Stingray Group Inc.

Good morning, ladies and gentlemen, and welcome to Stingray Group's third 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 at any time during this call you need assistance, please press star zero for the operator. This call is being recorded on Wednesday, February 11, 2026. I would now like to turn the conference over to Mathieu Pellekin. Please go ahead.

Thank you. Bon matin. Good morning, everyone. And thank you for joining us for Stingray's conference call for the third quarter of fiscal 2026, ended December 31, 2025. Today, Eric Boyko, President, CEO, and co-founder, as well as Marie-Hélène Fournier, Interim Chief Financial Officer, will be presenting Stingray's operational and financial highlights. Our press release reporting Stingray's third quarter results was issued yesterday after the market closed. Our press release and DNA and financial statements for the quarter are available on our investor website at stingray.com and Cedar Plus. I will now provide you with the customary caution that today's discussion of the corporation's performance and its future prospects include forward-looking statements. The corporation's future operation and performance are subject to risk and uncertainties, and actual results may differ materially. These risk and uncertainties include but are not limited to The risk factors identified in Stingray's Annual Information Forum dated June 10, 2025, which is available on CEDAR+. 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 Stingrays MD&A for complete definition and reconciliation of such measures to IFRS financial measures. Finally, let me remind you that all amounts on this call are expressed in Canadian dollars unless otherwise indicated. With that, let me turn the call over to Eric.

Okay, merci monsieur. Good morning, everyone, and thanks for joining us for our third quarter fiscal 26 earnings calls. I want to begin the call with talking about the significant progress Extingery 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. Extingery is built on three pillars that work together to drive our growth. Distribution, monetization, and and content. Our first pillar, distribution. Our purpose is simple, to be everywhere our listeners are. We have executed on this, and today Stingray is the most widely distributed streaming media company across the platforms that are now part of our daily lives. We are the most widely distributed music player on connected TVs, smart speakers, mobile 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. 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 a 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, Tengri, 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 500K a day of programmatic sales. A year ago when we were talking at this time, our sales of programming was zero. And now our run rate is 500,000 a day, and that's 102 million US, 250 million Canadian. So when you talk about growth going from zero to 250, that's a great new vector. Well, content. What is the fuel on our 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 playlists, engaging karaoke experience, and world-class catalog of recorded concerts. This strategy gives us something very powerful, unmatched and scalable units 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 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 you, turn review to our third quarter fiscal 2026. Stingray announced exceptional third quarter results for fiscal 26 with revenues and adjusted EBITDA, adjusted free cash flow reaching record levels. On a consolidated basis, Stingray generated adjusted EBITDA of 44.5 million and adjusted free cash flow of 34.8 million on revenues of $124.8 million in the third quarter. The highlights this positive impact of its recent tune-in acquisition and the continued expansion of high-growth areas like fast channels and car entertainment. Fast channels are particularly a robust financial result as we leverage premium ad networks, which we call a backfill, to monetize unsold inventory and benefit from new deployment across the LG platform. In addition, the integration of TuneIn has progressed even better than planned. Following the closing of this transformative acquisition on December 19, TuneIn's performance has exceeded our expectation, creating powerful new synergies that are already reflected in our strong financial performance. Revenue synergies with TuneIn reach an annual run rate of $16 million in revenues and $5 million in cost savings. As a reminder, we have established synergy goals for sales between 20 to 40 million of cross-selling and for cost saving between 10 to 15 million in the next 18 months or before March 27th. So we started the year, let's say, on a fast track. On the in-car entertainment side, our recent agreement with world-class automotive brands like BYD, Mercedes, and Nissan are a powerful validation of our in-car entertainment strategy. 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 expand our global footprint and accelerate our momentum. At BYD, we raised our partnership to a new level through our OEM radio deal involving the integration of our full suite of products including Stingray music and TuneIn under the BYD Audio. by Stingray Brands, Stingray Karaoke, and Calm Radio. Turning to Mercedes, we will launch Stingray Music and Stingray Karaoke application in all vehicles equipped with the latest MBUX information system. This application, which will be immediately pre-installed Mercedes cars, expected to be released in the first half of calendar 26. And just last week, we announced a collaboration with Nissan to bring a unique tuning offering to select Nissan and Infiniti vehicles in the United States. 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 automatic 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 enabled us to improve efficiency and achieve economies of scale since we already own two other radio stations in the market. Altogether, Stingray Radio owns and operates 32 radio licenses in Alberta and 96 radio stations across Canada. Calgary general 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. Very happy, we are very happy to show that our leverage ratio is below 2.8 that we had told the market for the third quarter, and we ended December 31st at 2.49. 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 parties, with our target set to drop below two times EBITDA by the end of calendar year, so by the end of December. So a very quick delivery of this acquisition. Consequently, we believe Stingray's path to value creation will be marked by accelerated embedded growth and free cash flow generation in upcoming quarters. I will now call over the call to Mary Lynn for our financial overview of the quarter, and I will be pleased to ask questions. Merci, Marie.

Bon matin. Good morning, everyone. Thank you, Eric. Revenues reached $124.8 million in the third quarter of fiscal 2026, up 15.4% from $108.2 million in Q3 2025. The year-on-year growth was mainly driven by enhanced advertising revenues from the recent tune-in acquisition, higher equipment sales related to the acquisition of the singing machine, and greater fast-channel revenues. Revenues in Canada decreased 1.1% to $53.6 million in the third quarter. The year-over-year decline can be attributed to lower equipment and installation sales related to digital signage, partially offset by higher radio revenues. Revenues in the U.S. grew 42.5% to $60.3 million in Q3 26, reflecting enhanced advertising revenues from the recent tune-in 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 NN's advertising revenues from the recent tune-in acquisition, higher equipment sales related to the acquisition of the singing machine, and greater fast channel revenue. For their part, radio revenues rose 2% to $36.7 million in Q3 on higher digital advertising sales, partially offset by lower airtime revenues. In terms of adjusted EBITDA, Stingray also reported record numbers. Consolidated adjusted EBITDA improved 5.7% to $44.5 million in the third quarter. Adjusted EBITDA margin reached 35.7% in Q3, compared to 38.9% for the same period in 2025. The increase in adjusted EBITDA was mainly driven by organic revenue growth as well as the impact of the acquisitions. The decline in EBITDA margin meanwhile can be attributed to lower gross margin on sales relative to the tune-in and the singing machine acquisition. 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 billion, or $0.23 per diluted share, in Q3 25. The year-over-year decline was mainly due to the higher performance and therefore shared units expense related to an increase in the corporation share price, as well as greater acquisition, legal restructuring, and other expenses. These factors were partially offset by an unrealized gain on the fair value of derivative financial instruments and by a foreign exchange gain. Adjusted net income totaled $26.3 million or $38 per diluted share in Q3 2026 compared to $23.4 million or $0.34 per diluted share in the same period in 2025. 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 rates. From a balance sheet standpoint, Stingray had cash-on-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 total, $502.3 million, up $181.2 million from the end of Q2 2026, mainly due to outlays related to business acquisition. As I mentioned earlier, our leverage ratio stood at 2.49 times at the end of the third quarter. We intend to bring it down under two, over the next few months or by the end of the calendar year by diligently reducing our debt and generating higher adjusted EBITDA. Finally, we repurchased 303,000 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 liked my introduction. At this point, Marie-Hélène and I will be pleased to answer your questions. Back to you guys.

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

Please go ahead. Hi there. It's Sam Schmidt on for Stephanie Price. Appreciate the disclosure around the run rate tune-in 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? Thanks.

You know what? We started – it was very interesting – The deal wasn't even closed because we announced the deal and we had two weeks to wait for the competition, Bruno. And I think three days later, we already had like eight different vectors that TuneIn is already helping us sell. So what do we sell? They're helping us on CTV, helping us sell Calm Radio. They're helping us sell ads on Stingray Music. They're helping our radio team, which we sell TuneIn in Canada. So the cross synergies, we have over nine products. We quickly achieved just in one month in January 16 million run rates And we said 20 to 40, but right now I'd say 20 to unlimited, because like I said before, a year ago we were doing zero in programmatic sales, and we are very confident that by the end of this quarter, by the end of March, we will be running at 500k US of programmatic sales on all our different platforms, which is 182 million US, which is roughly 250 million Canadian. So I think the cross synergies are really And the more we launch products, the more we launch cars, all of these, again, we're talking about distribution, all will be, not finance, all the models, advertising and programmatic. And the beauty of programmatic is it's a very deep lake, and the tune-in team is a first-class, sophisticated ad tech machine, and I think we got, you know, this merger is a perfect merger on the cross-selling. So I think the 20 million is just a starter. And I'm very excited in June, in four months, to really give you our first quarter together and just give you a bit of feedback. Tuning 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.

Thank you. And then just one more. Oh, sorry. Just one more for me. I wanted to ask around the cost synergies as well. Can you provide some color on those initiatives, and how are you thinking about broadcast and commercial segment margins as you work through those cost synergies? Yeah, very good.

In terms of cost and in terms of positives, right now we've only focused on cost of good souls. For example, cost of good souls, music rights. Since we have more scale, we have better music rights, usual... you know, 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's 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 in terms of paying the Amazon fees and also app service fees. So we're very excited on, again, a great merger on both sales and cost savings. So I would say it's a perfect marriage.

Thank you.

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

Thanks a lot. Good morning. 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.

Oh, 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 told 20 to 40 million USD of positive sales and 10 to 15 million of OPEC savings. Okay, great. Thanks a lot.

Yeah, okay. So, turning next, you know, we're seeing, obviously, some of the top-line growth. Can you speak a little bit about the possibility of margin expanding? 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, you know, above, let's say, a 35% level?

Yeah, you know, and we did a good sheet on different margins, for sure, examples of When we get money from a fast channel partner like from LG or Vizio, that money in that case is recorded net. Now I'm going to accounting. When we do back filling and when we do programmatic sales, let's say we sell a dollar, now we have to pay our partner whatever the amount, 35, 40, 50 cents. So the gross margin on both products are, one's at 95% gross profit, the other one's at 40, 45. So very difficult to predict The more we do backfilling and programmatic, it's not the same margin as getting net revenues. So I'm happy offline with Marie to explain, to give you more guidance on the gross margin and the EBITDA margin. But there's an effect when we sell directly, we report the numbers gross. So, you know, 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, you know, over the next, let's say, three to five years, an opportunity to scale you know, a mid 30% margin, you know, towards 40 or, you know, something maybe slightly above the current level?

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

Okay. And just in terms of leverage, I mean, you've done a good job in the prior two years of you know, significantly bring down leverage. And, you know, I think you're already doing a pretty good job in terms of bringing leverage down after tune-in. But, you know, what's the optimal target for you on the leverage front? Do you really want to be, you know, sub two times? Is 1.5, frankly, too low? What's the strategy here?

I think, you know, before, you know, before a bit more aggressive entrepreneur, our range was 225 to 250. 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 two, you can start expecting capital allocation, which, again, would be increasing the dividend. We're always looking at deals, but increasing the dividend or doing more NCIB. But I was reading your report this morning, Adam, and if we expect, I think you're estimating 232, 240 of free cash flow per shares. If we do 240 of free cash flow per shares, then and our dividend policy is 2025, then you should expect our dividend to be growing to 45 to 50 cents. Great. Okay.

Thanks a lot.

Appreciate it. Thanks, Adam. Great report. Thank you very much. We love 21.

Thank you. The next question comes from Aravinda Galapatich from Canada Continuity. Please go ahead.

Good morning. Thanks for taking my question. I just wanted to clarify, go back to the sort of the synergies on TuneIn, Eric. So, I mean, the way that you kind of laid it out, the fact that you already realized on a run rate basis, the 5 on cost, the 16 on revenue synergies, you know, if I were to perhaps simplify and simply add that to the EBITDA at the point of acquisition, as you announced, which is 30, 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 cross synergies, depending if we sell third party and all that, roughly 40% gross margin. And the fixed costs are pretty much, so you can add 40% to that. So I agree with you there. And the cost synergies are coming in over the next few months. So I think those synergies will be fully coming in in our year end 2027. Okay, okay, understood. 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 1st, you will get full value of those synergies. And I think, Marie, we can give you more guidance of exactly when they come in and what timing. But you're exactly right. This deal with TuneIn, if it's at 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've had yours. How are you kind of thinking about harmonizing that? Are you just letting that run parallel for now?

No, no. So the day happened, the next day we're 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 tune-in deal, but with Nissan, we already added Stingray Music, and we're going to be adding Karaoke. With BYD, BYD, we're adding tune-in right away. So every car deal we have, and I must say, you know, we used to play a game with cash, we call it court on the market, but I think in this one, tune-in and Stingray for the car manufacturers, they're very excited about our offering, but they were each talking to both of us, one against each other. We were the only two companies offering a model that we said, we'll put music, we'll put tune-in radio, and we'll do a ref 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 merged both together, I'd say the car manufacturers are very excited. They're talking to one company. They feel that we're well-positioned. We're the only global company on music, huh? When you think about our competitors being iHeart or XM, they're only US-based. There's not many companies that are global. And when you talk to BYD 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 CS. We met all car manufacturers in the world. We had a BYD car there at CS in Vegas. Everybody was going crazy to see the BYD car. We had Stella, the president of BYD, with us in Vegas. So, no, we're very well positioned. And I would say now, I was telling our team here, I feel we're like the Seahawks. We're winning 19-0 in the third quarter. So I think it's for us to lose this game because we're really ahead and we don't see anybody else in the space. And I think the car manufacturers... want to go faster because I think they see a clear solution. So very excited. The only negative thing about cars, cars is a long process. You don't build a million cars overnight. You start with your cars. But the beauty about the cars, once you're in the car, you're in the car for 10 years, and the cars last for 11 years. So it's like doing a 20-year deal. So by the time the cars are all ready, I'm going to be 76 years old.

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

No, no, we're very, very happy with that. Again, with the monetization of the current inventory of the unsold inventories.

Thank you. The next question comes from Jerome Dubriel at Desjardins. Please go ahead.

Hey, thanks for taking my questions, Beaumont. Thank you, Maude. First one, I want to touch again on the synergies there. You seem to be kind of resisting the urge to change the synergy guidance. So maybe other than the initial 10 million cost savings, it now sounds like it's 10 to 15. 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, you know, on the cards and OPEX,

Yeah, revenue and OpEx, both with the update that you provided.

Yeah, on the sell side, when we said 20 to 40, I said to our board yesterday, I said, we should never say, we should say 20 and above. Right now, I think it's 20 to 100 million. 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. And again, it is the chicken and the egg. So the more you have inventory, the more you monetize, the more people want to give you their inventory. The more you have inventory, the more you have scale, the more you can monetize. So it's a virtual circle. We feel very confident that, you know, and we're getting, we have a daily meeting at noon every day to watch the programmatic sales. And if we're going to be doing a half a million a day in March, I mean, there's, if you look at the trends, that means we should be doing a million U.S. 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 six months. And we have inventory.

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

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

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

Great. Merci beaucoup.

Merci, Jean.

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

Yeah, thanks very much. Good morning. And 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 in a 30,000-foot view, the revenue kind of contribution maybe in fiscal 2026 and then what that could look like in fiscal 2027? And then the second question, just on tune-in and subscription, I know, you know, this is not necessarily the focus of the acquisition, but just maybe some updated expectations around that revenue bucket. Thank you.

Yes, so the car business, again, car business is growing well. Car business is growing by, you know, 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 to 20 million, but we won't go from 10 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. And again, a lot of partners, every time we win a deal, you can imagine that the people that are in the cars or want to be in the cars, the Amazon, the Google, the Apple, they start calling us and say, hey, you're with this car. How can we be your partner in that car? How can we sell advertising with you in this car? So we're really attracting all of the big players because they're not in the cars. So it's really interesting, the monetization and the growth of these deals, but it's a long term, it is a long, once you sign, it's a long time to implement and to produce the cars. It's not as fast as the fast channels. So that was your first question. And Drew, your second question?

Yeah, just on the TuneIn subscription revenues, I don't know your focus on the acquisition. Update there.

Yeah, 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 three years was really to sell the inventory. And now one of our focus, and we have a We have a team put together is to bring new content to the subscription and at least have a subscription that is stable. But the growth of TuneIn and the growth of Stingray is going to be programmatic sales for the next three to five years. Subscription for us is going to be a nice add-on. Yeah, got it. Very helpful. Thank you. And, Drew, you know, it's a perfect wedding because it's like the Royal Bank. It's a royal wedding.

I love it.

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

Questions have been asked and answered. Thank you. Thank you, Tim.

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

All right. Hey, so I hope that you liked our little introduction. A couple of points that we didn't talk today, I think it's important. We also announced a big move, the one ticker. What's the timing of this? With the deal of Tunin, we met with all the U.S. largest investors, met with a lot of their investors. The Tunin team was very well connected in the U.S., and we quickly realized that having the Ray A, Ray Bs, if you're American, you have to buy Bs, but there was no market on Bs and the As. So we worked hard to make it simple. The goal is to increase the liquidity for both Canadians and Americans to buy one symbol and not have two tickers. So I think, you know, 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 in their multiples. by having U.S. investors. We love Canada, we love Quebec, but we have to be world winners. So 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, Mathieu Zekip, and excited for our next call, because this year end is only in June. So we have four months until we see each other, So I will miss you great analysts. If you have friends in the U.S. that want to cover us, give me their names.

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