Stingray Group Aktie

Good morning, ladies and gentlemen, and welcome to the Stingray Group Q4 2026 Conference Call. [Operator Instructions] Also note that this call is being recorded on Wednesday, June 10, 2026. And I would like to turn the conference over to Mathieu Peloquin. Please go ahead.

Thank you. [Foreign Language] Good morning, and thank you for joining us for Stingray's conference call for the fourth quarter and fiscal year ended March 31, 2026. Today, Eric Boyko, President, CEO and Co-Founder; as well as Marie-Helene Fournier, Interim Chief Financial Officer, will be presenting Stingray's operational and financial highlights. Our press release reporting Stingray's unaudited fourth quarter and full year results for fiscal 2026 was issued yesterday after the market closed. Please note that the financial information discussed on today's call is currently unaudited. Our final audited financial statements and management's discussion and analysis for the fiscal year will be finalized, posted on our investor website at stingray.com and filed on SEDAR+ by June 30, 2026.

The additional time to close our audit this year reflects the scope of work involved in bringing TuneIn into our consolidated financial statements. 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 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 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. A complete definition and reconciliation of such measures to IFRS financial measures is included in yesterday's press release and will also be detailed in our upcoming MD&A. 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.

Good morning, everyone, and welcome to our fourth quarter and full year results conference call for fiscal '26. Stingray delivered a strong financial performance in fiscal '26, reflecting strong execution in our key growth initiatives. Thanks to the game-changing TuneIn acquisition and a rapidly growing FAST channel segment, revenues increased by 21.9% and adjusted EBITDA by 12.6%. That momentum carried right in the fourth quarter where revenues surged by 43% and EBITDA grew by 21.3%.

TuneIn has truly transformative and synergistic impact on our business. Its programmatic advertising capabilities and extensive partner network of over 5,000 agencies will support the growth across all of our business units in the coming years. The success is driven by a number of factors. First, TuneIn is delivering strong organic growth, both on and off platform. Second, Stingray's premium ad network launch, what we call backfill just over a year ago is expanding rapidly.

We've achieved 175,000 U.S. sales a day, which is a $90 million run rate over the last 3 months, directly benefiting from its demand partners in TuneIn's advertising demand. This is creating a powerful flywheel effect across our advertising business. As a result, from our FAST channel surge over 60% year-over-year, a major highlight is our recent selection of a few CTV partners of choice to resell excess inventory. Additionally, several platform partners have chosen us to introduce and resell audio ads inventory alongside the video offering. This proves the power of combining TuneIn's expertise with Stingray's reach. Today, we stand as the one of the few players, and I would say the only one able to sell audio ads on connected TVs.

The most noticeable impact is that we are well ahead of schedule on our planned acquisition synergies. In less than 6 months since the TuneIn integration, revenue synergies have topped CAD 42 million and cost optimization has reached CAD 12 million. Now looking at other growth vectors. We continue to make progress on the retail media front with the integration of VMI, Walgreens and the strengthening of our revenue streams to more profitable managed services accounts where retailers are integrating our offering into their sales effort. We continue to work on enabling the introduction of programmatic advertising with retail media, which for us will be a game changer, where we should see some activity over the next 2 quarters.

On Retail Media, we still have $400 million of unsold inventory. So we have a lot of inventory to sell. In the connected car space, we are excited to see the user engagement with our new European rollout of BYD audio, the availability of Stingray in music in Mercedes-Benz vehicles and the U.S. rollout of TuneIn in Nissan and Infinity vehicles. Driven by this momentum, broadcasting and commercial music revenues surged 33% to reach $339 million in 2026. As mentioned, this growth was fueled by TuneIn deal, our expanded FAST channels, but also strong hardware sales from the Singing machine. In parallel, our radio revenues held steady at $132 million with higher digital ad revenues successfully offsetting lower airtime sales.

Now talking for 2027. We are very excited to say that we have an exceptional start of the year, probably the best start of the year since I've been CEO of this company, so for 20 years. Early signs of Q1 are very encouraging. Both April and May are showing organic sales well above 20%. This is a direct impact of the synergies we talked about. So going from 11.7% in Q4 to over 20% in Q1 is very exciting for the management team. Combined programmatic ad sales across Stingray and TuneIn are now approaching the run rate of $275 million. We had told the market that one of our goal is to beat the USD 500,000 a day. So we've achieved 20 -- we're achieving USD 520,000 sales per day. This proves our scalable growth model based on unparalleled reach and distribution, best-in-class monetization capabilities and the right content truly engaging audience worldwide across major platforms.

An important note, while we are maintaining our adjusted EBITDA margin target of 35%, we know Q4 was lower for many reasons, but that we maintain that position. We see clear potential for long-term margin expansion as TuneIn synergies continue to scale. I will now turn over the call to Marie-Helene for a financial review of the fourth quarter.

Good morning, everyone. Revenues reached $137.8 million in the fourth quarter of fiscal 2026, up 43.6% from $96 million in Q4 2025. The year-over-year growth was mainly driven by higher advertising and subscription revenues from the recent TuneIn acquisition, along with greater equipment sales related to the Singing Machine acquisition. These factors were partially offset by a negative foreign exchange impact.

Revenues in Canada decreased 5.5% to $44.2 million in the fourth quarter of 2026. The year-over-year decline can be attributed to lower radio revenue stemming from softer airtime sales. Revenues in the U.S. grew 117% to $82.5 million in Q4 2026 for the same reasons previously outlined for the consolidated revenues. Revenues in other countries decreased 0.6% to $11.1 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 68.4% to $108.8 million in the fourth quarter of 2026. The growth was driven by higher advertising and subscription revenues from the TuneIn acquisition, greater equipment sales from the Singing Machine transaction and higher FAST channel revenues. These factors were partially offset by a negative foreign exchange impact. Now looking at the breakdown by product for the full year. The Broadcast and Commercial division performance was highlighted by exceptional growth in advertising, which surged 74% to $150.7 million. This was further supported by a 63% increase in equipment and labor to $46.1 million, while our core subscription revenues remained stable, growing 2% to $142.3 million. For that part, Radio revenues decreased 7.5% to $21.1 million in Q4 2026, largely due to lower airtime sales. In terms of profitability, consolidated adjusted EBITDA improved 21.3% to $42.5 million in the fourth quarter of 2026. Adjusted EBITDA margin reached 30.8% in Q4 2026 compared to 36.5% for the same period in 2025. The increase in adjusted EBITDA was mainly driven by increased revenues from the TuneIn acquisition. The decline in EBITDA margin meanwhile can be attributed to lower gross margins on higher sales related to the TuneIn and the Singing Machines acquisition.

By business segment, Broadcasting and Commercial Music adjusted EBITDA grew 32.4% to $37.3 million in Q4 2026, primarily driven by the TuneIn acquisition. Adjusted EBITDA for our radio business dropped by 18.6% year-over-year to $7 million in the fourth quarter of 2026. The decrease is primarily due to a higher cost of sales, reflecting a change in sales mix, coupled with lower airtime revenues, partially offset by increased digital advertising sales. In terms of corporate adjusted EBITDA, it amounted to negative $1.8 million in the fourth quarter of '26 compared to negative $1.7 million in the same period of 2025.

Stingray reported a net loss of $64.6 million or $0.95 per diluted share in the fourth quarter of 2026 compared to net income of $7.7 million or $0.11 per diluted share in Q4 2025. The year-over-year decline is primarily due to a goodwill and license impairment charge for the Radio division of $64.7 million, along with higher acquisition costs, amortization expenses and restructuring costs. These factors were partially offset by an income tax recovery in the most recent quarter versus an income tax expense in the same period last year as well as improved operating results. Adjusted net income totaled $20.8 million or $0.31 per diluted share in Q4 2026 compared to $18.6 million or $0.20 per diluted share in the same period in 2025. The increase is largely due to higher operating results and an income tax recovery in Q4 2026 compared to an income tax expense for the same period last year, partially offset by a greater interest expense. Turning to liquidity and capital resources. Cash flow from operating activities amounted to $35.2 million in Q4 '26 compared to $39.7 million in Q4 '25. The decline was mainly due to increased legal fees and settlements and higher restructuring and other expenses. Adjusted free cash flow totaled $20.1 million in Q4 '26 compared to $18.4 million in the same period of '25. The improvement can be attributed to enhanced operating results, partially offset by higher interest expense and greater realized foreign exchange loss. From a balance sheet standpoint, Stingray had cash and cash equivalents of $20.7 million at the end of the fourth quarter and a credit facilities of $524.1 million. Net debt at the end of the fourth quarter of 2026 totaled $503.4 million, up $1 million sequentially, while our leverage ratio improved to 2.38x at the end of the fourth quarter. Finally, we repurchased 185,772 shares for a total of $2.8 million during the fourth quarter under our NCIB program. Overall, this year, we repurchased 1.1 million shares for $12.9 million. This ends my presentation. I will now turn the call back to Eric.

Okay, Marie. Again, this concludes our prepared remarks. At this point, Marie and I are pleased to answer your questions from our fantastic analysts. So very proud of the analysts that we have.

[Operator Instructions] First, we will hear from Adam Shine at National Bank Financial.

Eric, if we remove the revenue synergies, obviously tracking ahead of plan for TuneIn, what sort of growth rate at the top line are you seeing? Because I think at the time when the deal was announced, I think the expectation was 10%, 15% top line growth initially. Can we start there? I've got a few others.

Yes. And our budget this year, I think our budget is we're planning to be, I think, between 12% and 14% growth for the stand-alone Stingray budget. But what's happening, Adam, which is out of our control, is incredible news. On the backfill, we were doing USD 30,000 a day in January, February, March. And the back -- we started doing audio ads on connected TVs with the help of TuneIn and the Stingray team. And with now the backfill went from USD 30,000 a day, our dream was to do USD 100,000 a day, and now we're hitting USD 175,000 a day. So the backfill went from a $20 million business, and now we're rolling at $90 million. So that's why the organic sales are jumping in April and May. So the only issue is the backfill of USD 175,000 a day in or $90 million, and we feel it's going to go to 200,000 a day, which we'll see maybe in June, but that's the big difference. So that's where the synergies have TuneIn and are really coming up. So the backfill is all coming on our side.

Okay. Understood. And just in terms of retail media, I think in the press release yesterday, you talked about pursuing more profitable managed service capabilities. Can you elaborate a little bit further on that?

Yes. Good question. So on Retail Media, a bit of a change in direction, but also I think very good news. So the first change is a lot of the -- a lot of retailers do core programs. So when people buy via their core program, we'll charge a managed service fee, which is higher EBITDA margin than what we would make with us selling and the share that we give the retailers. So on the EBITDA side, it's going to improve our EBITDA margin. It's going to -- because it's 100% EBITDA. But for a period of change, it's going to affect a bit of the organic sales because we're going from gross instead of selling $100 and making $20, we're charging $20 and keeping $20. So -- but it's not that material for the company as a whole. So that's the first change that's happening. The second change is that one of our partners, StrataCache is having financial difficulties -- so a lot of retailers were promised big MGs of that company. So now all retailers are accepting nonendemic. And the importance of accepting non-endemic in stores is that, that's where we can get TuneIn involved and for us, working very hard to get the multiplier. So the multiplier is to accept that there's 40 person in a store listening to an audio ad. I think we're two quarters away. And once we can start bringing the TuneIn inventory into our retail stores, again, reminding you that we have $400 million of unsold inventory on the retail media. That for us will be a game changer, and we will be the first company, again, pioneering of bringing the programmatic sales into retail media. So I think we're two quarters away from that, and that will be a game changer for us and for the retail media.

I'll let someone else ask on the margin profile. But just on capital allocation, I think last quarter, you talked about leverage ultimately perhaps getting below 2x in F '27. I mean the stock has pulled back. I would assume that you might step up some of your buyback activity. But maybe just talk about some of the priorities for capital allocation in F '27.

Yes. So again, we are maintaining -- we're very confident that by December, not by year-end, by December, we'll be very close to two or below 2x EBITDA. We will finish the year well below 2x EBITDA. The TuneIn acquisition is -- don't forget, we also have $200 million of tax losses. So the TuneIn acquisition in terms of a cash basis, it's -- the EBITDA equals cash, very low CapEx in TuneIn and lots of tax savings. So we're very happy with our cash flow generation. I think the forecast from you guys, from Adam, from the analysts, sales up 40%, EBITDA roughly up 50% and our free cash flow up 60%. So I think the analysts are expecting us to deliver about $2.30 a share of free cash flow. And we, as a company and as a Board, our budget is above the consensus of our analysts of your group of peers. So very confident to deliver a strong year and very confident for the deleveraging. So that is very happy about that. Right now, our #1 focus is just executing the TuneIn deal.

Next question will be from Aravinda Galappatthige at Canaccord Genuity.

With respect to the organic growth numbers that you quoted, Eric, the 11.6% for Q4 and the 20% plus, it seems that, obviously, much of that is coming from TuneIn, sort of the pro forma growth within TuneIn. Can you just give us a sense of what the growth rates have been, in particular, on the advertising side and perhaps on an aggregate revenue side for TuneIn since you closed the acquisition? I realize it's still a short period of time, but just to kind of help us with the modeling.

Yes. Again, I know there's a lot of numbers, but what we call the premium ad network, which is the backfill. So when VIZIO, LG or Samsung doesn't sell the ad, they only sell 40% to 50% we now have the right to sell after them. So we call it the backfill, but we need a better word than that. But -- so right now, that backfill segment, we were doing $ 30,000 a month in Q4. So in January, February, March, the backfill went from USD 30,000 a day to USD 175,000 a day. So right now, we're running at a CAD 90 million run rate. That backfill is 100% Stingray. This is us selling on connected TVs with the synergies, with TuneIn. What happened the big change. The big change is that a lot of our partners accepted audio ads. So you're watching TV and you'll see a photo. And then while you see this photo, you'll hear an audio ad, and that's TuneIn doing that, and that's where we get the $42 million of positive synergies. We have over $500 million of unsold -- our partners have over $500 million of unsold inventory on CTV. So it's unlimited inventory for us to sell, and that's really coming on our side. TuneIn also, TuneIn is growing. TuneIn is the organic growth of TuneIn right now because of the synergies, their growth right now is between 60% to 70%. So TuneIn is growing at a very high rate and Stingray organic sales are growing highly. And April and May, again, we doubled the organic sales from January, February, March to April and May, and June is looking even stronger. So very excited to speak to you on August to report our Q1. I think Q1, you will see the real numbers of Stingray and TuneIn. This Q4 of last year, it was a start. We also had -- when we first started selling the synergies in January, February, we buy the inventory from our CTV partners. So there's a cost, and we were buying and selling at the same price. So our gross margin for the first 2 months of the year -- of the calendar year was 0. But now we've arranged everything, but it's great to get synergies. But the first 2 months, we had synergies at a 0% margin, which explains a bit what happened in Q4. But beauty about Stingray, we adjusted quickly. In March, we were back in line. And now we're happy that the backfill is generating above 30% gross margin. So very excited about that move and excited to report more in August.

And then just to follow up on your comments about Retail Media. I just wanted to be clear. So what you're saying is within 6 months, so let's say, by the end of the calendar year, you're in a position to be deploying programmatic ad sales within the retail platform as Retail Media platform as well. Just wanted to clarify that. And what kind of needs to happen between now and then? What are kind of the bumps on the road that you need to kind of get past to make sure that, that execution happens because obviously, that's another material piece going forward.

Yes. So the multiplier is a very simple concept is the multiplier is the fact that all of TuneIn audience and every ad we sell right now on the CTV is 1:1. So one ad, person. But in a retail store, there's 40, 60 people. So with the multiplier is the same concept that's been given for out-of-home. So when you drive on the highway and you see a billboard, the billboard is not a 1:1. They estimate the number of cars and there's a multiplier. So we're bringing this multiplier into effect in the audio space, and we're not the only one that wants it. So you can imagine XMSirius also would like the multiplier for their satellite for the radio business, we would like to use programmatic sales to have the multiplier for terrestrial and for retail media. So a lot of companies are working together to try to get the multiplier. The biggest issue there is not the technology is for the agencies to accept that you have 1 to 40. And I think that because a lot of us are working on this project, I think we're 6 months away from the agencies accepting it. So it's not about technology, it's really about acceptance of the new technology.

Next question will be from Stephanie Price at CIBC.

It's Sam Schmidt on for Stephanie Price. I wanted to ask around TuneIn cost synergies. It looks like those are progressing more slowly compared to the revenue synergies. Can you share some color on that and how you're thinking about the timing of executing on those cost synergies?

Well, what's happening is that the TuneIn right now are -- how can I say, they're beating their budget by 30% to 40%. Like I said before to Adam, I think organic sales of TuneIn are between 60% to 70%. So our sales are so strong. We're executing so well with the positive synergies that there is less plan to do cost saving because right now, we've got a team that's in a Stanley Cup winning every game. So we don't want to change the players on that team because we have the winning team. So the focus is on -- is really on the positive synergies. We've achieved $42 million. And I think that we have achieved that after 6 months. And I think we have a long way to go on the synergies because, again, because of the fact that the CTV -- that the CTV manufacturers, VIZIO, Samsung and LG are accepting audio ads, -- those synergies are so important that we're just focused on that side. I think there's more value creation for Stingray. And on the cost saving, we've achieved our goal. So on the cost savings, we told the market $10 million. We've achieved $12 million. So we're very happy on that side.

Okay. And then maybe just on the advertising demand environment more broadly. What are you seeing at this point? And can you share some color on the organic advertising revenue outlook?

Yes. So advertising for us, like we told the market that one of our dream was to do USD 500,000 a day of programmatic sales. We've achieved USD 550,000. So that's why we mentioned today, so we're -- right now, our run rate is $275 million of programmatic ad sales. A year ago, it was 0. So a lot of it is coming from TuneIn. So you got about $180 million from TuneIn that were. And then the rest, the other $90 million is coming from the backfill we talked about. So very excited about what's happening there. And to be -- on that side, we don't see -- it's not -- we have -- we'll do $90 million of sales this year, our run rate is, and we have one person. So it's not based on number of salespeople you have. It's about the fact that we have 7,000 to 8,000 commercial partners or advertising partners buying. And what happens is that, let's say, you got Subway once gives us 20,000 a day. But if we bring in a CTV with one of our partners and we increase our reach, then automatically, the next day, they'll give us 30,000 just because we have more reach. So the programmatic advertising is all about scale. And now we got 75 million users on TuneIn, and we're teaming up with all the -- with the 25 million users of VIZIO, the 100 million users of Samsung. So we're able to reach everybody in the U.S. So we are in a unique position to really reach everybody, and we don't know where that will stop. So -- but I must tell you that this -- and programmatic ad sales are a bit like Costco. Our average CPM is between $6 to $8. But the beauty about Costco is that even if the economy goes well or bad, people still go to Costco.

Next question will be from Jerome Dubreuil at Desjardins.

Just wanted to jump on something you said earlier in the Q&A. You were talking about the budget being above consensus. I'm just not sure if you were referring to free cash flow there and what you said are all of the revenue, EBITDA and free cash flow line that you're seeing.

Well, roughly, what we see with our consensus, I can look at my -- our sheet here, but roughly, I think the market is at $226 million, Marie, $226 million of EBITDA. So I think our budget is above that, and we are ahead of budget. So good news. But Marie doesn't want you guys to change your consensus. So that's a lot of pressure from Marie on that one. So please, Jerome, don't change your consensus. So -- but right now, we're looking -- again, the year started to have organic sales growing by above 20% in the first 2 months of the year and June looking even stronger than April and May, we're starting the year like we're doubling organic sales compared to last year. And again, one point I want to mention that we haven't mentioned, it's going to be a third year in a row that we have organic sales above double digit. So that's something we should -- when you do your reports, I think our EV to EBITDA should be higher. Right now, we're trending at 7.11 EV to EBITDA for a company growing with our cash flow at double digits. And right now, we're starting the year above 20%. So no, we're very, very -- I think it's a strong start.

Great. Second for me. So you're pretty upbeat on the FAST bouncing back or accelerating in the next quarter. You said one of the reasons for that is the audio ads now being sold. But I'm also seeing in the press release that you're talking about VIZIO allowing you to resell of excess inventory. Can you clarify what exactly that is? And if this could be another fundamental reason for the bounce back in growth on FAST?

Yes. So again, so we call it backfill for marketing terms, we call it the Stingray premium ad network. But at the end of the day, is that VIZIO, Samsung, LG, they only sell 40% of the ads on their channels. And what the partners are giving us, which only a handful of partners have the right to is to resell the inventory that they're not selling on all their channels. So not only on our channels, but all the channels of VIZIO, all the channels of Samsung, all the channels of LG. So we're talking about billions of impressions a day. So that's a big advantage for us. And this inventory seems to be increasing. And that's why our backfill went from, again, USD 30,000 a day to USD 175,000 a day. So we had budgeted for the backfill this year, 25 million. And now we're humming at CAD 90 million of run rate per year. So I think this is exciting. And here's the good news is that when we do backfill, we give back the money to our partners and the more money we give them, it's a bit like they become addicted to the money, they put it in our budget. And so these will be partners as long as we give them money, they'll be partners for life. I can tell you in the case of VIZIO, they told us that our number with them is so strong that even it gets reported to Walmart. So we -- one of our dream was to tell VIZIO, maybe it's time for us to get the Walmart account for audio and digital media in the U.S. So that will be one of our dreams.

Yes. Walmart is a huge retail media player there.

Next question will be from Tim Casey at BMO.

[Technical Difficulty]

I'm sorry, we're having trouble hearing you.

[Technical Difficulty]

Sorry, Tim. Okay. Now we can hear you.

Yes. What happened in radio this quarter? I mean, if you look at the revenue run rate year-over-year, it's been positive or very marginally negative for many years, and you're down 7.5%. Was that airtime sales? Was that digital advertisers moving away from the radio websites? So what happened in radio in the quarter? And how are you thinking about radio in '27 and '28?

So very good question. So you're correct on both points. So point number one, I think the Olympics, the Olympics did not really help us in radio, a very tough quarter. I agree. It was the toughest quarter we had since COVID. So I think we're -- maybe the Olympics, we're not 100% sure. And the second point is the online gambling in Ontario, huge customers for us on the digital side. So online gambling, there's a lot of competition in Ontario. So that also dips. So with both of them coming at the same time.

The good news is radio for Q1, radio is on budget. The budget was we were looking to be down about 3%, but at least we're both on budget on sales and on budget on EBITDA. So we're stabilizing. And the very good news on online gambling is the fact that Alberta. Alberta is also doing the same thing in Ontario. So the online gambling in Ontario is going to be a $10 billion business, incredible, just good for Ontario. So we're -- and what we like about Alberta is we have 43 radio stations. We are dominant. And I think you're going to see a lot of buying coming this year because we're going to be dominant for Alberta and the opening of the online gambling.

Online gambling includes also sports betting and all these jackpots and all these websites. I'm not a big gambler myself. I'm not against it, but I'm just saying, but I think it's going to be good for us this year. But there's no doubt that the terrestrial radio ads are declining, and that has to be offset by digital ads. And the third line that we're doing that we're doing -- that we're very successful is I think the radio business will sell this year $3 million of ads on TuneIn. And the beauty about that is that $3 million is 100% EBITDA margin because there's no cost on tune-in. So that's one of our strategy. So that should help the EBITDA. And on the radio side, there's no doubt that we'll need to look at cost savings because OpEx there is $62 million. and with the business being tougher for growth. But the goal is to have digital compensate for terrestrial radio, but terrestrial radio is coming down and the trend is it will go down. So we have to adjust ourselves with that. And hopefully, we'll be able to bring programmatic sales to radio. I think that not only us, but in the U.S., XM, iHeart, everybody is looking at that. How can we put all that together and bring programmatic sales to radio. We have about $10 million to $15 million of unsold inventory on terrestrial, and that could be filled up by programmatic sales. So we got to work with technology, and we got to diversify.

And what do you -- and so if we -- if you consider an operating environment where you've got declines in radio, you talked about cost savings. What -- how do you think about the margin outlook for radio?

Yes. So we're very confident that our EBITDA for this year and our budget for this year and for next year, radio budget, the EBITDA will be growing. So EBITDA will not be coming down. We'll have a growing EBITDA in terms of dollars. And I think the margin will be also very stable. So we got a great plan for radio because what we're doing on the digital side. And for us, the home run for us on the radio side for everybody in Canada, now that we're much more involved in the U.S., the U.S. are allowed to have 8 radio stations per city, and the FCC is looking to take away that rule. There's unlimited radio stations. The CRTC going from 2 to 3 was a ridiculous decision because everybody owns 2 stations. So nobody is going to sell you 1 station. So really, you got to push the minister. We got to push the CRTC to go to 4 stations. At 4 stations, then the market can consolidate and we all start making more money. So that for us will be the major win in Canada. Radio will keep on doing the $42 million EBITDA, almost $42 million free cash flow, well-run organization, and we do the positive synergies with TuneIn. Also, just a quick note, not material, but our TuneIn, listenership in Canada because we're promoting it through radio has gone up 571% in the last 3 months. So just to show you the power that radio can do to a product like TuneIn. I understand Canada is not the U.S., so it's not going to be billions of dollars. But as Canadians and as Montreal and Quebec, I'm very proud that TuneIn is becoming a known name in Canada.

When you think about the potential ownership rule changes, would you be willing to put new capital to work and acquire radio? Or would it be more about trading stations so you can consolidate -- so operators can consolidate markets?

Yes, it would really be about -- there's a big advantage. It will be about trading, absolutely. And there's a big advantage. You own 2 radio stations, you own 3 radio stations, you have 1 sales force. You have 4 radio stations, you have 1 sales force. There's a lot of savings to having 4 radio stations or 3. We're happy that we bought a third one in Calgary. The synergies there are incredible. And I think that one day at the CRTC and the government, if you want to protect local media, both on the TV and radio side, you'll need to accept to have more dominant players per city because it's the only way that I get.

Eric, you just took a $65 million write-down on radio. I mean you're not suggesting you're going to put more capital into the radio, are you?

No, no, it would be trading, not more capital, but it would be good for us to trade certain cities that were strong. We would love to get 2 more stations in Ottawa. In Ottawa, we have 1 and 2. We'd love to get 2 more stations in Ottawa. Where we're very strong, it would be great to add stations. And where we're weaker, it'd be great to let go stations.

The other thing I'd like to just -- if you could flesh out is you have a line in the press release where you talked about $275 million of revenue. Can you explain to us what is in that bucket? Because I think one of the challenges we have is where does -- what buckets do all these revenue items fall in as we try and model out the business. So could you flesh out what's in that $275 million and where the growth is coming from?

Yes. So roughly the $275 million is $90 million of backfill. -- and $185 million of TuneIn programmatic sales. So TuneIn does $185 million, and we do $90 million.

So that is legacy TuneIn before backfill?

That's what TuneIn does in sales and the backfill is what we're doing incremental sales.

And what would -- like what's the growth rate on that TuneIn? What -- like $185 million this year, what did it do last year notionally?

I think that the last year because we're talking U.S. and Canadian, but I think TuneIn right now is growing at around...

Eric, let's stick with Canadian. So you've talked about CAD 275 million, CAD 90 million of it is backfill and CAD 185 million is TuneIn?

Yes.

So what -- notionally, what did TuneIn do last year, legacy TuneIn that's comparable to the CAD 185 million you're looking to?

TuneIn roughly did about CAD 120 million last year. And right now, we're running at CAD 185 million. Tim you know all about numbers.

That's what we do, Eric. We just look at numbers all day long.

[Operator Instructions] At this time, we have no other questions registered. I will turn the call back over to Eric.

Okay. Thank you, everyone. So on behalf of the entire Stingray team, thank you for joining us on the conference call. We look forward to speaking with you in August for the first quarter results, and that's going to be quick. It's going to be less than 2 months. So excited about that and excited to show the -- to have more view and execution on the TuneIn acquisition that we're very pleased and excited to officially be able to tell you the exact numbers for Q1. And again, thank you for all the analysts, your time and work you dedicate to us. We're very happy. And the good news is we might have a new -- a couple of new friends joining us in next quarter. So I think we have a few new analysts that are looking and maybe 1 or 2 from the U.S. So step by step, but we'll have more friends. Okay.

Thank you, sir. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending. And at this time, we do ask that you please disconnect your line.

Good morning, ladies and gentlemen, and welcome to Stingray Group's Third Quarter 2026 Conference Call. [Operator Instructions] This call is being recorded on Wednesday, February 11, 2026.

I would now like to turn the conference over to Mathieu Peloquin. Please go ahead.

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-Helene 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 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 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'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 a 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.

[Foreign Language]

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 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 3 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 had 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 device, connected cars and thousands of retail stores.

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. And as you can see with our reveals, we are quickly building our car inventory.

Second, our second pillar, monetization, that -- 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. 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 0. And now our run rate is $500,000 a day at USD 102 million or CAD 250 million. So when you talk about growth going from CAD 0 to CAD 250 million, that's a great new vector.

Well, content -- what is the fuel in 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 creation. We create expertly crafted players, 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 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.

Let me now turn to 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.

The highlights has similar positive impact of its recent TuneIn acquisition and the continued expansion of high-growth areas like FAST channels, in-car entertainment. FAST channels, particularly drove our robust financial results as we leverage Stingray 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. Following the closing of this transformative acquisition on December 19, TuneIn's performance has exceeded our expectations, creating powerful, new synergies that are already reflected in our strong financial performance.

Revenue synergies with TuneIn reached 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 million to $40 million of cross-selling and for cost savings between $10 million to $15 million in the next 18 months or before March 27. So we started the year, let's say, on a fast track.

On the in-car entertainment side, our recent agreement with world-class automated 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 certainly 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 Comm Radio.

Turning to Mercedes, we will launch Stingray Music and Stingray Karaoke applications in all vehicles equipped with our latest MBUX infotainment system. This application, which will be newly 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, 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 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 2 other radio stations in the market. Altogether, Stingray Radio owns and operates 32 radio license in Alberta and 96 radio stations across Canada. Calgary, the transaction is subject to CRTC approval, while we expect it 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 2.8x that we had told the market for the third quarter, and we ended December 31 at 2.49x. So a very good closing, very good cash flow for the company.

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 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 over the call to Marie-Helene for our financial overview of the quarter, and I will be pleased to ask questions. [Foreign Language] Marie.

[Foreign Language] 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-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 $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 revenue.

Revenues in the U.S. 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 transactions. 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. Further apart, 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 acquisition.

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 negative $1.7 million in the third quarter of '26 compared to negative $2 million in the third period of 2025.

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. The year-over-year decline was mainly due to the higher performance and deferred share units expense related to an increase in the Corporation's 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 $0.38 per diluted share in Q3 2026 compared to $23.4 million or $0.34 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 2.49x at the end of the third quarter. We intend to bring it down under 2x 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 $3.8 million during the third quarter under our NCIB program.

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

Okay, Marie. This concludes our prepared remarks. I hope you like my introduction. At this point, Marie-Helene and I will be pleased to answer your questions. Back to you guys.

[Operator Instructions] First question comes from Stephanie Price at CIBC.

It's Sam Schmidt on for Stephanie Price. I 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 million to $40 million target?

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 like 8 different vectors that TuneIn is already helping us sell. So what are we selling? They're helping us on CTV, helping us sell Comm 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, $16 million run rate. We said $20 million to $40 million, but right now, I'd say $20 million to unlimited because like I said before, a year ago, we were doing 0 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 USD 500,000 of programmatic sales on all the different platforms, which is USD 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, again, we're talking about distribution, all will be net finance, all the model is advertising in programmatic. And the beauty of 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. So I think the $20 million is just a starter and we're very excited -- in June, in 4 months -- to really give you our first quarter together and just give you a bit of feedback. 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 -- won't go in that debate, but a very good start of the year, so very happy.

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...

In terms of cost synergies -- 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 saving on insurance, saving on audit fees, saving on all these. So we haven't even looked yet at the personal side. Over time, there will be -- 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 is no big rush.

So very confident to achieve our $10 million plus of OpEx and COG savings by year-end. And I think we might just achieve it with the COGs. We have a lot of also synergies on in terms of paying the Amazon fees and also ad service fees. So we're very excited. Again, a great merger on both sales and cost savings. I would say it's a perfect marriage.

The next question comes from Adam Shine at National Bank Financial.

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

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 U.S. dollars. So thank you, Adam, for the question. So we had sold USD 20 million to USD 40 million of positive sales and $10 million to $15 million of OpEx savings...

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?

Yes. 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 sell $1, now we have to pay our partner whatever the amount, $0.35, $0.40, $0.50.

So the gross margin on both products are, one is at 95% gross profit, the other one is 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 give you more guidance on the gross margin and the EBITDA margin. But there is an effect, when we sell directly, we report the numbers gross. I'm an accountant, so I don't want to go into too much detail, so I'll get you bored. I do have brown socks today.

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

I think we're now 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%.

Okay. And just in terms of leverage, I mean, you've done a good job in the prior 2 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 1.5x, frankly, too low? What's the strategy here?

I think before a bit more aggressive entrepreneur, our range was 2.25x to 2.50x. 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 2x, 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.

I was reading your report this morning, Adam. 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 $0.20, $0.25, then you should expect our dividend to be growing to $0.45 to $0.50.

The next question comes from Aravinda Galappatthige from Canaccord Genuity.

I just wanted to clarify, go back to the sort of the synergies on TuneIn, Eric. I mean the way that you kind of laid it out, the fact that you've already realized on a run rate basis, the $5 million on cost of $16 million 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 million, I mean, we're really talking about a bump of a little more than $50 million in U.S. dollars, that is, by the way, in EBITDA for raised numbers 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. Is that accurate?

Roughly, you can see the cost 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, in our year-end 2027.

So for example, some of the cost synergies are happening in February. So you're not going to get the full value. But starting April 1, you will get full value of those synergies. And I think Marie can give you more guidance of exactly when do they come in and what timing. But you're exactly right. This deal with TuneIn, if it's a $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. 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 had yours. How are you kind of thinking about harmonizing that? Are you just letting that run parallel for now?

No. So the day happened, the next day we 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 we're adding TuneIn right away.

So every car deal we have, and I must say, we used to play a game when we were -- with cash and all, we call quote on 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 2 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. But now that we merge both together, I 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 U.S.-based. There is not many companies that are global. And when you talk to BYD, and 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 manufacturer, we're talking 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. So now 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 one 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. 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.

Congrats on all the progress.

We're very, very happy with the monetization of the current inventory -- of the unsold inventories.

The next question comes from Jerome Dubreuil, at Desjardins.

First one, I want to touch again on the synergies there. You seem to be kind of resisting the urge to change your synergy guidance. So maybe other than the initial $10 million in cost savings, it now sounds like it's $10 million 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?

No, I think on the COGS and OpEx or the...

Revenue and OpEx, both with the update that you provided.

On the sell side, when we said $20 million to $40 million, I said to our Board yesterday, I said we should never say -- we should say $20 million and above. Right now, I think it's $20 million 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 also with different partners. So the inventory that's coming in with our distribution is unmatched.

Again, it is the chicken and the egg. So the more you monetize, the more people want to give you their inventory. The more you have inventory, the more you have scale, the more you can monetize. So it's a virtual circle. We have a daily meeting at noon every day to watch the programmatic sales. And if we're going to be doing $500,000 a day in March, if you look at the trends, that means we should be doing USD 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.

Yes. Follow-up for me on the organic growth perspectives for TuneIn, you mentioned that they were up 81% year-on-year in January. Wondering if you can discuss maybe what are their stand-alone opportunities, maybe on and off platform aside from the revenue synergies that you've already discussed?

Yes, good point. Again, January was a weak January last year. 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 -- in 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 LG, from VIZIO, and Samsung. So that's good to hear.

But your exact question is what?

I want to hear whether your stand-alone opportunities, maybe they can help monetize other audio platforms that are outside of the Stingray ecosystem. Maybe is that still on the table?

Absolutely. We have deals that have been announced that will be -- I guess, we'll be able to announce, but I think you'll be surprised about many third-party platforms that we're reselling on. TuneIn really developed an ad tech selling platform that we 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.

In Radio, believe it or not, in Radio, there is 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 is more demand right now than there's inventory. And TuneIn is tapped to all these partners. So it's a very exciting time where we're positioned.

The next question comes from Drew McReynolds at RBC.

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. Two follow-ups.

One, on the Connected Car side, are you able to just size up like 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?

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.

Yes. 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 $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. 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 $10 million to $20 million, but we won't go from $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.

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 each of these deals. 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, the second question?

Just on the TuneIn subscription revenues...

Good point.

Your focus of the acquisition, any update there.

So when we did the deal with TuneIn, 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 3 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 3 years to 5 years. Subscription for us is going to be a nice add-on. And Drew, it's a perfect wedding because like the Royal Bank, it's a royal wedding.

The next question comes from Tim Casey at BMO.

Questions have been asked and answered.

At this time, I will turn the call back over to Eric Boyko for closing comments.

All right. So I hope that you like 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 the U.S. largest investors, met with a lot of their investors, the TuneIn team was very well connected in the U.S., and we quickly realized that having the rate A, rate Bs, if you're American, you had to buy Bs, but there was no market on Bs, and the As, 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 2 tickers. So I think all the banks did it, Canada did it, all the telecoms did it. And so our goal here is really to increase U.S. investors. We're going to be looking for U.S. coverage, and we will be much more aggressive since TuneIn is a well-known brand, and we do 60% of our sales in the U.S. to really attract a good U.S. investor base and 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 U.S. investors.

We love Canada, we love Quebec, but we have to be world winners. So I'm very excited about the ticker. So hopefully, we'll see the impact of that over the next few quarters, and we'll see more of our U.S. friends buying our shares. So that was also a big move for us and excited to see the impact of that.

So with this in mind, I'll say thank you very much. [Foreign Language] And excited for our next call because this year-end is only in June. So we have 4 months until we see each other. So I will miss you great analysts. If you have friends in the U.S. that want to cover us, give me their names. [Foreign Language]

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

Good morning, ladies and gentlemen, and welcome to Stingray Group's Q2 2026 Results Conference Call. [Operator Instructions] This call is being recorded on Wednesday, November 12, 2025.

I would now like to turn the conference over to Mathieu Peloquin. Please go ahead.

Thank you very much, [Foreign Language]. Good morning, everyone, and thank you for joining us for Stingray's conference call for the second quarter of fiscal 2026 ended September 30, 2025. Today, Eric Boyko, President, CEO, Co-Founder; and Marie-Helene Fournier, Interim CFO, will be presenting Stingray's operational and financial highlights.

Our press release reporting Stingray's second quarter results was issued yesterday after the market closed. Stingray also issued a press release to announce the acquisition of TuneIn Holdings, which will be discussed on the call. This press release as well as the MD&A and financial statements for the quarter are available on our Investor website at stingray.com and on 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 risks and uncertainties, and actual results may differ materially. These risks and uncertainties include, but are not limited to, the risk factors identified in our press release announcing the TuneIn acquisition and 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 a complete definition of 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 welcome to our second quarter conference call for fiscal 2026. What a busy day we're having. Today marks a pivotal moment for Stingray as we're not only reporting solid Q2 results but also announcing the second largest acquisition and the largest U.S. acquisition in the corporation's history, TuneIn Holdings, creating an audio streaming and advertising powerhouse. This transformative acquisition is expected to greatly expand Stingray's global digital audio footprint, video footprint and accelerate its growth in streaming services and bolster its advertising offering.

But before sharing with you more of the major highlights, let's review Stingray's continued achievement for the second quarter. Stingray's momentum accelerated with organic growth of 16.7% in Broadcast and Recurring Commercial Music, largely driven again by rapidly increasing FAST channel sales, where we have unmistakenly become the leading provider of music, ambience and music entertainment channels. During the quarter, we further expanded our premium advertising network by securing a second partnership with LG for additional supply and ad inventory. They will join Vizio in a growing portfolio of partners and we anticipate adding a lot more in the next year.

We significantly diverse our FAST channel portfolio in Q2, launching 29 channels with Amazon Fire TV in the U.S., 7 on Roku USA and U.K. This builds our success on our recent Roku launch in North America, which are generating over 50,000 listening hours a day or 1.5 million a month. When we're looking at advertising revenue for the quarter, we achieved a remarkable growth of 55%, significantly surpassing our 40% target. This outstanding performance was driven by year-to-year revenue increase in Retail Media and, again, strong growth in our FAST channel sales.

A couple of weeks ago, we announced the acquisition of DMI, a leader in music branding and in-store audio advertising. This represents a strategic transaction for Stingray because it expands our U.S. retail network by 8,500 Walgreens locations, and we reached 33,000 locations across North America. For the first time now, Stingray is officially the pharmacy network. We cover all pharmacies across U.S. and Canada. They consolidate our leadership position within the in-store audio advertising market and helps global brands reach and engage consumer in their shopping journey. We are pleased to welcome the DMI team to Stingray.

And last, for the in-car entertainment segment, we recorded a double-digit revenue growth increase in the second quarter as new vehicles have progressively replaced older fleets. With the recently announced launch of the advanced karaoke experience for BYD vehicles, we expect this trend to continue.

Altogether, revenues from our Broadcasting and Commercial Music division grew by 33% to $80 million this quarter, while Radio revenues declined less than 1% to $32.4 million. Our latest Numeris PPM ratings for summer 2025 highlight our strong momentum in Canadian radio, showing significant growth in our key markets. On a consolidated basis, we delivered growth of 21% to $113 million in sales, which is a record, and adjusted EBITDA improved by $16.3 million to $39.5 million.

Now tuning to our TuneIn acquisition, a good play of words. Now turning our focus on the TuneIn acquisition. Given the strong progress we're making with key growth pillars and our strong free cash flow, we believe the timing is right to announce the second largest acquisition in the corporation history, TuneIn Holding. This acquisition will further strengthen Stingray's position as a global leader of audio and video entertainment and digital advertising sales.

TuneIn is a pioneer in audio streaming content, serving 75 million active listeners each month and providing access to 100,000 radio stations and podcasts and music channels. With over 600 hours –- 6 million -- 600 million hours of listenership per month, we are the third most listened to channel in the world after our friends at the YouTube video and Spotify.

TuneIn's digital content is distributed across more than 200 platforms in 100 countries and fully integrated in 50 in-car audio systems. Equally important, and probably what we're most excited, TuneIn has redefined the art of programmatic advertising via its strategic ad channel partners, reaching audience across our platform with innovative audio, display and video ad products. It's a growing ad segment, represents more than 70% of its revenues, with the rest coming from premium subscription.

We are crafting an unmatched audio/video ecosystem by merging Stingray extensive technology infrastructure and content distribution capabilities with TuneIn's expertise in monetization, advertising technology and diverse content offering. We're partly excited about expanding our reach in the automotive sector, where TuneIn and Stingray have both established strong integration with leading manufacturers.

We are confident that this highly transformative acquisition supported by the cost synergies within the next 12 months of closing will supplement our robust internal growth in digital advertising with our CTV and retail media offering and our car offering, delivering solid margin over time and building shareholder value.

Overall, the transaction carries an enterprise value of up to $175 million, $125 million paid out at closing of the transaction by the end of '25 and an amount of $29 million to be paid post-closing. The deal is subject to the regulatory authorities of customary closing conditions.

TuneIn is expected to generate an estimate of $110 million of revenues this year and $30 million of U.S. EBITDA, plus with a $10 million of synergies that we expect to come. TuneIn will continue to operate under its existing brand and be led by the existing management team. Combined business are expected to generate $560 million of revenues on a pro forma basis and an over $200 million pro forma adjusted EBITDA as of December LTM. We also expect our free cash flow to increase by 50% and to be above $2 per share.

I'll conclude on our balance sheet, which remains solid even after these 2 pivotal transactions. We expect after closing of this transaction that our debt-EBITDA will be around 2.8, and we expect to deliver and be below 2 by December of next year or in the next 12 months.

Reflecting our strong financial performance and our confidence in future cash flow generation, I am pleased to announce that the Board has approved a 13.3% increase in our quarterly dividend, raising it from $0.075 to $0.085. This decision underscores our commitment to delivering sustainable long-term value to our shareholders.

I will now turn the call to Marie-Helene for a fantastic financial overview of the quarter. Marie?

Thank you, Eric. Good morning. [Foreign Language]. Revenues reached $113.3 million in the second quarter of fiscal 2026, up 21% from $93.6 million in Q2 '25. The year-over-year growth was mainly driven by greater FAST channel revenues and higher equipment sales related to the acquisition of the Singing Machine.

Revenues in Canada rose 5.2% to $51.5 million in the second quarter of '26. The growth can mainly be attributed to higher equipment and installation sales related to digital signage. Revenues in the U.S. grew 57.9% year-over-year to $51.9 million in Q2 2026, reflecting higher FAST channel revenues and greater equipment sales related to the acquisition of the Singing Machine. Revenues in other countries decreased 16.2% to $9.8 million in the most recent quarter. The year-over-year decline was mainly due to lower subscription revenues.

Looking at our performance by business segment, Broadcasting and Commercial Music revenues increased 32.8% to $80.9 million in the second quarter of '26. The growth was primarily driven by high FAST channel revenues and greater equipment sales related to the acquisition of the Singing Machine. For their part, Radio revenue decreased 0.9% to $32.4 million in Q2 due to lower national airtime sales, mostly offset by higher digital revenues.

In terms of profitability, consolidated adjusted EBITDA improved 16.3% to $39.5 million in the second quarter. Adjusted EBITDA margin reached 34.9% in Q2 '26 compared to 36.3% in the same period in 2025. The increase in adjusted EBITDA dollars year-over-year can be attributed to higher revenues, partially offset by greater operating expenses, mostly due to higher cost of sales.

By business segment, Broadcasting and Commercial Music adjusted EBITDA grew 24.8% to $31.2 million in the second quarter of 2026. The year-over-year increase was primarily driven by higher revenues. Adjusted EBITDA for our Radio business decreased 7.2% year-over-year to $10.2 million in the second quarter of 2026. Adjusted EBITDA for this segment was negatively affected by a higher proportion of digital revenues, which carry a greater cost of sales. Control over fixed costs helped minimize overall cost increases. In terms of corporate adjusted EBITDA, it remained stable at a negative $1.9 million in the second quarter of 2026.

Stingray reported net income of $11.8 million or $0.17 per diluted share in the second quarter of 2026 compared to $5.8 million or $0.08 per diluted share in Q2 2025. The improvement was driven by better operating results and an unrealized gain on the fair value of derivative financial instruments. These factors were partially offset by the higher performance and deferred share unit expense related to an increase in the corporation's share price.

Adjusted net income totaled $21.9 million or $0.32 per diluted share in Q2 2026 compared to $16.7 million or $0.24 per diluted share in the same period in 2025. The increase was mainly due to higher operating results and lower interest expense, partially offset by a greater income tax expense.

Turning to liquidity and capital resources. Cash flow from operating activities totaled $24.3 million in Q2 compared to $19.2 million in Q2 2025. The year-over-year increase reflects higher operating results. Similarly, our business also generated a significant year-over-year increase in adjusted free cash flow. In the second quarter of 2026, it totaled $28.4 million compared to $21.1 million in the same period in 2025. The improvement can be attributed to higher operating results and lower interest rate.

From a balance sheet standpoint, Stingray had cash and cash equivalents of $15.1 million at the end of the second quarter and a credit facility of $336.3 million. The credit facility consists of a $500 million revolving credit line, of which $162.1 million was available.

After the quarter, we also finalized the financing for the TuneIn acquisition. We secured an additional USD 150 million term loan and extended our credit facility maturity by 1 year to November 2029.

Total net debt at the end of the second quarter of '26 stood at $321.1 million, down $4.8 million from the end of last quarter as we continue to reduce our debt level. Combined with improved adjusted EBITDA over the last 12 months, our leverage ratio improved to 2.13x at the end of the quarter from 2.72x in the same period last year.

Finally, we repurchased 311,500 shares for a total of $3.1 million during the second quarter under our existing NCIB program, which was renewed for another 12 months. We also made dividend payments of $5.1 million in the quarter to reward shareholders.

As Eric mentioned earlier, our commitment to delivering shareholder value remains a top priority. In recognition of our strong performance and positive outlook, the Board has declared a quarterly dividend of $0.085 per share. This represents a 13.3% increase and reflects our confidence in our ability to generate sustainable cash flow for the long term.

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

Merci, Marie. Thank you, everyone, for your time and remarks today. I think we're ready for our questions from our team. And again, we didn't have a chance, but thank you. Also, welcome to the TuneIn team. Very excited to have -- TuneIn is about 105 people. So very happy to have a larger family, and excited on working together and maintaining the high momentum that we have right now.

So with this, we'll go to the question part. Merci.

[Operator Instructions] With that, our first question comes from Aravinda Galappatthige with Canaccord.

Congrats, Eric and the team, of the acquisition in the quarter. I'll start with a question or a couple of questions on TuneIn. First of all, can you give us a sense of what TuneIn's sort of revenue and profitability trajectory has been? I mean, clearly, the valuation multiples are attractive, but a sense of what the trend has been in recent years in terms of growth.

And secondly, with respect to how it can help with your longer-term ambitions in car, can you just maybe connect that for us and then maybe help us understand how TuneIn can contribute to those aspirations that you have?

Two good questions. So their sales this year are -- they're $110 million. It's $80 million of advertising, $30 million of subscription. Right now, advertising is growing by 40% year-over-year, a very strong, aggressive advertising model. In terms of trend, they're finishing the second half of the year. So from June till December, the run rate is at $20 million EBITDA. So the run rate now is at $40 million. So they're really finishing the year strong. So we expect to start the next year very good. So excited about that trend. And we expect, again, strong, again, advertising sales growing by, again, 30%, 40%. Right now, the model is really well leveraged.

The car. The car is for sure is what's most exciting. We are talking to 20 car manufacturers. TuneIn is talking also to 20 car manufacturers. The homerun or the holy grail is, I would say, every car manufacturer wants to monetize their audio system. For years, they were not making money with radio. For years, they never got a penny from XM Sirius (sic) [ SiriusXM ]. You saw the move about GM taking away Apple CarPlay. You saw the move of Tesla taking away FM. The cars want to monetize that segment. So we believe that we are well positioned to own what we call OEM radio.

So I believe that every car manufacturer in the world, from GM -- GM, BYD, Ford, Toyota, our friends in Germany will have their own OEM radio. They'll call it Ford Radio. They'll call it Toyota Radio. And in there, you're going to have the Stingray music channels, just like XM Sirius (sic) [ SiriusXM ]. You're going to have the TuneIn player, and you're going to have access to the beautiful Stingray Karaoke.

So I think the both of us coming together, we're really positioning ourself to be a global dominant player. And I wouldn't be surprised that in the next 5, 10 years that Stingray and TuneIn will be embedded in every car manufacturer in the world.

Can I just clarify your comment about EBITDA, the EBITDA run rate at TuneIn? Did you say $40 million -- you hit a run rate of $40 million? And are you referring to U.S. or Canadian?

Yes, U.S. So the run rate for the second half of the year, so from June till December of this year, the run rate is at $20 million. So the run rate at the second half is $20 million actually.

Understood. Okay. And just maybe one last thing on the dividend. I mean, it was a significant increase in the dividend. Are you -- I mean, how should investors kind of look at this? Are you sort of suggesting that you want sort of Stingray to be a growth plus income story where there is growth, but also your -- the returns to shareholders will remain as strong as opposed to just sort of a heavy investment theme? I mean I just wanted to understand that because it's been a while since you raised your dividend. I wanted to understand the signaling here.

Our deal with TuneIn is increasing our free cash flow by 50%. Our LTM free cash flow is at $1.40. We always said to the market we want to be between 20 to 25. We want to be kept in that range. But right now, with our free cash flow expected to be well above $2, we're still at a very -- at $0.34, we're still at a very low end compared to free cash flow above $2. So we'll see where the business goes. And again, like I'm mentioning, we expect that closing to be at 2.8 of debt-EBITDA and to be below 2 by December of next year in the next 12 months. So very accretive deal. Also, we don't -- I know we don't talk about it much, but TuneIn had $200 million of tax losses. So we're recuperating USD 25 million of tax losses that we can use starting right now.

And the next question comes from the line of Drew McReynolds with RBC Capital Markets.

Congrats on the acquisition. Just a couple of follow-ups here, Eric. Just in terms of advertising and EBITDA, like obviously quite good. On the subscriber side, can you just provide an update on kind of what those revenues or sub trends look like? And also, can you just elaborate on TuneIn's ad platform and monetization expertise? Just want to kind of better understand what their better mousetrap is relative to kind of your current capabilities.

A very good question. So subscription -- the model of TuneIn in the last 5 years, and a great job by management, was to stay away from subscription and move towards advertising. So we expect -- right now, subscriptions are decreasing by about 5% per year. Our focus is not on subscription. Our focus is on monetizing every hour of listenership. And that's why we're seeing such very strong advertising growth of 40% and that will be for the future. So decreasing subscription, focusing on advertising.

What they've developed is they have the reach. They have the ad -- they call it an ad stack. I don't want to get into details. But they're able to monetize very well both audio and video, and that's what we're excited. We have over right now because of our deals with LG and Vizio, what we call backfill. But we don't like it. We call it the advertising network. We have over $100 million of inventory right now that is unsold. So for the first project, and we've already started this morning, TuneIn will help us sell this unsold inventory on our FAST channels.

Then, as you know, in retail media, we do a great job, but we have over $400 million of unsold inventory in retail media. TuneIn also right now is going to be helping us sell this unsold inventory. And we also have a lot of audio inventory like we have LG Radio, we have our Stingray Music app. So we have a lot of audio inventory that also TuneIn and the cars will start monetizing. so we see TuneIn as a great monetizing machine for Stingray that can be implemented right away.

The positive sales synergies of this deal, we expect them to be anywhere from $20 million to $40 million. The margins right now, we can't elaborate, but that is -- we're more excited about the positive sales synergies of TuneIn selling on our platforms than we are about the OpEx synergies.

Yes. Okay. No, that's good context. And maybe last one and then I'll pass the line. Obviously, on the Broadcast and Commercial Music recurring revenue, very strong organic and the advertising within that obviously strong as well. Just -- can you just for modeling purposes kind of level set here? Is this all kind of sustainable here into Q3, just obviously putting TuneIn's impact aside?

Yes, that's -- we have to be careful. Q3 last year was also very, very strong. So let's get back after the call for that one. Because last year, we had a very strong Q3. So I want to be careful with the -- again, for the year -- now you can imagine that all of the advertising sales will go in the same line and all subscription of TuneIn will go in the same broadcasting unit. But let's talk offline for that. I agree there'll be a lot of modeling to do with the TuneIn deal.

And the next question comes from the line of Jerome Dubreuil with Desjardins.

Congrats on what looks like being a fantastic deal so far. You touched, Eric, on the subscription aspect. I'm not going to be putting too much time into that. But I'm wondering, in terms of the general momentum of the platform, if you can maybe discuss other growth metrics maybe in terms of monthly active users, just to assess the general momentum? And appreciating that it seems that by this -- this management team has been putting more efforts into margin [indiscernible].

Yes. One point that's surprising about TuneIn, which we were very -- and by the way, we've been talking to TuneIn for the last 3 years. So it's been a long deal in the making, discussion, partnership. So of TuneIn's listenership of 600 million, 80% is outside the U.S. 80% of their listenership is outside the U.S. But in terms of revenue, 95% of the revenues come from the U.S. market. An average hour in the U.S. will generate $0.08 to $0.10 an hour. If you look at Europe, TuneIn is not getting $0.003 because the programmatic advertising system is much more sophisticated in the U.S. and Canada and not as strong in Europe yet.

So one of the key strengths here for us is in the future when we start monetizing that 80% of listenership across the world, which we'll be investing with both TuneIn -- and we'll need that advertising for the car business, a lot of the cars are in Europe -- we have a strong savings account for the next 5 years for us to increase that $0.003 in Europe and the rest of the world and to bring it to the $0.08, $0.10 range of the U.S. So that also is a very exciting growth portfolio for us. And the market will get there. Just -- we see the same thing with FAST channels. We sell -- our revenues per hour are much stronger in the U.S. and Canada and Australia than they are in Europe for now or in LatAm. So we're excited about that growth.

Awesome. Second question for me is I want to touch on the second backfill deal that you announced with your results. I'm wondering if we should be expecting kind of a similar financial profile of the second backfill deal than what you have been discussing last quarter on the first one.

So with the backfill, we've -- I would say we're right now doubling to tripling our inventory. Like I said, I think we have – we are very -- right now, our biggest issue is the fill rate. We really need to build that machine that TuneIn has. And so, we're excited to see and we'll be able to quickly announce to the market what that -- how quickly we'll be able to fill all that inventory that we're getting from our TV manufacturers. We got Vizio, we have LG. We have 2 more coming on board. And now with the TuneIn monetizing machine or the mousetrap, like one of you called it, we're very excited to see how we can increase our fill rate, which is still very low.

Great. And maybe last -- a quick clarification for me on the back of Aravinda's question in terms of the run rate of $40 million EBITDA in the second half of the year. Is there any seasonality dynamics that we should be considering? Or it's just a great momentum on the EBITDA for them as well?

What happened is that their machine -- TuneIn was able with their -- they're so efficient that TuneIn is now selling to third parties. So we help iHeart fill their -- some of their inventory and we help third parties fill their inventories, and you'll see deals being announced. So they're so efficient that they're even allowed to sell on third parties. And I must say that, that trend will not stop because we're getting a lot more third parties approaching us to be their advertising partner. And that is a very lucrative business. And the more reach you have, the more you get advertisers. And that seems to be the model and we're very excited about the prospect of the advertising growth.

And the next question comes from Stephanie Price with CIBC.

Congratulations on the TuneIn acquisition. I just wanted to ask a little bit more about the USD 10 million in synergies. It sounds like you're expecting significant revenue synergies from the deal. Is this embedded in the $10 million? Or is that primarily cost synergies that you're talking about with that?

Yes. It's -- we're looking at about -- we have about $10 million in OpEx synergies that will surely come over time just because of the way the companies are structured. As you can imagine, we have a lot of different functions. But what we're most excited are the COGS. Just in music rights, because we're much more of a music company -- we have about $4 million in savings in music rights just because we pay less margin. TuneIn is a third party. So we have big savings on music. And we have a lot of savings we see with ad servers. So there's another $5 million to $10 million in COGS savings, which, for us, will apply very quickly. So we're excited to establish those 2 in the next 12 to 18 months.

But generally speaking, TuneIn is doing great. Their sales are double digit. Their EBITDA is more than double digit. I explained the run rate, in the second half of the year at $20 million EBITDA. So we're looking at much more of COGS savings, a bit of OpEx of certain position because there's duplication. And we haven't monetized yet, but -- the positive sales synergies that we see from this deal.

And maybe I'll touch on the other acquisition you announced post quarter end of DMI. Maybe you could give a little bit more color about what that acquisition brings to Stingray's Digital Media platform...

Yes. DMI in terms of financial – yes, DMI a very small -- it's a much smaller tuck-in. We told the market $6 million in sales, $2 million EBITDA. What we don't know is that DMI Group had a sales force. They have a strong sales force. We have a sales force in retail media. Like we always say, our fill rate is low. So we're excited that their sales force that they were selling only in Walgreens, will be selling in CVS, will be selling in Kroger, will be selling in Albertson and all the other stores. And we're excited. We already are -- we've already put in the last couple of weeks a lot of our sales in Walgreens. So we're getting a double sales positive. So we're more excited about that synergy, the positive sales synergies about this deal.

And also, right now, we're the only retail audio media in the U.S. and Canada. So we really have positioned ourselves. Now our challenge is how do we quickly increase our fill rate. And one of the strategy is to work with TuneIn's partner and with their national sales force and their sales team. So excited to see how much TuneIn can help monetize all of this new location or inventory we have.

And the next question comes from the line of Tim Casey with BMO.

Eric, can you talk a little bit about the monetization you're seeing on TuneIn now in terms of radio stations versus some of the video platforms that are on there, the sports deals, the podcast? Is this a play on local radio? Or is it on some of these other platforms? Because I'm presuming like the sports side would be lower margin because of the rights issues and whatnot. And then with respect to the growth, which sounds very strong, is there any investment you have to make in terms of technology or OpEx to drive that, that isn't there, that isn't in the model right now?

So a very good question. So they're able to -- in music rights, so whenever -- when you rebroadcast a radio station, there's no cost of goods sold because you're really just distributing. When you have our music channels like our -- the Stingray music channels, we pay about $0.03 an hour. So they're able to monetize both radio and they have TuneIn channels, which are like 70s and 80s at about $0.08 to $0.10 an hour. So that for us is great news because we're able to really monetize all that. They're doing it with different -- when you go on the app, they have pre-rolls, they have muted videos, and they're able to really well monetize both products. So it's exciting. And we'll get more in details of the different strategy for monetization.

So -- and now good news -- TuneIn has a very extensive force of engineers. They have over -- like over 80 engineers in their team, about 40 in the U.S., 40 in Ukraine. They're very sophisticated. This company was built from the Palo Alto area. So I must say very impressive, robust. So for now, the biggest thing is there's not much to do with connecting their pipes. And they have about like 50 pipes of advertisers -- I won't go on the names and all the technology -- to our product and our inventory and how we speak to advertisers to explain how they can have access now to the Stingray inventory, our FAST channel retail media. So there is no investment to be done right now in terms of building a special technology project. So it's really just continuing what we're doing already. So that's why it's a quick integration.

Would you not have to compensate the radio stations for the rebroadcast? I don't imagine that would be a huge number, but would there not be some sort of -- would they not generate revenue from this?

Yes, I won't go into exact details. But the answer is, when you rebroadcast, we do pre-rolls and then it's still the ads of the radio station that plays. But while you're playing -- while you're listening to Boom FM in Toronto and you listen to Boom on TuneIn, you have display banners, there's banners and display video. And those display video, they are muted. So you still listen to that channel while you're getting advertising. So that's why it is very, very -- their system is very -- creates a lot of revenue per hour.

And I think, Tim, you had a good question. I think someone is -- in terms of the owners, TuneIn was owned by 40, 50 shareholders. It wasn't owned really by a PI Group. They had -- their shareholders were a lot of the big names coming from California and from Eric Schmidt, a lot of CEOs, CEO of -- even iHeart was an investor, the CEO of Salesforce. A lot of big names that you would know their names, but not me because I'm not as good. And also good news -- also Tom Hanks was one of their shareholders. So I'm happy. I'm supposed to -- I will have the chance to meet Tom Hanks. He has a few audio channels with us. So I'll let you know if ever I see Tom Hanks, Tim.

And I'm showing no further questions at this time. I would like to turn it back to Eric Boyko for closing remarks.

Okay. Thank you. I know it's a long call. We had a lot to cover with both the quarter and our 2 acquisitions. So thank you everyone for your questions and, again, the analysts for your support. And we talked to you a lot about –- we talked to a lot of you last night. So you guys really work full time.

In summary, we're confident that TuneIn acquisition is a perfect fit to further Stingray's growth in its key pillars with significant expertise in ad monetization and a perfect companion to our in-car product offering. We are looking forward to sharing our progress in coming quarters.

On behalf of the entire Stingray team, thank you for joining us on the conference call. We look forward to speaking with you following the release of our third quarter results for fiscal 2026. Have a great day. [Foreign Language].

Thank you. And this concludes today's conference call. Thank you all for joining. You may now disconnect.

[Foreign Language]. Good morning, and welcome to the Annual Meeting of Shareholders of Stingray Group Inc. [Foreign Language]. My name is Mark Pathy, I'm the Chairman of the Board of the Corporation, and I will preside at the meeting as Chairman.

[Foreign Language]. The meeting will consist of 2 parts: The first of which I will conduct will be the legal part. After this, there will be a much more interesting presentation by Eric Boyko, the President and Chief Executive Officer of Stingray Group; and Marie-Helene Fournier, the Interim Chief Financial Officer of the Corporation.

Before we start the legal portion of the meeting, I would like to present the other current Board members in addition to Eric Boyko and myself, those being Claudine Blondin; Karinne Bouchard; Mélanie Dunn; Ian Lurie; Gary Rich; François-Charles Sirois; Robert Steele; and Pascal Tremblay. Mr. Sirois is not standing for reelection as a director today, and Stingray wishes to thank him for his dedication and contribution to the corporation over the many years, he has served on it. And instead, we are very excited to introduce the Honorable Jean Charest as a new nominee to Stingray's Board of Directors.

Stingray's management team consists of Eric Boyko, Mario Dubois, Lloyd Feldman, Marie-Helene Fournier, Valérie Héroux, Steve Jones, Ratha Khuong, Mathieu Péloquin, David Purdy and Jean-Pierre Trahan. our CFO. Mr. Trahan is currently on a medical leave of absence. We wish him a speed of recovery.

Now let's begin with the legal portion of the meeting. As this meeting is held virtually via live webcast, it is helpful to set out a few rules for the orderly conduct of the meeting. Registered shareholders and duly appointed proxy holders wishing to participate and vote today on the various motions, should have received prior to the meeting their respective control number in order to access it.

Questions in respect of a motion can be submitted in writing using the instant messaging service of the virtual interface. Questions will generally appear shortly after they are submitted, but will only be addressed during the question period at the end of the meeting, provided that questions regarding procedural matters or directly related to the motions before the meeting may be addressed during the meeting.

For the purposes of the meeting today, voting on all matters will be conducted by electronic ballot. Registered shareholders and duly appointed proxy holders will be asked to vote on each motion after the presentation of all motions in this legal portion of the meeting. When you are asked to vote, you will be able to access the electronic ballot from the voting icon at the top of your screen on the virtual interface. You will only have a certain amount of time to do so when the polls are open.

To expedite the formal part of the meeting, I will move and second all motions. I now ask that the Annual Meeting of Shareholders of Stingray Group Inc. come to order. I hereby appoint Lloyd Feldman, Corporate Secretary of the corporation, to act as Secretary of the meeting. For the purposes of this meeting, I hereby appoint Francine Beauséjour and Isabelle Vachon of TSX Trust Company as scrutineers to compute the votes of any polls taken at this meeting and to report thereon to the Chairman.

Purposes of today's meeting are set out in the management information circular dated June 26, 2025. The notice calling this meeting and the form of proxy were mailed to shareholders on or around July 7, 2025, along with the audited consolidated financial statements of the corporation for the fiscal period ended March 31, 2025, and related MD&A to the shareholders of the corporation who requested such documents.

Unless there is any objection, I will dispense with the reading of the notice of meeting. Copies of the meeting -- of the management information circular and other meeting materials are available under the corporation's profile on the SEDAR+ website as well as on the corporation's website.

Our transfer agent, TSX Trust Company, has attested to the proper mailing of the notice of this meeting, that has been filed with me prior to this meeting, proof of service of such mailing provided by the corporation's transfer agent, and I direct that a copy of such proof of service be annexed to the minutes of this meeting.

I've been advised that there are at least 2 individuals present, each of whom is a shareholder or a proxy holder representing a shareholder and who hold or represent by proxy together more than 90.02% of the total number of votes attached to the outstanding voting shares of the corporation, and therefore, a quorum of shareholders of the corporation is present, and the meeting is properly called and duly constituted for the transaction of business. I have received the scrutineer's report, and I direct that their formal report be annexed to the meeting -- to the minutes of this meeting.

The first item on the agenda is to receive the consolidated financial statements of the corporation for the fiscal year ended March 31, 2025, together with the auditor's report thereon. Copies of such documents have been mailed to the shareholders who requested such financial statements, and it is not proposed to read them to the meeting. I direct that a copy of the consolidated financial statements of Stingray Group, Inc. for the fiscal year ended March 31, 2025, together with the auditor's report thereon as both appear in the annual report of the corporation be annexed to the minutes of this meeting.

The meeting will now proceed with the election of the directors of the corporation. The 10 directors to be elected by the shareholders of the corporation shall hold office until the close of business of the first Annual Meeting of Shareholders of the corporation following election or until their successors are elected or appointed. Claudine Blondin, Karinne Bouchard, Eric Boyko, Jean Charest, Mélanie Dunn, Ian Lurie, Gary Rich, Robert Steele, Pascal Tremblay and myself, Mark Pathy, have been nominated as directors of the ensuing year or until their successors are elected or appointed.

Each of the persons nominated has confirmed that he or she is prepared to serve as a director. Since there are no other nominations, I move and second a motion to elect the directors. Unless there are any questions, I will move to the next item of business.

Okay. The second and final item of business for the meeting is the appointment of KPMG LLP, Chartered Professional Accountants as auditor of Stingray Group for the ensuing year at such remuneration as may be fixed by the Board of Directors of Stingray Group. I move and second that KPMG LLP, Chartered Professional Accountants be appointed as auditor of Stingray Group until the close of the next annual meeting and that the directors be authorized to fix their remuneration. Unless there are any questions, we will now proceed with voting.

As we mentioned, voting today will be conducted by electronic ballot. I will now take a moment to ask that the balloting be open to registered shareholders and duly appointed proxy holders. The polls are now open. And at this point, all registered shareholders and duly appointed proxy holders who have properly logged in with their control number and wish to vote will be able to see on the screen all motions being brought forth at this meeting. Please register your votes by accessing the voting page and selecting the for or against button next to the name of each proposed director and selecting the for or withhold button next to the resolution with respect to the appointment of KPMG LLP, Chartered Professional Accountants as the corporation's auditor.

We will provide registered shareholders and duly appointed proxy holders approximately 1 more minute to complete the electronic ballots. Once the electronic balloting closes, the voting page will disappear and your votes will automatically be submitted. We will start the 1-minute pause now.

[Voting]

Okay. That felt long. I think next year, we should fill it with music.

I've been advised by the scrutineers that the ballots and proxies deposited for the meeting have been voted in favor for each of the resolutions. Each of the 10 nominees have been elected as directors of the corporation to serve until the next Annual Meeting of Shareholders or until their successors are elected or appointed.

The appointment of KPMG LLP, Chartered Professional Accountants as the auditor of the corporation has been approved, and the Board of Directors has been authorized to fix their remuneration.

I direct that the results of the polls be included with the minutes of this meeting, and the results of the voting for the election of directors will be announced in a news release in accordance with the policies of the TSX and filed on SEDAR+.

The formal items of business as set out in the notice of meeting have now been dealt with. I move and second that this meeting now terminate.

As there is no further business to come before the meeting, I declare the formal part of the meeting to be concluded.

And now I will turn the meeting over to Marie-Helene Fournier, interim CFO. After that -- and then after that, Eric Boyko, will speak, following which there will be a question period. Please hold off on your questions until after the presentation.

Thank you, Mark. Good morning, everyone. [Foreign Language]. We released our first quarter '26 results yesterday after the markets closed. We have delivered a strong and resilient start to fiscal 2026, which reflects the disciplined execution of our strategy and the strength of our diversified business model.

We started the year with strong top line momentum. Revenues for the first quarter reached $95.6 million, an increase of 7.4% over last year. More importantly, organic growth reached an impressive 12.5%.

In terms of profitability, consolidated adjusted EBITDA rose 8.3% to $33.7 million in the first quarter of '26. Adjusted EBITDA margin reached 35.2% compared to 34.9% for the same period in 2025. Stingray reported net income of $16.8 million or $0.24 per diluted share in the first quarter of 2026 compared to $7.3 million or $0.11 in Q1 2025.

Adjusted net income totaled $21.3 million or $0.31 per diluted share in Q1 2026 compared to $13.9 million or $0.20 in the same period in 2025. Cash flow from operating activities totaled $19 million in Q1 '26 compared to $10.8 million in Q1 last year. Adjusted free cash flow amounted to $18.8 million in Q1 2026 compared to $15.5 million in the same period last year.

I will now present the key financial highlights for fiscal 2025. We delivered impressive growth on both the top and bottom lines. Total revenues climbed 12% to nearly $387 million, driven by our FAST channels and consolidated adjusted EBITDA grew 13% to $142.2 million.

Our strong operational performance translated directly into powerful cash flow generation. We generated over $100 million in cash flow from operations, which resulted in $83.6 million of adjusted free cash flow or $1.22 for adjusted free cash flow. This robust cash flow is the cornerstone of our financial strategy providing the capital to fund our growth initiatives and maintain a strong balance sheet.

The story of our revenue performance over the last several years is one of successful and deliberate transformation. We have strategically shifted our focus towards high-growth and higher-margin business lines, and that strategy is delivering clear results. The strategic growth revenues now represent 60% of the total revenues. The most powerful example of this is the rapid emergence of our advertising division. What was a smaller part of our business just a few years ago has become a primary engine of our overall revenue growth.

This successful diversification has created a more resilient and dynamic revenue base for the entire company. The takeaway is clear. Stingray has evolved. We are a more diversified company today with a revenue profile that is increasingly driven by strategic and high-growth initiatives and positions us perfectly for sustainable long-term growth.

Additionally, we have successfully expanded our business while improving our profitability and cash flow. Our focus has always been on profitable and sustainable expansion. Our adjusted EBITDA has remained consistently strong and has grown over this period, demonstrating that our strategic initiatives have been managed with rigorous financial discipline. This is not growth at any cost. It is high-quality, sustainable growth that protects our margin structure.

Furthermore, this growth has been self-funded through our powerful cash generation. Our ability to consistently generate significant cash flow from operations and free cash flow is a core strength of our business model. It provides the fuel for our strategic investments without compromising our financial position. This disciplined approach has built a resilient financial foundation that position us exceptionally well for the future.

Our strong financial performance provides the fuel for our clear and disciplined capital allocation strategy. First, we are committed to maintaining a strong and flexible balance sheet. We have a clear target range of 2.25 to 2 for net leverage ratio, which ensures we operate from a position of financial strength and can weather any market condition.

Second, we believe in directly returning capital to our shareholders through 2 key mechanisms. We provide a consistent annual dividend, and we actively use our NCIB to repurchase shares, which enhances long-term value for all shareholders.

And third, we have a long and successful track record of using strategic acquisitions to accelerate our growth and enter new markets.

That concludes my financial review. I will now turn the presentation back to Eric.

All right. [Foreign Language]. But -- can you believe it 10 years IPO? I remember when we did the IPO that some of our bankers said, this is great. The IPO is fantastic. I'm so happy to privatize the company in the next 5 years. So I think we've proven some of our bankers wrong.

So I'll go back to a bit of a description of how the last 10 years have been. So we were aggressively launched SVOD products in 2017, 2018. I want to remind when we did our IPO, we were doing $90 million of sales, $27 million EBITDA and 90% of our business was CPS based on the cable industry. So what a pivot we've done in the last 10 years.

So launching SVOD in 2017, 2018 was a big pivot for us for sure, with our friends at Amazon. Then we did the fantastic acquisition of Radio in 2018. And now we can see the results in Q1 at plus 6%. We have, by far, the best management team. We're very happy with the diversity of our stations.

Then we launched In-Cars with Tesla, with Karaoke, the play on words, Karaoke, very excited. And from then, we've launched with 10 more companies, Ford, the Hyundai, [ friends ] at Mercedes, Audi, BYD, so a very global reach. Then we were aggressively, we got into the Retail Media business. So before 2021, we were doing 0 in sales. So you can imagine the growth now we're at $84 million this year. What a fantastic growth in advertising. So Retail Media, we got the acquisition. We launched in Canada.

Then finally, we launched the FAST channels in 2022, so not even 3 years ago. The FAST channel, great vector for us. And finally, right now, we started in April with what we call the backfilling. My team doesn't like the word backfilling, but the premium advertising. But we're very excited to start that in April. We talked about it during the analyst call, a lot of potential there. It's in the infancy. We are only 3 months old, but we're learning quickly.

So if we go to market and divisional updates. So one thing I want to share with you is Stingray has always been -- we decided early in 2010, so 15 years ago, do we compete? Do we go compete against Spotify? Do we go compete against those days was Napster or [ friend ] Deezers, or do we go in the B2B space. And we decided in 2010 that our best attribute is B2B or stronger relationship. And what happened to Stingray is all of our contacts on the cable industry. We are in 142 countries. All those contacts started moving around and going to the over-the-tops, going to Samsung, LG, different retailers.

So we've always been able to leverage those relationships. So if you look at this page, which we're very proud, Connected TV, it's Samsung, Vizio, Xumo, Pluto, Roku, LG, retail media, you can see the biggest names in Canada. We have about 90% control of retail media in Canada and a very strong presence in the U.S.

And after that, you look at our advertisers. It's big names, Procter & Gamble, Pfizer, GSK, again, very well diversified. In-cars, like I said to you, Ford, Neo, Xperi, Audi, BYD, Tesla. So -- and more to launch. We feel we'll talk about it later, but very excited about Karaoke, which was by fun, our first acquisition in 2007. So still growing strong.

And finally, on the SVOD and CBS side, we have all the major cable operators in North America, again, Comcast, Bell, Cox, Cliq, Rogers, Roku to name them all. And finally, on the commercial business, we're happy to provide music to all of our big customers with BMO, Sports Experts, Circle K, Sobeys, Scotiabank and a lot more coming up. So always a very strong B2B team, and thank you to the sales team, marketing team, content team, legal team that helps support to have all these great partners.

Okay. So if we go to the first segment, advertising. Advertising, about even 5 years ago, we said, Stingray, do we want to be in advertising or not? We were questioning ourselves. Now advertising, if you take our $84 million plus the $130 million of radio, it's $210 million. So it's more than almost 55% of our sales come from advertising, 60%. So what a switch that we've done and what a pivot. So advertising has been growing by 47%. Last year, it grew by 40% over the last 2 years, incredible growth.

You saw the line from Marie. Our goal is to continue to solidify our North American footprint. We are the largest audio footprint in North America by far. So happy about that, and we will continue to expand that footprint via more tuck-ins and also via more retailers.

And finally, we're happy that the FAST channels plus Retail Media are high growth, high gross margin and EBITDA margin. And we're also leveraging the channels that we always had on TV. So we're leveraging the same product and putting it on Samsung, Vizio and other products. So we really developed a great core business.

Okay. So if we go into a bit more detail, FAST channels. The FAST channels, which we call also the connected TVs. So the FAST channels and playAWARD here are growing very fast. So again, the listership of ours grew by 58%, so we're very excited by that. We've launched a lot of new channels. Our sweet spot is music channels, which is people love to listen and the ambience channel.

So we have Naturescape that we always had. That's a key product. But we launched this year Cozy Cafe that I must -- if you have a chance, very relaxing, Cityscape, Stargate. We have Zen Life, which is about -- you can imagine the name and our famous Naturescape and we'll be launching more channels. Our customers are very happy with these products and the music that we contribute.

Okay. We are, again, deeply established with Vizio, Samsung TV+, LG. We just launched on Pluto. We just launched on Roku. We launched on Xumo. We're in about 20 different partners. I think we're one of the broadcasters that is the most established around the world, no other broadcaster. One of the reason is for a lot of our competitors, if you think about CNN or Warner Bros, or these players, going on FAST channel is a bit of cannibalization because you're cannibalizing your cable sector. We didn't have that limit on us in the U.S. So we were able to be aggressive and first movers, and we see the advantage we have now, and we expect a lot more growth from these, including us starting selling the ads, which is very exciting. And I talked about at the analyst call about a lot of potential.

Retail Media, we have a great list of retailers across Canada. Right now, we have 30,000 accessible locations that we can do audio ads, and we're also looking to do video ads in retail stores. I think we've been upgrading our list of retailers. And if you see here, we reached over 925 million monthly visitors. So incredible reach, over 30,000 locations. Our big challenge here is a fill rate. It's a new product. It's audio in stores. We have -- we still are evangelizing the market. People are getting used to audio ads in stores and that segment, people are used to TV, people are used to radio, people are used to out-of-home, and now they're getting slowly customized to making ads in retail stores.

Well, In cars. In-cars, we had a good interview this week with some of the papers. And the journalist said, Eric, you seem excited about the car business. The car business is going to be a 10- to 20-year cycle. Once you go with the OEMs, once you get in the cars, you're there for 10 to 15 to 20 years. And it started with Tesla. It started with Elon Musk setting a tweet 5 years ago saying, "hey, I'd like to have karaoke in my car. " And since we are the largest catalog, we started karaoke with Tesla. Since then, we've launched with multiple cars. As you can see here, we're with BYD, great partner, CARIAD, which is the German group, Hyundai, LG, Tesla, Ford and a lot more coming up.

People love playing Karaoke. If you think about it, it's the good old sing along. And we added also the acquisition of Singing Machine. Every car manufacturer is looking for microphones. So when you get your car, you'll be able to sing karaoke and get scoring. So good luck for parents, but I think the family will be very happy. And like I said, we're very excited. And now we're looking to enter music in cars. So we're excited to also offer Stingray music.

And we're also looking to enter some more radio player style and podcast to really be the OEM radio for every car manufacturer in the world. And that for us is very exciting because it is unique to be in control of the audio in the car while you still need to drive the car now is a great position to be.

Next is Stingray business. So you can see here one of the photos, one of our screens in Toronto. We really expanded that -- we're happy with the new partners we have, aggressive going after banks, unmatched scale of 140,000 locations worldwide. Very happy with the new partnership we announced with Samsung today in VXT. We have 3 products out of 4 on all the new Samsung TV that are being deployed worldwide commercially. So a great deal, a great partnership.

And again, leveraging these partners to launch retail media to also help us with the FAST channel. So everything is coming together and using the radio team to help us monetize retail media. So it's a nice -- it's a beautiful virtual circle of life.

Finally, Radio, what can we say more? Radio outperforming its peers in Canada. I must say that every time we announce our numbers, all of our competition call us to ask us how we're doing it. So I'm very proud of the team. The team is here today in Montreal. So I told them revenue in Q1 grew by 6%, outstanding, never seen in many years, EBITDA by 11%, driven by 17% growth in digital revenue.

Our advertising is grocery stores, gambling, casino in Ontario, federal provincial government, medical. So we're doing great there. Again, Q1 was exceptional. Do not expect to have 6% growth forever. But still, we're showing that radio is a great cash flow and also is able to have growth because we're selling digital and we're selling retail media. And soon, we're also -- we're going to be in the fast space, selling some FAST channels also. So very happy to work on that.

And finally, I think that radio continues to deliver strong cash flow to fuel our expansion, which helped our EBITDA. Like we said today, we feel our EBITDA will be below 2x by December. So we'll have to evaluate what do we do with capital allocation when we get to December.

Finally, look ahead. So our goal is to deliver value creation for our shareholders. Number one is I think we've seen it, financial strength fuels strategic growth, a very robust free cash flow, very -- and EBITDA ratio that's low. We have over $200 million of free cash flow available for acquisitions tuck-in. So very well positioned. Happy about that. I think that was one of the questions with the market when our debt EBITDA was closer to 3.

We're committed to return shareholder returns. So very -- I think we're disciplined on our dividend. We're disciplined on our buyback, and we're disciplined in our acquisitions, and we will continue to return capital. And again, if you look at our free cash flow, we still have double-digit free cash flow percentage.

So I think Stingray has a lot of place to grow. And our EPS last year was $1.10. So our multiple on EPS is still very low compared to our peers. And hopefully, that would also continue to grow.

And finally, I think Marie is right. We've really diversified the business. There are so many segments. I think we're building a long-term business with the retail media, the FAST channels are really there for an extra 5 to 10 years and the car business is a 10- to 20-year model. Average American keeps their cars 12 years. So if you can be in their cars and do advertising, it's a great market to be. And with the connectivity of all cars right now, it's an incredible market. So very happy about our results.

Again, I know the Board doesn't like when I say this, but last year was a record year of sales, record year of cash flow, record year of EPS. So almost everything had double digits. So very impressive. And again, another strong Q1 with 12% organic growth despite the economy, the tariff, trades, the volatility, we've been able to be secured and maintain long-term growth. So very proud of the team. Thank you all.

And with this in mind, I will now hand it over to our Chairman to Mark, who will lead our Q&A questions. [Foreign Language]. Thank you for your confidence in Stingray.

Thank you, Eric, and congratulations on another great quarter and clearly, an exciting year ahead. We will now get into the question period. I ask that anyone who would like to ask a question do so in writing by using the instant messaging feature of the virtual interface. We will answer as many questions as time permits.

When asking your question, please state your name, the entity you represent, if any, and confirm whether you are a shareholder, a duly appointed proxy holder or a guest.

Please limit your questions to topics relating to today's subject matter and keep your questions short and to the point. We'll now give attendees a moment to type in their questions. For each question we answer, we will summarize the question and read out loud the name of the person who asked such question and if applicable, the entity such person represents.

We would like to remind you that questions which were already answered or that are redundant or repetitive may not be published or answered. Please go ahead and take your questions now.

Okay. As it seems there are no questions. We've obviously done a good job of covering our material thoroughly. This now concludes the question period and also concludes this year's Annual Meeting of Stingray Group shareholders.

On behalf of the corporation's Board of Directors and executive team, I wish to thank Stingray employees and stakeholders for their hard work and dedication.

Ladies and gentlemen, thank you for standing by, and welcome to Stingray Group's First Quarter 2026 Conference Call. [Operator Instructions]

I will now turn the call over to Mathieu Peloquin. Please go ahead.

Thank you. Good morning. Thank you for joining us for Stingray's conference call for the first quarter of fiscal 2026 ended June 30, 2025. Today, Eric Boyko, President, Chief Executive Officer and Co-Founder; and Marie-Helene Fournier, Interim Chief Financial Officer, will be presenting Stingray's operational and financial highlights.

Our press release reporting Stingray's first 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 on 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 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 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'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 a 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.

Good morning, everyone, and welcome to our first quarter conference call of fiscal 2026. Stingray opened the fiscal year on a strong note with organic sales of 12.5% in broadcast and recurring commercial music. Revenues growing double digits for the fourth time in the last 5 quarters, mainly driven by continued strength in FAST channel revenues. Our new premium advertising network is already delivering strong results. Launched just last quarter, launched in April to monetize unsold FAST channels ad inventory, we have already sold over 20% of the available hours, which is giving us about $1.5 million a month or $18 million a year.

We feel that we can reach 60% fill rate, so we could triple that momentum in the next quarters coming along. We expect this momentum to accelerate as we onboard strategic DSPs, partners in the U.S. and internationally. We also recently launched 6 new FAST channels on WatchFree + Vizio’s free streaming service. This expansion significantly increases Stingray's offering on the platform, providing Vizio customers with a wider array of curated musical experiences.

Looking forward to our strategy to grow the FAST channel business is straightforward and focused on 3 areas: First, we will deepen our partnership with established leaders like Vizio, Samsung, LG by expanding our channel portfolio on our platform and also get more backfill rights, rights to sell the unsold inventory. Second, we will secure new distribution deals. We'll achieve this by leveraging our greatest competitive advantage, our world-leading music library to attract new TV manufacturers and other partners like we did last week or 2 weeks ago by launching 6 channels on Roku, which we're very happy.

And third, we will maximize the value of our ad inventory by using the premium advertising network to accelerate monetization across the entire FAST ecosystem, which means that we will increase our fill rate of 20% and try to bring it closer to 60%. So very excited on those 3 initiatives.

On the Retail Media side, we delivered a solid performance in the first quarter, in line with our expectation and our budget by continuing to diversify and deepen our advertiser base. As a reminder, retail media sales had increased 53% last year in this quarter due to large pharmaceutical orders in the same period last year.

In the first quarter of '26, we will generate 40% revenue growth for our Stingray advertising business, which combines FAST channels and retail media revenues. We are targeting the same amount for Q2. And depending on the backfill rates and fill, we have a lot of potential there. So for us to see. But again, it's a new business that started in April.

Turning to another part of our business. We introduced music and NBN channels to Samsung's visual experience transformation platform last month, which is called the BTX platform. It's a glass-based content management solution that enables suppliers like Stingray to create and distribute content remotely through B2B screens, including digital menus, kiosks and signage. Stingray is the first company to offer a dedicated music application on this platform. This new revenue stream will be recognized under our subscription revenues.

Finally, we experienced some project delays related to the installation and digital signage during the first quarter that has been pushed revenue commission into the current quarter. Our budget is to make $7.5 million a quarter. This quarter, we did $4.5 million. But in Q2, we expect to do $10.5 million. So we'll be on our budget of $15 million for the first 2 quarters. So just a question of timing. That's the issue with the equipment and labor. We are increasingly securing large long-term contracts with institutional players like banks, for example, the timing of installation can be affected.

These timing variances are within [indiscernible] Stingray from achieving robust financial results in the first quarter of '26. We delivered consolidated adjusted EBITDA of $33.7 million or 35.2% of sales on revenues of $95.6 million. I also want to recognize the outstanding performance of our Radio division. The team delivered an exceptional quarter that we haven't seen in many years, once again outperforming the market. They grew revenues by 6.2% and expanded adjusted EBITDA by an impressive 11%. For sure, this was helped by the elections in Canada in April, the Buy Canada promotion that was -- a lot of retailers took advantage. So I don't think we can expect that type of growth every quarter, but very happy, and thank you for the radio team.

In addition, earlier this week, we announced the acquisition of all the assets of Singing Machine Company, which was our first karaoke partner in 2007, with a primary goal to bolster our in-car karaoke offering. By compiling the renowned hardware and our extensive karaoke library and global distribution network, we will enhance the at-home and in-car karaoke experience for millions of fans. We see tremendous potential in developing new microphone technology, especially for expanding in-car entertainment market, creating exciting new opportunities for growth.

From a financial standpoint, this acquisition immediately enhances our revenue base. We expect to generate $20 million in annual revenues with a target EBITDA margin of 10%. Given the timing of the acquisition, its revenue contribution for the current fiscal year will approximately be $15 million. Stingray management is very, I guess, aggressive when we think that in the next 5 years, every car will have karaoke and to the detriment of our parents, there will be mics in the cars and your kids will be singing while you're driving. So good luck.

In closing, Jean Charest, former premier of Quebec and deputy Prime Minister of Canada, has been nominated to Stingray's Board of Directors. During our Annual General Meeting, that will be held today, Mr. Charest will stand for election. Should he be elected, Mr. Charest Wise Counsel will be invaluable to Stingray's based on his disciplined career and public service. His extensive experience in public policy and international business and his deep understanding of the Cane landscape is important. It also sits on a number of Boards of Directors, including the Board of Publicis Group and the largest communication company in the world.

Finally, Francois-Charles Sirois, Co-Founder of Stingray and Director since 2007, has advised our Board that he will not stand for re-election on the upcoming annual meeting. We are grateful for Mr. Sirois's collaboration spirit and strategic insight, which have helped position Stingray for success in the evolving media and technology industry. We wish him all the best in the future.

Now I will turn you to Marie-Helene for a financial overview of our first quarter. [indiscernible], Marie.

Thank you, Eric. Good morning, everyone, from A. Revenues reached $95.6 million in the first quarter of fiscal '26, up 7.4% from $89.1 million in Q1 '25. The year-over-year growth was largely due to an increase in flash channels, partially offset by lower retail media advertising revenues. On the digital signage front, we saw a slight shift in project timing with a few installations moving from the first quarter into the second.

This is purely a timing variance, and we expect to recognize the associated revenue in Q2. Revenues in Canada rose 1.1% to $49.5 million in the first quarter of '26. The growth can be attributed to an increase in radio revenues driven by higher airtime sales and digital sales, partially offset by a shift in timing of certain digital signage projects that reduced E&L installation sales. Revenues in the United States grew 25.8% year-over-year to $35.2 million in Q1 '26, reflecting greater FAST channel sales, but partially countered by less retail media advertising revenue.

Revenues in other countries decreased 9.5% to $10.9 million in the most recent quarter. The year-over-year decline was primarily caused by lower in-store commercial revenue and reduced other channel sales.

Looking at our performance by business segment. Broadcast and Commercial Music increased 8% to $61.4 million in the first quarter of '26. The growth was primarily driven by greater FAST channel sales, partially offset by lower retail media revenues and timing variances in E&L. For their part, radio revenues improved 6.2% to $34.2 million in Q1 '26, mainly due to higher airtime sales and digital sales. It should be noted that we consider this increase extraordinary and are still targeting low single-digit revenue growth for the full fiscal year.

In terms of profitability, consolidated adjusted EBITDA rose 8.3% to $33.7 million in the first quarter of '26. Adjusted EBITDA margin reached 35.2% compared to 34.9% for the same period in 2025. The growth in adjusted EBITDA and adjusted EBITDA margin was mainly driven by higher revenues, partially offset by lower gross margin due to product mix and greater operating expenses related to increased salaries.

By business segment, Broadcast and Commercial adjusted EBITDA grew 6.5% to $24.4 million in the first quarter of 2026. The year-over-year increase can be attributed to an improved gross margin on higher revenues, partially countered by an unfavorable product mix and greater operating expenses. Adjusted EBITDA for our Radio segment rose 11.2% to $11 million in the first quarter of 2026. Similarly, the year-over-year increase can be credited to a better gross margin on higher revenues along with disciplined control over operating expenses. In terms of corporate adjusted EBITDA, it remained stable at a negative $1.8 million in the first quarter.

Stingray reported net income of $16.8 million or $0.24 per diluted share in the first quarter of '26 compared to $7.3 million or $0.11 in Q1 2025. The increase was mostly driven by an unrealized gain in the first quarter of '26 compared to an unrealized loss in the first quarter of '25 on the fair value of derivative financial instruments, along with higher operating results and a foreign exchange gain. These factors were partially offset by the higher performance and deferred share revenues unit expense related to an increase in the corporation share price. Adjusted net income totaled $21.3 million or $0.31 per diluted share in Q1 '26 compared to $13.9 million or $0.20 in the same period in 2025. The year-over-year increase was mainly due to higher operating results, a positive foreign exchange impact and an unrealized gain in the first quarter of '26 compared to an unrealized loss in the first quarter of '25 on the fair value of derivative financial instruments.

Turning to liquidity and capital resources. Cash flow from operating activities totaled $19 million in Q1 compared to $10.8 million in Q1 2025. The year-over-year increase can be attributed to a lower negative change in noncash operating items, higher operating results and a foreign exchange gain. Adjusted free cash flow amounted to $18.8 million in Q1 '26 compared to $15.5 million last year. The increase was mainly driven by higher operating results and lower interest paid. From a balance sheet standpoint, Stingray had cash and cash equivalents of $11.5 million at the end of the first quarter and a credit facility of $237.4 million. The credit facility consists of a $500 million revolving credit line, of which $160.8 million was available. Total net at the end of the first quarter of '26 stood at $325.9 million, down $1.5 million from the end of Q4 2025 as we continue to reduce our debt level.

Combined with improved adjusted EBITDA over the last 12 months, our leverage ratio improved to 2.24x at the end of Q1 from 2.28x in the previous quarter and from 2.77x in the same period last year. Based on our current outlook, we are confident in our plan to bring our leverage ratio below 2x by the end of the fiscal year. A strong balance sheet is a key priority as it provides the foundation to accelerate our growth, both organically and through strategic acquisitions.

Finally, we repurchased 342,000 shares during the first quarter under our current NCIB program for a total of $3.1 million. We also made dividend payments of $5.1 million to reward shareholders.

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

Okay. Marie-Helene, a very good presentation. I think now we're open to the questions from our fantastic analysts. So to you guys.

Thank you ladies and gentlemen. We will now begin the question-and-answer section. [Operator Instructions] And your first question is from Jerome Dubreuil from Desjardins.

The first one is on the backfill opportunity. Thanks for the disclosure there. Eric, you said you can achieve 60% at some point. Does it mean the annual $18 million goes to $54 million or maybe there are pricing considerations there? And maybe on the timing to achieve that 60%?

Yes. So very good. So for us, so Jerome, it's rare you do a budget and you have zero. So we had zero for the backfill in the budget. We started with one -- we never really asked for the rights to sell the unsold inventory. At the end of the day, the big players, Vizio, LG, Samsung, Roku sell about 40% of the inventory. And the other 60%, we lose it. It's like Radio. So we started asking some of our partners that if we could start with some DSPs and partners to sell the backfill. We started that on April 1st, and our current run rate is $1.5 million a month or $18 million at 20% fill rate. So our objective -- our #1 objective is to triple that fill rate to 60%, which will bring us to a $50 million business.

And it's a bit like the sausage, the more high-grade sausage you sell, the better they are and the more you sell, then it's a bit of that combination. And our goal -- and I think we're attracting a lot more supply. So our #1 objective is to convince -- there are 3 other partners or the 4 other partners that we want to do backfill rights, which we are establishing right now and to get more supply. So to be able to increase our fill rate, that will increase our supply. And I must tell you something I was telling the Board yesterday, the depth of the lake of the TV ads is like Lake Baikal in Russia. It's a very deep lake.

At the end of the day, what we're providing and our advertisers is Olive Garden, Gecko, insurance companies, Procter & Gamble, the Cars, the same ads you see on ABC, CBC, NBC in the U.S., they want to reach households. They want to reach your home, but they can't because people are watching Netflix and other systems. So we're providing those advertisers via different DSPs access to our unique viewership. So it's really exciting. And I must say this -- I don't see how deep -- the lake is so deep that there's a lot of potential there. So we just started. This quarter, we did an $18 million run rate. We'll see next quarter. We're improving week by week. We're also -- we added ad tech people.

Don't forget Stingray advertising, which was zero 3 years ago, we finished last year at $80 million. So it's a huge growth, and we expect this year again to -- we grow by 40% in Q1 and Q2. But the backfill right, the supply, and we're even getting supply from other partners that are asking us, can you help me sell on other channels? So very exciting for us I must say Jerome. I've never seen growth in my life of a business segment like this. And this is based on right now, we have 1.25 employees working on the backfill. Now we have the whole company working on it, but we only have -- we only added one headcount and a part-time consultant. So we'll be adding more people, adding more technology, getting better at it, and we're aggressively going to New York every week now. And I'm also going to New York tomorrow, meeting different DSPs and demand providers. So a very exciting world, this programmatic system and excited what we can do over the next few quarters. But happy to establish our run rate right now, $1.5 million a month.

That's excellent to hear, Eric. Second one for me is on the capital allocation. I think Marie-Helene mentioned you're targeting to be at 2x by the end of fiscal year. At the same time, I'm thinking about the M&A comments you made on the last earnings call talking about the potential very large deal. If you can provide maybe an update on this and maybe on the likelihood this happens, how you think about it with the target leverage at the end of the year?

Yes. And with our friend, Donald Trump and all the tariffs and the uncertainty, it really put all of the big deals on standby. The dollar is moving. There's a lot of uncertainty. And you can imagine, including us, management, our Board, everybody is more on the conservative side. Agree. We feel our debt EBITDA will be below 2 by December, and we'll be well below 2 by March. So the cash is really coming in strong even this quarter. So good news. So now our focus is more like small tuck-ins. So we did a nice tuck-in this week, $20 million of revenues. That's still 5% revenue increase, again, at a very affordable price. And then we have 2 more tuck-ins. Our tuck-ins are concentrated on 2 segments right now -- or 3 segments.

The tuck-ins are focused on cars like was the Singing Machine for the mics. And also, you'll see some other acquisition in that segment. And the second one is to expand our retail media network in the U.S. So very focused on it, very good tuck-ins. And right now, to be straightforward, we have so much potential with the backfill and to get more supply on the FAST channels that it's -- right now, our focus is on that. It's not big capital allocation, but management focus for the whole management team at every senior position is based on how can we expand that fill rate from 20 to 60 and to double, triple our supply in the next 12 months. So with this incredible potential of all these ad sales, TV ads.

And your next question is from Aravinda Galappatthige from Canaccord Genuity.

I'll start with a couple of housekeeping questions on the acquisition. Can you just sort of talk to what the full cost is when you -- I'm not sure if there's any sort of debt that sort of you're assuming with the acquisition. Maybe just clarify that and the seasonality of the revenues.

This acquisition was less than $1 million. So it was really an asset deal. We're taking over the inventory. We have a few liabilities owed to vendors. Our biggest customer is Walmart, very happy. Walmart also owns Vizio. We're becoming very close to Walmart. They do $20 million of sales, $90 million of hardware, $1 million of software. On our side, we generate another $4 million of software sales with Singing Machine. So the deal was not only to get that and on $20 million, they'll do 10% EBITDA margin, so not big margins.

But we're also protecting and securing the $4 million that we do because we provide the software on every Karaoke machine. And I'll be happy to ship you one because they're really good, they're good machines. But I think it's securing the $4 million and most important, we have now 4 car companies, including BYD, including Tesla, including some companies like Ford that have ordered mics in cars. And I was making a joke, but I believe that in the next 5 years, every car will come with Karaoke. And you will have in your console in the middle, you will have 2 mics and we also launched scoring. We have scoring right now with BYD. So people are able to score themselves. So fantastic for us, fantastic for the car manufacturers, not too good for the parents in the front.

And then just moving on to Retail Media. I mean, obviously, you've built that business up very nicely over recent years. You're obviously starting to comp against the difficult quarters. Recognizing sort of the size of the longer-term opportunity, how should we think of sort of the path forward from here? Are there any sort of near-term limiting factors that sort of perhaps suppressing your growth as you look to expand from here on?

Yes. So Retail Media, we expect double-digit growth. We already have in Q2, we already reached double-digit growth for this quarter, so -- and we still have 2 months to go. But at the end of the day, the difference between the FAST channels and retail media is the FAST channel, you're selling a one-to-one, which the market is very used to. Retail media is one-to-many, which is a very different model and different approach. So I think our network is incredible. We will expand our network in the U.S., but it's not as easy to propel growth as we are achieving in the FAST channels. So expect double-digit growth. And we need again to evangelize the market. Audio in stores is still something that is new and that advertising are slowly understanding and explaining and we're gaining, but it's not the same growth than the connected TV for sure.

And just a follow-up from me on that before I hand off. On the video side of things, have you -- I know there was sort of a pilot program in Quebec. Are you thinking of expanding that? What's been sort of the feedback from there?

Yes. It's very interesting. So a lot of retailers have their screens are asking us to sell on their screens. So in Canada, we're getting very much involved to offering both audio and video. And we have a unique technology that we call it the takeover. So you go in a metro or you go in Loblaws, and we'll do an audio ad and all the screens will also show the Colgate product. So we take over the store. It's very effective for advertisers. We're the only company that's able to do the video and audio and match it because we provide audio in Canada to 95% of major retailers. We do have a strong distribution. So I think it's going to be a very good prospect for us. Video is a huge market. Video is 20x the size of audio. So we're excited to be in that space. And this happened -- we've been asked by our retailers. So very good comment there. I appreciate that comment about that potential.

[Operator Instructions] And your next question is from Sam Schmidt from CIBC.

You mentioned a new platform that will be recorded in subscription revenues. Can you comment on magnitude of that? And how should we think about the growth rate in subscriptions going forward?

Yes. This is in, so Samsung launched a big initiative. They put billions of dollars in it. Their VXT platform. So they wanted every commercial TV will come with apps included or content. You will subscribe to that content. It's a new project. So for every Samsung TV sold in the world will have Stingray Music and Stingray Ambiance, the only offering and also Loupe Art, which we also bought. So we have 3 of the 4 products. It's just starting at Samsung. Samsung is a big company. So for us, we're happy to be -- there are 3 out of 4 partners for that. So every commercial TV, every corner store, every restaurant that buys a Samsung TV will have that included, and they could add music or add ambience as an SVOD service, but we're just launching and they're also just launching. But I can tell you that they put billions of dollars in this project with the billing and everything. So exciting for us to be again chosen by one of our key customers, Samsung to be their first partner.

And then one more for me just on FAST. Can you unpack drivers between increased demand, listening hours or adding new partners and channels as we look over 2026?

Yes. So for us, like I tell the Board, it's not a very dip. The first thing is we need to increase the fill rate. So we need to sell more. So we need to increase our fill rate from 20 to 60. The more we increase our fill rate, the more people will give us supply. So the goal is to get more supply. The way to get more supply is to get more backfill rights, which we want to do because right now, we only have backfill rights on one partner out of 5. So we are in the stage of getting the rights for the other 4 partners. And then after that, it's launching more channel and getting more supply and also start selling some of our peers that we can also be effective at. So we're very excited about that. So it's increasing sales and getting more supply, good old basic of business, but very exciting because we don't need much manpower. It's a very automatic programmatic system that you connect with different DSPs, so you don't need 200 or 300 salespeople. So that's why we're so excited by it.

And your next question is from Jerome Dubreuil from Desjardins.

Just want a clarification. You're talking about the backfill going from 18 to 50. This is just for the current platforms you're in, right? It's just for increasing the backfill from 20% to 60%. So should we understand that this could be applicable to other FAST platforms as well?

Absolutely. So we were never really in the advertising space. Stingray when we went public in 2015, we were -- 90% of our sales were CPS. We were doing zero advertising. And we even voted and I remember that we don't want to be an advertising company. So we were happy to be a CPS and based on cable. So it just shows you the strength of the pivot. Now we're doing $80 million of advertising. Radio does 130 million. So 50% of our sales is advertising, and that will grow to 80%. So I agree with you, Jerome. A, with the current inventory, if we increase the fill rate from 20% to 60%, and we just started, like I tell the team, we're like -- we're 3 months old. So we're really babies right now, but we're learning fast. That will triple from 18 to 50. And then our goal right now is to get more supply. So we're aggressively meeting our suppliers.

We're going to go to 2 days at the U.S. open. A lot of our suppliers are based in New York. They like tennis. So we're going to -- so we're working very hard to get those rights, and we feel that we'll be able to add 2 or 3 new partners, not necessarily the same size by the end of the year. So I think every partner is happy that we are helping them make more money. Also for the backfill, it's not the same margins than we do because in this case, we have to pay them their rev share. So the margin is lower because in this case, we sell and then we give money to Vizio, LG, Samsung or Roku. So not the same EBITDA margin than when they sell it because we get the net. So that we can go more offline and give you some details on that, Jerome. But very good question. So yes, our goal now is to get more supply and get backfill rights with our other 3 partners.

There are no further questions at this time. Please proceed with the closing remarks.

All right. So thank you very much for being on the Q1 call. Thank you again for the all Stingray management team for all the great work we've done. Another good start of the year, very happy, looking positive, strong pipeline. And we also want to make a little advertising. We have our AGM today at 11:00. So very excited to present our AGM. I do say I missed the good old days of being in person. Maybe next year, I'll convince our Chief Legal Officer. It's virtual. But happy if you can join our AGM and to present you our results and a bit of our strategy for the years coming forward. [indiscernible] excited for fiscal '26, and have a great day.

Thank you. Ladies and gentlemen, the conference has now ended. Thank you all for joining. You may all disconnect your line.

Good morning, ladies and gentlemen, and welcome to the Stingray Group Inc. Q4 2025 Results Call. [Operator Instructions] This call is being recorded on Wednesday, June 11, 2025. I would now like to turn the conference over to Lloyd Feldman. Please go ahead.

Good morning, everybody, and thank you for joining us for Stingray's conference call for its fourth quarter and fiscal year ended March 31, 2025. Today, Eric Boyko, President, Chief Executive Officer and Co-Founder; and Marie-Helene Fournier, Interim Chief Financial Officer, will be presenting Stingray's operational and financial highlights. Our press release reporting Stingray's fourth quarter and full year results for fiscal 2025 was issued yesterday after the markets closed. Our press release, MD&A and financial statements for the quarter are available on our investor website at www.sttingray.com and on 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 risks and uncertainties, and results may vary 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 a 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 Boyka.

[Foreign Language]. It's good to have a true Montreal-based anglophone to start the conversation. Now we're going to go to a more bilingual person. So good morning, everyone, and welcome to our fourth quarter conference call for fiscal 2025. Fiscal 2025 was a highly successful year, reflecting strong execution and marked by the achievement of key milestones in our profitable growth strategy.

First, advertising revenues from our Broadcast and Recurring Commercial Music segment, which comprise of our FAST channels and retail media advertising unit increased by more than 45% for a second consecutive year as advertisers increasingly rely on connected TVs to maximize their advertising dollars. Accordingly, we invested in our FAST channels platform in 2025, including the recent launch of channels like Cozy Café, Movie Music, Stargaze and Cityscapes, to position Stingray as the #1 global supplier of musical and ambient channels for connected TVs.

To leverage the growth leadership on FAST channels, we launched Stingray's Premium Ad Inventory Network, which I'll explain more in our questions. This is a strategic initiative enables alternative partners, vendors to sell our unsold inventory. We anticipate that this will contribute significantly to our growth trajectory next year or this year. Secondly, by partnering with the IAB Canada and Leger to release influential research on evolution of in-store audio advertising in Canada, we have further solidified our standing as a recognized leader in this expanding market. We are true trailblazers in this market, evangelizing retailers about the untapped potential of in-store media ads, adding sales representatives and partners to increase inventory selling and optimize data and pricing structure to improve monetization.

Third, the double-digit organic growth for second straight year reflects a judicious investment decisions Stingray has made to propel revenue growth and drive profitability. In fiscal 2025, we delivered 12.3% year-over-year organic growth, excluding radio, on top of the 10.2% growth of 2024. So always impressive to do 2 years in a row. Stingray's emerging track record demonstrate consistent double-digit organic growth. We have successfully established a strategic and operational framework that underpins our capacity to continue this trend into this current year and beyond.

Finally, we reduced our net debt by more than $27 million in fiscal '25, closing the year with a net debt to pro forma adjusted EBITDA ratio of 2.28x and well within our target range. As a result, fiscal '25 stands as an outstanding year of performance clearly demonstrated by adjusted EBITDA growth outpacing total revenues. So we like that when we get scale. In this very encouraging context, broadcasting and commercial music revenues increased 17.8% to $254 million in fiscal '25, driven by higher FAST channel revenues, greater equipment and installation sales related to digital signage and positive foreign exchange impact.

Radio revenues, meanwhile, improved 2.3%. And we did say at the start of the year that our goal was 2% to 3% for the year. So we hit it to $132 million in fiscal '25, mainly due to higher digital revenues. We are particularly pleased that our strategy to leverage the radio sales team in Canada to sell in-store audio and video ads is beginning to deliver tangible results. This latest asset of our growth plan helped to boost radio revenues by nearly 4% in the fourth quarter despite a tight market environment.

Looking forward to 2026, our capital allocation priorities are well defined. We intend to sustain our momentum by reinvesting in high-growth areas of our business, lowering our net debt leverage ratio below 2x EBITDA, seeking EBITDA-accretive acquisition on an opportunistic basis and finally, rewarding our current shareholders with our well-established NCIB and dividend programs.

I will turn the call over to Marie-Helene for a financial overview of the fourth quarter. Marie?

Thank you, Eric. Good morning, everyone. Revenues reached $96 million in the fourth quarter of fiscal 2025, up 14.8% from $83.7 million in Q4 2024. The year-over-year growth was largely due to an increase in FAST channel revenues and a positive foreign exchange impact. Revenues in Canada rose 2.7% to $46.8 million in the fourth quarter of 2025. The growth can be attributed to an increase in radio revenues driven by higher local sales. Revenues in the United States grew 45% year-over-year to $38 million in Q4 2025, reflecting stronger FAST channel revenues and a favorable foreign exchange impact. Revenues in other countries decreased 5.5% to $11.2 million in the most recent quarter. The year-over-year decline was mainly caused by lower commercial revenues.

Looking at our performance by business segment, Broadcasting and Commercial Music revenues increased 20.9% to $64.6 million in the fourth quarter of 2025. The growth was primarily driven by greater FAST channel revenues and a foreign exchange gain. For their part, radio revenues improved 3.9% to $31.4 million in Q4 2025, mainly due to higher local revenues. In terms of profitability, consolidated adjusted EBITDA rose 19% to $35 million in the fourth quarter of 2025. Adjusted EBITDA margin reached 36.5% in Q4 2025 compared to 35.2% for the same period in 2024. The growth in adjusted EBITDA and adjusted EBITDA margin was mainly due to higher revenues, partially offset by greater variable expenses related to higher salaries.

By business segment, Broadcasting and Commercial Music adjusted EBITDA increased 24% to $28.1 million in the fourth quarter of 2025. The year-over-year increase can be attributed to an improved gross margin on higher revenues. Adjusted EBITDA for our Radio segment rose 4.6% year-over-year to $8.6 million in the fourth quarter of 2025. Similarly, the year-over-year increase can be credited to a better gross margin on higher revenues. In terms of corporate adjusted EBITDA, it amounted to a negative $1.7 million in Q4 2025 compared to a negative $1.5 million in Q4 2024.

Stingray reported net income of $7.7 million or $0.11 per share in the fourth quarter of 2025 compared to a net loss of $46.3 million or $0.67 per share in Q4 2024. The variation was mainly due to a onetime impairment charge of $56.1 million on goodwill related to the Radio segment in the comparable period in 2024 and higher operating results in Q4 2025. These factors were partially offset by a foreign exchange loss and an unrealized loss on derivative financial instruments in the most recent quarter. Adjusted net income totaled $18.6 million or $0.27 per share in Q4 2025 compared to $15.4 million or $0.22 per share in the same period in 2024. The year-over-year increase was mainly due to higher operating results, partially offset by a foreign exchange loss.

Turning into liquidity and capital resources. Cash flow from operating activities totaled $39.7 million in Q4 2025 compared to $44.3 million in Q4 2024. The year-over-year decline was primarily due to a foreign exchange loss, higher income taxes paid as well as greater acquisition, legal, restructuring and other costs. These factors were partially offset by improved operating results. Adjusted free cash flow amounted to $18.4 million in Q4 2025 compared to $15.6 million in the same period in 2024. The increase was mainly related to improved operating results, partially offset by higher income taxes paid.

From a balance sheet standpoint, Stingray had cash and cash equivalents of $14 million at the end of the fourth quarter and credit facilities of $341.4 million, of which approximately $156.3 million was available. Total net debt at the end of the fourth quarter of 2025 stood at $327.4 million, down $27.3 million from the end of Q4 2024 as the corporation reimbursed and retired the totality of its sub debt. Combined with improved adjusted EBITDA over the last 12 months, our net debt to pro forma adjusted EBITDA ratio improved to 2.28x at the end of the fourth quarter.

Finally, we bought back 1.2 million shares in fiscal 2025 under our NCIB program, including 275,000 shares in the fourth quarter for a total of $9.1 million. We also made dividend payments of $20.5 million during the past fiscal year to reward our shareholders. This ends my presentation. I will now turn the call over to Eric.

Okay. This concludes our prepared remarks. At this point, Marie-Helene and I will be pleased to answer questions. And on behalf of the entire Stingray team, thank you for joining us on this conference call. I know you're very busy. We look forward to speaking with you again following the release of our first quarter results for fiscal 2026. Hopefully, we'll have a great day. All right. I think we're ready for questions.

[Operator Instructions] Your first question comes from Adam Shine from National Bank Financial.

Of course, my thoughts are with JP and his family. So turning to your performance, obviously, a very strong finish to a solid year, Eric. Can you just help us a little bit? I think my guess is FAST revenues were probably around $30 million or so for the year? Can you speak to your expectations for fiscal 2026 and maybe also in the context of a second year in a row of 45% plus FAST and retail media ad unit growth, how you would characterize growth for fiscal 2026 on that metric as well that I'll just add a couple more, if you don't mind?

Yes, Adam, it is the key question. So the good news is Q1 because it's at the end of the year, Q1, we're already looking to be up again on advertising, FAST and retail above 40%. So we're starting the year very strong. So very happy about that. The FAST channel for us, it's a big surprise. It's -- we're launching more channels. We launched another 6 audio channels on Vizio. We're launching more channels with Roku different partners. We're launching with LG, so new channels, more partners. Our partners are growing. So very excited about that growth.

Second big news for us is our partners sell on average 40% to 50% of their ads. The other 50% is like in radio, if you don't sell it, you lose it. So we started what we call our premium advertising network, but we also call it backfilling. So we do the backfilling on those channels. So that for us is a brand-new project that started just in April. And I must say the programmatic sales and that -- the potential to where we have 8 partners selling on the backfilling is just -- it's impressive results. Happy to give you more information at the end of Q1, but this could easily double the size of our FAST channel because we have LG and Samsung and Vizio selling and then we sell after, so -- with the same inventory.

So again, for us, getting involved in that backfilling programmatic sales is a game-changer. We're investing it technology-wise and with a few people, but you don't need a lot of people to do tens of millions of sales. So it's a very, very accretive and very scalable, which I must say I've never seen scale like that in my business history. And also good news to announce, we've officially -- when you have your Samsung and your LG or you're remote, so officially, we're going to be on every onn and Vizio remote. So onn is the brand of our friends at Walmart. So we're looking to be on 8 million to 10 million remotes with Walmart onn. So that means at the bottom of the remote, usually you have Netflix, you'll have Amazon Prime and then you're going to have Stingray music.

So we're very happy that we're going to have a music button on the remote to send people directly to our section. So that for us it's a good investment, but also it's a big honor to be next to Netflix and Amazon Prime. So -- and we're looking to do the same thing with all the Vizio TVs. So we're looking at between 16 million to 20 million new active users a year coming in for the next 4 to 5 years. So again, a lot of growth coming over the good period of time. So I must say, Adam, we're very excited with the FAST growth, the backfilling and our partnerships.

So if I could just unpack a little bit of that. First off, just as a context of the FAST channel ad growth. I mean you've had a tremendous run over the last 2, 3 years, almost from a standing start, more than doubling. Are you suggesting to us that this could be $60 million in F 2026 or should we think about that a bit more conservatively...

No, no, I think that we could -- I think that we are in a position to double our FAST channels this year, our revenues with the backfilling. And the backfilling will be able to give you a lot more color in Q1. But for us, it's -- and again, these sales came in with us. It wasn't even in our budget. So our Board yesterday said, "Oh, Eric, you're already sandbagging." So -- but no, I think it's going to be interesting to show you the numbers in Q1, Adam. I think you'll be impressed.

Okay. And again, FAST has also contributed to some of the mix and margin advantage that you've had in the quarter and also, frankly, over the past year or so. Any additional color around the economics? Do the economics change a little bit in terms of this backfilling?

Yes, that's a good -- very good question. So I'm happy you asked it. So when our partners sell it, when LG and Vizio, we recognize the revenue on a net basis. So they give us -- whatever they give us is net. So the margins are much, much higher. And we're confident to maintain our 42% EBITDA margin for this year for 2026, like we've done over the last 2 years. So on that side, it's a much higher gross margin. When we sell, we report gross. So now we have to pay the Vizio share or the LG share. So let's say it's 50-50. So in that case, our gross margin is more like in the 40%. So a big difference depending if it's they sell it or we sell it in terms of revenue recognition. But I'm sure with Marie-Helene, we can go in details about that.

Okay. And just lastly, on coverage, obviously, good progress as you had telegraphed at the start of the year. You said under 2x. The press release says approaching 2x. It's just semantic, but maybe you could just clarify that. And also, if indeed it's around the 2x mark, it looks to me like you have almost $30 million or so of room to do buybacks and/or M&A. Is there anything in the pipeline that's beyond sort of tuck-in? Or should we just think of acquisitions this year as tuck-ins?

So -- and by the way, I must say you're very good analysts. So you're very close to that. Yes, we expect to be below 2x EBITDA by December. So -- and to finish the year, we'll have the capacity of $30 million to $40 million if things go well to do extra dividends, extra buyback, extra deals. We've been working on some very good deals over the last 6 months. But I must say that when the story in March and April, the tariff, the dollar, it was U.S. deals, the dollar was moving, our stock price was moving. So I must say that the Board and myself, we just put a bit of a hold on bigger deals. I'm talking about deals that are in the $200 million to $400 million range because it's just it was moving too much.

So we put everything on hold. Maybe if things are more quite, more stable, geopolitically and tariff-wise over the next 6 months, we can revise those deals. But right now, we're more focused on small tuck-ins. And also, I must say, Adam, when your organic sales are double digit, and again, for -- because we're so advanced in Q1, Q1 will be another double-digit quarter.

We have a lot of work to do on investing in technology for the ad selling, tech selling, getting new partners on board. Yesterday, we were with 80 customers in Denver. It's a big connected TV show, the biggest show of the year, and we had the chance to invite 80 customers to go see Coplay.

So I don't think any other broadcaster in the world have the relationship that we seem to have. Because we were a cable company, we had this ability to be B2B sales and all the people from the cable side, they switched over to the FAST TV side. So our connections have been with them for 20 years. And our sales team is a very experienced sales team in the market. So I think we're taking advantage of our ability to really deliver great products that deliver great results, Adam.

Your next question comes from Aravinda Galappatthige from Canaccord Genuity.

Congrats on another solid quarter. On the FAST channels, obviously, there's no question. I mean, the growth momentum is really there. Just to sort of assess the risk side of things, Eric, can you just talk to the level of diversification that you have right now among the different platforms?

And also any space that grows like this as quickly as this year you're going to see other kind of competitors take a look? Are you seeing any of that? I know that you have a dominant position in your firming that up with some of the new channel launches. But I wanted to see if you were spotting something in the horizon in terms of other players getting in?

Yes. So we were lucky because in the U.S. market, we didn't have any much -- we didn't have much of the audio channels in the U.S. and on the cable side because that was the music choice at all the cable market. So when the FAST channel started 6, 7 years ago, we were the first one to be all in. So we took -- we remain the first player advantage.

We are still, as of now, the only audio music partner in with all of our partners. And on the Ambiance side, we have now 8 channels on Ambiance, and we're the only one that really does a great Ambiance style. So -- and the beauty of our product, our sweet spot is really laid back listening. When you listen to 70s or 80s music at home and our #1 channel audio is still Spot.

So people come home, they want to relax, they put the Spot channel on and they cook or the -- so it's a unique channel. The market is $70 billion. The market was $70 billion on NBC, ABC and CBS, and all of that is switching over. It's the same ads that are switching over to the fast channels. So I must say the demand side that lake is very deep.

We're surprised how deep that lake is. It's -- so we're -- and we're just getting better and better at it. We're launching more and more channels. We're getting better at selling and helping our partners. And what I'm happy about us doing the backfilling is we're less dependent on LG, Samsung and Vizio.

So if they sell less of the ads, the good news is we have more of the backfilling to sell. If they only sell 40%, then we have 60% to sell. If they sell 60%, we're happy because they're selling and then we have 40%. So I think by doing this with all of our partners will really position us even more as a great partner because we're double selling and they make as much money when we sell the ads than when they make the ads.

So it's a win-win for us and our partners. And the fact that, again, for me, the fact that our friends at Vizio and Walmart took us as one of their three partners to be the button on the remote is a great honor. So I think we're well positioned. So for now, I'd say no, it's looking very -- the lake is increasing, so all the boats are rising.

Okay. That's great color. Eric, just to follow up on the backfilling. So you have backfilling rights on all the platforms, right, Samsung included and I just want to clarify, it's all programmatic as well?

Yes. So the answer is no, not at all. We're trying to convince them that we're doing a great job. I think that would be a big win. On most platform, we have backfilling rights. And yes, it is all programmatic. That's a word I need to practice with my diction coach because that word programmatic is very difficult for French-Canadian.

Okay. And then last question for me. On the retail media side, I know the momentum is still there, but obviously, as the kind of the base grows, the growth rates moderate. Maybe just talk to your expectations there. I know that video could be a tailwind for you in fiscal '26. Any sort of additional color on that front?

And very good, yes. We had very high growth in retail media over the last 3, 4 years, like in the 30s and 20s and 40s. And so finally, this year, we expect double-digit growth, but on the low end. We're also -- we reorganized a bit of the sales team. We merged U.S. and Canada. We put a new person in charge -- a new GM in charge of that unit. So this year, we'll be more a year of reestablishing ourselves. We're also trying to give more data from the retailers to the advertisers to make it more like a digital sell. So I'd say we're looking more for this year like a 10% growth, double digit, but low double digit.

The next question comes from Scott Fletcher from CIBC.

I'll stick with the Broadcasting and Commercial segment, but something we don't talk about as much as the subscription line, that was sort of surprising to me to see the 7% growth rate number in the quarter. Can you sort of unpack what the -- what drove the growth and what you expect for that line?

Yes, very good question. We did have a bump this quarter. We did have like a special promotion that gave us a lot of subscription. So this quarter is not a usual quarter. I would look more on the growth that we had year-over-year than quarter-over-quarter for your forecast, but we did have a positive blip this quarter. So be careful. Don't put this growth for the rest of the year for your forecast because it might be too high for us.

And then on the M&A, you mentioned some of those larger deals. If those were to be the case, can you sort of walk through the financing plan there? Would that be likely an equity issuance...

No, The good news of being at 2x debt EBITDA because we're reimbursing debt every week. And our EBITDA is growing every quarter is that we're in a very good position to do a big acquisition without raising any equity. And for us, myself as an entrepreneur, the last thing I want to do is issue equity. Equity is the most -- right now, our free cash flow yield is anywhere from 15% to 17% of -- depending on how you measure it and if you look at our budget and our forecast. So for us, issuing shares of 15%, 17% is not -- it's too expensive. And right now, we're borrowing at 4.5% at the bank.

So the interest rate are very, very good. So I'd say no. And also, we don't want to go -- if we do a deal, we want to stay below 3x EBITDA. With these types of markets right now, so the deal have to be accretive. We had a few that were very accretive and that we were able to maintain below the 3x EBITDA.

We don't want to -- there's a lot of things moving right now. So we are more safe. And also when you had 2 years of positive organic sales of plus 10%, like we had 10 and 12, and you start your Q1 and your Q1 is still double-digit organic we have so much wind on our back that there's less -- not as much pressure to do deals and more focused on investing on our growing strategy. Was that a good answer?

Yes, no, definitely. And then just to confirm one last thing on the broadcasting commercial. So you -- even with the lower margin revenue growth, you still think -- can you sort of point to -- just remind me again what you think the margin -- EBITDA margin target...

Yes, last year, we did 41.9%; this year, we did 42.3%, I'm just looking at my sheet EBITDA margin. So yes, I think 42% is I think is a good goal for us. We make more money when Vizio and LG and Roku and all the partners sell; a bit less money on the backfill, but I think we'll be able to maintain 42%.

The next question comes from Drew McReynolds from RBC.

A couple for me. First, Eric, on the M&A, you provided I think some broad commentary on where your focus is on that. Can you just kind of remind us where that focus is? And then secondly, on the connected car contribution, I think your commentary in previous quarters is to see a bigger uptick in fiscal 2027 than fiscal 2026, I was just wondering if that's still the trajectory of that revenue contributor?

Yes. So for sure, all of M&A acquisitions that we're looking at are in our growth vectors. So in the FAST segment and advertising, programmatic sales. So very much where we're seeing our growth right now. So -- and there's a good list of companies there for us to be talking to. So we're excited about that. I can't get too much in detail, as you know. And regarding cars, good question. Cars, it's a long-term project. We are talking to every car company in the world. We went 4 times to China in the last 6 months, very involved with the Chinese company. We went 2 times to Japan, Korea, we're all over the U.S. I don't want to say names, but we have many of our partners coming here for the Grand Prix this weekend. So many cars company and many clients are coming.

We're taking advantage of the Grand Prix in Montreal to invite customers. But these are long-term deals. But I'm happy that this year, we're officially going to hit 8 digits. So we're officially going to be able to be in the 8-digit market. So it's growing well, but still a small unit. It's not as big as the advertising for now. But we are very excited to see the launches in cars.

And again, karaoke will be for the kids, the best thing ever. Karaoke will be in every car. And maybe for the parents, they won't be happy with me. But Karaoke will be, I call the table stakes for a car. And even now the big discussion is us producing microphones, so you're able to sing and score yourself in the cars.

All right. And hardly right there. Just shifting gears a little bit. On the Retail Media side, when you think about your growth outlook there and some of the levers that you're still working on, whether it's pricing, sellout rate, ad frequency, where within those levers do you -- are you prioritizing to get the most bang for your buck this year? Like where do you see the lever here in fiscal 2026 or maybe it's all free?

Yes. It's for us -- and the issue with the retail media is there's still no bucket. There's a bucket for TV. There's a bucket for in-store where they invest directly with Loblaw, they invest directly with Metro. There's audio and then there's digital sales or digital ads like CTV. So one of our main focus here is to be able to get data from the retailers to make retail media audio more of it -- to get them more digital with data reports that make it more -- they can measure a better return on investment.

So we're still evangelizing the market. So it's -- I must say it's a lot of work. Compared to programmatic sales, that it just opened the tap and the money starts coming in. Here, we're really knocking on doors, we're meeting a lot of agencies, we're traveling, we're going to New York. So it's -- but I think we are the #1 audio retail media player in the world both in Canada and the U.S. So we're positioned to continue that market. But a lot of work.

Yes. Okay. That's helpful. And last one for me, maybe for you, Marie-Helene, is CapEx, I think, came in roughly $15 million in fiscal 2025. Just wondering what should pencil in for fiscal 2026?

It's should be very similar. No big variances on that front.

And even for us, the interest rates came down fast. So even in the interest rate we -- I think we're looking at more $18 million that will pay in interest this year instead of the $24 million, $26 million in the last 2 years. So looking good there. All right. Thank you, Drew.

The next question comes from Jerome Dubreuil from Desjardins.

First question is on the macro situation. In the advertising business, sometimes we're wondering if we see some cyclicality or maybe your vectors are too much in the early innings of their growth. So I'm wondering if you're seeing any impact from the uncertain macro situation right now on your advertising sales?

Yes. So again, good news and I have a chance to mention is that, again, it was so advanced in the quarter because of the year-end, it's a 90-day period. Radio, again, this quarter, radio, we're looking to be at about plus 5%. So April, May, June was a very strong radio. We are getting market share from other players.

So we're -- and also our digital strategy is doing well, and radio is really embracing retail media. So we're -- it's -- so that radio seems good for Q1, we'll see for Q2. So -- but happy about that. Who would think that Radio would grow by 5%. If you look at some of our competition that starts with the word C, I think you'd be surprised.

And regarding the FAST channels and retail media, but mostly the FAST channels the bucket is a $70 billion market from traditional TV moving to FAST. So we're not creating a new advertising, we're just switching all the viewership that was done on ABC, NBC, CBC and all of the cable side and switching it to the other side. So we're transferring market share, we're not building market share. Do you understand, Jerome? Is that clear?

Absolutely makes sense...

I don't like the word stealing, but we're taking it from the -- on that bucket side and -- so at the end of the day, Coca-Cola and -- it's the same as you see in our FAST channel. If you're a Volkswagen, you want to reach 10 million Americans, then you put some money and then it goes to us, CTV, or it goes to NBC. So it's the same ad. So it's -- we're really leveraging.

Yes, makes sense. Another one on the FAST. Maybe in terms of the inflection we've been seeing in the watched hours really, you have a graph there in the presentation. So that is not related to the backfilling because that wouldn't have an impact on the watched hours. Has something happened this quarter in terms of the hours being watched, can this be repeated? Is this a new floor on which you'll be building upon?

We just -- like again, we've launched 6 channels on Vizio, we're launching another 6 on Roku. We were never on Roku. Roku is Vizio's 20 million active users, but they're going to be going from 20 million to 40 million to 60 million to 80 million. As you know, Vizio got bought over by Walmart. If you go into Walmart in the U.S., all you're going to see is onn, which is the Walmart TV and Vizio. So -- and their pricing is good, but all of those will be managed with the Vizio TV plus system. So just on the Vizio side, we see them doubling to tripling in the next 2 years.

We've launched more channels with Vizio. We're launching more channels with LG. We launched more channels with Samsung. So we're really well positioned. We've also launched an Amazon Fire, 30 of our channels, audio and video. We're launching also 30 channel on iSense, so all these platforms are coming on. And people are ready -- the good and bad news are getting off cable, and they see that they have all these channels for free. So it's really -- it's a great win-win for the consumer and win-win for the broadcasters like us.

Yes, it makes sense. And last one for me, back to retail media. Looking at the presentation hearing what you've been seeing in the past, you seem to be talking maybe a bit more openly about increasing the CPMs on retail media that at least how I interpret it. Do you feel that you've done enough in terms of approving the ROI to do this? Have you earned the right or you're going to be testing the water there?

Yes. It's still, I guess, I said retail means, it's totally opposite of programmatic. Programmatic is you need very few people and they do millions of sales. And retail means that you need a lot of people that bang on the doors, bang on the agencies and meet people. So one, retail media is less scalable than selling on FAST. I don't know if that's a good answer, but...

Yes. No, makes sense.

The last question comes from Tim Casey from BMO.

I'm good. The questions have been asked and answered. Thank you.

Thank you, Tim. So I guess this will be -- I guess, all asked their questions. Again, on behalf of the Stingray team, a lot of work here that was done to be year-end. Great results, every department from marketing to content to IT to sales. And I would say even you, Lloyd, legal and finance, but we're in a good position and happy to hopefully deliver another year of double-digit growth, higher EBITDA and also strong cash flow for our shareholders. That's our -- I think we're well positioned for that. Happy about the interest rates and position, hopefully, maybe have a nice significant acquisition. [Foreign Language]. Thank you very much, and have a good day.

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.