Thank you. Bon matin.

Good morning, everyone, and thank you for joining us for Stingray's conference call for the third quarter of fiscal 2026 ended December 31, 2025. Today, Eric Boyko, President, CEO and Co-Founder, as well as Marie-Hélène Fournier, Interim Chief Financial Officer, will be presenting Stingray's operational and financial highlights.

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

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 risks and uncertainties include, but are not limited to, the risk factors identified in Stingray's Annual Information Form dated June 10, 2025, which is 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 complete definition and 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.

Merci, Mathieu. Good morning, everyone, and thank you for joining us for our third quarter fiscal '26 earnings call.

I want to begin the call with talking about the significant progress Stingray has made in positioning itself for long-term sustainable growth. We have built a unique and powerful position in the market, and I want to share with you the framework that will underpin our strategy.

Stingray is built on three pillars that work together to drive our growth: distribution, monetization, and content. Our first pillar: distribution.

Our purpose is simple: to be everywhere our listeners are. We have executed on this, and today Stingray is the most widely distributed streaming media company across the platforms that are now part of our daily lives.

We are the most widely distributed music player on connected TVs, smart speakers, mobile devices, connected cars, and thousands of retail stores. This massive footprint is our core strength.

We have built our services directly into the devices people use every day, making our content very easy to access. This gives us a powerful and lasting advantage that is difficult for anyone to replicate.

As of today, we estimate that we have over $200 million of FAST channels' unsold inventory and over $400 million of unsold retail media inventory. As you can see with our deals, we are quickly building our car inventory.

Our second pillar: monetization, and we like the word monetization. Having a massive audience is one thing; monetizing it effectively is another.

With the acquisition of TuneIn, we now have a world-class advertising engine to turn our reach into revenue. We have the technology, the ad stack, and the right demand-side partnerships to sell both audio and video ads across our entire network.

For advertisers, this is a game changer. They can now come to one place, Stingray, to connect with a global audience through their TVs, their speakers, their cars, and at retail.

This unified platform creates a predictable and highly scalable revenue stream for our businesses. We have distribution, we have the monetization engine, that brings me to our third and perhaps the most important pillar: content.

In terms of monetization, we feel that we will be achieving 500k a day of programmatic sales. A year ago, when we were talking at this time, our sales of programmatic was zero, and now our run rate is 500,000 a day, and 182 million US, 250 million Canadian.

When you talk about growth, going from zero to 250, that's a great new vector. Bon, content.

What is the fuel of our entire model and what truly sets us apart, while other streaming compete in the expensive, very expensive world of on-demand music, we have built a smarter model focused on curation. We create expertly crafted playlists, engaging karaoke experience, and world-class catalog of recorded concerts.

This strategy gives us something very powerful: unmatched and scalable unit economics. Our content costs do not grow at the same pace of our audience.

As we reach more listeners, our models become more profitable. We deliver premium experiences to hundreds of millions of users without the prohibitive costs that challenge others in industry.

It is smarter, more sustainable way to growth. This is the story of Stingray: a company with unmatched reach, a world-class advertising engine, and a unique content strategy.

We are building a scalable platform for the future of streaming. The results we are sharing today are a direct outcome of this focused strategy.

Let me now turn review to our third quarter fiscal 2026. Stingray announced exceptional third quarter results for fiscal '26, with revenues, and adjusted EBITDA, adjusted free cash flow reaching record levels.

On a consolidated basis, Stingray generated adjusted EBITDA of $44.5 million and adjusted free cash flow of $34.8 million on revenues of $124.8 million in the third quarter. This highlights the positive impact of its recent TuneIn acquisition and the continued expansion in the high-growth areas like FAST channels, in-car entertainment.

FAST channels partly drove our robust financial results as we leverage Stingray's premium ad network, what you call it, backfill, to monetize unsold inventory and benefit from new deployment across the LG platform. In addition, the integration of TuneIn has progressed even better than planned.

Following the closing of this transformative acquisition on December 19, TuneIn's performance has exceeded our expectation, creating powerful new synergies that are already reflected in our strong financial performance. Revenue synergies with TuneIn reach an annual run rate of $16 million in revenues and $5 million in cost savings.

As a reminder, we have established synergy goals for sales between 20 to $40 million of cross-selling and for cost saving between 10 to $15 million in the next 18 months or before March '27. We started the year, let's say, on a fast track.

On the in-car entertainment side, our recent agreement with world-class automotive brands like BYD, Mercedes, and Nissan are a powerful validation of our in-car entertainment strategy. By integrating our full suite of products, from Stingray Music and Karaoke to the rich content of TuneIn, we are cementing our role as an essential partner for the connected cars.

These new partnerships significantly expand our global footprint and accelerate our momentum. At BYD, we raise our partnership to new level through an OEM radio deal involving the integration of our full suite of products, including Stingray Music and TuneIn, under the BYD Audio by Stingray brand, Stingray Karaoke, and Calm Radio.

Turning to Mercedes, we will launch Stingray Music and Stingray Karaoke application in all vehicles equipped with the latest MBUX infotainment system. This application, which will be natively pre-installed in Mercedes cars, is expected to be released in the first half of calendar '26.

Just last week, we announced a collaboration with Nissan to bring a unique TuneIn offering to select Nissan and Infiniti vehicles in the United States. As a result, drivers will gain access to live sports, breaking news, curated music, millions of podcasts, and tens of thousands of radio stations on the latest Nissan infotainment system.

These partnerships do not only strengthen Stingray's global automotive presence, but also accelerate the rollout of branded in-vehicle audio experiences. Amid this flurry of activity, revenues for broadcasting and commercial music business grew by 22% to $88 million in the third quarter of '26, while radio revenues rose 2% to $36.7 million.

In terms of our radio business, we entered into the agreement to acquire the assets of CHUP-FM in late November to solidify our position in the Calgary market. More specifically, this deal will enable us to improve efficiency and achieve economies of scale, since we already own two other radio stations in the market.

Altogether, Stingray Radio owns and operates 32 radio licenses in Alberta and 96 radio stations across Canada. The transaction is subject to CRTC approval, which we expect to close in the second quarter of fiscal 2027.

Finally, I would like to reiterate the relative strength of our balance sheet post-acquisition. We are very happy to show that our leverage ratio is below 2.8 that we had told the market for the third quarter, and we ended December 31st at 2.49, a very good closing, very good cash flow for the company.

Looking ahead for the next 12 months, reducing our debt will be top of our capital allocation priorities, with a target set to drop below two times EBITDA by the end of calendar year, by the end of December. A very quick deleverage of this acquisition.

Consequently, we believe Stingray's path to value creation will be marked by accelerated EBITDA growth and free cash flow generation in upcoming quarters. I will now turn the call over to Marie-Hélène for a financial overview of the quarter, and then we will be pleased to ask questions.

Merci, Marie.

Bon matin. Good morning, everyone.

Thank you, Eric. Revenues reached $124.8 million in the third quarter of fiscal 2026, up 15.4% from $108.2 million in Q3 '25.

The year-over-year growth was mainly driven by enhanced advertising revenues from the recent TuneIn acquisition, higher equipment sales related to the acquisition of The Singing Machine, and greater FAST channel revenues. Revenues in Canada decreased 1.1% to $53.6 million in the third quarter.

The year-over-year decline can be attributed to lower equipment and installation sales related to digital signage, partially offset by higher radio revenues. Revenues in the US grew 42.5% to $60.3 million in Q3 '26, reflecting enhanced advertising revenues from the recent TuneIn acquisition, higher equipment sales related to The Singing Machine Company transaction.

Revenues in other countries decreased 6.7% to $10.9 million in the most recent quarter. The year-over-year decline was mainly due to lower subscription revenues, partially offset by greater FAST channel sales.

Looking at our performance by business segment, broadcasting and commercial music revenues increased 22% to $88.1 million in the third quarter of 2026. The growth was driven by enhanced advertising revenues from the recent TuneIn acquisition, higher equipment sales related to the acquisition of The Singing Machine, and greater FAST channel revenues.

For their part, radio revenues rose 2% to $36.7 million in Q3 on higher digital advertising sales, partially offset by lower airtime revenues. In terms of adjusted EBITDA, Stingray also reported record numbers.

Consolidated adjusted EBITDA improved 5.7% to $44.5 million in the third quarter. Adjusted EBITDA margin reached 35.7% in Q3, compared to 38.9% for the same period in 2025.

The increase in adjusted EBITDA was mainly driven by organic revenue growth, as well as the impact of the acquisitions. The decline in EBITDA margin, meanwhile, can be attributed to lower gross margin on sales related to the TuneIn and The Singing Machine acquisitions.

By business segment, broadcasting and commercial music adjusted EBITDA grew 4.6% to $33 million in the third quarter. Like consolidated adjusted EBITDA, the increase was due to organic revenue growth, as well as the impact of the acquisitions.

Adjusted EBITDA for our radio business improved 5.5% year-over-year to $13.2 million in the third quarter on the strength of higher revenues. In terms of corporate adjusted EBITDA, it amounted to -$1.7 million in the third quarter of '26, compared to -$2 million in the same period of 2025.

Stingray reported net income of $7.5 million, or 11 cents per diluted share, in the third quarter of '26, compared to $15.7 million, or 23 cents per diluted share, in Q3 '25. The year-over-year decline was mainly due to the higher performance and deferred share units expense related to an increase in the corporation share price, as well as greater acquisition, legal, restructuring, and other expenses.

These factors were partially offset by an unrealized gain on the fair value of derivative financial instruments and by a foreign exchange gain. Adjusted net income totaled $26.3 million, or 38 cents per diluted share, in Q3 2026, compared to $23.4 million, or 34 cents per diluted share, in the same period in 2025.

The increase can be attributed to a foreign exchange gain and higher operating results, partially offset by greater income tax expense. Turning to liquidity and capital resources, cash flow from operating activities amounted to a record $38 million in Q3 '26, compared to $35.4 million in Q3 2025.

The year-over-year improvement was mainly due to a foreign exchange and positive net change in non-cash operating items. These factors were partially offset by higher acquisition, legal, restructuring, and other expenses.

Similarly, adjusted free cash flow reached a peak level in the most recent quarter. Adjusted free cash flow totaled $34.8 million in Q3, compared to $28.6 million in the same period of '25.

The improvement can be attributed to higher operating results, combined with lower income taxes and interest paid. From a balance sheet standpoint, Stingray had cash and cash equivalents of $17.3 million at the end of the third quarter and credit facilities of $519.7 million.

Net debt at the end of the third quarter of '26 totaled $502.3 million, up $181.2 million from the end of Q2 2026, mainly due to outlays related to business acquisitions. As Eric mentioned earlier, our leverage ratio stood at 2.49 times at the end of the third quarter.

We intend to bring it down under two over the next few months or by the end of the calendar year, by diligently reducing our debt and generating higher adjusted EBITDA. Finally, we repurchased 303,800 shares for a total of $3.8 million during the third quarter under our NCIB program.

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

Marie. This concludes our prepared remarks.

I hope you liked my introduction. At this point, Marie-Hélène and I will be pleased to answer your questions.

Alors, back to you guys.

Hi there, it's Sam Schmidt on for Stephanie Price. Appreciate the disclosure around the run-rate TuneIn revenue synergy figures.

How are you thinking about the cross-selling opportunity from here, and what gets you to the top versus bottom end of that 20 to $40 million target? Thanks.

We started, it was very interesting, the deal wasn't even closed because we announced the deal, then we had two weeks to wait for the Competition Bureau, and I think three days later, we already had eight different vectors that TuneIn is already helping us sell. What are we selling?

They're helping us on CTV, helping us sell Calm Radio, they're helping us sell ads on Stingray Music, they're helping our radio team, which we sell TuneIn in Canada. The cross-synergies, we have over nine products.

We quickly achieved just in one month in January $16 million run rate. We said 20 to 40, but right now I'd say 20 to unlimited, because like I said before, a year ago, we were doing zero in programmatic sales, and we are very confident that by the end of this quarter, by the end of March, we will be running at 500k US of programmatic sales on all the different platforms, which is $182 million US, which is roughly 250 million Canadian.

The more we launch products, the more we launch cars, Again, we're talking about distribution. All will be not financed, all the models, advertising, and programmatic.

The beauty programmatic is it's a very deep lake, and the TuneIn team is a first-class, sophisticated ad tech machine, and I think this merger is a perfect merger on the cross-selling. I think the $20 million is just a starter, and very excited in June, in four months, to really give you our first quarter together.

Just give you a bit of feedback, TuneIn grew in January by 81%. A big start of the year, January, very happy about that.

Again, we have to be careful. It was a good quarter.

Last year was a bit weaker. There was the tariffs, and there was Trump, and the liberation day, won't go into that debate, but a very good start of the year, very happy.

Thank you. Just one more for me.

I wanted to ask around the cost synergies as well. Can you provide some color on those initiatives and how are you thinking about broadcast and commercial segment margins as you work through those cost synergies, and then I'll turn it over.

Very good. Right now we've only focused on COGS, cost of goods sold.

For example, cost of goods sold, music rights, Since we have more scale, we have better music rights, saving on insurance, saving on audit fees, saving on all these. We haven't even looked yet at the personal side.

Over time, there are duplication in certain positions, but right now we started the year so strong. The results are so strong on their side and our side, there's no big rush.

Very confident to achieve our 10 million plus of opex and COGS savings by year end, and I think we might just achieve it with the COGS. We have a lot of also synergies in terms of paying the Amazon fees and also ad service fees.

Very excited on, again, a great merger on both sales and cost savings, I would say it's a perfect marriage.

Thank you.

thanks a lot. Good morning.

Eric, just on the synergies, can we just confirm that these are in CAD, or are they actually in US, because I thought originally they were in CAD.

Oh, very good. We didn't realize, but we had told the markets last time when we did the deal that all these savings are in US dollars.

Thank you, Adam, for the question. We had told 20 to $40 million USD of positive sales and 10 to $15 million of opex savings.

Opex and COGS.

Yeah. Turning next, we're seeing obviously some of the top-line growth.

Can you speak a little bit about the possibility of margin expanding? Understandably, your mix has evolved with some lower-margin components that are putting a bit of pressure on the margin, but how do you see margins expanding going forward, above, let's say, a 35% level?

No, and we did a good sheet on different margins. For sure, examples, when we get money from a FAST channel partner like from LG or Vizio, that money in that case is recorded net, now I'm going into accounting.

When we do backfilling and when we do programmatic sales, let's say we sell a dollar, now we have to pay our partner, whatever the amount, 35, 40, 50 cents. The gross margin on both products are, one's at 95% gross profit, the other one's at 40, 45.

Very difficult to predict. The more we do backfilling and programmatic, it's not the same margin as getting net revenues.

I'm happy offline with Marie to give you more guidance on the gross margin and the EBITDA margin. There's an effect when we sell directly, we report the numbers gross.

I'm an accountant, don't want to go in too much details, because I'll get you bored. I do have brown socks today.

My point is simply that, do you see over the next, let's say, three to five years, an opportunity to scale a mid-30% margin towards 40 or something maybe slightly above the current level?

I think right now we're having globally at 35. The programmatic sales will grow so fast that a bit of the other products that we sell with ENL and with our friends at Singing Machine, I think we can expect the 35 to grow back again towards the 40%.

Okay. Just in terms of leverage, you've done a good job in the prior two years of significantly bringing down leverage, and I think you're already doing a pretty good job in terms of bringing leverage down after TuneIn.

What's the optimal target for you on the leverage front? Do you really want to be sub-two times?

Is 1.5, frankly, too low? What's the strategy here?

I think before a bit more aggressive entrepreneur, our range was 2.25 to 2.50. Now I'd say after what happened, the tariffs and COVID and all this stuff, we're getting older.

I think for Stingray, the second we get below two, you can start expecting capital allocation, which again, would be increasing the dividend, always looking at deals, but increasing the dividend or doing more share NCIB. I was reading your report this morning, Adam, and I think you're estimating $2.32, $2.40 of free cash flow per share.

If we do $2.40 of free cash flow per share and our dividend policy is 20 to 25%, then you should expect our dividend to be growing to 45 to 50 cents.

Great. Thanks a lot.

Appreciate it.

Thanks, Adam. Great report.

Thank you very much. We love 21.

Good morning, thanks for taking my question. I just wanted to go back to the sort of the synergies on TuneIn, Eric.

The way that you kind of laid it out, the fact that you already realized on a run-rate basis the five on cost, the 16 on revenue synergies, if I were to perhaps simplify and simply add that to the EBITDA at the point of acquisition, as you announced, is 30, we're really talking about a bump of little more than $50 million in US dollars, that is, by the way, in EBITDA for raised numbers as we look to kind of lay out our fiscal '27 more granular fashion. I just wanted to make sure I'm properly characterizing that.

Is that accurate?

Roughly, you can see the cross-synergies, depending if we sell third-party and all that, roughly 40% gross margin. You can add 40% to that.

I agree with you there. The cost synergies are coming in over the next few months.

I think those synergies will be fully coming in in our year-end 2027.

Okay. Understood.

For example, some of the cost synergies are happening in February, you're not going to get the full value. Starting April 1st, we will get full value of those synergies.

I think with Marie, we can give you more guidance of exactly when they come in and what timing. You're exactly right.

This deal with TuneIn, if it's at $50 million, like you say, was a very accretive deal that we did since we paid $150 million, excluding also the fact that we have all those incredible fantastic tax savings.

Exactly. Then on the same subject, but more qualitatively, can you just talk about now that you closed the transaction, how you're sort of synthesizing your efforts in the in-car side, because obviously they've had their sales efforts, you've had yours, how are you kind of thinking about harmonizing that?

Are you just letting that run parallel for now?

No, the day it happened, the next day we're one. When you think about it, what we do right now is every deal we have, there will be in every car.

The Nissan deal was a TuneIn deal, but with Nissan, we already added Stingray Music, and we'll be adding Karaoke. With BYD, we're adding TuneIn right away.

I must say, we used to play a game when we're with Kaz, we call corner the market, but I think in this one, TuneIn and Stingray for the car manufacturers, they're very excited about our offering, but they were each talking to both of us, one against each other. We were the only two companies offering a model that we said, we'll put music, we'll put TuneIn radio, and we'll do a rev share on advertising.

Our competitor, which is a known satellite company, are more in asking for a fixed price per car. Now that we merge both together, I'd say the car manufacturers are very excited.

They're talking to one company. They feel that we're well positioned.

We're the only global company of music, eh? When you think about our competitors being iHeart or XM, they're only US-based.

There's not many companies that are global. When you talk to BYD and Mercedes and Nissan, they want us to be global.

Also, we have the right structure of rights management. As we're not on demand, we don't pay 70% rights, we're able to offer advertising and rev shares.

At CES, we met all car manufacturers in the world. We had a BYD car there at CES in Vegas.

Everybody was going crazy to see the BYD car. We had Stella, the president of BYD, with us in Vegas.

No, we're very well positioned, and I would say now I was telling our team here, I feel we're like the Seahawks. We're winning 19-0 in the third quarter.

I think it's for us to lose this game, because we're really ahead, and we don't see anybody else in the space. I think the car manufacturers want to go faster, because I think they see a clear solution.

Very excited. The only negative thing about cars: cars is a long process.

You don't build a million cars overnight. You start with your cars, but the beauty about the cars, once you're in the car, you're in the car for 10 years, and the cars last for 11 years, it's like doing a 20-year deal.

By the time all the cars are ready, I'm going to be 76 years old.

Thank you very much, Eric, and congrats on all the progress.

No, we're very, very happy with the again, with the monetization of the unsold inventory.

Thanks very much. Good morning, Eric.

I'll say you don't see a perfect marriage very often from my experience, good to see all of this goodness coming through. Two follow-ups.

One, on the connected car side, are you able to just size up at a 30,000-foot view the revenue kind of contribution maybe in fiscal 2026 and then what that could look like in fiscal 2027? Then the second question, just on TuneIn and subscription revenue, I know this is not necessarily the focus of the acquisition, but just maybe some updated expectations around that revenue bucket.

Thank you.

The car business, again, car business is growing well. Car business is growing by 40 to 50%.

Still small number. This year, we'll do above 10 million.

I think the number should double next year. Again, it's a long curve, but once you're in the cars, you're in forever.

I think the car business, we're really investing for the next 10 years. This year, let's say we'll go from 10 to $20 million, but we won't go from 10 to 100 million in the car business.

All the deals, they have to produce the cars, and then we got to start selling the ads. We love the business.

It's good, and again, a lot of partners, every time we win a deal, you can imagine that the people that are in the cars or want to be in the cars, the Amazon, the Google, the Apple, they start calling us and say, 'Hey, you're with this car. How can we be your partner in that car?

How can we sell advertising with you in this car?' We're really attracting all of the big players, because they're not in the cars.

It's going to be interesting, the monetization and the growth of these deals, but it's a long term. Once you sign, it's a long time to implement and to produce the cars.

It's not as fast as the FAST channels. That was your first question, and Drew, your second question?

Just on the TuneIn subscription revenues, I know

not

your focus of the acquisition, just update there. Good

point. When we did the deal with TuneIn, and we told this to the board, and the market, advertising growing very aggressively.

We had budgeted for subscription to be down by 9% in Q1. We're slightly better at six.

Our goal is to become flat. The focus of the company for the last three years was really to sell the inventory, and now one of our focus, and we have a team put together, is to bring new content to the subscription, and at least have a subscription that is stable.

The growth of TuneIn and the growth of Stingray is going to be programmatic sales for the next three to five years. Subscription for us is going to be a nice add-on.

Got it. Very helpful.

Thank you.

Drew, it's a perfect wedding, cuz it's like saying the Royal Bank, it's a royal wedding.

I love it.

Questions have been asked and answered, thank you.

Thank you, Tim.

All right. Hey, I hope that you liked our little introduction.

A couple of points that we didn't talk today, I think it's important. We also announced a bit of big move: the one ticker.

What's the timing of this? With the deal of TuneIn, we met with all the US largest investors, met with a lot of their investors.

The TuneIn team was very well connected in the US, and we quickly realized that having the RAY.A, RAY.B, if you're American, you have to buy Bs, but there was no market on Bs. We work hard to make it simple.

The goal is to increase the liquidity for both Canadians and American, to buy one symbol and not have two tickers. I think all the banks did it, Air Canada did it, all the telcos did it, and so our goal here is really to increase US investors.

We're going to be looking for US coverage, and we will be much more aggressive, since TuneIn is a well-known brand, and we do 60% of our sales in the US, to really attract a good US investor base. Every media company in the world, every tech company in the world has been able to grow their market cap and their multiple by having US investors.

We love Canada, we love Quebec, but we have to be world winners. Very excited about the ticker, hopefully, we'll see the impact of that over the next few quarters, and we'll see more of our US friends buying our shares.

That was also a big move for us, and excited to see the impact of that. With this in mind, I'll say thank you very much, merci aux équipes, and excited for our next call, because year end is only in June.

We have four months until we see each other, I will miss you great analysts. If you have friends in the US that want to cover us, give me their names.

Alors, merci tout le monde.