Q3 2026 Stingray Group Inc Earnings Call

February 11, 2026

Operator: Good morning, ladies and gentlemen, and welcome to Stingray Group's Q3 2026 Conference Call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you need assistance, please press star zero for the operator. This call is being recorded on Wednesday, 11 February 2026. I would now like to turn the conference over to Mathieu Péloquin. Please go ahead.

Speaker #1: Good morning , ladies and gentlemen , and welcome to Stingray Group Inc Third Quarter 2026 conference call . At this time , all lines are in a listen only mode .

Speaker #1: Following the presentation , we will conduct a question and answer session . If at any time during this call you need assistance , please press star zero for the operator .

Speaker #1: This call is being recorded on Wednesday, February 11th, 2026. I would now like to turn the conference over to Matthew Peloquin.

Mathieu Péloquin: Thank you, Bometh. Good morning, everyone, and thank you for joining us for Stingray's conference call for the Q3 of fiscal 2026, ended 31 December 2025. Today, Eric Boyko, President, CEO, and Co-founder, as well as Marianne 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 and 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 operations and performance are subject to risk and uncertainties, and actual results may differ materially.

Speaker #1: Please go ahead .

Speaker #2: Thank you . Good morning , everyone , and thank you for joining us for Stingray's conference call for the third quarter of fiscal 2026 ended December 31st , Boyko Today , Eric , president and CEO and co-founder , as well as Marion Anthony , Interim Chief Financial Officer , will be presenting Stingrays operational and financial highlights .

Speaker #2: Our press release reporting Stingray third quarter results was issued yesterday after the market closed. Our press release and financial statements for the quarter are available on our website at Stingray Group Inc. and SEDAR Plus.

Speaker #2: I will now provide you with the customary caution that today's the discussion of corporation's performance and its future prospects may include forward looking statements .

Speaker #2: The Corporation's future operations and performance are subject to risks 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 10th , 2025 , which is available on Sedar plus the corporation's specifically disclaims any intention or to update forward looking these statements , whether as a result of new information , future events or otherwise .

Mathieu Péloquin: These risks and uncertainties include but are not limited to the risk factors identified in Stingray's annual information form dated 10 June 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're 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.

Speaker #2: Except as may be required by applicable law . Accordingly , you're 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 .

Speaker #2: Refer to Stingrays 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 .

Eric Boyko: Okay, merci, Matthew. Good morning, everyone, and thank you for joining us for our Q3 fiscal 2026 earnings call. I want to begin the call with talking about the significant progress that 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.

Speaker #2: With that , let me turn the call over to Eric . Merci , Okay . monsieur .

Speaker #3: Good morning , everyone , and thank you for joining us for our third quarter fiscal 26 earnings calls . I want to begin the call with talking about the significant progress Stingray has made in positioning itself for long term , sustainable growth .

Speaker #3: We have built a unique and position powerful in the market , and I want to share the with you framework that will underpin our strategy .

Speaker #3: 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 .

Speaker #3: To be everywhere . Our listeners are . We 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 .

Speaker #3: We are the most widely distributed music player on connected TVs, smart speakers, mobile connected device cars, and thousands of retail stores.

Eric Boyko: This massive footprint is our core strength. We have built our services directly into the device 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 without reveals, we are quickly building our car inventory. Second, our second pillar, monetization. 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 partnership to sell both audio and video ads across our entire network.

Speaker #3: This massive footprint is our core strength . We have built our services directly into the device . People use every day . Making our content very easy to access .

Speaker #3: This gives us a powerful and lasting advantage that is difficult for anyone to replicate . As of today , we estimate that we have $200 million of fast over inventory , channels , unsold and over $400 million of unsold retail media inventory .

Speaker #3: And as you can see with our deals , we are quickly building our car inventory . Second , our second pillar monetization , that we like the word monetization .

Speaker #3: 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 a reach into revenue .

Speaker #3: We have the technology, the ad stack, and the right demand-side partnership to sell both audio and video ads across our entire network for advertisers. This is a game changer.

Eric Boyko: 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. So we have distribution. We have the monetization engine. That brings me to our third and perhaps the most important pillar, content. So in terms of monetization, we feel that we will be achieving 500,000 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. That's $102 million, CAD 250 million. So when you talk about growth going from zero to 250, that's a great new vector. Well, content. What is the fuel or entire model, and what truly sets us apart?

Speaker #3: 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 .

Speaker #3: unified platform creates a predictable and highly scalable revenue stream for our businesses . So we have We distribution . the engine . have That brings me to our third and perhaps the most important pillar content .

Speaker #3: So in terms of monetization , we feel that we will be achieving 500 K a day of programmatic sales . A year ago , when we were talking at this time , our sails of programmatic and was zero , now our run rate is 500,000 a day at 102 million US , 250 million Canadian .

Speaker #3: when you talk about growth going from 0 to 2 . 50 , that's a great new vector . But content , what is the fuel ?

Eric Boyko: While other streamers compete in the expensive, very expensive world of on-demand music, we have built a smarter model focused on creation. We create expertly crafted playlists, engaging karaoke experiences, and a 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 as 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 the industry. It is a smarter, more sustainable way to grow. 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.

Speaker #3: Our entire model and what truly sets us apart while other streaming the compete in expensive , very expensive world of on demand music , we have built a smarter model focused on creation .

Speaker #3: We create expertly crafted playlists and engaging karaoke experience and world class catalog of recorded concerts . This strategy gives us something very powerful .

Speaker #3: I match and scalable unit economics . Our content costs do not grow at pace the same of our audience as we reach more listeners .

Speaker #3: Our models become more profitable . We deliver premium experiences to hundreds of millions of users without the prohibitive costs that challenge others in industry .

Speaker #3: 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 are .

Speaker #3: We building a scalable platform for the future of streaming . The results we are sharing today are in direct outcome of this focused strategy .

Eric Boyko: Let me now turn to review our Q3 fiscal 2026. Stingray announced exceptional Q3 results for fiscal 2026 with revenues, adjusted EBITDA, and adjusted free cash flow reaching record levels. On a consolidated basis, Stingray generated adjusted EBITDA of CAD 44.5 million and adjusted free cash flow of CAD 34.8 million on revenues of CAD 124.8 million in Q3. The quarter highlights the positive impact of its recent TuneIn acquisition and the continued expansion of the high-growth areas like FAST channels, in-car entertainment. FAST channels particularly drove our robust financial results as we leveraged Stingray's premium ad networks, which we call 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.

Speaker #3: Let me now turn . You turn review to our third quarter fiscal 2026 Stingray announced exceptional third quarter results for fiscal 26 , with revenues and adjusted EBITDA .

Speaker #3: 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 .

Speaker #3: The highlights highlights this positive impact of its recent tune acquisition and the continued expansion of the high growth areas like Fast Channels , in-car entertainment , fast channels are particularly drove our robust financial results as we leveraged Stingray Premium ad network networks , what we call the backfill , to to monetize unsold inventory and benefit from new deployment across the LG platform .

Eric Boyko: Following the closing of this transformative acquisition on 19 December, TuneIn's performance has exceeded our expectations, creating powerful new synergies that are already reflected in our strong financial performance. Revenue synergies with TuneIn reach an annual run rate of CAD 16 million in revenues and CAD 5 million in cost savings. As a reminder, we have established synergy goals for sales between CAD 20 to 40 million of cross-selling and for cost saving between CAD 10 to 15 million in the next 18 months or before 27 March. So 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.

Speaker #3: In addition , the integration of tuning has progressed even better than planned closing . Following the of this transformation . Transformative acquisition . On December 19th , to performance as exceeded our expectations , creating powerful new synergies that are already reflected in our strong financial performance .

Speaker #3: Revenue synergies tuning with reached annual run an rate of 16 million in revenues and 5 million in cost savings . As a reminder , we have established synergy goals between for sales between 20 to 40 million of cross-selling and for cost savings between 10 to 15 million in the next 18 months or before March 27th .

Speaker #3: So 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 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 tuning , we are cementing our role as an essential partner for the connected cars .

Eric Boyko: 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 typically expand our global footprint and accelerate our momentum. At BYD, we raised our partnership to a 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 our latest MBUX information system. This application, which will be immediately pre-installed on Mercedes cars, is expected to be released in the first half of calendar 2026.

Speaker #3: These new partnerships expand our global footprint and accelerate our momentum . At BYD , we raised our partnership to a new level through an OEM radio deal involving the integration of our full suite of products , including Stingray Music and tuning under the BYD audio by Stingray brand , Stingray Karaoke and Com Radio .

Speaker #3: Turning to Mercedes , we will launch Stingray Music and Karaoke Stingray application in all vehicles equipped . Equipped with the latest mBUX infotainment system , this application , which will be pre-installed Mercedes cars expected to be released in the first half of calendar 26 and just last week we announced a collaboration with Nissan to bring a unique tuning offering to select Nissan and Infiniti vehicles in the United States .

Eric Boyko: Just last week, we announced a collaboration with Nissan to bring a unique tuning offering to select Nissan and Infiniti vehicles in the United States. As a result, drivers will gain access to live sports, breaking news, creative 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 our broadcasting and commercial music business grew by 22% to CAD 88 million in Q3 2026, while radio revenues rose 2% to CAD 36.7 million. In terms of our radio business, we entered into an agreement to acquire the asset of CHUP-FM in late November to solidify our position in the Calgary market.

Speaker #3: As a result , drivers will gain access to live sports breaking news , curated music , music , millions of podcasts , and tens of thousands of radio stations on the latest , latest Nissan infotainment system .

Speaker #3: 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 the third 88 million in quarter of 2016 , radio while revenues rose 2% to 36.7 million .

Speaker #3: In terms of our radio business , we entered into the agreement to acquire the assets of FM in late November to solidify our position in the Calgary market more specifically , this deal will enable us to efficiency and achieve economies of scale .

Eric Boyko: More specifically, this deal will enable us to improve efficiency and achieve economies of scale since we already own 2 other radio stations in the market. Although Stingray Radio owns and operates 32 radio licenses in Alberta and 96 radio stations across Canada. The Calgary transaction is subject to CRTC approval, which we expect it to close in Q2 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 Q3, and we ended 31 December at 2.49. So a very good closing, very good cash flow for the company.

Speaker #3: Since we already own two other radio stations in the market . Although Stingray Radio owns altogether , Stingray radio in 32 radio licenses operates and 96 radio stations across Canada .

Speaker #3: Calgary transaction is subject to CRTC approval . While we expected to close in the second quarter of fiscal 2027 , finally , I would like to reiterate the relative strength of our balance sheet Post-acquisition .

Speaker #3: We are very happy and we are very happy to to show that our leverage ratio is below 2.8 , that we had told the market for the third quarter , ended and we December 30th , December 31st at a very good closing , 2.49 .

Eric Boyko: Looking ahead for the next 12 months, reducing our debt will be our top of our capital allocation priorities with a target set to drop below 2x EBITDA by the end of calendar year, so by the end of December. So a very quick delivery 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 call over the call to Marianne for a financial overview of the quarter, and I will be pleased to ask questions. Merci, Marie.

Speaker #3: very good cash flow So for the company . Looking ahead to the next 12 months , reducing our debt will be our top of our capital allocation priorities with our targets set to drop below two times EBITDA by the end of calendar year .

Speaker #3: So by the end of December . So 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 .

Marie-Hélène Fournier: Bon matin. Good morning, everyone. Thank you, Eric. Revenues reached CAD 124.8 million in the third quarter of fiscal 2026, up 15.4% from CAD 108.2 million in Q3 2025. The year-on-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 CAD 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 CAD 60.3 million in Q3 2026, reflecting enhanced advertising revenues from the recent TuneIn acquisition, higher equipment sales related to the singing machine, company transactions. Revenues in other countries decreased 6.7% to CAD 10.9 million in the most recent quarter.

Speaker #3: now I will call over the call to Marilyn for financial overview of the quarter , and I will be pleased to ask questions .

Speaker #3: Merci , Marie .

Speaker #4: Good morning everyone . Thank you Eric . reached 124.8 million in the third quarter of fiscal 2026 , up 15.4% from 108.2 million in Q3 25 the year on year growth was mainly driven by enhanced advertising revenues from the recent TuneIn acquisition .

Speaker #4: to the equipment sales acquisition of Our related the singing machine and greater fast channel revenues . Revenues in Canada decreased 1.1% to 53.6 million .

Speaker #4: 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 .

Speaker #4: Revenues in the US grew 42.5% to $66.3 million in Q3 2026, 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.

Marie-Hélène Fournier: 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 CAD 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 CAD 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 CAD 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.

Speaker #4: 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 .

Speaker #4: 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 were also factors. For their part, radio revenues rose 2% to $36.7 million in Q3, higher on digital advertising sales, partially offset by lower airtime revenues.

Speaker #4: In terms of adjusted EBITDA , Stingray also reported record numbers , consolidated adjusted EBITDA improved 5.7% to 44.5 million in the third quarter .

Speaker #4: 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 .

Marie-Hélène Fournier: The decline in EBITDA margin, meanwhile, can be attributed to lower gross margin on sales related to the TuneIn and The Singing Machine acquisition. By business segment, broadcasting and commercial music adjusted EBITDA grew 4.6% to CAD 33 million in Q3. 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 CAD 13.2 million in Q3 on the strength of higher revenues. In terms of corporate adjusted EBITDA, it amounted to negative CAD 1.7 million in Q3 2026, compared to negative CAD 2 million in Q3 2025. Stingray reported net income of CAD 7.5 million or CAD 0.11 per diluted share in Q3 2026, compared to CAD 15.7 million or CAD 0.23 per diluted share in Q3 2025.

Speaker #4: The decline in EBITDA margin , meanwhile , attributed can be to lower gross margin on sales related to the TuneIn and the singing machine acquisition by business segment .

Speaker #4: 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 acquisition .

Speaker #4: Adjusted EBITDA for our radio business improved 5.5% year over year to $13.2 million in the third quarter. On the strength of revenues, in terms of corporate adjusted EBITDA, it amounted to -$1.7 million in the third quarter of 2026, compared to -$2 million in the third period of 2025.

Speaker #4: Stingray reported net income of 7.5 million , or $0.11 per diluted share , in the third quarter of 26 , compared to 15.7 million , or $0.23 per diluted share , in Q3 25 .

Marie-Hélène Fournier: The year-over-year decline was mainly due to the higher performance and therefore shared 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 CAD 26.3 million or $0.38 per diluted share in Q3 2024, compared to CAD 23.4 million or $0.34 per diluted share in the same period in 2023. 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 CAD 38 million in Q3 2024, compared to CAD 35.4 million in Q3 2023.

Speaker #4: The year over year mainly decline was the higher performance and therefore shared units expense related to an the increase in corporation share price , as well as greater acquisition , legal restructuring and other expenses .

Speaker #4: These factors were partially offset by an unrealized gain on value the fair of derivative financial instruments , and by a foreign exchange gain .

Speaker #4: Adjusted net income totaled 26.3 million , or 38 per diluted share , in Q3 2026 , compared to 23.4 million , or $0.34 per diluted share , in the same period in 2025 .

Speaker #4: 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 2025 .

Marie-Hélène Fournier: 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 CAD 34.8 million in Q3 2024, compared to CAD 28.6 million in the same period of 2023. The improvement can be attributed to higher operating results combined with lower income taxes and interest rates. From a balance sheet standpoint, Stingray had cash and cash equivalents of CAD 17.3 million at the end of the third quarter and credit facilities of CAD 519.7 million. Net debt at the end of the third quarter of 2024 totaled CAD 502.3 million, up CAD 181.2 million from the end of Q2 2024, mainly due to outlays related to business acquisitions.

Speaker #4: The year over year Q3 improvement mainly due was to a foreign exchange and positive net change in non-cash items . factors operating These were partially offset by higher acquisition , legal restructuring and other expenses .

Speaker #4: Similarly, adjusted free cash flow reached a peak level in the most recent quarter. Adjusted free cash totaled $34.8 million in Q3, compared to $28.6 million in the same period of '25.

Speaker #4: 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 .

Speaker #4: Net debt . At the end of the third quarter of 26 . Total 502.3 million , up 181.2 million from the end of Q2 2026 , mainly due to outlays related to business acquisitions .

Marie-Hélène Fournier: As Eric mentioned earlier, our leverage ratio stood at 2.49 times at the end of Q3. We intend to bring it down under 2 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 303,000 shares for a total of CAD 3.8 million during Q3 under our NCIB program. This ends my presentation. I will now turn the call over to Eric.

Speaker #4: As I mentioned earlier , our leverage ratio stood at 2.49 times at the end of the We intend third quarter . to under two .

Speaker #4: down bring it Over the next few months end of the , or by the calendar year , by diligently reducing our debt and generating higher adjusted EBITDA .

Speaker #4: Finally , we repurchased a 300 through 303.0 shares for a total of 3.8 million during the third quarter . Under our NCIB program .

Eric Boyko: Okay, Marie. This concludes your prepared remarks. I hope you liked my introduction. At this point, Marianne and I will be pleased to answer your questions. Back to you guys.

Speaker #4: This ends my presentation. I will now turn over the call to Eric.

Speaker #3: Okay , Marie . This concludes our prepared remarks . I hope you like my introduction . At this point , Marilyn and I will be pleased to answer your questions .

Operator: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press the star followed by the one on your touchscreen phone. You will hear a prompt that your hand has been raised. If you wish to decline from the polling process, please press star followed by the two. And if you are using a speakerphone, please lift the handset before pressing any keys. The first question comes from Stephanie Price at CIBC. Please go ahead.

Speaker #3: La back to you guys .

Speaker #1: Thank you . Ladies and gentlemen . We will now the begin question and answer session . Should you have a question , please press the star followed by the one on your touchtone phone .

Speaker #1: You will hear a prompt that your hand has been raised. If you wish to decline from the polling process, please press star followed by the two.

Speaker #1: And if you are using a speakerphone , please lift the handset before pressing any keys . Our first question comes from Stephanie Price at CIBC .

Stephanie Price: 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 CAD 20 to 40 million target? Thanks.

Speaker #1: Please go ahead .

Speaker #5: Hi there , it's Sam Schmidt on for Stephanie Price . I appreciate the disclosure around the run rate . Tune in . Revenue synergy figures .

Speaker #5: 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?

Eric Boyko: You know what? When we started, it was very interesting. The deal wasn't even closed because we announced the deal, and we had 2 weeks to wait for the Competition Bureau. And I think 3 days later, we already had 8 different vectors that TuneIn is already helping us sell. So 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. So the cross synergies, we have over 9 products. We quickly achieved, just in 1 month in January, a CAD 16 million run rate. And we said CAD 20 to 40, but right now, I'd say CAD 20 to unlimited because, like I said before, a year ago, we were doing 0 in programmatic sales.

Speaker #5: Thanks .

Speaker #3: You know what? You know, when we started, it was very interesting. The deal wasn't—because we even closed, announced the deal, and we had two weeks to wait for the Competition Bureau.

Speaker #3: And I think three days later , we already had , like , eight different vectors . That tuna has already helping us sell .

Speaker #3: So we selling ? what are They're helping us on CTV , helping us sell com radio . They're helping us sell ads on Stingray music .

Speaker #3: They're helping our radio team , which we sell . Tune in in Canada . So the cross synergies we have over nine products , we quickly just achieved in one month in January , 16 million run rate .

Speaker #3: we you know , said 20 to 40 . But And right now I'd say 20 to unlimited because like I said before , you know , a year ago we were doing zero in programmatic sales .

Eric Boyko: We are very confident that by the end of this quarter, by the end of March, we will be running at $500,000 of programmatic sales on all our different platforms, which is $182 million, which is roughly CAD 250 million. So I think the cross synergies are really, and the more we launch products, the more we launch cars, all of these again, we're talking about distribution, all will be not finance, all the models advertising and programmatic. And the beauty of programmatic, it's a very deep lake. And the TuneIn team is a first-class, sophisticated ad tech machine. And I think we got this merger was a perfect merger on the cross-selling. So 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 and just give you a bit of feedback.

Speaker #3: we are And very confident that by the end of this quarter , by the end of March , we will be running at 500 K us of programmatic sells on all our different platforms , which is 182 million US , which is roughly 250 million Canadian .

Speaker #3: So I think , you know , the cross synergies are really and the more we launch products , the more we launch cars .

Speaker #3: All of these again , we're talking about distribution . All will be not All the financed . models advertising and programmatic and the programmatic .

Speaker #3: It's it's a deep lake . And the tuning team is a first class sophisticated ad tech machine . And I think we got , you know , this merger is a perfect merger .

Speaker #3: On the cross-selling . So I think the In very excited . 20 million is just a June . starter and And four months really to give you our first quarter together .

Eric Boyko: TuneIn grew in January by 81%. So a big start of the year in January. So 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. Going that debate. But a very good start of the year. So very happy.

Speaker #3: And just to give you a bit of feedback, Tuning grew in January by 81%. So, a big start to the year in January.

Speaker #3: So very happy about that . Again , we have to be It was a careful . good quarter last year . Was weaker .

Speaker #3: There was the tariffs and there was Trump . And the Liberation Day won't go in that debate . But a very good start of the year .

Stephanie Price: Thank you. And then just one more, oh, sorry. 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 pass it on to you.

Speaker #3: So very happy .

Speaker #5: Thank you . And then just one more . Oh sorry . Just one more for me . I wanted to ask around the cost synergies as well .

Speaker #5: 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 ?

Eric Boyko: Yeah, very good. In terms of costs and in terms of positives, right now, we've only focused on cost of goods sold. For example, cost of goods sold, music rights. Since we have more scale, we have better music rights, usual savings on insurance, savings on audit fees, savings on all these. So we haven't even looked yet at the personnel side. Over time, there will be there are duplications 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. So very confident to achieve our CAD 10 million+ 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.

Speaker #5: And then .

Speaker #3: Yeah , very good . So in terms of in terms of cost , in terms positive , of right now we've only focused on cost of goods sold .

Speaker #3: And for example , cost goods sold . Music rates . You know , we we have scale , we have more better music rights You usual .

Speaker #3: saving on insurance , our audit fees , saving on saving on all these . So we haven't even looked yet the at personal side .

Speaker #3: And over time , will be there are there duplication in certain position . But to but right now we started the year so strong the results are so strong on their side and our side .

Speaker #3: There's no big rush . So very confident to achieve our 10 million plus of of opex and cost savings by year end . And I think we might just achieve it with with the Cogs .

Eric Boyko: So, we're very excited once again. A great merger on both sales and cost savings. So, I would say it's a perfect marriage.

Speaker #3: We have a lot of also synergies on in terms of paying the Amazon fees and also add service fees . So we're very excited .

Stephanie Price: Thank you.

Speaker #3: Again, a great merger on both sales and cost savings. So, I would say it's a perfect marriage.

Operator: Thank you. The next question comes from Adam Schein at National Bank Financial. Please go ahead.

Speaker #5: Thank you .

Adam Shine: Thanks a lot. Good morning. Eric, just on the synergies, can we just confirm that these are in CAD, or are they actually in USD? Because I thought originally they were in CAD.

Speaker #1: Thank you. The next question comes from Adam Shane at National Bank Financial. Please go ahead.

Speaker #6: Hi . 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 ?

Eric Boyko: No, so 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. So thank you, Adam, for the question. So we had told $20 to 40 million of positive sales and $10 to 15 million of OPEX savings.

Speaker #6: I thought originally they were in CAD

Speaker #6: .

Speaker #3: Oh , so very good . realize , but We didn't we had told the markets last time when we did the deal that all these savings are in US dollars .

Speaker #3: So thank you , Adam , for the question . So we had told 20 to 40 million USD of a positive cells , cells and 10 to 15 million of opex savings .

Adam Shine: Okay. Thanks, Adam.

Eric Boyko: OPEX and COGS.

Adam Shine: Yeah. Okay. So turning next, we're seeing, obviously, some of the top-line growth. Can you speak a little bit about the possibility of margin expanding? I mean, 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?

Speaker #6: Okay .

Speaker #3: Opex not .

Speaker #6: Yeah , okay . So turning next , you know , we're seeing obviously some of the top line growth . Can you speak a little bit about the possibility of margin expanding ?

Speaker #6: I mean , understandably , your mix has evolved with some lower margin components that are putting a bit of pressure on the margin .

Eric Boyko: Yeah. 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. I'm going to accounting. When we do backfilling and when we do programmatic sales, we now let's say we sell CAD 1. Now we have to pay our partner whatever the amount, CAD 0.35, CAD 0.40, CAD 0.50. So the gross margin on both products are ones at 95% gross profit, the other ones at 40%, 45%. So very difficult to predict. The more we do backfilling and programmatic, it's not the same margin as getting net revenues. So I'm happy offline with Marie to explain to you, give you more guidance on the gross margin and the EBITDA margin. But there's an effect. When we sell directly, we report the numbers gross.

Speaker #6: But how do you see margins expanding going forward above , let's say , a 35% level ?

Speaker #3: Yeah . You know , you know , 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 .

Speaker #3: Net and I'm going to accounting do when we backfilling and when we do programmatic sales , now we we we we let's say we sell a dollar .

Speaker #3: Now we have to pay our partner whatever the amount , 35 , 40 , $0.50 . So the gross margin on both products are once at 95% gross profit .

Speaker #3: The other ones at 40 , So 45 . very difficult to predict . The more we do backfilling and programmatic , it's not the same margin as getting net revenues .

Speaker #3: So I'm happy offline with Marie to explain to you , give you more guidance on the gross margin and the EBITDA margin . But there is an effect when we sell directly , we report the gross .

Eric Boyko: So you know, I'm an accountant, so don't want to go into too much details. I'll get you bored. I do have brown socks today.

Adam Shine: Okay. But 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?

Speaker #3: So , you know , I'm an accountant so don't want to go into too much details . I'll get you bored . I do have brown socks today okay .

Speaker #6: But my point is simply that do you see , you know , over the next , let's say , 3 to 5 years , an opportunity to scale , you know , a mid 30% you know , margin , towards 40 or , you know , something maybe slightly above the current level .

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

Speaker #3: I think we're now we're heading globally at 35 . The programmatic sales will grow so fast that a bit of the other products that we sell with INL and with our friends at Singing Machine , I think we can expect the 35 to grow back again towards the 40% .

Adam Shine: Okay. And just in terms of leverage, I mean, 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. But what's the optimal target for you on the leverage front? Do you really want to be sub 2x? Is 1.5, frankly, too low? What's the strategy here?

Speaker #6: Okay . And just in terms of leverage , I mean , you've done a good job in the prior two years of , you know , significantly bringing down leverage .

Speaker #6: And , you know , I think you're already doing a pretty good job in terms of bringing leverage down after tune in . But , you know , what's the optimal target for you on the leverage front ?

Eric Boyko: 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. So I think for Stingray, the second we get below 2, you can start expecting capital allocation, which, again, would be increasing the dividend. We're always looking at deals, but increasing the dividend or doing more NCIB. But I was reading your report this morning, Adam. And if we expect that, I think you're estimating CAD 2.32 to 2.40 of free cash flow per shares. If we do CAD 2.40 of free cash flow per shares, then, and our dividend policy is 20 to 25, then you should expect our dividend to be growing to CAD 0.45 to 0.50.

Speaker #6: Do you really want to be know , , you sub two times is 1.5 , frankly too low ? What's what's what's the strategy here ?

Speaker #3: I think , you know , before , you know , before a bit more aggressive Intrepreneur we arranged with 225 to 250 . Now I'd say after what happened , the tariffs and Covid and all this stuff , we're getting older .

Speaker #3: So I think for Stingray , at the second we get below two , you can start expecting allocation , which capital again would be , you know , increasing dividend while always looking at deals .

Speaker #3: But increasing the dividend or , you know , doing more NCIB . But you know , I was reading your report this morning , Adam , and , you know , if we expect that , I think you're estimating cash flow 232 to 40 of free share .

Speaker #3: If we do 240 of free cash flow per shares , and our then dividend policy is 20 to 25 , then you should expect our to be growing dividend to 45 to $0.50 .

Adam Shine: Great. Okay. Thanks a lot. Appreciate it.

Eric Boyko: Thanks, Adam. Great report. Thank you very much. We love 21.

Operator: Thank you. The next question comes from Aravinda Galappatthige from Canaccord Genuity. Please go ahead.

Speaker #6: Great . Okay . lot . Appreciate it .

Speaker #6: Great . Okay . lot . Appreciate it . Thanks a

Speaker #3: Thanks , Great Adam . report . Thank you very much . We love 21 .

Aravinda Galappatthige: Good morning. Thanks for taking my question. I just wanted to clarify, go back to sort of the synergies on TuneIn, Eric. So, I mean, the way that you kind of laid it out, the fact that you already realized on a run rate basis, the $5-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, just $30, I mean, we're really talking about a bump of a 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 2027 in a more granular fashion. I just wanted to make sure I'm properly characterizing that. Is that accurate?

Speaker #1: You. The next question comes from Aravinda Galappaththi from Kennecott. Please go ahead.

Speaker #7: for Good Thanks taking my question . I just wanted to clarify . Go back to the sort of synergies on tune and Eric .

Speaker #7: So I mean , the way that you've kind of laid it out , the fact that you already realized on a run rate basis , the five on cost to 16 on on revenue synergies , you know , were to perhaps simplify and simply to add that the the EBITDA at the point of acquisition , as you announced , is 30 .

Speaker #7: I mean , we're really talking about a bump of little more than $50 million in , in , in US dollars . That is , by the way , in , in , in EBITDA for , for for raised numbers .

Speaker #7: As we look to kind of lay out our fiscal '27 in a more granular fashion, I just wanted to make sure I'm properly characterizing that.

Eric Boyko: Yeah. But I think roughly, you can see the cross synergies. Depending if we sell third-party and all that, roughly 40% gross margin. And the fixed costs are pretty much so you can add 40% to that. So I agree with you there. And the cost synergies are coming in over the next few months. So I think those synergies will be fully coming in our year-end 2027.

Speaker #7: Is that is that accurate ? You know .

Speaker #3: Roughly, you can see the cross, you know, depending if we sell third party and all that, roughly 40% gross margin.

Speaker #3: So the fixed costs are pretty much set, so you can add 40% to that. So I agree with you. There.

Speaker #3: And the cost synergies are coming in over the next few months. So I think those synergies will be fully coming in in our year-end 2027.

Aravinda Galappatthige: Okay. Okay. Understood.

Eric Boyko: So, for example, some of the COGS synergies are happening in February. So you're not going to get the full value. But starting April 1st, you will get full value of those synergies. And I think with Marie, we can give you more guidance of exactly when they come in and what timing. But you're exactly right. This deal with TuneIn, if it's at CAD 50 million, like you say, was a very accretive deal that we did since we paid CAD 150 million, excluding also the fact that we have all those incredible, fantastic tax savings.

Speaker #7: Okay , okay . Understood .

Speaker #3: Some of the synergies are happening in February, so you're not going to get the full value. But April 1st, you will get starting value of those synergies.

Speaker #3: I think And when we can give you more guidance of exactly when they come in when and what timing you're exactly right . with , but what this deal tuning .

Speaker #3: If it's a $50 million, like you say, it was a very accretive deal that we did, since we paid $150 million, excluding also the fact that we have those incredible, fantastic tax savings.

Aravinda Galappatthige: Exactly. And then on the same subject, but more qualitatively, can you just talk about, now that you've 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?

Speaker #7: And Exactly . then on the same subject , but qualitatively , can you just more talk about now that you've closed the transaction , you sort of how synthesizing your efforts in the in side ?

Speaker #7: obviously they've Because had their sales efforts . You've had yours . How you kind of thinking about harmonizing that , or are you just letting that run parallel for now ?

Eric Boyko: No, no. So the day happened, the next day were one. So when you think about it, what we do right now is every deal we have, there will be in every car. So the Nissan deal was a TuneIn deal. But with Nissan, we already added Stingray Music. And we're going to be adding karaoke. With BYD, BYD, we're adding TuneIn right away. So every car deal we have, and I must say, you used to play a game when we were with Cash. We call it Corner of 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.

Speaker #3: No , no . So the they happened the next day were one . So when you think about it , what we do right is now every deal we have , there will be in every car .

Speaker #3: So the Nissan was a deal with tuning, but Nissan, we already added Stingray music and we're going to be adding karaoke with BYD.

Speaker #3: BYD we're adding tuning right away . So every car deal we have and I must say , you know , we used to play a game when we were with with cash , and we call on the market .

Speaker #3: But I think in this one , tune in in Stingray for the car manufacturers , they're very excited about our offering , but they are each talking to both of us , one against each other .

Eric Boyko: And we'll do a rev share on advertising." Our competitor, which is a known satellite company, is more inclined to asking for a fixed price per car. But now that we merged 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 on music. When you think about our competitors being iHeart or XM, they're only US-based. There's not many companies that are global. And when you talk to BYD, Mercedes, and Nissan, they want us to be global. And also, we have the right structure of rights management. As you know, we're not on demand. We don't pay 70% rights. So we're able to offer advertising and rev shares. So I think the car manufacturers, we're talking at CES. We met all car manufacturers in the world.

Speaker #3: We were the only two companies offering a model that we said , we'll put music . We'll put tune in radio and we'll do a rough share on on advertising .

Speaker #3: Our our competitor , which is a known satellite company or more in asking for a fixed price per car . But now that we merge both together , I'd say the car manufacturers are very excited .

Speaker #3: They're talking to one company . They feel that they're that we're well positioned . We're the only global on music . company When you think about a company being iHeart or XM , they're only based .

Speaker #3: There’s not many companies that are global. And when you talk to BYD and Mercedes and Nissan, they want us to be global.

Speaker #3: So we have and also we have the right structure of rights management . As you know , we're not on demand . We don't pay 70% rights .

Speaker #3: So we're able to offer advertising and Rev shares . So I think the car manufacturer , we're talking at CBS , we met all Carmen Carmen Facturers in the world .

Eric Boyko: We had a BYD car there at CES in Las Vegas. Everybody was going crazy to see the BYD car. We had Stella, the president of BYD, with us in Las Vegas. So 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. So 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. And I think the car manufacturers want to go faster because I think they see a clear solution. So very excited. The only negative thing about cars, cars is a long process. You don't build 1 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.

Speaker #3: We had a BYD car there at CES in Vegas . Everybody was going crazy to see the BYD car . We had sell out .

Speaker #3: The president of BYD with us in Vegas . So no , we're very well positioned . And I would say now when I was telling our team here , I feel we're like Seahawks , we're the winning 19 zero in the third quarter .

Speaker #3: So 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 . And I think the car manufacturers are want to go faster because I think they see a clear solution .

Speaker #3: So very excited . The only negative thing about cars , cars is a long process . know , you You don't build a million cars overnight .

Eric Boyko: The cars last for 11 years. So it's like doing a 20-year deal. So by the time all the cars are all ready, I'm going to be 76 years old.

Speaker #3: start with You your cars . But the beauty about the cars , once you're in the car , you're in the car for ten years and the cars last for 11 years .

Speaker #3: So it's like doing a 20 year deal . So by the time all the cars are all ready , I'm going to be 76 years old .

Aravinda Galappatthige: Okay. Thank you very much, Eric. Congrats on all the progress.

Eric Boyko: No, no. We're very, very happy with, again, with the monetization of the current inventory that we have of the unsold inventory.

Speaker #7: Okay . Thank you very much , Eric . And congrats on . Yeah , all the progress .

Speaker #3: No , no , we're very , very happy with the with that again with the the monetization of the current inventory that we have of the unsold inventory .

Operator: Thank you. The next question comes from Jérôme Dubreuil at Desjardins. Please go ahead.

Jerome Dubreuil: Hey, thanks for taking my questions, Boma. Thanks, Amon. First one, I want to touch again on the synergies there. You seem to be kind of resisting the urge to change the synergy guidance. Maybe other than the initial CAD 10 million cost savings, it now sounds like it's CAD 10 to 15 million. Can you agree that the lower end of the ranges seem a bit too conservative now in light of the update that you provided last night?

Jérôme Dubreuil: Hey, thanks for taking my questions, Boma. Thanks, Amon. First one, I want to touch again on the synergies there. You seem to be kind of resisting the urge to change the synergy guidance. Maybe other than the initial CAD 10 million cost savings, it now sounds like it's CAD 10 to 15 million. Can you agree that the lower end of the ranges seem a bit too conservative now in light of the update that you provided last night?

Speaker #1: Thank you . The next question comes from Jerome Jabril at Desjardins . Please go ahead .

Speaker #8: Hey , thanks for taking my questions . First one , I want to touch again on the synergies there . You seem to be kind of resisting the urge to to change the synergy guidance .

Speaker #8: So maybe other than the the initial 10 million cost savings is now sounds like Can you that agree it's 10 to 15 . the lower end of the ranges seem a bit too conservative now , in light of the update that you provided last night ?

Eric Boyko: No, I think on the COGS and OPEX or the sales?

Jerome Dubreuil: Yeah, revenue and OPEX, both with the update that you provided.

Jérôme Dubreuil: Yeah, revenue and OPEX, both with the update that you provided.

Speaker #3: No , I think you know , on the on the , on the Cogs and opex or the .

Eric Boyko: Yeah. No, so on the sell side, when we said CAD 20 to 40 million, I said to our board yesterday, I said, "We should never say we should say 20 and above." Right now, I think it's CAD 20 to 100 million. I think there is no limit to the positive sell side that we can have. We're adding an increased number of the inventory that we're adding with LG right now, with VIZIO. We're adding Samsung. We're adding a lot of new partners with the cars. We're doing more retail deals. We're also discussing with different partners. So the inventory that's coming in with our distribution is unmatched. And again, it is the chicken and the egg. So the more you have inventory, the more you monetize, the more people want to give you their inventory.

Speaker #8: Revenue and opex , both with the update that you provided .

Speaker #3: Yeah . So on the sell side , when we said 20 to 40 , I said , I said to our board yesterday , I said we should never say we should say 20 and above right now , I think it's 20 to 100 million .

Speaker #3: I think there is no limit to the positive sell side that we can have . We're getting we're we're adding in increased number of the inventory that we're adding with LG right now with Vizio , we're adding adding a lot of new Samsung .

Speaker #3: partners We're with the cars . We're doing more retail deals . We're also discussing also with different partners . It so the inventory that's coming in , with our distribution is unmatched .

Eric Boyko: The more you have inventory, the more you have scale, the more you can monetize. So it's a virtuous circle. And we feel very confident that, and we have a daily meeting at noon every day to watch the programmatic sales. And if we're going to be doing $0.5 million a day in March, I mean, if you look at the trends, that means we should be doing $1 million a day of programmatic ads in November, December, in the big months. So that's the scale of that business. It's not a business programmatic that will grow by 5% to 10%. It's a business that can easily double in 6 months. And we have the inventory.

Speaker #3: again , And it is chicken and the the egg . So the more you have more people monetize , the the more you want to give you their inventory .

Speaker #3: The more you have scale , the inventory , the more you have more you can monetize . So it's a it's a it's a virtuous circle .

Speaker #3: And we feel very confident that , you know , and we're getting we have we have a daily meeting at noon every day to watch the programmatic sales .

Speaker #3: And if we're going to be doing a half a million a day in March , I mean , there is if you look at the trend , that means we should be doing a million US a day of problematic ads in in November , December , in the big months .

Speaker #3: So that's the scale of that business . It's not a business programmatic that will grow by 5 to 10% . It's a business that can easily double in six months .

Jerome Dubreuil: Yeah. Follow up for me on the organic growth perspectives for TuneIn. You mentioned that they were up 81% year-over-year in January. Wondering if we can discuss maybe what are their standalone opportunities, maybe on and off platform, aside from the revenue synergies that you've already discussed.

Jérôme Dubreuil: Yeah. Follow up for me on the organic growth perspectives for TuneIn. You mentioned that they were up 81% year-over-year in January. Wondering if we can discuss maybe what are their standalone opportunities, maybe on and off platform, aside from the revenue synergies that you've already discussed.

Speaker #3: And we have the inventory .

Speaker #8: Yeah . Follow up me for on . The organic growth perspectives for tuning . You mentioned for that they were up 81% year on year in January .

Speaker #8: Wondering if you can discuss maybe what are there standalone opportunities maybe on and off platform aside revenue from the synergies already that you've discussed

Eric Boyko: Yeah, good point. Again, January was a weak January last year. So last night, we had our LG partners in town. And I don't want to say their numbers, but they had a huge number in January. January seemed to be a very and 2026, all of our partners are saying for programmatic ads is looking like a great year. So let's see. But a very positive year on advertising for programmatic. Not only us, but we're seeing from, again, from LG, from VIZIO, and Samsung. So that's good to hear. But your exact question is what?

Speaker #8: ?

Speaker #3: point . Yeah . Again Good . Good , January was a weak January last year . So we were last everybody night . We had our LG partners in town and I don't numbers , want to say their but they had they had a huge number in seemed to be a January .

Speaker #3: very All and 2026 . January partners are of our saying for programmatic ads is looking like a great year . So let's But a very year on advertising for programmatic positive but we're , not seeing from , only us , again from LG , Samsung .

Jerome Dubreuil: I want to hear whether their standalone opportunities, maybe they can help monetize other audio platforms that are outside of the Stingray ecosystem. Maybe, is that still on the table?

Jérôme Dubreuil: I want to hear whether their standalone opportunities, maybe they can help monetize other audio platforms that are outside of the Stingray ecosystem. Maybe, is that still on the table?

Speaker #3: Vizio and from So that's good to hear . But your question exact is what Jerome .

Speaker #8: hear to I want whether opportunities , the standalone maybe they can help monetize other audio platforms that are outside of the of the ecosystem .

Eric Boyko: Absolutely. We have deals that have been announced or that I guess we'll be able to announce. But I think you'll be surprised of how many third-party platforms that we're reselling on. TuneIn really developed an ad tech selling platform that are able to sell third parties. And the third parties are approaching us and don't want to get all the details to really leverage their inventory. And in radio, believe it or not, in radio, there's more demand than there is inventory. I know you're going to say it's impossible. But right now, with terrestrial radio declining, a lot of audio ads, people are looking to where they can advertise. So there's more demand right now that there's inventory. And TuneIn is tapped to all these partners. So it's a very exciting time where we're positioned.

Speaker #8: Stingray Maybe . Is that still on the table ?

Speaker #3: Absolutely . I the one where we have deals that have that announced or been will be I guess we'll be able to announce , but I think you'll be how many surprised of third party platforms that we're reselling on .

Speaker #3: We really became tune in , really developed a ad tech selling platform that are able to sell third parties , and the us third parties are don't get all the details to really leverage their inventory .

Speaker #3: And in and in and in radio , believe it or not , in radio there's more demand than there is inventory . I know you're going to say it's impossible , but right now there's no with terrestrial radio declining , a lot of a lot of audio ads .

Speaker #3: People are looking to where they can advertise . So there's more demand right now that there's inventory and tune in is tapped to all these partners .

Jerome Dubreuil: Great. Merci beaucoup.

Jérôme Dubreuil: Great. Merci beaucoup.

Eric Boyko: Merci, Jerome.

Speaker #3: So it's a very exciting time where we're positioned .

Operator: Thank you. The next question comes from Drew McReynolds at RBC. Please go ahead.

Speaker #8: . That's cool .

Speaker #3: Jerome .

Aravinda Galappatthige: Yeah, thanks very much. Good morning, Eric. I'll say you don't see a perfect marriage very often from my experience. So good to see all of this goodness coming through. 2 follow-ups. 1, 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? And 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.

Drew McReynolds: Yeah, thanks very much. Good morning, Eric. I'll say you don't see a perfect marriage very often from my experience. So good to see all of this goodness coming through. 2 follow-ups. 1, 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? And 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.

Speaker #1: Thank you . The next question comes from drew McReynolds at RBC . Please go ahead .

Speaker #9: Thanks Yeah . much . very Good morning Eric I'll say you don't see a perfect marriage very often from my from my experience .

Speaker #9: So good to this see all of goodness coming through to follow ups . One on the connected car side . You know , are you able to just size up like at a 30,000 foot view that the revenue kind of contribution maybe in fiscal 2026 .

Speaker #9: And then what that could look like in fiscal 2027 . And then the second question , just on tune in and subscription revenue , I know , you know , this is not the necessarily focus of the acquisition , but just maybe some updated expectations around that revenue bucket .

Eric Boyko: Yeah. So the car business, again, car business is growing well. Car business is growing by 40% to 50%. Still a small number. This year, we'll do above CAD 10 million. I think the numbers should double next year. Again, it's a long curve. But once you're in the cars, you're in forever. So I think the car business, we're really investing for the next 10 years. So this year, let's say we'll go from CAD 10 million to 20 million. But we won't go from CAD 10 million to 100 million in the car business. It's just all the deals, they have to produce the cars. And then we got to start selling the ads. So we love the business. It's good.

Speaker #9: Thank you .

Speaker #3: Yeah . So the car business again , car business grew is growing . Well car business is growing by you know by 40 to 50% still small number this year .

Speaker #3: We'll do we'll do above 10 million I think the numbers should double next year . And again it's it's a it's a long curve .

Speaker #3: But once you're in the cars you're in forever . So I think the car really business we're investing for the next So ten years .

Speaker #3: 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 .

Speaker #3: It's just all the deals they have to produce . The cars . And then we got to start selling the ads . And so we love the business .

Eric Boyko: 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?" So we're really attracting all of the big players because they're not in the cars. So it's going to be interesting, the monetization and the growth of these deals. But it's a long-term, it is a long once you sign, it's a long time to implement and to produce the cars. It's not as fast as the FAST channels. So that was your first question. And Drew, your second question?

Speaker #3: It's it's good . And lot of again , a partners , every time we win a deal , you can imagine that the people that are in the cars are want to be in the cars .

Speaker #3: 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 ?

Speaker #3: we sell advertising with you in this car ? So we're really attracting all of the big players because they're not in the cars .

Speaker #3: So it's going to be interesting monetization . The and the growth of these , of these deals . But it's a long term .

Speaker #3: It is a long once you sign , it's a long time to implement and to produce the cars . It's not as fast as as the fast channels .

Jerome Dubreuil: Yeah, just on the TuneIn subscription revenues. I know that's your focus of the acquisition. So update there. Yeah.

Drew McReynolds: Yeah, just on the TuneIn subscription revenues. I know that's your focus of the acquisition. So update there. Yeah.

Speaker #3: So that was your first question . And your second question .

Eric Boyko: Yeah. So when we did the deal with TuneIn, and we told this to the board and the market, so advertising growing very aggressively. We had budgeted for subscription to be down by 9%. In Q1, we're slightly better at 6%. So 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. But 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.

Speaker #9: Yeah , just on the tune in subscription revenues . I know your focus of the acquisition , just but update there . Yeah , yeah .

Speaker #3: So when we did the deal with Tune and we told this to the board, and the market, so advertising is growing very aggressively.

Speaker #3: We had budgeted for subscription to be down by 9% in Q1 . We're slightly better at So our goal six . is to become flat .

Speaker #3: 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 we have a we have a team put together is to bring new content to the subscription .

Speaker #3: And at least have a subscription that stable . is But the growth of tune in and the growth of Stingray is going to be programmatic sales for the next 3 to 5 years .

Jerome Dubreuil: Yeah. Got it. Very helpful. Thank you.

Drew McReynolds: Yeah. Got it. Very helpful. Thank you.

Eric Boyko: Drew, it's a perfect wedding because it's like the Royal Bank. It's a royal wedding.

Speaker #3: is going to Subscription for us be a nice add on .

Speaker #9: Yeah . Got it . Very helpful . Thank you .

Jerome Dubreuil: I love it.

Drew McReynolds: I love it.

Speaker #3: You know , it's Andrew . a perfect wedding because it's like it's like the Royal Bank . It's a royal wedding .

Operator: Thank you. The next question comes from Tim Casey at BMO. Please go ahead.

Speaker #9: I love it .

Tim Casey: Questions have been asked and answered. Thank you.

Speaker #1: Thank you . The next question comes from Tim Casey at BMO . Please go ahead

Eric Boyko: Thank you, Tim.

Operator: Thank you. At this time, I'll turn the call back over to Eric Boyko for closing comments.

Speaker #1: .

Speaker #10: have been asked and answered . Thank you .

Eric Boyko: All right. Hey, so 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 with a big move, the one ticker. What's the timing of this? With the deal of TuneIn, we met with all their 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 Stingray A, Stingray Bs, if you're American, you have to buy Bs. But there was no market on Bs and the As. And so we work hard to make it simple. The goal is to increase the liquidity for both Canadians and Americans to buy one symbol and not have two tickers. So I think all the banks did it. Canada did it. All the telecoms did it.

Speaker #3: Thank you . Tim .

Speaker #1: Thank you . At this time , I'll turn the call back over to Eric Boyko for closing comments .

Speaker #3: All right. Hey, so I hope that you liked our little introduction. A couple of points that we didn't talk about today.

Speaker #3: I think it's important . We also announced been a big move . The one ticker . What's the timing of this with the deal of tune in , we met with all the US largest investors , met with a lot of their investors .

Speaker #3: The tuning team was very well connected in the US , and we quickly realized that having the rate a rabies . For your American , you had to buy bees , but there was no market on bees and the A's and so we work hard to make it simple .

Speaker #3: The goal is to increase the liquidity for both Canadians and Americans to buy one symbol and not have two tickers . So I think , you know , all the banks did it .

Eric Boyko: Our goal here is really to increase US investors. We're going to be looking for US coverage. We will be much more aggressive since TuneIn is a well-known brand. 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. We'll see more of our US friends buying our shares. That was also a big move for us. Excited to see the impact of that. With this in mind, I'll say thank you very much.

Speaker #3: Canada did it . All the telecom's did it . And so our goal here is really to increase us be investors . We're going to looking for US coverage .

Speaker #3: 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 company in the tech world has , has , has , has been able to grow their market cap and their multiple by having US investors .

Speaker #3: We love Canada , we love Quebec , but we have to to be world winners . So very excited about the ticker . So hopefully we'll see the impact of that over the next few quarters .

Speaker #3: And we'll see more of a us friends buying our shares . So that was also a big move for us . And excited to see the the impact of that .

Eric Boyko: Merci beaucoup. And excited for our next call, because it's year-end is only in June. So we have four months until we see each other. So I will miss you, great analysts. If you have friends in the US that want to cover us, give me their names. Merci tout le monde.

Speaker #3: So with this in mind I'll say thank you very much . Merci and excited for our next call because it's year end is only in June .

Speaker #3: So we have four months until we see each other . So I will miss you . Great analysts . If you have friends in the US that want to cover us , give me their names and .

Operator: Ladies and gentlemen, this concludes your conference call for today. We thank you for participating. We ask that you please disconnect your lines.

Speaker #1: Ladies and gentlemen , this concludes your for call today . We thank you for participating and you please we ask that disconnect your lines .

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