RESERVOIR MEDIA ANNOUNCES SECOND QUARTER FISCAL 2027 RESULTS

Raised full-year guidance accompanies higher quarterly profits, while first-half operating cash flow declined.

Rhea-AI Summary

Reservoir Media (RSVR) reported second-quarter fiscal 2027 revenue of $49.9 million, with growth across its publishing and recorded music businesses. For the quarter ended September 30, 2026, revenue rose 10% year over year, including 4% organic growth. Net income increased to $4.6 million, or $0.07 per share, from $2.2 million, or $0.03 per share. Operating income rose 15% to $12.3 million, and adjusted EBITDA increased 14% to $22.1 million.

Music Publishing revenue grew 8%, while Recorded Music revenue rose 18%. Reservoir raised and narrowed its fiscal 2027 outlook to $188 million–$192 million in revenue and $77 million–$80 million in adjusted EBITDA. Six-month operating cash flow fell $3.7 million to $21.6 million. At September 30, available liquidity was $113.9 million, versus $117.1 million at March 31; net debt increased to $433.8 million from $429.8 million.

18 points · 1 major

PositiveiHow this balance works

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

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0 major · 11 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 revenue guidance raised and narrowed to $188 million–$192 million, with 8% growth at midpoint.
• Moderate pointQ2 revenue increased 10% year over year to $49.9 million, including 4% organic growth.
• Moderate pointQ2 net income reached $4.6 million, or $0.07 per share, versus $2.2 million, or $0.03.
• Moderate pointQ2 operating income rose 15% year over year to $12.3 million.
• Moderate pointQ2 adjusted EBITDA increased 14% year over year to $22.1 million.
• Moderate pointRecorded Music Q2 operating margin before depreciation and amortization expanded to 54% from 51%.

12 minor points

• Minor pointQ2 operating income before depreciation and amortization rose 14% to $20.7 million year over year.
• Minor point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 adjusted EBITDA guidance raised and narrowed to $77 million–$80 million, with 7% growth at midpoint.
• Minor pointMusic Publishing Q2 revenue increased 8% year over year to $33.2 million.
• Minor pointRecorded Music Q2 revenue increased 18% year over year to $15.4 million.
• Minor pointSix-month revenue increased 11% year over year to $91,391,667.
• Minor pointSix-month operating income increased 9% year over year to $17,640,804.
• Minor pointSix-month net income increased to $4,124,505 from $1,560,131 a year earlier.
• Minor pointJosé Feliciano recorded music catalog rights were acquired, including his recording of “Feliz Navidad.”
• Minor pointBilly Strayhorn’s publishing catalog was acquired, expanding a relationship established in 2014.
• Minor point. Forward-looking: it has not happened yet and may not happen.Jake Sinclair agreement covers future publishing works and a joint venture to sign and develop talent.
• Minor point. Forward-looking: it has not happened yet and may not happen.Fred Ball signed a publishing agreement covering future works.
• Minor pointAdditional publishing deals signed with Orla Gartland, The Snuts, Justin Dukes, Ava Liv Mabry, Riley Biederer and The Reklaws.

Negative

• Moderate pointSix-month operating cash flow declined $3.7 million year over year to $21.6 million, primarily reflecting working-capital timing.
• Minor pointNet debt increased to $433.8 million at September 30, 2026, from $429.8 million at March 31.
• Minor pointAvailable liquidity declined to $113.9 million at September 30, 2026, from $117.1 million at March 31.
• Minor pointRecorded Music Q2 synchronization revenue fell 54% year over year to $0.9 million, reflecting license timing.
• Minor pointMusic Publishing Q2 mechanical revenue declined 5% year over year, reported at $1.6 million.

6 minor points

• Minor pointQ2 cost of revenue increased 7% year over year to $17,750,512.
• Minor pointQ2 administration expenses increased 7% year over year to $11,444,356.
• Minor pointQ2 amortization and depreciation increased 12% year over year to $8,452,316.
• Minor pointQ2 interest expense increased to $7,036,524 from $6,741,657 a year earlier.
• Minor pointQ2 income tax expense increased to $1,428,290 from $947,313 a year earlier.
• Minor pointQ2 other expense, net, increased to $290,282 from $90,707 a year earlier.

Key Figures

Q2 revenue: $49.9M (+10% year-over-year) Recorded Music revenue: $15.4M (+18% year-over-year) Adjusted EBITDA: $22.1M (+14% year-over-year) +3 more

Q2 revenue

$49.9M (+10% year-over-year)

Q2 FY27

Recorded Music revenue

$15.4M (+18% year-over-year)

Q2 FY27

Adjusted EBITDA

$22.1M (+14% year-over-year)

Q2 FY27

Net income

$4.6M (vs. $2.2M)

Q2 FY27 versus prior-year quarter

Revenue guidance

$188M–$192M

Fiscal 2027 outlook; raised

Adjusted EBITDA guidance

$77M–$80M

Fiscal 2027 outlook; raised

Historical Context

1 past event · Latest: Aug 04

1 event

1. Aug 04

   Earnings report

   24h Move

   -1.1%

   Q1 FY27 results maintained prior full-year revenue and Adjusted EBITDA guidance ranges.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

oibda, gaap, non-gaap financial measures, neighboring rights

4 terms

oibda financial

"OIBDA ("Operating Income Before Depreciation & Amortization")"

OIBDA stands for Operating Income Before Depreciation and Amortization and measures a company's core operating profit after day‑to‑day costs but before accounting charges that spread the cost of long‑lived assets over time. Think of it like judging a store’s running earnings before factoring in the gradual wear‑and‑tear bookkeeping for equipment; investors use it to compare underlying operating performance and cash-generating ability across companies without non‑cash accounting effects.

gaap financial

"has not been prepared in accordance with United States generally accepted accounting principles"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

non-gaap financial measures financial

"This press release includes certain financial information, such as OIBDA"

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

neighboring rights technical

"an increase in neighboring rights revenue"

Neighboring rights are legal entitlements that let performers, record producers and broadcasters be paid when their recorded performances or broadcasts are copied, played in public, broadcast or streamed. Think of them like a toll collected whenever someone uses a recorded performance: owners or licensees receive recurring fees, so these rights create measurable revenue streams, affect licensing deals and valuation, and vary by country and enforcement mechanisms.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Double-Digit Growth in Recorded Music Driven by Digital and Neighboring Rights

Outlook for Revenue and Adjusted EBITDA Raised for Fiscal 2027

NEW YORK, Nov. 4, 2026 /PRNewswire/ -- Reservoir Media, Inc. (NASDAQ: RSVR) ("Reservoir" or the "Company"), an award-winning independent music company, today announced financial results for the second quarter of fiscal 2027 ended September 30, 2026.

Recent Highlights:

• Revenue of $49.9 million, increased 4% organically, or 10% including acquisitions year-over-year
  • Music Publishing Revenue rose 8% year-over-year
  • Recorded Music Revenue increased by 18% year-over-year
• Operating Income of $12.3 million, increased by 15% year-over-year
• OIBDA ("Operating Income Before Depreciation & Amortization") of $20.7 million, an increase of 14% year-over-year
• Net Income of $4.6 million, or $0.07 per share, compared to net income of $2.2 million, or $0.03 per share, in the prior-year quarter
• Adjusted EBITDA of $22.1 million, up 14% year-over-year
• Acquired rights to the recorded music catalog of legendary Puerto Rican singer-songwriter José Feliciano, who wrote and recorded the 1970 holiday classic "Feliz Navidad"
• Acquired the publishing catalog of jazz icon Billy Strayhorn, expanding on a relationship established in 2014
• Signed publishing deal with Diamond-selling and Grammy-nominated songwriter-producer Jake Sinclair for his future works and entered a joint venture with Sinclair to sign and develop emerging talent to publishing deals
• Welcomed Diamond-selling, songwriter-producer Fred Ball to the roster through a publishing deal for his future works
• Signed additional publishing deals with Ivor Novello-winning singer-songwriter Orla Gartland, Scottish indie rock band The Snuts, songwriter Justin Dukes, singer-songwriters Ava Liv Mabry and Riley Biederer, and singer-songwriter duo The Reklaws

Management Commentary:

"Our second quarter results marked the end of a strong first half of fiscal 2027, with growth across both our Publishing and Recorded Music segments reflecting the continued successful execution of our long-term strategy," said Golnar Khosrowshahi, Founder and Chief Executive Officer of Reservoir Media. "Our recent investments span across established songwriters and catalogs with enduring cultural and commercial significance and the hitmakers of tomorrow. We continue to thoughtfully expand and diversify our portfolio, while deepening our established reputation as a trusted steward for exceptional music talents and catalogs. We remain confident in our ability to build on this momentum for the remainder of fiscal year 2027."

Second Quarter Fiscal 2027 Financial Results

Summary Financials	Q2 FY27	Q2 FY26	Change
Total Revenue	$49.9	$45.4	10 %
Music Publishing Revenue	$33.2	$30.9	8 %
Recorded Music Revenue	$15.4	$13.0	18 %
Operating Income	$12.3	$10.7	15 %
OIBDA	$20.7	$18.2	14 %
Net Income	$4.6	$2.2	110 %
Adjusted EBITDA	$22.1	$19.4	14 %
(Table Notes: $ in millions; Quarters ended September 30th; Unaudited)

Total revenue in the second quarter of fiscal 2027 increased 10% to $49.9 million, compared to $45.4 million in the second quarter of fiscal 2026. This increase was driven by an 8% increase in Music Publishing revenue, largely attributable to strong digital and synchronization revenue, and an 18% increase in Recorded Music revenue, largely attributable to continued growth of digital revenue, as well as neighboring rights revenue due to the acquisition of additional music catalogs and new affiliations.

Operating income in the second quarter of fiscal 2027 was $12.3 million, compared to operating income of $10.7 million in the second quarter of fiscal 2026. OIBDA in the second quarter of fiscal 2027 increased 14% to $20.7 million, compared to $18.2 million in the prior year's quarter. Adjusted EBITDA in the second quarter of fiscal 2027 increased 14% to $22.1 million, compared to $19.4 million last year, primarily because of an increase in total revenue, partially offset by increases in cost of revenue and administration expenses. See below for calculations and reconciliations of OIBDA and Adjusted EBITDA to operating income and net income, respectively.

Net income in the second quarter of fiscal 2027 was $4.6 million, or $0.07 per share, compared to net income of $2.2 million, or $0.03 per share, in the year-ago quarter. The increase in net income was primarily driven by the increase in operating income and the changes in gain (loss) on fair value of swaps and gain (loss) on foreign exchange, partially offset by increases in income tax expense and interest expense.

Second Quarter Fiscal 2027 Segment Review

Music Publishing	Q2 FY27	Q2 FY26	Change
Revenue by Type
Digital	$17.6	$16.1	10 %
Performance	$7.5	$7.5	1 %
Synchronization	$5.2	$4.6	13 %
Mechanical	$1.6	$1.6	(5 %)
Other	$1.3	$1.1	24 %
Total Revenue	$33.2	$30.9	8 %
OIBDA	$12.4	$11.3	9 %
(Table Notes: $ in millions; Quarters ended September 30th; Unaudited)

Music Publishing Revenue in the second quarter of fiscal 2027 was $33.2 million, an increase of 8% compared to $30.9 million in last fiscal year's second quarter. The increase was mainly due to an increase in digital revenue, primarily due to the acquisition of additional music catalogs and continued growth at music streaming services, and an increase in synchronization revenue driven by the timing of licenses.

In the second quarter of fiscal 2027, Music Publishing OIBDA increased 9% to $12.4 million, compared to $11.3 million in the second quarter of fiscal 2026. Music Publishing OIBDA margin in the second quarter remained steady at 37%. The increase in Music Publishing OIBDA was driven by an increase in revenue, partially offset by increases in cost of revenue and administration expenses.

Recorded Music	Q2 FY27	Q2 FY26	Change
Revenue by Type
Digital	$11.5	$8.7	33 %
Physical	$1.4	$1.3	6 %
Neighboring Rights	$1.5	$1.1	40 %
Synchronization	$0.9	$1.8	(54 %)
Total Revenue	$15.4	$13.0	18 %
OIBDA	$8.3	$6.6	26 %
(Table Notes: $ in millions; Quarters ended September 30th; Unaudited)

Recorded Music Revenue in the second quarter of fiscal 2027 was $15.4 million, an increase of 18% compared to $13.0 million in last year's second quarter. The increase was driven by an increase in digital revenue, primarily due to the acquisition of additional music catalogs and continued growth at music streaming services, and an increase in neighboring rights revenue, primarily driven by the acquisition of additional music catalogs and new affiliations. These factors were partially offset by a decrease in synchronization revenue, driven by the timing of licenses.

In the second quarter of fiscal 2027, Recorded Music OIBDA increased 26% to $8.3 million, compared to $6.6 million in the second quarter of fiscal 2026. This increase primarily reflects an increase in revenue. Recorded Music OIBDA margin in the second quarter expanded from 51% to 54%. The increase in Recorded Music OIBDA margin primarily reflects the decrease in cost of revenue as a percentage of revenue.

Balance Sheet and Liquidity

For the six months ended September 30, 2026, cash provided by operating activities was $21.6 million, a decrease of $3.7 million compared to the same period last year, primarily due to a change in cash used for working capital resulting from the timing of royalty payments to creators and payments of accounts payable, partially offset by the timing of royalty advance recoupments. 

As of September 30, 2026, Reservoir had cash and cash equivalents of $24.8 million and $89.2 million available for borrowing under its revolving credit facility, for total available liquidity of $113.9 million. Total debt was $458.6 million (net of $2.2 million of deferred financing costs) and Net Debt was $433.8 million (defined as total debt, less cash and cash equivalents and deferred financing costs). This compares to cash and cash equivalents of $25.9 million and $91.2 million available for borrowing under its revolving credit facility, for total available liquidity of $117.1 million as of March 31, 2026. Total debt was $455.7 million (net of $3.1 million of deferred financing costs) and Net Debt was $429.8 million as of March 31, 2026.

Fiscal Year 2027 Outlook

Reservoir narrows and raises its previously provided financial outlook ranges 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	$188M - $192M	8 %
Adjusted EBITDA	$77M - $80M	7 %

Jim Heindlmeyer, Chief Financial Officer of Reservoir, stated, "Our first-half results underscore our ability to generate consistent growth from a high-quality, diversified catalog while maintaining a disciplined approach to both future investments and cost management. Based on this performance, we have the confidence to raise our guidance ranges for both revenue and Adjusted EBITDA for fiscal year 2027."

Conference Call Information

Reservoir is hosting a conference call for analysts and investors to discuss its financial results for the second quarter of the fiscal year ending March 31, 2027 at 10:00 a.m. EST today, November 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 which are made in reliance on the safe harbor protections provided thereunder. All statements, other than statements of historical fact, included in this press release are, or could be, forward-looking statements. 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, although the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this press release relate to, among other things: Reservoir's financial outlook for fiscal year 2027, including revenue and Adjusted EBITDA guidance; Reservoir's anticipated financial condition, results of operations and performance, expected growth, plans and objectives for future operations, including our ability to successfully execute our long-term strategy, 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, among others: adverse economic conditions; risks associated with strategic acquisitions or other transactions; Reservoir's indebtedness and ability to generate sufficient cash; cybersecurity incidents; risks related to the use of artificial intelligence; the Special Committee's evaluation of the previously disclosed proposals to acquire the Company's outstanding equity, the outcome of such evaluation and any related uncertainty and disruption of Reservoir's business as a result of the proposals or any potential transaction relating thereto; and the risk factors that are described in Reservoir's Annual Report on Form 10-K for the year ended March 31, 2026, any subsequent Quarterly Reports on Form 10-Q 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. Readers are cautioned not to place undue reliance on these forward-looking statements. 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, except as required by law.

Reservoir Media, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
Three and Six Months Ended September 30, 2026 versus September 30, 2025
(Unaudited)
(Expressed in U.S. dollars)
		Three Months Ended September 30,						Six Months Ended September 30,
		2026		2025		% Change		2026		2025		% Change
Revenues		$      49,909,614		$      45,435,051		10 %		$      91,391,667		$      82,599,344		11 %
Costs and expenses:
Cost of revenue		17,750,512		16,532,205		7 %		32,538,634		29,724,920		9 %
Amortization and depreciation		8,452,316		7,556,863		12 %		16,747,787		14,870,600		13 %
Administration expenses		11,444,356		10,659,442		7 %		24,464,442		21,870,589		12 %
Total costs and expenses		37,647,184		34,748,510		8 %		73,750,863		66,466,109		11 %
Operating income		12,262,430		10,686,541		15 %		17,640,804		16,133,235		9 %
Interest expense		(7,036,524)		(6,741,657)				(13,941,824)		(13,037,615)
Gain (loss) on foreign exchange		25,826		(387,010)				(17,716)		708,404
Gain (loss) on fair value of swaps		1,099,731		(315,998)				2,025,584		(1,313,163)
Other (expense) income, net		(290,282)		(90,707)				(393,178)		(254,483)
Income before income taxes		6,061,181		3,151,169				5,313,670		2,236,378
Income tax expense		1,428,290		947,313				1,189,165		676,247
Net income		4,632,891		2,203,856				4,124,505		1,560,131
Net loss attributable to noncontrolling interests		93,230		53,985				508,505		142,051
Net income attributable to Reservoir Media, Inc.		$        4,726,121		$        2,257,841				$        4,633,010		$        1,702,182
Earnings per common share:
Basic		$                 0.07		$                 0.03				$                 0.07		$                 0.03
Diluted		$                 0.07		$                 0.03				$                 0.07		$                 0.03
Weighted average common shares outstanding:
Basic		65,995,372		65,566,514				65,874,790		65,468,739
Diluted		66,801,791		66,273,757				66,764,142		66,166,846

 

Reservoir Media, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
September 30, 2026 versus March 31, 2026
(Unaudited)
(Expressed in U.S. dollars)
		September 30, 2026		March 31, 2026
Assets
Current assets
Cash and cash equivalents		$      24,777,667		$      25,927,462
Accounts receivable		41,091,407		40,832,075
Current portion of royalty advances		14,495,343		16,368,968
Other current assets		5,172,648		9,409,757
Total current assets		85,537,065		92,538,262
Intangible assets, net		799,790,785		788,740,821
Equity method and other investments		2,413,775		2,830,766
Royalty advances, net of current portion and reserves		55,371,509		54,128,586
Property and equipment, net		805,721		661,986
Operating lease right of use assets, net		7,282,027		7,889,862
Fair value of swap assets		3,092,919		1,356,878
Other assets		2,828,011		1,529,920
Total assets		$    957,121,812		$    949,677,081
Liabilities
Current liabilities
Accounts payable and accrued liabilities		$        4,342,681		$        4,116,221
Royalties payable		50,336,208		52,323,565
Accrued payroll		1,404,788		2,672,350
Deferred revenue		2,474,699		2,472,734
Other current liabilities		5,047,980		3,408,651
Income taxes payable		498,122		547,932
Total current liabilities		64,104,478		65,541,453
Secured line of credit		458,597,737		455,705,468
Deferred tax liability		43,489,465		41,786,064
Operating lease liabilities, net of current portion		6,770,578		7,445,152
Fair value of swap liability		-		289,543
Other liabilities		451,423		345,149
Total liabilities		573,413,681		571,112,829
Contingencies and commitments
Shareholders' Equity
Preferred stock		-		-
Common stock		6,602		6,561
Additional paid-in capital		347,741,382		346,933,189
Retained earnings		36,083,244		31,450,234
Accumulated other comprehensive loss		(459,632)		(670,772)
Total Reservoir Media, Inc. shareholders' equity		383,371,596		377,719,212
Noncontrolling interest		336,535		845,040
Total shareholders' equity		383,708,131		378,564,252
Total liabilities and shareholders' equity		$    957,121,812		$    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 United States generally accepted accounting principles ("GAAP"). Reservoir's management uses these non-GAAP financial measures to evaluate Reservoir's operations, measure its performance and make strategic decisions. Reservoir believes that the use of these non-GAAP financial measures provides useful information to investors and others in understanding Reservoir's results of operations and trends in the same manner as Reservoir's management and in evaluating Reservoir's financial measures as compared to the financial measures of other similar companies, many of which present similar non-GAAP financial measures. However, these non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by Reservoir's management about which items are excluded or included in determining these non-GAAP financial measures and, therefore, should not be considered as a substitute for net income, operating income or any other operating performance measures calculated in accordance with GAAP. Using such non-GAAP financial measures in isolation to analyze Reservoir's business would have material limitations because the calculations are based on the subjective determination of Reservoir's management regarding the nature and classification of events and circumstances. In addition, although other companies in Reservoir's industry may report measures titled OIBDA, OIBDA margin, EBITDA, Adjusted EBITDA, and Net Debt, or similar measures, such non-GAAP financial measures may be calculated differently from how Reservoir calculates such non-GAAP financial measures, which reduces their overall usefulness as comparative measures. Because of these limitations, such non-GAAP financial measures should be considered alongside other financial performance measures and other financial results presented in accordance with GAAP. You can find the reconciliation of these non-GAAP financial measures to the nearest comparable GAAP measures in the tables below.

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 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 to exclude income tax expense, interest expense and depreciation and amortization, further adjusts net income 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; 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 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 cash equivalents and deferred financing costs.

Reservoir Media, Inc. and Subsidiaries
Reconciliation of Operating Income to OIBDA
Three and Six Months Ended September 30, 2026 versus September 30, 2025
(Unaudited)
(Dollars in thousands)
		For the Three Months Ended September 30,				For the Six Months Ended September 30,
		2026		2025		2026		2025
Revenues		$           49,910		$           45,435		$           91,392		$           82,599
Cost of revenue		17,751		16,532		32,539		29,725
Administration expenses		11,444		10,659		24,464		21,871
OIBDA		20,715		18,243		34,389		31,004
Amortization and depreciation		8,452		7,557		16,748		14,871
Operating income		$           12,262		$           10,687		$           17,641		$           16,133

 

Reservoir Media, Inc. and Subsidiaries
Music Publishing Segment OIBDA
Three and Six Months Ended September 30, 2026 versus September 30, 2025
(Unaudited)
(Dollars in thousands)
		For the Three Months Ended September 30,				For the Six Months Ended September 30,
		2026		2025		2026		2025
Revenues		$           33,248		$           30,875		$           59,761		$           55,808
Cost of revenue		14,049		13,047		24,525		23,483
Administration expenses		6,841		6,512		15,108		13,445
OIBDA		$           12,357		$           11,317		$           20,128		$           18,880

 

Reservoir Media, Inc. and Subsidiaries
Recorded Music Segment OIBDA
Three and Six Months Ended September 30, 2026 versus September 30, 2025
(Unaudited)
(Dollars in thousands)
		For the Three Months Ended September 30,				For the Six Months Ended September 30,
		2026		2025		2026		2025
Revenues		$           15,351		$           12,982		$           29,451		$           23,426
Cost of revenue		3,701		3,486		8,014		6,242
Administration expenses		3,359		2,901		7,037		5,735
OIBDA		$             8,290		$             6,596		$           14,400		$           11,450

 

Reservoir Media, Inc. and Subsidiaries
Reconciliation of Net Income to Adjusted EBITDA
Three and Six Months Ended September 30, 2026 versus September 30, 2025
(Unaudited)
(Dollars in thousands)
		For the Three Months Ended September 30,				For the Six Months Ended  September 30,
		2026		2025		2026		2025
Net Income		$             4,633		$             2,204		$             4,125		$             1,560
Income Tax Expense		1,428		947		1,189		676
Interest Expense		7,037		6,742		13,942		13,038
Amortization and Depreciation		8,452		7,557		16,748		14,871
EBITDA		21,550		17,450		36,003		30,145
(Gain) Loss on Foreign Exchange(a)		(26)		387		18		(708)
(Gain) Loss on Fair Value of Swaps(b)		(1,100)		316		(2,026)		1,313
Non-cash Share-based Compensation(c)		1,166		1,113		2,986		2,247
Transaction Costs(d)		200		-		401		-
Other Expense (Income), Net(e)		290		91		393		254
Adjusted EBITDA		$           22,081		$           19,357		$           37,776		$           33,251

 

 

(a)	Reflects the (gain) or loss 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, consisting primarily of professional fees, incurred in connection with the 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
Source: Reservoir Media, Inc.

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SOURCE Reservoir Media, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Reservoir Media’s second-quarter fiscal 2027 earnings?

Reservoir reported net income of $4.6 million, or $0.07 per share, for the quarter ended September 30, 2026, compared with $2.2 million, or $0.03 per share, a year earlier. Revenue increased 10% year over year to $49.9 million.

What is Reservoir Media’s updated fiscal 2027 guidance?

Reservoir expects $188 million–$192 million in revenue and $77 million–$80 million in adjusted EBITDA for the year ending March 31, 2027. Both ranges were raised and narrowed; their midpoints represent growth of 8% and 7%, respectively.

What drove Reservoir Media’s Recorded Music growth in fiscal Q2 2027?

Recorded Music growth reflected higher digital revenue and neighboring rights revenue, which covers certain uses of recordings. Digital revenue increased 33% to $11.5 million, supported by catalog acquisitions and streaming growth. Neighboring rights revenue rose 40% to $1.5 million, primarily driven by catalog acquisitions and new affiliations.

What drove Reservoir Media’s Music Publishing growth in fiscal Q2 2027?

Music Publishing growth primarily reflected higher digital and synchronization revenue, the latter coming from licenses to pair music with visual content. Digital revenue increased 10% to $17.6 million, supported by catalog acquisitions and streaming growth. Synchronization revenue rose 13% to $5.2 million, driven by license timing.