Is Stingray Group Inc. (RAY) halal?
Stingray Group Inc. (TSX: RAY) is a Montreal-based streaming media company — premium audio/video channels, TuneIn streaming radio, karaoke, digital signage, background music for businesses, and ~100 Canadian radio stations. (RAY.A and RAY.B consolidated under the single ticker RAY on February 13, 2026.) The business passes the standard business gate, with a music caveat for stricter views. But interest-bearing debt of ~C$592.2M at June 30, 2026 is ~56.7% of a ~C$1,044M market cap, over the ~33% AAOIFI ceiling. Cash of ~C$21.9M (~2.1% of market cap) passes; interest income is not separately disclosed. Result: FAIL on the debt gate. Data from Q1 FY2027 results, screened October 1, 2026.
The two-gate Shariah screen
Every screener on this site runs the same two gates: first, the business must be halal (no conventional insurance, banking, alcohol, gambling, weapons manufacturing, and the like); second, the financial ratios must clear (debt under roughly 33% of market cap, non-compliant income under roughly 5%).
Gate one: the business — passes, with a music caveat
Stingray reports two operating segments (Q1 FY2027 revenue):
- Broadcasting and Commercial Music (C$126.0M): TuneIn streaming radio, FAST channels, premium audio and video channels, Stingray Karaoke, Qello Concerts, Singing Machine karaoke hardware, digital signage, and background music for businesses.
- Radio (C$32.0M): ~100 Canadian radio stations selling advertising airtime.
None of the standard AAOIFI exclusions apply, so the business gate passes — with two honest caveats. Music: music is the core product, and stricter scholars consider music haram; investors following that view would exclude Stingray on business grounds regardless of ratios. Gambling-adjacent advertising: management has noted radio weakness from reduced sports-betting advertiser spending, so gambling-advertiser revenue flows through airtime — with no disclosed share in the filings. (Context: a June 30, 2026 AMF management cease-trade order was revoked August 11, 2026 after the FY2026 annual filings landed; public trading was never affected.)
Gate two: the ratios — debt fails
- Interest-bearing debt: about C$592.2M at June 30, 2026 — drawn credit facilities C$569.5M (current C$21.4M + non-current C$548.1M) plus lease liabilities C$22.7M. Subordinated debt: nil.
- Market cap: about C$1,044M (~68,035,000 shares × C$15.34, TSX, October 1, 2026).
- Debt ÷ market cap: C$592.2M ÷ C$1,044M = ~56.7% — over the ~33% AAOIFI ceiling (fails). The credit facilities alone are ~54.6% of market cap, so the fail does not hinge on lease treatment.
- Interest income: not separately disclosed — Note 6 of the Q1 FY2027 statements lists only expense items under "net finance expense (income)" (interest expense and standby fees C$7.3M, lease interest, accretion, derivative/FX items). No ratio can be computed; it does not affect the result since debt already fails.
- Cash: C$21.9M of cash and cash equivalents at June 30, 2026 — about 2.1% of market cap, under the ~33% cash-plus-securities ceiling (passes).
The FAIL comes from the debt gate alone.
What other screeners say
- Zoya: no public rating page found for RAY as of October 1, 2026. Musaffa: no public rating page found. ShariaPortfolio: no coverage found. None of the three verifiably covers the ticker. Our screener reports its own figure-by-figure analysis above.
The bottom line
This screener gives Stingray Group Inc. (TSX: RAY) a FAIL. The media/streaming business passes the standard business gate (stricter views on music noted), and cash (~2.1% of market cap) passes — but interest-bearing debt of ~C$592.2M is ~56.7% of a ~C$1,044M market cap, well over the ~33% ceiling. Interest income is not separately disclosed. Snapshot dated October 1, 2026; re-checked quarterly after earnings.
Sources
- Stingray Q1 FY2027 interim consolidated financial statements and MD&A (three months ended June 30, 2026) — credit facilities C$569,475k, lease liabilities C$22,712k, cash C$21,888k; Note 6 net finance expense (income) lists expense items only; segment revenue: Broadcasting and Commercial Music C$126.0M, Radio C$32.0M.
- Stingray Q1 FY2027 results news release (August 10, 2026) — via barchart.com.
- Single-ticker announcement (February 10, 2026) — RAY.A + RAY.B consolidated under TSX:RAY effective February 13, 2026.
- MCTO revocation news release (August 11, 2026) — June 30, 2026 AMF management cease-trade order revoked after FY2026 annual filings.
- Market data: TSX:RAY C$15.34, ~68,035,000 shares outstanding — market cap ~C$1,044M on October 1, 2026 (Finnhub; cross-checked Stockopedia, MarketBeat).
- Third-party coverage checks (October 1, 2026): no public Zoya, Musaffa, or ShariaPortfolio rating found for RAY.
Related screeners
Frequently asked questions
Is Stingray (RAY) halal?
Our screener gives Stingray Group Inc. a FAIL screening result. The business — streaming media, premium audio/video channels, karaoke, digital signage and ~100 Canadian radio stations — passes the business gate (with a music caveat for stricter scholars noted below). But interest-bearing debt of ~C$592.2M (credit facilities plus leases at June 30, 2026) is ~56.7% of a ~C$1,044M market cap, well over the ~33% AAOIFI ceiling. Cash of ~C$21.9M is ~2.1% of market cap (passes); interest income is not separately disclosed in the interim statements.
Why does Stingray fail the debt screen?
At June 30, 2026 Stingray carried C$569.5M of drawn credit facilities and C$22.7M of lease liabilities — ~C$592.2M of interest-bearing debt in total. Against ~68,035,000 shares at C$15.34 (~C$1,044M market cap, October 1, 2026), that is ~56.7%. The credit facilities alone are ~54.6% of market cap, so the fail does not depend on how leases are treated.
Is Stingray's music business a problem for Shariah screening?
Mainstream AAOIFI-style business screens do not list music among the standard exclusions (banking, insurance, alcohol, gambling, weapons, pork), so the business gate passes here. Two honest caveats: (1) music is Stingray's core product, and stricter scholars consider music haram — investors who follow that view would exclude it on business grounds; (2) the radio segment sells advertising airtime and management has noted weakness from reduced sports-betting advertiser spending, so gambling-adjacent ad revenue flows through airtime, with no disclosed share. Neither is quantified in the filings.
What do Zoya, Musaffa and ShariaPortfolio say about Stingray?
As of October 1, 2026 we found no public Zoya rating page, no Musaffa rating page, and no ShariaPortfolio coverage for RAY — none of the three verifiably covers the ticker. Our screener reports its own figure-by-figure analysis above.
Could Stingray become halal?
On the numbers, yes — only the debt gate fails, so deleveraging (debt repayment, a higher share price, or both) below roughly a third of market cap would flip the result. On the business side, investors following stricter views on music would still exclude it regardless of ratios. Re-screen quarterly after earnings.
Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).