Reservoir Media, Inc. (NASDAQ:RSVR) (“Reservoir” or the “Company”), an award-winning independent music company, today announced financial results for the first quarter of fiscal 2026 ended June 30, 2025.
Recent Highlights:
- Revenue of $37.2 million, increased 5% organically, or 8% including acquisitions year-over-year
- Music Publishing Revenue rose 4% year-over-year
- Recorded Music Revenue increased by 8% year-over-year
- Operating Income of $5.4 million, increased by 10% year-over-year
- OIBDA (“Operating Income Before Depreciation & Amortization”) of $12.8 million, an increase of 12% year-over-year
- Net Loss of ($0.6) million, or ($0.01) per share, compared to a net loss of ($0.5) million, or ($0.01) per share
- Adjusted EBITDA of $13.9 million, up 10% year-over-year
- Invested in London-based immersive entertainment company Lightroom, also providing access to Reservoir’s catalog for new IP-driven experiences
- Struck a deal with independent tastemaker record label Fool’s Gold Records to acquire the master rights of five of the label’s artists and exclusively market and distribute all other recordings including future releases
- Extended publishing deals with music icon Joni Mitchell and Grammy award-winning songwriter and producer Khris Riddick-Tynes
- Welcomed writer-producers Oscar Linnander and Jayme Silverstein to the roster
Management Commentary:
“We achieved healthy top-line growth in the first fiscal quarter, while continuing to manage our costs to generate a 10% year-over-year improvement in our adjusted EBITDA,” said Golnar Khosrowshahi, Founder and Chief Executive Officer of Reservoir Media. “Reservoir remains focused on identifying opportunities for both capital deployment and value enhancement, as evidenced by our acquisition of independent tastemaker label Fool’s Gold, and recently announced investment in immersive entertainment company Lightroom. As we enter the second fiscal quarter, we are building on strong momentum and are well-positioned to continue focusing on organic growth opportunities for our catalog of high-quality music, while remaining a trusted partner to our growing roster of creators.”
Total revenue in the first quarter of fiscal 2026 increased 8% to $37.2 million, compared to $34.3 million in the first quarter of fiscal 2025. This increase was driven by a 4% increase in Music Publishing revenue, alongside an 8% increase in Recorded Music revenue that was largely attributable to strong synchronization licensing in the Music Publishing segment and continued growth of digital revenue within the Recorded Music segment.
Operating income in the first quarter of fiscal 2026 was $5.4 million compared to operating income of $5.0 million in the first quarter of fiscal 2025. OIBDA in the first quarter of fiscal 2026 increased 10% to $12.8 million, compared to $11.3 million in the prior year’s quarter. Adjusted EBITDA in the first quarter of fiscal 2026 increased 10% to $13.9 million, compared to $12.6 million last year, primarily as a result of an increase of total revenue and improving margins. See below for calculations and reconciliations of OIBDA and Adjusted EBITDA to operating income and net loss, respectively.
Net loss in the first quarter of fiscal 2026 was ($0.6) million, or ($0.01) per share, compared to net loss of ($0.5) million, or ($0.01) per share, in the year-ago quarter. The increase in net loss was primarily driven by higher interest expense and losses on fair value swaps, partially offset by gains in foreign exchange and an increase in operating income.
Music Publishing Revenue in the first quarter of fiscal 2026 was $24.9 million, an increase of 4% compared to $24.0 million in last year’s first quarter. The increase was mainly driven by a significant upswing in Synchronization revenue and Other revenue attributed to stage rights. This rise was partially offset by declines in both performance and digital revenue.
In the first quarter of fiscal 2026, Music Publishing OIBDA increased 12% to $7.6 million, compared to $6.8 million in the first quarter of fiscal 2025. Music Publishing OIBDA margin in the first quarter increased from 28% to 30%. The increases in Music Publishing OIBDA and OIBDA Margin embody stronger revenue performance alongside margin expansion.
Recorded Music Revenue in the first quarter of fiscal 2026 was $10.4 million, an increase of 8% compared to $9.6 million in last year’s first quarter. The increase was driven by digital revenue with the continued expansion of music streaming services, as well as the acquisition of additional catalogs. These gains were partially offset by a decline in synchronization revenue, driven by the timing of licenses, and a reduction in physical revenue.
In the first quarter of fiscal 2026, Recorded Music OIBDA increased 9%, to $4.9 million, compared to $4.5 million in the first quarter of fiscal 2025. Recorded Music OIBDA margin in the first quarter remains unchanged at 46%.
Balance Sheet and Liquidity
For the three months ended June 30, 2025, cash provided by operating activities was $6.0 million, a decrease of $2.5 million compared to the same period last year, primarily due to the timing of royalty payments.
As of June 30, 2025, Reservoir had cash and cash equivalents of $14.8 million and $158.2 million available for borrowing under its revolving credit facility, for total available liquidity of $173.0 million. Total debt was $387.4 million (net of $4.5 million of deferred financing costs) and Net Debt was $372.5 million (defined as total debt, less cash and equivalents and deferred financing costs). This compares to cash and cash equivalents of $21.4 million and $58.2 million available for borrowing under its revolving credit facility, for total available liquidity of $79.6 million as of March 31, 2025. Total debt was $388.1 million (net of $3.7 million of deferred financing costs) and Net Debt was $366.7 million as of March 31, 2025.
About Reservoir Media, Inc.
Reservoir is an independent music company based in New York City and with offices in Los Angeles, Nashville, Toronto, London, Abu Dhabi, and Mumbai. Reservoir is the first female-founded and led publicly traded independent music company in the U.S. Founded as a family-owned music publisher in 2007, Reservoir represents copyrights and master recordings including titles dating as far back as 1900 and hundreds of #1 releases worldwide. Reservoir frequently holds a Top 10 U.S. Market Share according to Billboard’s Publishers Quarterly, was twice named Publisher of the Year by Music Business Worldwide’s The A&R Awards and won Independent Publisher of the Year at the 2020 and 2022 Music Week Awards.
Reservoir also represents a multitude of recorded music through Chrysalis Records, Tommy Boy Music, and Philly Groove Records and manages artists through its ventures with Blue Raincoat Music and Big Life Management.
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