One of the fast-rising TSX growth stocks today is Stingray (TSX:RAY.A). If the name doesn’t ring a bell to you, listen to this. The stock doesn’t belong to the top-performing basic materials sector but to the music world.
Eric Boyko, President and co-founder of Stingray, is not worried about the business at all. He is extremely confident because, as long as there is music, his company will continue distributing it.
Investment Thesis
Stingray is a $1 billion global music, media, and technology company. The core business focuses on curated music, video content, streaming, distribution, and media technology, including advertising solutions.
According to Boyko, Stingray is probably the best company for audio music due to its worldwide music rights. The company operates in 160 countries across six continents and owns 97 radio stations. Stingray ranks third in music distribution after Sirius XM and Spotify.
Slowly but surely, Stingray is transitioning its business model towards high-margin, recurring digital revenue streams, notably FAST channels and B2B commercial music. It is also becoming an acquisition machine as expanding its footprint and product offerings are ongoing concerns.
Latest acquisitions
On November 11, 2025, Stingray entered into a definitive agreement to acquire TuneIn Holdings, a pioneer in live audio streaming and ad monetization. This US$175 million deal will create an audio streaming and advertising powerhouse.
“We are crafting an unmatched audio ecosystem by merging Stingray’s extensive technology infrastructure and content distribution capabilities with TuneIn’s expertise in monetization, advertising technology, and diverse content offerings,” Boyko said.
Stingray expanded its retail media network (33,500 locations to date) in the U.S. after acquiring DMI, a leader in music branding and in-store audio advertising, in late October. More importantly, Stingray instantly became the definitive leader in in-store audio advertising for the U.S. pharmacy sector. The network includes two large pharmacy chains and several major pharmacy retailers.
Boyko stated, “We are now the undisputed leader in the pharmacy audio advertising space, offering unparalleled reach and value to our clients.”
The strategic partnership Just For Laughs, the world’s leading comedy brand, aims to develop and expand Free Ad-Supported Streaming TV (FAST) channels featuring premium comedy content across global markets with an emphasis on audio entertainment.
Among Stingray’s widely accepted product offerings are in-car karaoke, an in-car music app, and calm radio featuring a wellness app for drivers. Boyko is a fan of karaoke, and he believes that karaoke in your car is a main vehicle for expansion.
Strong earnings growth
In Q2 fiscal 2026 (three months ending September 30, 2025), increased 21% to $113.3 million versus Q2 fiscal 2025, while net income climbed 102.5% year-over-year to $11.8 million. Adjusted free cash flow rose 34.6% to $28.4 million.
Stingray Advertising was the biggest surprise, achieving more than 55% growth and exceeding the 40% target. Retail media and FAST channel sales turned in outstanding performances. Performance-wise, the music stock is up 101.2 % year-to-date. At $14.93 per share, it also pays a decent 2.3% dividend.
Compelling investment opportunity
Stingray is a compelling investment opportunity for three reasons. The company is starting to generate scalable, high-margin digital revenue streams. Management’s strategic acquisitions will accelerate its digital reach. Last, music has been around for a long time. That is why Boyko is saying that Stingray is an enduring business.
