RESERVOIR MEDIA ANNOUNCES FIRST QUARTER FISCAL 2027 RESULTS
Rhea-AI Summary
Reservoir Media (NASDAQ: RSVR) reported first quarter fiscal 2027 revenue of $41.5 million, up 12% year-over-year (6% organic), driven by 6% growth in Music Publishing revenue to $26.5 million and 35% growth in Recorded Music revenue to $14.1 million.
Operating income was stable at $5.4 million, while OIBDA rose 7% to $13.7 million and Adjusted EBITDA increased 13% to $15.7 million. Net loss narrowed slightly to $0.5 million, or $0.00 per share. Reservoir invested in strategic Latin music partnerships, including acquiring the catalog of Nacional Records and its publishing arm, launching joint ventures with Nacional and TU Publishing, and partnering with U.K. label Some Action. The company also announced a publishing deal covering hip-hop artist T.I.'s catalog and future works and reiterated fiscal 2027 guidance for revenue of $186–$191 million and Adjusted EBITDA of $75–$79 million.
Positive
- Total revenue up 12% YoY to $41.5M in Q1 FY27
- Recorded Music revenue grew 35% YoY to $14.1M
- Music Publishing revenue increased 6% YoY to $26.5M
- Adjusted EBITDA rose 13% YoY to $15.7M
- OIBDA increased 7% YoY to $13.7M
- FY27 guidance reiterated: $186M–$191M revenue, $75M–$79M Adjusted EBITDA
- Strategic Latin music expansion via Nacional Records acquisition and TU Publishing JV
- New catalog deal with Grammy-winning hip-hop artist T.I.
Negative
- Net loss of $0.5M in Q1 FY27, EPS $0.00
- Operating income flat YoY at $5.4M despite 12% revenue growth
- Music Publishing OIBDA margin declined from 30% to 29%
- Recorded Music OIBDA margin declined from 46% to 43%
- Cash used in operations of $1.4M for three months ended June 30, 2026
- Net Debt increased to $448.5M from $429.8M QoQ
- Total liquidity declined to $98.9M from $117.1M as of March 31, 2026
News Explained
The quarter-end balance sheet shows lower cash and total available liquidity alongside higher debt: as of
News Market Reaction – RSVR
In the Aug 4 session, RSVR declined 1.08%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Recent Highlights:
- Revenue of
$41.5 million 6% organically, or12% including acquisitions year-over-year- Music Publishing Revenue rose
6% year-over-year - Recorded Music Revenue increased
35% year-over-year
- Music Publishing Revenue rose
- Operating Income of
$5.4 million 1% year-over-year - OIBDA ("Operating Income Before Depreciation & Amortization") of
$13.7 million 7% year-over-year - Net Loss of
( , or$0.5) million $0.00 ( , or ($0.6) million $0.01 - Adjusted EBITDA of
$15.7 million 13% year-over-year - Invested in two new complementary strategic partnerships in Latin music:
- Announced the acquisition of the catalog of independent Latin label Nacional Records, along with the catalog of its publishing arm, Canciones Nacionales. Reservoir and Nacional also entered a joint venture to sign and develop recording artists and songwriters
- Entered into a new joint venture with Latin music company TU Publishing to publish all current and future writers signed to the company, as well as catalogs acquired by the company
- Partnered with
U.K . A&R Executive Ollie Hodge to bring his independent label, Some Action, under Reservoir's label operations via a new joint venture - Announced a publishing deal with Grammy Award-winning and multi-Platinum-selling hip-hop icon T.I. that spans his entire publishing catalog and future works
- Welcomed multi-Platinum global pop songwriter-producer Adam Kapit and alt-pop/rock artist Jarrett Doherty, frontman of Jady, to the roster
Management Commentary:
"We delivered a strong first quarter of fiscal 2027, with robust performance across both our Publishing and Recorded Music segments, underscoring the strength of our portfolio and the continued success of our strategy," said Golnar Khosrowshahi, Founder and Chief Executive Officer of Reservoir Media. "Whether signing marquee talent such as T.I., expanding our recorded music business with key frontline partners like Some Action, or establishing a stronger foothold in high-growth markets like Latin music, we have demonstrated a commitment to diversifying our business while ensuring we identify partners that share our long-term vision and dedication to creative stewardship. We are encouraged by our recent momentum and remain confident in our ability to execute on attractive opportunities, deepen our global platform, and unlock new value for the remainder of fiscal 2027."
First Quarter Fiscal 2027 Financial Results
Summary Financials | Q1 FY27 | Q1 FY26 | Change |
Total Revenue | 12 % | ||
Music Publishing Revenue | 6 % | ||
Recorded Music Revenue | 35 % | ||
Operating Income | (1 %) | ||
OIBDA | 7 % | ||
Net Loss | (21 %) | ||
Adjusted EBITDA | 13 % | ||
(Table Notes: $ in millions; Quarters ended June 30th; Unaudited) | |||
Total revenue in the first quarter of fiscal 2027 increased
Operating income in the first quarter of fiscal 2027 was
Net loss in the first quarter of fiscal 2027 was
First Quarter Fiscal 2027 Segment Review
Music Publishing | Q1 FY27 | Q1 FY26 | Change |
Revenue by Type | |||
Digital | 7 % | ||
Performance | 17 % | ||
Synchronization | (3 %) | ||
Mechanical | (7 %) | ||
Other | (12 %) | ||
Total Revenue | 6 % | ||
OIBDA | 3 % | ||
(Table Notes: $ in millions; Quarters ended June 30th; Unaudited) | |||
Music Publishing Revenue in the first quarter of fiscal 2027 was
In the first quarter of fiscal 2027, Music Publishing OIBDA increased
Recorded Music | Q1 FY27 | Q1 FY26 | Change |
Revenue by Type | |||
Digital | 23 % | ||
Physical | 54 % | ||
Neighboring Rights | 7 % | ||
Synchronization | NM | ||
Total Revenue | 35 % | ||
OIBDA | 26 % | ||
(Table Notes: $ in millions; Quarters ended June 30th; Unaudited; NM = Not Meaningful)) | |||
Recorded Music Revenue in the first quarter of fiscal 2027 was
In the first quarter of fiscal 2027, Recorded Music OIBDA increased
Balance Sheet and Liquidity
For the three months ended June 30, 2026, cash used in operating activities was
As of June 30, 2026, Reservoir had cash and cash equivalents of
Fiscal Year 2027 Outlook
Reservoir reiterates its previously provided financial outlook range for fiscal year 2027, and expects the financial results for the year ending March 31, 2027, to be as follows:
Outlook | Guidance | Growth (at mid-point) |
Revenue | 7 % | |
Adjusted EBITDA | 5 % |
Jim Heindlmeyer, Chief Financial Officer of Reservoir, said, "Our strong first quarter performance was in line with our expectations, driven by top-line growth and disciplined cost containment, and provides a solid foundation for the remainder of fiscal 2027. Our healthy cash flow generation and balance sheet flexibility continues to support strategic investments in new creators, notably in high-growth emerging markets, while maintaining a position of financial strength. We remain on track to achieve our previously issued revenue and adjusted EBITDA guidance for fiscal year 2027."
Conference Call Information
Reservoir is hosting a conference call for analysts and investors to discuss its financial results for the first quarter for fiscal year ending March 31, 2027 at 10:00 a.m. EDT today, August 4, 2026. The conference call can be accessed via webcast in the Investor Relations section of the Company's website at https://investors.reservoir-media.com/news-and-events/events-and-presentations.
Interested parties may also participate in the call using the following registration link: Here. Once registered, participants will receive a dial-in number as well as a PIN to enter the event. Participants may re-register for the conference call in the event of a lost dial-in number or PIN. Shortly after the conclusion of the conference call, a replay of the audio webcast will be available in the investor relations section of Reservoir's website for 30 days after the event.
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, Mumbai, and Cairo. 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.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are made in reliance on the safe harbor protections provided thereunder. Forward-looking statements are typically identified by words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "intend," "may," "might," "outlook," "plan," "possible," "potential," "predict," "project," "should," "target," "would" and other similar words and expressions. Forward-looking statements in this press release relate to, among other things: Reservoir's anticipated financial condition, results of operations and performance, expected growth, plans and objectives for future operations, business prospects and market conditions. Forward-looking statements are based on the current expectations and beliefs of management and information currently available to management. These statements are inherently subject to a number of risks, uncertainties and assumptions, many of which are outside of our control and could cause future events or results to be materially different from those stated or implied in this press release, including the risk factors that are described in Reservoir's Annual Report on Form 10-K for the year ended March 31, 2026 and our other filings with the SEC available on the SEC's website at www.sec.gov or Reservoir's website at www.reservoir-media.com. Any forward-looking statement made in this press release speaks only as of the date on which it is made and Reservoir undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.
Reservoir Media, Inc. and Subsidiaries | ||||||
Condensed Consolidated Statements of Operations | ||||||
Three Months Ended June 30, 2026 versus June 30, 2025 | ||||||
(Unaudited) | ||||||
(Expressed in | ||||||
Three Months Ended | ||||||
2026 | 2025 | % Change | ||||
Revenues | $ 41,482,053 | $ 37,164,293 | 12 % | |||
Costs and expenses: | ||||||
Cost of revenue | 14,788,122 | 13,192,715 | 12 % | |||
Amortization and depreciation | 8,295,471 | 7,313,737 | 13 % | |||
Administration expenses | 13,020,086 | 11,211,147 | 16 % | |||
Total costs and expenses | 36,103,679 | 31,717,599 | 14 % | |||
Operating income | 5,378,374 | 5,446,694 | (1) % | |||
Interest expense | (6,905,300) | (6,295,958) | ||||
(Loss) gain on foreign exchange | (43,542) | 1,095,414 | ||||
Gain (loss) on fair value of swaps | 925,853 | (997,165) | ||||
Other (expense) income, net | (102,896) | (163,776) | ||||
Loss before income taxes | (747,511) | (914,791) | ||||
Income tax benefit | (239,125) | (271,066) | ||||
Net loss | (508,386) | (643,725) | ||||
Net loss attributable to noncontrolling interests | 415,275 | 88,066 | ||||
Net loss attributable to Reservoir Media, Inc. | $ (93,111) | $ (555,659) | ||||
Loss per common share: | ||||||
Basic | $ - | $ (0.01) | ||||
Diluted | $ - | $ (0.01) | ||||
Weighted average common shares outstanding: | ||||||
Basic | 65,752,884 | 65,369,891 | ||||
Diluted | 65,752,884 | 65,369,891 | ||||
Reservoir Media, Inc. and Subsidiaries | ||||
Condensed Consolidated Balance Sheets | ||||
June 30, 2026 versus March 31, 2026 | ||||
(Expressed in | ||||
(Unaudited)
| ||||
June 30, | March 31, | |||
Assets | ||||
Current assets | ||||
Cash and cash equivalents | $ 13,660,380 | $ 25,927,462 | ||
Accounts receivable | 42,706,945 | 40,832,075 | ||
Current portion of royalty advances | 15,999,934 | 16,368,968 | ||
Other current assets | 4,938,838 | 9,409,757 | ||
Total current assets | 77,306,097 | 92,538,262 | ||
Intangible assets, net | 799,847,481 | 788,740,821 | ||
Equity method and other investments | 2,704,261 | 2,830,766 | ||
Royalty advances, net of current portion and reserves | 56,004,440 | 54,128,586 | ||
Property and equipment, net | 803,656 | 661,986 | ||
Operating lease right of use assets, net | 7,587,776 | 7,889,862 | ||
Fair value of swap assets | 1,993,188 | 1,356,878 | ||
Other assets | 2,641,076 | 1,529,920 | ||
Total assets | $ 948,887,975 | $ 949,677,081 | ||
Liabilities | ||||
Current liabilities | ||||
Accounts payable and accrued liabilities | $ 3,363,899 | $ 4,116,221 | ||
Royalties payable | 45,334,589 | 52,323,565 | ||
Accrued payroll | 807,728 | 2,672,350 | ||
Deferred revenue | 3,755,963 | 2,472,734 | ||
Other current liabilities | 5,159,837 | 3,408,651 | ||
Income taxes payable | 682,208 | 547,932 | ||
Total current liabilities | 59,104,224 | 65,541,453 | ||
Secured line of credit | 462,151,603 | 455,705,468 | ||
Deferred tax liability | 42,013,356 | 41,786,064 | ||
Operating lease liabilities, net of current portion | 7,110,527 | 7,445,152 | ||
Fair value of swap liability | - | 289,543 | ||
Other liabilities | 318,697 | 345,149 | ||
Total liabilities | 570,698,407 | 571,112,829 | ||
Contingencies and commitments | ||||
Shareholders' Equity | ||||
Preferred stock | - | - | ||
Common stock | 6,594 | 6,561 | ||
Additional paid-in capital | 347,020,691 | 346,933,189 | ||
Retained earnings | 31,357,123 | 31,450,234 | ||
Accumulated other comprehensive loss | (624,605) | (670,772) | ||
Total Reservoir Media, Inc. shareholders' equity | 377,759,803 | 377,719,212 | ||
Noncontrolling interest | 429,765 | 845,040 | ||
Total shareholders' equity | 378,189,568 | 378,564,252 | ||
Total liabilities and shareholders' equity | $ 948,887,975 | $ 949,677,081 | ||
Supplemental Disclosures Regarding Non-GAAP Financial Measures
This press release includes certain financial information, such as OIBDA, OIBDA margin, EBITDA, Adjusted EBITDA, and Net Debt, which has not been prepared in accordance with
OIBDA
Reservoir evaluates operating performance based on several factors, including its primary financial measure of operating income before non-cash depreciation of tangible assets and non-cash amortization of intangible assets ("OIBDA"). Reservoir considers OIBDA to be an important indicator of the operational strengths and performance of its businesses and believes this non-GAAP financial measure provides useful information to investors because it removes the significant impact of amortization from Reservoir's results of operations. However, a limitation of the use of OIBDA as a performance measure is that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in Reservoir's businesses and other non-operating income (loss). Accordingly, OIBDA should be considered in addition to, not as a substitute for, operating income, net income (loss) attributable to us and other measures of financial performance reported in accordance with GAAP. In addition, our definition of OIBDA may differ from similarly titled measures used by other companies. OIBDA Margin is defined as OIBDA as a percentage of revenue.
EBITDA and Adjusted EBITDA
EBITDA is defined as earnings (net income or loss) before net interest expense, income tax (benefit) expense, non-cash depreciation of tangible assets and non-cash amortization of intangible assets and is used by management to measure operating performance of the business. Adjusted EBITDA, in addition to adjusting net income (loss) to exclude income tax expense, interest expense and depreciation and amortization, further adjusts net income (loss) by excluding items or expenses such as, among others, (1) any non-cash charges (including any impairment charges and loss on early extinguishment of debt and to write-down an equity investment to its estimated fair value), (2) any net gain or loss on foreign exchange, (3) any net gain or loss resulting from interest rate swaps, (4) equity-based compensation expense and (5) certain unusual or non-recurring items.
Adjusted EBITDA is a key measure used by Reservoir's management to understand and evaluate operating performance, generate future operating plans, and make strategic decisions regarding the allocation of capital. However, certain limitations on the use of Adjusted EBITDA include, among others, (1) it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenue for Reservoir's business, (2) it does not reflect the significant interest expense or cash requirements necessary to service interest or principal payments on Reservoir's indebtedness and (3) it does not reflect every cash expenditure, future requirements for capital expenditures or contractual commitments. In particular, Adjusted EBITDA measure adds back certain non-cash, unusual or non-recurring charges that are deducted in calculating net income (loss); however, these are expenses that may recur, vary greatly and are difficult to predict. In addition, Adjusted EBITDA is not the same as net income (loss) or cash flow provided by operating activities as those terms are defined by GAAP and does not necessarily indicate whether cash flows will be sufficient to fund cash needs.
Net Debt
Reservoir defines Net Debt as total debt, less cash and equivalents and deferred financing costs.
Reservoir Media, Inc. and Subsidiaries Reconciliation of Operating Income to OIBDA | |||||
Three Months Ended June 30, 2026 versus June 30, 2025 | |||||
(Unaudited) | |||||
(dollars in thousands)
| |||||
For the Three Months Ended | |||||
2026 | 2025 | ||||
Revenues | $ 41,482 | $ 37,164 | |||
Cost of revenue | 14,788 | 13,193 | |||
Administration expenses | 13,020 | 11,211 | |||
OIBDA | 13,674 | 12,760 | |||
Amortization and depreciation | 8,295 | 7,314 | |||
Operating income | $ 5,378 | $ 5,447 | |||
Reservoir Media, Inc. and Subsidiaries Music Publishing Segment OIBDA | |||||
Three Months Ended June 30, 2026 versus June 30, 2025 | |||||
(Unaudited) | |||||
(dollars in thousands)
| |||||
For the Three Months Ended | |||||
2026 | 2025 | ||||
Revenues | $ 26,513 | $ 24,933 | |||
Cost of revenue | 10,475 | 10,437 | |||
Administration expenses | 8,267 | 6,933 | |||
OIBDA | $ 7,771 | $ 7,564 | |||
Reservoir Media, Inc. and Subsidiaries Recorded Music Segment OIBDA | |||||
Three Months Ended June 30, 2026 versus June 30, 2025 | |||||
(Unaudited) | |||||
(dollars in thousands)
| |||||
For the Three Months Ended | |||||
2026 | 2025 | ||||
Revenues | $ 14,100 | $ 10,444 | |||
Cost of revenue | 4,313 | 2,756 | |||
Administration expenses | 3,678 | 2,834 | |||
OIBDA | $ 6,110 | $ 4,854 | |||
Reservoir Media, Inc. and Subsidiaries Reconciliation of Net Loss to Adjusted EBITDA | |||||
Three Months Ended June 30, 2026 versus June 30, 2025 | |||||
(Unaudited) | |||||
(dollars in thousands)
| |||||
For the Three Months Ended | |||||
2026 | 2025 | ||||
Net Loss | $ (508) | $ (644) | |||
Income Tax Benefit | (239) | (271) | |||
Interest Expense | 6,905 | 6,296 | |||
Amortization and Depreciation | 8,295 | 7,314 | |||
EBITDA | 14,453 | 12,695 | |||
Loss (Gain) on Foreign Exchange(a) | 44 | (1,095) | |||
(Gain) Loss on Fair Value of Swaps(b) | (926) | 997 | |||
Non-cash Share-based Compensation(c) | 1,820 | 1,134 | |||
Transaction Costs(d) | 201 | - | |||
Other Expense (Income), Net(e) | 103 | 164 | |||
Adjusted EBITDA | $ 15,695 | $ 13,895 | |||
(a) | Reflects the loss or (gain) on foreign exchange fluctuations. |
(b) | Reflects the non-cash (gain) or loss on the mark-to-market of interest rate swaps. |
(c) | Reflects non-cash share-based compensation expense related to the Reservoir Media, Inc. 2021 Omnibus Incentive Plan. |
(d) | Reflects transaction costs primarily professional fees, incurred in connection with structuring associated with certain strategic growth initiatives, the acquisition of Viral Wave, which closed in April 2026, and by the independent special committee ("Special Committee") of the Company's Board of Directors. The Special Committee was formed to evaluate the previously disclosed non-binding and unsolicited acquisition proposals received by the Company. |
(e) | Reflects Reservoir's share of losses recorded by equity method investments. |
Media Contact
Reservoir Media, Inc.
Suzy Arrabito
Vice President, Marketing & Communications
sa@reservoir-media.com
www.reservoir-media.com
Investor Contact
Alpha IR Group
Jackie Marcus or Nathan Skown
RSVR@alpha-ir.com
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SOURCE Reservoir Media, Inc.