Ladies and gentlemen, welcome to the Stingray Group Q1 2027 results conference call. At this time, note that all participant 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 require immediate assistance, please press star zero for the operator. Also, note that this call is being recorded on Monday, August 10, 2026. I would like to turn the conference over to Mathieu Péloquin. Please go ahead. Bon matin. Good morning, everyone. Thank you for joining us for Stingray's conference call for the first quarter of fiscal 2027, ended June 30, 2026. Today, Eric Boyko, President, CEO, and Co-Founder, as well as Marie-Hélène Fournier, Interim CFO, will be presenting Stingray's operational and financial highlights. Our press release reporting Stingray's first quarter results was issued today before the market open. Our press release, MD&A, and financial statements for the quarter are available on our investor website at stingray.com and on SEDAR+. Today, the corporation also filed its 2026 annual report, including audited annual consolidated financial statements and MD&A for the year ended March 31, 2026. The 2026 annual report is available on SEDAR+ and on the investor relations section of Stingray's website. 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 August 7, 2026, which is also 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 a reconciliation of such measures to IFRS financial measures. Finally, let me remind you that all amounts on this call are expressed in CAD unless otherwise indicated. With that, let me turn the call over to Eric. Okay. Good morning, Mathieu. Good morning, everyone. Welcome to our first quarter results conference call for fiscal 2027. Stingray opened fiscal 2027 where it left off in 2026, only on a larger scale, driven by robust revenue contribution from TuneIn acquisition and FAST Channels segment, which generated overall growth of 65.2% and organic growth of 27.5% year-over-year in the first quarter. The integration of TuneIn has been seamless, creating a spillover effect on our entire advertising business, with revenue synergies reaching a run rate of CAD 45 million, nine months post-transaction. On the FAST Channel side, Stingray's premium ad network continued to outperform with revenue rising nearly 70% in the first quarter, driven by our reselling of TV manufacturers' unsold inventory, including audio ads for some of our major OEM partners. Our unique ability to sell ads both on platform and off platform places Stingray in a strong competitive position as we have demonstrated to our partners that we can help them enhance monetization of their FAST channels. Looking ahead, we remain confident that our TuneIn and FAST Channels business will contribute to another year of double-digit organic revenue growth in 2027. That said, the margin on these strategy assets are modestly lower than our corporate average, which is why we are maintaining our optimistic outlook for the adjusted EBITDA margin for fiscal 2025. In terms of retail media, we are excited about the opportunity to bring programmatic advertising capabilities to our in-store business. We are actively working to enable our market solution for a new audience-based multiplier model where one ad reaches a broader audience than one on one basis. We see this evolution in our business model as a key catalyst for Stingray, and we expect to make progress on this front during the current fiscal year. Finally, our in-car entertainment segment continued to gain traction. Building on the earlier Nissan partnership announcement last February, we continued to deploy new features to our cars, in-car karaoke and audio services, and to increase our footprint with existing car manufacturers. We remain optimistic, including new partnership in the coming months. Altogether, broadcast and commercial music or streaming division revenues more than doubled to CAD 126 million in the first quarter of 2027, mainly due to higher advertising revenues from the TuneIn acquisition and greater FAST channel sales. Radio revenues, which were adversely affected by reduced betting and government ads year-over-year in Q1, declined 6.5% to CAD 32 million in the first quarter, but has showed great signs of recovery early in the second quarter. We expect radio sales to improve in the second quarter, and we are pacing to be above 5%. Before handing the call over to Marie-Hélène for our financial review of the quarter, I would like to say a few words about our capital allocation and our leverage ratio. Some of us will notice that our net debt EBITDA to pro forma adjusted EBITDA increased to 2.5 times in Q1 2027, but this is largely due because we make a strategic decision to repurchase 1 million shares from Caisse de dépôt for CAD 15.5 million. The acquisition of Radioline and Westport, and because of customer timing difference in collection of advertising revenues. The share buyback will likely push our target of bringing our leverage ratio under 2.0 by the end of fiscal 2027 instead of the year-end calendar of 2026. Nevertheless, we believe it is directly in line with our commitment to actively manage Stingray's capital assets and maximize value for our shareholders. In closing, our balance sheet remains healthy, providing us with the flexibility to invest in organic growth and pursue strategic acquisitions. With this, I will now call over to Marie-Hélène for her financial review. Merci, Eric. Good morning, everyone. Bonjour tout le monde. Before reviewing our first quarter results, I am pleased to share that this morning, Stingray filed its 2026 annual report. The audited results are consistent with the preliminary figures previously reported, except for a CAD 13.8 million reclassification related to the gross net presentation of advertising revenues, mainly arising from the TuneIn acquisition. This reclassification had no impact on adjusted EBITDA, net income, or cash flows, but resulted in a favorable improvement to our adjusted EBITDA margin from 30.8% to 34.3%. No other material changes or restatements were made to the previously disclosed figures. We are glad to have this chapter behind us and to move forward. Turning now to our first quarter 2027 results. Revenues reached CAD 158 million in the first quarter of fiscal 2027, up 65.2% from CAD 95.6 million in Q1 2026. The year-over-year growth was mainly driven by higher advertising revenues from the recent TuneIn acquisition, along with greater FAST Channel sales. Revenues in Canada decreased 1.7% to CAD 48.7 million in the first quarter 2027. The year-over-year decline can be attributed to lower radio revenues. Revenues in the U.S. grew 180% to CAD 98.4 million in Q1 2027, primarily due to higher advertising revenues from the TuneIn acquisition, improved FAST Channel sales, as well as increased equipment and installation sales related to digital signage and the acquisition of Singing Machine. Revenues in other countries remained stable at CAD 10.9 million in the most recent quarter, with greater FAST Channel sales largely offset by a decline in subscription revenue. Looking at our performance by business segment, broadcasting and commercial music revenues increased 105.2% to CAD 126 million in the first quarter of 2027. The growth mainly reflects higher advertising revenues from the TuneIn acquisition, greater FAST Channel sales, as well as increased equipment and installation sales related to digital signage. For their part, radio revenues decreased 6.5% to CAD 32 million in Q1 2027, largely due to lower local and national airtime revenues and partially offset by increased digital sales. In terms of profitability, consolidated adjusted EBITDA improved 49.3% to CAD 50.3 million in the first quarter of 2027. Adjusted EBITDA margin reached 31.8% in Q1 compared to 35.2% in the same period last year. The increase in adjusted EBITDA can be attributed to the TuneIn acquisition. The decline in adjusted EBITDA margin was largely due to lower growth margin on sales related to TuneIn and Singing Machine, combined with shifts in product mix. By business segment, broadcasting and commercial music adjusted EBITDA grew 75.7% to CAD 42.9 million in Q1, primarily driven by the TuneIn acquisition. Adjusted EBITDA for our radio business dropped by 15% year-over-year to CAD 9.4 million in the first quarter of 2027. The decrease was mainly due to lower revenues, along with changes in sales mix impacting growth margin. In terms of corporate adjusted EBITDA, it amounted to a negative CAD 2.1 million in the first quarter, compared to a negative CAD 1.8 million in the same period of last year. Stingray reported net income of CAD 6.6 million or CAD 0.10 per diluted share in the first quarter of 2027, compared to CAD 16.8 million or CAD 0.24 per diluted share in Q1 2026. The year-over-year decline was primarily due to higher acquisition costs, increased amortization of intangible assets, and unrealized loss on the fair value of derivative financial instruments in the most recent quarter, compared to a gain in the prior year quarter. These factors were partially offset by improved operating results. Adjusted net income totaled CAD 27.9 million or CAD 0.40 per diluted share in Q1 2027, compared to CAD 21.3 million or CAD 0.31 per diluted share in the same period in 2026. The increase was due to higher operating results, partially offset by unfavorable variations in foreign exchange and fair value of derivative financial instruments, as well as greater interest expense. Turning to liquidity and capital resources. Cash flow from operating activities amounted to CAD 4.8 million in Q1 2027, compared to CAD 19 million last year. The decline was mainly due to higher negative change in non-cash operating items related to the timing of accounts receivable collection and advertising and greater acquisition costs. These fac tors were partially offset by improved operating results. Adjusted free cash flow totaled CAD 32.5 million in the first quarter of 2027, compared to CAD 18.8 million in the same period of last year. The improvement can be attributed to enhanced operating results and partially offset by higher interest paid. For balance sheet standpoint, Stingray had cash and cash equivalents of CAD 21.9 million at the end of the first quarter and credit facilities of CAD 569.5 million. Net debt at the end of the first quarter of 2027 totaled CAD 547.6 million, compared to CAD 524.1 million in Q4 2026. As a result, our leverage ratio increased to 2.53 times in Q1 2027. The increase in net debt primarily reflects the repurchase of 1.1 million shares during the quarter for CAD 17.1 million, the settlement of long-term incentive compensation earned by our team in fiscal 2026, the Radioline and Westport acquisitions, and a timing difference in the collection of advertising revenue. This ends my presentation. I will now turn the call over to Eric. Okay. This concludes our prepared remarks. At this point, Marie-Hélène and I will be pleased to answer your question. Thank you. Thank you, sir. Ladies and gentlemen, if you do have any questions at this time, please press star followed by one on your touchtone phone. You will then hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by two. If you're using your speakerphone, you will need to lift the handset first before pressing any keys. Please go ahead and press star one now if you have any questions. First, we will hear from Stephanie Price at CIBC. Please go ahead. Hi there. It's Sam Schmidt on for Stephanie Price. I wanted to ask around the Q4 revenue restatement. How should we think about the revenue growth rate at TuneIn going forward and the growth versus net accounting? Does this impact the TuneIn revenue synergies target? No. This revenue recognition is with the new rules and the new accounting rules and the fact that we are doing these programmatic sales, which are instant sales, are very complex. It was only impactful last year. We do not see any impact for this year. No impact for TuneIn revenues. It is really a reclass. It is a reclass that for us of CAD 13 million on revenues of close to CAD 500 million. So no impact on that. Okay. That is helpful. Thank you. Could we also get an update on the run rate cost synergies with TuneIn? I believe last quarter they were tracking at around CAD 12 million. Are you still comfortable with the adjusted EBITDA synergy target that you have discussed in the past? Then I will pass the line. Thank you. Yeah. Right now, in terms of cost synergies, they are pretty much the same than last quarter, and we have not moved it. For us, the most important number is the positive synergies. The fact that we hit $45 million this quarter and we see that number growing month by month, we are easily going to beat our target that we set ourself for March 27. So we told the market $20 million-$40 million U.S. Right now we are sitting close to $35 million U.S., but we will easily beat the $40 million over the next few quarters because the synergies are growing on a daily basis on the positive synergy side. Okay. That is helpful. Thank you. Next question will be from Adam Shine at National Bank. Please go ahead. Thanks a lot. Good morning. So maybe just building on Stephanie Price's first question, just to be very clear, Eric Boyko, we are not to extrapolate CAD 13.8 million types for the context of reducing FY 2027 current consensus estimates, let's say, right? Those still hold? No. Okay. Yes, please. Absolutely. Like I said, it was really reclassification of. It is all about gross and net, and it is all about programmatic sales and how the contract is written. So it is a lot of detail. And now, as you know, we have the auditors of the auditors. So you have the CPAB that audits the accounting firms. So accounting is getting complex. The second point of clarification is just on the margin. I don't think you mentioned a specific margin number, but you have talked previously, I think even going back to the prior call of trying to get to around 35% for FY 2027. Is that still the target? Yeah. Our target is still to go there. The three things right now that affected us in this quarter, our gross margin on what we call the backfill. Our gross profit is low. Sales are increasing fast. We are adjusting every day, and we are getting better and getting better margin on the backfill. But the backfill is now huge. We are doing, Adam, $200,000 a day USD. So our run rate is $100 million that we are selling o n Vizio, LG, and Samsung's platform. Last year, we did not even do $20 million, so that is where we are getting a lot of our growth. But the margin on that product, because we are selling gross and the rev share is low right now and we are getting better at it every day. The second thing that affected this quarter is The Singing Machine Company. The Singing Machine Company, we do not ship in Q1, so we had negative EBITDA, and then we will have a positive EBITDA in Q2. That makes a big switch. So for sure, The Singing Machine Company, because we sell to retailers, it affects our margin for this quarter. Okay. No, that is helpful. I think going back to the prior quarter, you talked about trying to infuse some of the TuneIn programmatic advertising capabilities across the platform. You were starting, of course, with initial traction around FAST. Then ultimately, I think over the next six to 12 months, you are looking to do stuff within retail media and even the traditional radio business. Is that still tracking on plan? Anything you can share on those coming initiatives? Yeah. The first initiative that we are still the only one in the world to do. So we are the only company in the world that is doing audio ads on a CTV. So instead of having a video ad, you get a still image, and you get an audio ad. That really opens up the inventory that we can sell. Now we had one platform that agreed to it. Right now, in Q2, we already have our top three platforms agreeing to do audio ads. So that is really unique because we are the only ones selling that product, so there is no competition. We are not bidding anybody else like we are in the video space. So very happy about that. Also, what is exciting is we hit in June, we hit our programmatic sales, TuneIn and Stingray Group together. We hit a high of $550,000 a day. If you do a run rate of that's CAD 260 million a year. We are really doing well. The last part for the next few months, that is exciting. We have new platforms coming on board that we can do backfill. The platforms that have agreed to do audio ads, very exciting for us. The third thing that is most exciting, we are learning this with the adv ertising market, but the football season is starting, college football, mid-August, then the NFL is starting. With the football season, the sports season, everybody in our space, everybody that works in programmatic sales, we expect to have August, September, October, and hit the record in November with the U.S. Thanksgiving. We see the next two quarters very strong, because we finished Q1 so strong in June. It gives you a good momentum for the next six months. For us to achieve 27% organic sales is pretty incredible. We are confident with the margin also will be improving. We are very, very good momentum for Q2 and Q3 right now. Thanks, Eric. I will queue up again. Appreciate it. Thank you, Adam. Question will be from David McFadgen at ATB Cormark. Please go ahead. Oh, hi. Yeah, a couple of questions. First of all, just a clarification on that 27.5% organic growth. Is that a pro forma number, or is that what you did last year and then you add in the TuneIn revenue? No, it is really adding our revenue last year plus TuneIn's revenue, and then the organic growth is on top of that. Okay. It seems like it is a pro forma number. Then, so you talked about selling inventory for some OEM partners. Can you tell us which OEM partners you were representing in the quarter? Yeah. So for us, we have always said this, we are partners with about maybe 25 OEM platforms on the TV sid e here. But our top 3 that we work with in the U.S., and it is public information, the top 3 in the U.S. is Vizio, it is LG, and it is Samsung. So our goal for us is to do more backfill with them, sell more audio ads, and be better partners. So we are very excited. Most of our programmatic sales still come from the U.S. right now. Europe is starting, Latin America is starting, Canada is doing well, but most of it is from the U.S.A. Okay. When you look at the backfill or the premium ad network, is the revenue growing because you are just representing more inventory, or are you just getting better sell-through rate, or is it both? It is all of the above. Vizio right now is selling 1 million new TVs a month. So they will be adding 12 million TVs. So for sure, the TV manufacturers are selling new models, and the TV only lasts four years, so it is much different than selling cars. Then after that, we are getting much better at selling more ads, which at the end, makes our partners more money. So we become a big customer of them because we generate a lot of revenues. Then after that, these partners, because we are doing well, are giving us more inventory, and most importantly, they are giving us guaranteed inventory. So it is really a virtual circle of positive. That is why the premium ad network, we were doing CAD 25,000 a day in Q4. Then after that, we grew from CAD 25,000 a day to CAD 200,000 a day. So you can see the growth. We don't know right now, we can't predict where is that going to stop. But the momentum is very strong in Q2 and in Q3, and we'll be happy in November to update you over how we're doing on those sales on our CTV partners. Okay. Lastly, maybe you could give us a read on just the FAST advertising market, because you talk to some other players in the FAST business, and they say the market's kind of tough. But clearly you're performing the markets. Maybe you could just give us an update on just the general market for FAST advertising. Like I said, in our case, because we're having access to more inventory and also because we're the only ones out selling the audio ads, the audio ads has been a great success. We're taking really the synergies. TuneIn is probably the best audio ad seller in terms of programmatic, and now we're telling our customers, you can also have an ad on a TV, on a connected TV. I think that in our case, as we mentioned, the FAST channel this quarter grew by 70%. This quarter we didn't do +20, we did 70% more. We're really in a strong momentum with the FAST channels. Right now we are on the opposite side because we're getting so much more access. Okay. Thank you. Thank you, David. Ladies and gentlemen, a reminder to please press star one should you have any questions. Thank you. Next, we will hear from Drew McReynolds at RBC. Please go ahead. Thanks very much. Good morning. First on the revenue recognition, Eric and Marie-Hélène, I absolutely understand the complexity of these contracts and accounting. Just wondering from quarter to quarter, is the way you recognize revenue evolving that significantly, or is it more steady state and what we see is just kind of the relative buckets of revenues and how that mix evolves? Just trying to better understand what's moving here and what is predictable from our perspective. Very easy. In terms of the consensus revenue that you have for the market, we are very comfortable for the revenue and EBITDA for this year. Our budget and our forecast is well aligned with yours and we are very right now comfortable. Even for FY 2028. Right now based on the numbers we're getting, if you do the trends, we'll be in an incredible position. On that, a lot of it had to do with contracts, Drew, that were written in 2015, 2018. You read the contract, is it net, is it gross? Right now what we're doing is just reestablishing all our contracts to make sure every contract is clear. All the new contracts with all of our customers are clear, so it's more on that side. No impact on your revenue guidance or target for 2027. Okay. Yeah, no, that's helpful, Eric. Thank you. Second on the audience base multiplier model within retail media, can you just flesh that out for us? Just how it works in? Yeah. Inventory in retail media, and we're not the only ones. All of our peers, Mood Media, other companies in Australia, other companies in Europe, other radio stations, a lot of radio stations want to be able to sell programmatic ads because the trend is going that way. I would say that, we are working hard with a lot of our suppliers and with TuneIn, to put that in place. We estimate we have anywhere from 300 million to 400 million of inventory on the retail media side. Now good news is all retailers, maybe two years ago, they weren't too warm to non-endemic, meaning selling ads that they did not have in the stores. But I think now they're realizing that they're a retailer, they're media, they're really media. Now they're letting us sell audio ads about cars, ads about other retailers, like example, Subway is doing ads in Dollarama. Now they're accepting to have like a real medium. That's why we're excited, and I think the multiplier in the next two quarters, we should have a solution for that. That will open up a lot of doors because we'll be able to open up that market to the programmatic ads people and sell that to the agencies. I think for us, that will be really a catalyst for that unit. Yeah. Understand, thanks for that. The last one on the M&A environment, can you just remind us, Eric, what that environment and pipeline looks like from your perspective and just more broadly, where your focus would be on M&A at the moment? Yeah. Very good. Still a lot of companies that are looking to sell and a lot of transaction. But right now our first step is we joke at the team, "Oh, we got an elephant." No, we got a mammoth. We have a lot more synergies, positive synergies to get with TuneIn. Every week, every morning we do a 9:00 A.M. synergy call on positive sells, so we have a lot of good I say we have a lot of food and muffins on the table that we can eat right now before looking at more targets. We have a lot more. That's it. We're excited about continuing and having a great Q2, Q3, and really bringing you exciting new synergies with the TuneIn acquisition. All right. That's great. Thank you. All right, Drew. This question will be from Jérôme Dubreuil at Desjardins. Please go ahead. Hey, [Foreign language]. Thanks for taking my question. The first one is on the margins. You said you are very comfortable with consensus on EBITDA and revenue, but there is a bit of a shift in the profile and margins as we are seeing. It is very good to see the absolute EBITDA growth, but if you can maybe help us on the margin profile you are expecting going forward, to go with your double-digit organic growth expectation. Thanks. Yeah. This quarter, we are getting better. Sales on Backfill went from 50,000 a day in A pril, and now we are doing 200,000 a day. But don't forget, we buy the inventory from Vizio or LG, and we resell it. So if we buy at 5 and resell at 8, then our margin is at 28%. Our goal is we are getting better and better every day to increase that gross profit margin. Sales are expanding quickly, so we are adjusting. That is one thing that we are improving on a daily basis, and that is why every quarter we are going to see the gross margin. With our EBITDA margin growing, I think Q2, Q3. Also big impact this quarter where we had negative EBITDA with The Singing Machine Company Now The Singing Machine Company will be shipping in Q2, Q3, and that is also a big impact. What we will be able to do, I think we will be able to share with the analysts, the impact of The Singing Machine Company and the gross margin on the backfill. But we are getting back towards 35% very quickly in the next few quarters. That is great, thanks. Second one I had is on the retail media. You are pointing it out in the press release this morning. You are saying that the ads reach a broader audience rather than a one-to-one basis. If you can maybe explain what that means exactly, and if you can provide a timeline on meeting those objectives. Thank you. Yeah. The issue we have with retail media, with audio, the issue the radio team has, radio team know we would love to sell programmatic ads. All radio stations around the world are in the same situation that SiriusXM. All of the ads, the programmatic ads market right now is seen as a one-to-one. You sell one audio ad or one video ad, and you expect one person in front of the TV. The market understands that. Now what we're establishing is a new product that would say, when you're a retail store, there's not one person listening to an ad, there's really 50. I think we're getting very close with a lot of our advertising partners to be able to accept that multiplier, and be able to sell the product that way. We're also working closely with the same multiplier for the radio division. I think it's very encouraging, and it would be a catalyst to increase our sales. Yeah. Just to clarify on this, does that mean when you sell an ad in a grocery store, the contract or the pricing works as if there were only one person in the store? No, if not, the model doesn't work. The model only works if you get a multiplier in the store. If not, if we do that. No, but I am asking about current pricing. Yeah, sorry. Yes. That is why we do not do programmatic sales. Right now, we do not do programmatic sales. Do not forget that, Jérôme Dubreuil, we were the first company to do an audio ad on CTV. That just shows you how quickly we have been able to be, technology-wise, to be able to do that transfer. Most important is to tell our CTV partners that we have audio demand, and with them were the first ones seeing the results, we could share with the other partners, and I can confirm that all three partners, LG, Samsung and Vizio, will be taking audio ads, and that is going to be a great growth also for the next few quarters and few years. Awesome. [Foreign language] [Foreign language] Jérôme. At this time, Mr. Boyko, we have no other questions registered. Please proceed. All right. On behalf of the entire Stingray team, thank you for joining us on this conference call. We look forward to speaking with you again following the release for our second quarter results in fiscal 2027. Again, I always appreciate all the analysts who make themselves available and be there for us. So thank you for your hard work, and thank you for all your reports, and we love reading them. [Foreign language]. Thank you, sir. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending. At this time, we do ask that you please disconnect your lines.