Stingray Group Inc.

Ladies and gentlemen, thank you for standing by and welcome to Stingray Group's first quarter 2026 conference call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question and answer session. If anyone has any difficulties hearing the conference, please press star zero for operator assistance at any time. I will now turn the uber to Matthew Poliquin. 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 Oiko, president, chief executive officer and co-founder and Marion Antoinette, 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 and DNA and financial statement for the quarter are available on our investor website at stingray.com and on Cedar Plus. I will now provide you with the customary caution that today's discussion of the corporation's performance and its future prospect may include forward-looking statements. The corporation's future operation and performance are subject to risk and uncertainties and actual results may differ materially. These risks and uncertainties include but are not limited to the risk factors identified in Stingray's annual information form dated June 10, 2025, which is available on Cedar Plus. 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 MDNA for a complete definition, and reconciliation of such measures to IFRS financial measures. Finally, let me remind you that all reminds 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 percent in broadcasts and recurring commercial music. Revenue is growing double digits for the fourth time in the last five 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 at inventory, we have already sold over 20 percent 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 percent field 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 six new fast channels on Watch3 Plus visual free streaming service. This expansion significantly increases Stingray's offering on the platform, providing visual 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 three areas. First, we will deepen our partnership with established leaders like Vizio, Samsung, LG by expanding our channel portfolio on their 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 two weeks ago by launching six 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 field rate of 20 percent and try to bring it closer to 60 percent. So very excited on those three 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 percent 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 percent revenue growth for a 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 ambient channels to Samsung's visual experience transformation platform last month, which is called the VTX platform. It's a glass-based content management solution that enables suppliers like Stingray to create and distribute content remotely to 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 condition 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, so we'll be on our budget of $15 million for the first two quarters. So just a question of timing, and that's the issue with 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 parameters are within the Stingray program, achieving robust financial results. In the first quarter of 2016, we delivered a consolidated adjusted EBITDA of $33.7 million, or .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, odd porphyry in the market. They grew revenues by .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. A lot of retailers took advantage, so I don't think we can expect that type of growth every quarter, but I'm 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 accompanying 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 50 million. Staying in management is very, very, I guess, aggressive in that when we think that in the next five 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, we will, that we will have today, Mr. Charest will stand for election. Should he be elected, Mr. Charest's wise counsel will be invaluable to Stingray's base on his distinguished career and public service, his extensive experience in public policy and international business, and his deep understanding of the Canadian landscape is important. It also sits on a number of boards of directors, including the Board of Publicist Group and the largest communication company in the world. Finally, François-Charles Serrois, co-founder of Stingray and director of Stingray since 2007, has advised our board that he will not stand for reelection on the upcoming annual meeting. We are grateful for Mr. Serrois's collaboration spirit and strategic insight, which have helped the position of Stingray for success in the involving media and technology industry. We wish him all the best in the future. Now, I will turn you to Marie-Hélène for a financial overview of our first quarter. Merci, Marie.