I think for us that will be really a catalyst for that unit.

Understood. Thanks for that.

The last one on the M&A environment, can you just remind us there what that environment pipeline looks like from your perspective and just more broadly where your focus would be on M&A?

Very good. Still a lot of companies that are looking to sell, and lots of transaction.

Right now our first step is we joke with the team, "Oh, we caught an elephant. Now we got a mammoth."

We have a lot more synergies, positive synergies to get with TuneIn. Every week, every morning we do 9:00 AM synergy call on positive cells.

Let's say we have a lot of food and muffins on the table that we can eat right now before looking at more targets. We're excited about continuing and having a great Q2, Q3 and really bringing exciting new synergies with the TuneIn acquisition.

All right, that's great. Thank you.

All right, Drew.

Oui, bonjour tout le monde. Thanks for taking my questions.

First one is on the margins. You said you're very comfortable with consensus on EBITDA and revenue, but there's a bit of a shift in the profile in margins as we're seeing.

It's very good to see the absolute EBITDA growth, but if you can maybe help us on the margin profile you're expecting going forward to go with your double-digit organic growth expectation. Thanks.

Again this quarter we're getting better. Our sales on backfill went from $50,000 a day in April and now we're doing $200,000 a day.

Don't forget we buy the inventory from VIZIO or LG and we resell it. If we buy at $5 and we resell at $8, then our margin is at 28%.

Our goal is really we're getting better and better every day to increase that gross profit margin. Sales are expanding quickly, we're adjusting.

That's one thing that we're improving on a daily basis and that's why every quarter we're going to see the gross margin, but our EBITDA margin growing I think Q2, Q3. Also big impact this quarter where we had negative EBITDA with Singing Machine, and now Singing Machine will be shipping in Q2, Q3, and that's also a big impact.

What we'll be able to do, I think we'll be able to share with the analysts the impact of Singing Machine and the gross margin on the backfill. We're getting back towards 35% very quickly in the next few quarters.

That's great. Thanks.

Second one I had is on the retail media. You're pointing it out in the press release this morning.

You're saying that the ads reach a broader audience rather than a one-to-one basis. If you can maybe explain what that means exactly, and if you can provide a timeline on meeting those objectives.

Thank you.

The issue we have with retail media with audio, the issue the radio team has, we would love to sell programmatic ads. All radio station around the world, and in the same situation than SiriusXM, is the programmatic ads market right now is seen as a one-to-one.

You sell one audio ad or one video ad and you expect one person in front of the TV. The market understands that.

Now what we're establishing is a new product that would say when you're in a retail store, there's not one person listening to our ad, there's already 50. I think we're getting very close with a lot of our advertising partners to be able to accept that multiplier and be able to sell the product that way.

We're also working closely with the same multiplier for the radio division. I think it's very encouraging and that will really be a catalyst to increase our sales.

Just to clarify on this, does that mean when you sell an ad in a grocery store, the contract or the pricing works as if there were only one person in the store?

No, if not the model doesn't work. The model doesn't work.

The model only works if you get a multiplier in the store. If not, if we do that,

that's

why we don't do programmatic sales. Right now we don't do programmatic sales.

Don't forget, Jérôme, we were the first company to do an audio ad on CTV. That just shows you how quickly we've been able technology-wise to do that transfer.

Most important is to tell our partners, our CTV partners, that we have audio demand. With the first one seeing the results, we could share with the other partners.

I can confirm that all three partners, LG, Samsung, and VIZIO, will be taking audio ads, and that's going to be a great growth also for the next few quarters and few years.

Awesome. Merci beaucoup.

Merci, Jérôme.

All right. On behalf of the entire Stingray team, thank you for joining us on this conference call.

We look forward to speaking with you again following the release for second quarter results in fiscal '27. Again, always appreciate all the analysts to make themselves available and be there for us.

Thank you for your hard work and thank you for all your reports, and we love reading them. Alors, merci tout le monde.

Bonne journée.