Revenue Performance - Revenues for the three months ended September 30, 2025, were $45,435,000, representing a 12% increase from $40,667,000 in the same period of 2024[77]. - For the six months ended September 30, 2025, revenues increased by 10% to $82,599,000 from $74,984,000 in 2024[77]. - Total revenues increased by $4,768 thousand, or 12%, for the three months ended September 30, 2025, compared to the same period in 2024, driven by an 8% increase in Music Publishing revenues and a 21% increase in Recorded Music revenues[78]. - Total revenues for the six months ended September 30, 2025, increased by $7,615 thousand, or 10%, compared to the same period in 2024[85]. Income and Profitability - Operating income for the three months ended September 30, 2025, was $10,687,000, a 6% increase compared to $10,122,000 in 2024[77]. - Net income attributable to Reservoir Media, Inc. for the three months ended September 30, 2025, was $2,258,000, compared to $185,000 in the same period of 2024, marking a significant increase[77]. - Net income was $2,204 thousand for the three months ended September 30, 2025, compared to $152 thousand for the same period in 2024[124]. - OIBDA for the three months ended September 30, 2025, increased by $1,691 thousand, or 10%, totaling $18,243 thousand, while the OIBDA Margin decreased to 40% from 41%[132]. - For the six months ended September 30, 2025, OIBDA increased by $3,106 thousand, or 11%, compared to the same period in 2024, reaching $31,004 thousand[135]. Revenue Sources - The Music Publishing segment generates revenue from five main sources, including digital, performance, synchronization, mechanical, and other[72]. - The Recorded Music segment's revenues are derived from digital, physical, neighboring rights, and synchronization sources[76]. - Digital revenues rose by $1,964 thousand, or 9%, during the three months ended September 30, 2025, representing 55% of total revenues[80]. - Music Publishing revenues increased by $2,279 thousand, or 8%, during the three months ended September 30, 2025, primarily due to a $2,404 thousand increase in performance revenue[81]. - Recorded Music revenues increased by $2,290 thousand, or 21%, during the three months ended September 30, 2025, mainly due to a $1,477 thousand increase in digital revenue[83]. Costs and Expenses - The cost of revenue for the three months ended September 30, 2025, was $16,532,000, an 11% increase from $14,831,000 in 2024[77]. - Administration expenses for the three months ended September 30, 2025, rose by 15% to $10,659,000 from $9,284,000 in 2024[77]. - Cost of revenue increased by $1,701 thousand, or 11%, during the three months ended September 30, 2025, with a cost of revenue as a percentage of revenues at 36%[92]. - Writer royalties and other publishing costs increased by $1,265 thousand, or 11%, during the three months ended September 30, 2025, with costs as a percentage of Music Publishing revenues rising to 42%[93]. - Artist royalties and other recorded music costs for the Recorded Music segment increased by $547 thousand, or 10%, with costs as a percentage of revenues decreasing to 27% from 28%[97]. Debt and Financing - As of September 30, 2025, total outstanding debt was $425,828 thousand, with remaining borrowing availability under the Senior Credit Facility at $124,172 thousand[151]. - The Senior Credit Facility was amended to increase the revolving credit commitment from $450,000 thousand to $550,000 thousand[153]. - The maturity date of the loans under the Senior Credit Facility is December 16, 2027, with an interest rate based on either a base rate plus a margin or SOFR plus a margin[154]. - Cash provided by financing activities was $31,491 thousand for the six months ended September 30, 2025, compared to $(8,338) thousand in 2024, reflecting increased borrowings[148]. Cash Flow - Cash provided by operating activities for the six months ended September 30, 2025, was $25,305 thousand, up $3,433 thousand or 16% from the same period in 2024[146]. - Cash used for investing activities increased to $50,018 thousand for the six months ended September 30, 2025, compared to $10,702 thousand in 2024, primarily due to acquisitions of music catalogs[147]. Internal Controls and Compliance - A material weakness in internal controls over financial reporting was identified, affecting the effectiveness of disclosure controls and procedures as of September 30, 2025[172]. - Three out of four material weaknesses have been successfully remediated, but the weakness related to the third-party Recorded Music royalty system remains unremediated as of September 30, 2025[173]. - The company is actively taking steps to remediate the identified material weakness, including training and enhancing relevant policies and controls[174]. - There have been no changes in internal control over financial reporting that materially affected the company's internal control during the three months ended September 30, 2025[176].

Financial Data and Key Metrics Changes - Revenue for Q2 2026 was $45.4 million, representing a 7% year-over-year improvement on an organic basis and a 12% increase including acquisitions [16] - Net income for the quarter was approximately $2.2 million, compared to $152,000 in the prior year [18] - Diluted earnings per share for the quarter was $0.03, compared to $0.00 per share in the prior year [18] Business Line Data and Key Metrics Changes - Music Publishing revenue increased by 8% to $30.9 million, driven by a 47% increase in performance revenue and growth in mechanical and digital revenue [18] - Recorded Music segment revenue grew by 21% to $13 million, primarily due to a 20% increase in digital revenue and synchronization revenue growth [19] Market Data and Key Metrics Changes - The company experienced a 12% growth in total revenue, with 7% from organic growth and 5% from acquisitions [6] - The company noted strong demand for its assets, particularly in emerging markets, contributing to increased engagement and listenership [7] Company Strategy and Development Direction - The company is focused on leveraging a diverse catalog and scaling through catalog development, strategic signings, and global diversification [6] - The acquisition of Miles Davis' catalog is expected to enhance long-term value and create unique value enhancement opportunities [22] - The company aims to expand its geographic footprint, recently entering the MENA region with new catalog deals [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year financial goals, supported by a robust deal pipeline exceeding $1 billion [22] - The company anticipates continued growth driven by strategic acquisitions and effective cash flow management [21] Other Important Information - The company reported total available liquidity of $152.1 million, consisting of cash on hand and revolver availability [20] - Total debt at the end of the quarter was $421.8 million, with net debt of $393.9 million [20] Q&A Session Summary Question: What is driving the strong organic growth of 7% year-over-year? - Management indicated that the 7% organic growth aligns with industry expectations and is influenced by both new asset value maximization and existing catalog performance [28][29] Question: Was the Miles Davis acquisition part of the existing pipeline? - Management confirmed that the Miles Davis acquisition was included in the pipeline and involved a formal process that began in November 2023 [30] Question: Will there be an increase in administrative expenses due to the Miles Davis catalog? - Management stated that there would be no significant impact on administration expenses, as marketing resources would be reallocated internally [31] Question: When will the one-time events like the Monster Mash movie impact the P&L? - Management expects these one-time events to contribute to the P&L starting in calendar year 2026, with a 12 to 18-month window of activations [36] Question: How should G&A expenses be modeled going forward? - Management indicated that G&A expenses are largely driven by management business revenue and are expected to stabilize around the current run rate for the remainder of the year [37] Question: How does organic growth relate to digital subscription pricing? - Management noted that organic growth is influenced by a mix of industry growth factors, including subscriber growth, price increases, and internal initiatives [39]

Financial Data and Key Metrics Changes - Revenue for Q2 fiscal 2026 was $45.4 million, a 7% year-over-year improvement on an organic basis and a 12% increase including acquisitions [15][18] - Net income for the quarter was approximately $2.2 million compared to $152,000 in the same quarter of fiscal 2025, resulting in diluted earnings per share of $0.03 [16][17] - OIBDA increased by 10% year-over-year to $18.2 million, and adjusted EBITDA also rose by 10% to $19.4 million [16] Business Line Data and Key Metrics Changes - Music publishing revenue increased by 8% to $30.9 million, driven by a 47% increase in performance revenue and growth in mechanical and digital revenue [17] - Recorded music segment revenue grew by 21% to $13 million, primarily due to a 20% increase in digital revenue [18] Market Data and Key Metrics Changes - The company reported a total available liquidity of $152.1 million, consisting of $27.9 million in cash and $124.2 million available under its revolver [18] - Total debt at the end of the quarter was $421.8 million, with net debt of $393.9 million, an increase from $366.7 million as of March 31, 2025 [18] Company Strategy and Development Direction - The company is focused on leveraging a diverse, high-quality catalog and scaling through catalog development, strategic signings, and global diversification [5][6] - The acquisition of Miles Davis's catalog is expected to enhance long-term value and create unique value enhancement opportunities [21] - The company aims to expand its geographic footprint, recently announcing deals in the MENA region [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year financial goals, supported by a robust deal pipeline exceeding $1 billion [21][22] - The company anticipates continued growth driven by successful value enhancement efforts and sound capital deployment strategies [20] Other Important Information - The company announced the extension of its publishing deal for Nick Drake's catalog and a new deal with the Drake estate for Molly Drake's catalog [7] - The company is actively pursuing collaborations and marketing initiatives to celebrate the centennial of Miles Davis in 2026 [6][7] Q&A Session Summary Question: What is driving the strong organic growth of 7% year-over-year? - Management indicated that the 7% organic growth aligns with industry expectations and is influenced by both new asset maximization and existing catalog performance [24][25] Question: Was the Miles Davis acquisition part of the existing pipeline? - The acquisition was included in the pipeline, with discussions beginning in November 2023, indicating a formal process around the transaction [26] Question: Will there be an increase in administrative expenses due to the Miles Davis catalog acquisition? - Management clarified that while marketing resources would be reallocated, there would be no significant impact on administrative expenses [27] Question: When will the one-time events related to Miles Davis and "Monster Mash" contribute to the P&L? - These events are expected to begin contributing in calendar 2026, with a 12- to 18-month window of activations anticipated [31] Question: How should G&A expenses be modeled going forward? - Management suggested that the current run rate is expected to continue for the balance of the year, with minor fluctuations [32] Question: How is organic growth influenced by pricing and digital subscriptions? - Organic growth is a mix of industry growth factors, including subscriber growth, price increases, and the company's initiatives to enhance asset value [33]

Core Insights - Reservoir Media, Inc. reported quarterly earnings of $0.03 per share, missing the Zacks Consensus Estimate of $0.05 per share, compared to break-even earnings per share a year ago, resulting in an earnings surprise of -40.00% [1] - The company posted revenues of $45.44 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 5.32%, and showing an increase from year-ago revenues of $40.67 million [2] - Reservoir Media shares have declined approximately 18.5% since the beginning of the year, contrasting with the S&P 500's gain of 16.5% [3] Earnings Outlook - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.03 on revenues of $42.03 million, and $0.12 on revenues of $166.74 million for the current fiscal year [7] Industry Context - The Media Conglomerates industry, to which Reservoir Media belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5][6]

Financial Performance - Total revenue for Q2 FY26 was $45.4 million, a 12% increase from $40.7 million in Q2 FY25, driven by a 21% increase in Recorded Music revenue and an 8% increase in Music Publishing revenue [4]. - Operating income rose to $10.7 million, up 6% year-over-year, while OIBDA increased by 10% to $18.2 million [6]. - Net income for Q2 FY26 was $2.2 million, or $0.03 per share, compared to $0.2 million, or $0.00 per share, in the prior year [7]. - Adjusted EBITDA increased by 10% to $19.4 million, reflecting higher total revenues despite increased administrative expenses [6]. - Music Publishing revenue reached $30.9 million, an 8% increase year-over-year, with Performance revenue up 47% [8]. - Recorded Music revenue was $13.0 million, a 21% increase, primarily due to growth in digital revenue and synchronization revenue [10]. - Revenues for the three months ended September 30, 2025, were $45,435,051, representing a 12% increase compared to $40,667,393 for the same period in 2024 [23]. - Operating income for the three months ended September 30, 2025, was $10,686,541, a 6% increase from $10,122,026 in 2024 [23]. - Net income attributable to Reservoir Media, Inc. for the three months ended September 30, 2025, was $2,257,841, compared to $185,015 in 2024 [23]. - OIBDA for the three months ended September 30, 2025, was $18,243,000, up from $16,552,000 in 2024 [34]. - Revenues for Q3 2025 reached $12,982 million, a 21.4% increase from $10,693 million in Q3 2024 [38]. - OIBDA for Q3 2025 was $6,596 million, up 22.0% from $5,405 million in Q3 2024 [38]. - Net Income for Q3 2025 was $2,204 million, compared to $152 million in Q3 2024, indicating a significant improvement [40]. - Adjusted EBITDA for Q3 2025 increased to $19,357 million, a rise of 9.9% from $17,605 million in Q3 2024 [40]. - Total revenues for the first six months of 2025 were $23,426 million, up 15.4% from $20,323 million in the same period of 2024 [38]. - EBITDA for the first six months of 2025 was $30,145 million, compared to $22,087 million in the first half of 2024, reflecting a 36.5% increase [40]. Strategic Initiatives - The company acquired the publishing catalog of Miles Davis and extended deals for Nick Drake's catalog, enhancing its strategic partnerships [4]. - For fiscal year 2026, the company raised its revenue guidance to $167 million - $170 million, reflecting a growth of 6% [14]. - The company is focused on long-term growth strategies through disciplined investments and global diversification [3]. Liquidity and Assets - As of September 30, 2025, total available liquidity was $152.1 million, with cash and cash equivalents of $27.9 million [13]. - Total current assets increased to $83,784,832 as of September 30, 2025, from $79,284,295 as of March 31, 2025 [25]. - Total assets reached $903,535,511 as of September 30, 2025, compared to $865,127,010 as of March 31, 2025 [25]. - Total liabilities increased to $531,419,020 as of September 30, 2025, from $498,927,228 as of March 31, 2025 [25]. - Cash and cash equivalents rose to $27,939,407 as of September 30, 2025, from $21,386,140 as of March 31, 2025 [25]. Shareholder Information - The company reported a basic earnings per share of $0.03 for the three months ended September 30, 2025, compared to $0 for the same period in 2024 [23]. - The weighted average diluted shares outstanding increased to 66,273,757 for the three months ended September 30, 2025, from 65,837,273 in 2024 [23]. Expenses and Losses - Interest Expense for Q3 2025 was $6,742 million, an increase from $4,960 million in Q3 2024 [40]. - The company reported a loss on fair value of swaps of $316 million in Q3 2025, down from a gain of $5,127 million in Q3 2024 [40]. - Administration expenses for Q3 2025 were $2,901 million, up from $2,239 million in Q3 2024, indicating a 29.6% increase [38]. - The company experienced a foreign exchange loss of $387 million in Q3 2025, compared to a loss of $36 million in Q3 2024 [40].

Core Insights - Reservoir Media reported Q1 FY2026 results with GAAP revenue of $37.2 million, an 8% increase year-over-year, but below analyst expectations of $38.065 million [1][5] - The company experienced an increase in operating income and adjusted EBITDA, while net loss widened to $0.6 million from $0.5 million in Q1 FY2025 [1][6] Financial Performance - GAAP revenue for Q1 FY2026 was $37.2 million, up 8% from $34.3 million in Q1 FY2025 [2] - Operating income increased by 8% to $5.4 million, while adjusted EBITDA rose 10% to $13.9 million [2][5] - Net loss (GAAP) increased to $0.6 million, reflecting a 20% rise compared to the previous year [2][6] Business Strategy - Reservoir Media focuses on acquiring, managing, and monetizing music catalogs, serving as both a music publisher and recorded music rights holder [3] - The company emphasizes five strategic areas for growth: aggressive acquisition of music rights, investment in digital and streaming growth, expansion in emerging markets, rigorous protection of music rights, and leveraging an experienced management team [4] Segment Performance - The Music Publishing segment generated $24.9 million in GAAP revenue, a 4% increase, with synchronization licensing revenue surging 48% to $4.2 million [7] - The Recorded Music segment saw an 8% revenue growth to $10.4 million, with digital revenue increasing by 23% [8][11] Catalog and Digital Rights - During the quarter, Reservoir Media acquired master rights for five artists and invested in a London-based immersive entertainment company [10] - Digital sales in Recorded Music rose by 23% to $8.0 million, while digital revenue in Music Publishing declined by 2% [11] International Expansion - The company is prioritizing expansion into international markets, particularly in India and the Middle East, with previous announcements of new subsidiaries [12] Financial Outlook - Management targets FY2026 revenue between $164 million and $169 million, indicating a conservative growth outlook [14] - Total liquidity improved to $173 million, while net debt increased to $372.5 million [15]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=Part%20I.%20Financial%20Information) This section presents the unaudited condensed consolidated financial statements and management's discussion and analysis for Reservoir Media, Inc [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Reservoir Media, Inc. and its subsidiaries for the three months ended June 30, 2025 and 2024, including statements of loss, comprehensive income (loss), balance sheets, changes in shareholders' equity, and cash flows, along with detailed notes explaining the basis of presentation, significant accounting policies, and specific financial line items [Condensed Consolidated Statements of Loss](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Loss) This statement details the company's revenues, costs, operating income, and net loss for the specified periods Condensed Consolidated Statements of Loss | Metric | Three Months Ended June 30, 2025 ($) | Three Months Ended June 30, 2024 ($) | | :-------------------------------- | :------------------------------- | :------------------------------- | | Revenues | $37,164,293 | $34,316,843 | | Total costs and expenses | $31,717,599 | $29,355,310 | | Operating income | $5,446,694 | $4,961,533 | | Interest expense | $(6,295,958) | $(5,059,398) | | Net loss | $(643,725) | $(453,177) | | Net loss attributable to Reservoir Media, Inc. | $(555,659) | $(346,655) | | Basic Loss per common share | $(0.01) | $(0.01) | | Diluted Loss per common share | $(0.01) | $(0.01) | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) This statement presents the net loss and other comprehensive income (loss) components, including translation adjustments Condensed Consolidated Statements of Comprehensive Income (Loss) | Metric | Three Months Ended June 30, 2025 ($) | Three Months Ended June 30, 2024 ($) | | :------------------------------------------------ | :------------------------------- | :------------------------------- | | Net loss | $(643,725) | $(453,177) | | Translation adjustments | $4,052,168 | $34,852 | | Total comprehensive income (loss) | $3,408,443 | $(418,325) | | Total comprehensive income (loss) attributable to Reservoir Media, Inc. | $3,496,509 | $(311,803) | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This statement provides a snapshot of the company's assets, liabilities, and shareholders' equity at specific dates Condensed Consolidated Balance Sheets | Metric | June 30, 2025 ($) | March 31, 2025 ($) | | :------------------------------------ | :-------------- | :------------- | | Total current assets | $69,472,071 | $79,284,295 | | Intangible assets, net | $721,795,939 | $719,673,219 | | Total assets | $856,976,183 | $865,127,010 | | Total current liabilities | $53,702,656 | $65,837,252 | | Secured line of credit | $387,367,065 | $388,134,754 | | Total liabilities | $486,867,682 | $498,927,228 | | Total shareholders' equity | $370,108,501 | $366,199,782 | [Condensed Consolidated Statements of Changes in Shareholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) This statement outlines the changes in common stock, additional paid-in capital, retained earnings, and accumulated other comprehensive income (loss) Condensed Consolidated Statements of Changes in Shareholders' Equity | Metric | June 30, 2025 ($) | March 31, 2025 ($) | | :-------------------------------------------------------------------------------- | :------------ | :------------- | | Common Stock Shares Outstanding | 65,491,183 | 65,239,735 | | Common Stock Amount | $6,550 | $6,524 | | Additional paid-in capital | $344,646,039 | $344,145,789 | | Retained earnings | $22,591,911 | $23,147,570 | | Accumulated other comprehensive income (loss) | $1,630,061 | $(2,422,107) | | Total Reservoir Media, Inc. shareholders' equity | $368,874,561 | $364,877,776 | | Total shareholders' equity | $370,108,501 | $366,199,782 | - Shareholders' equity increased by **$3,908,719** from March 31, 2025, to June 30, 2025, primarily due to other comprehensive income of **$4,052,168**, partially offset by a net loss of **$555,659** attributable to Reservoir Media, Inc[16](index=16&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement summarizes cash inflows and outflows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows | Cash Flow Activity | Three Months Ended June 30, 2025 ($) | Three Months Ended June 30, 2024 ($) | | :-------------------------------- | :------------------------------- | :------------------------------- | | Net cash provided by operating activities | $6,014,143 | $8,555,704 | | Net cash used for investing activities | $(9,659,342) | $(1,898,661) | | Net cash used for financing activities | $(2,509,368) | $(8,414,724) | | Decrease in cash and cash equivalents | $(6,528,996) | $(1,773,509) | | Cash and cash equivalents end of period | $14,857,144 | $16,358,506 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations of the company's accounting policies, segment information, and specific financial statement line items - The Company operates in two reportable segments: Music Publishing and Recorded Music, involving the acquisition and management of music catalogs and artist agreements[22](index=22&type=chunk) - Revenue recognition for both segments is based on legally enforceable rights and obligations, identifying performance obligations, and recognizing revenue when control of services/goods is transferred, with royalty revenue recognized upon sale or usage[29](index=29&type=chunk) Revenue by Type (Three Months Ended June 30) | Revenue by Type | 2025 ($) | 2024 ($) | | :---------------------- | :----------- | :----------- | | **Music Publishing** | | | | Digital | $14,310,164 | $14,634,703 | | Performance | $4,784,639 | $5,134,426 | | Synchronization | $4,153,411 | $2,811,017 | | Mechanical | $621,622 | $668,973 | | Other | $1,063,630 | $751,174 | | **Total Music Publishing** | **$24,933,466** | **$24,000,293** | | **Recorded Music** | | | | Digital | $8,035,214 | $6,558,170 | | Physical | $1,071,879 | $1,352,341 | | Neighboring rights | $1,072,507 | $1,106,350 | | Synchronization | $264,723 | $613,643 | | **Total Recorded Music** | **$10,444,323** | **$9,630,504** | | Other revenue | $1,786,504 | $686,046 | | **Total revenue** | **$37,164,293** | **$34,316,843** | - The Company completed acquisitions totaling **$3,791,366** in Q2 2025, significantly higher than **$801,315** in Q2 2024, primarily for publishing and recorded music catalogs[34](index=34&type=chunk) Intangible Assets (Net) | Intangible Assets | June 30, 2025 ($) | March 31, 2025 ($) | | :------------------------------------ | :-------------- | :------------- | | Publishing and recorded music catalogs | $885,775,201 | $875,475,723 | | Artist management contracts | $989,087 | $933,733 | | Gross intangible assets | $886,764,288 | $876,409,456 | | Accumulated amortization | $(164,968,349) | $(156,736,237) | | Intangible assets, net | $721,795,939 | $719,673,219 | - Amortization expense for intangible assets increased by **14.8% YoY** to **$7,262,026** for the three months ended June 30, 2025, from **$6,326,863** in the prior year[35](index=35&type=chunk) - The Senior Credit Facility was amended on June 3, 2025, increasing the revolving credit commitment from **$450 million** to **$550 million** and resetting the incremental borrowing capacity to **$150 million**[40](index=40&type=chunk) Interest Rate Swaps Outstanding (June 30, 2025) | Effective Date | Notional Amount at June 30, 2025 ($) | Pay Fixed Rate Maturity | | :--------------- | :------------------------------- | :---------------------- | | September 30, 2024 | $100,000,000 | 2.946% December 2027 | | September 30, 2024 | $50,000,000 | 3.961% December 2027 | - Income tax benefit decreased to **$271,066** (**29.6%** effective tax rate) for Q2 2025 from **$293,968** (**39.3%** effective tax rate) for Q2 2024, reflecting changes in loss before income taxes and the mix of income from multiple tax jurisdictions[46](index=46&type=chunk)[103](index=103&type=chunk) - Share-based compensation expense decreased by **11% YoY** to **$1,133,552** for Q2 2025 from **$1,273,674** for Q2 2024[52](index=52&type=chunk) - The Company had **65,369,891** basic and diluted weighted average common shares outstanding for Q2 2025[55](index=55&type=chunk) - The Company is exposed to credit risk, interest rate risk (partially hedged by swaps), and foreign exchange risk[56](index=56&type=chunk)[57](index=57&type=chunk)[58](index=58&type=chunk) - The Company's CODM evaluates segment performance based on Operating Income Before Depreciation and Amortization (OIBDA)[61](index=61&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides a detailed analysis of Reservoir Media, Inc.'s financial performance and condition for the three months ended June 30, 2025, compared to the same period in 2024, covering revenue trends, cost structures, operating income, and non-GAAP financial measures, along with an assessment of liquidity and capital resources, highlighting key drivers of changes in financial results and future outlook [Business Overview](index=22&type=section&id=Business%20Overview) This section describes Reservoir Media, Inc.'s operational structure, including its Music Publishing and Recorded Music segments - Reservoir Media, Inc. operates as an independent music company with two primary reportable segments: Music Publishing and Recorded Music, in addition to a management business and a rights management entity in the Middle East[68](index=68&type=chunk)[69](index=69&type=chunk) - The Music Publishing segment generates revenue from five main sources: Digital, Performance, Synchronization, Mechanical, and Other, by acquiring interests in music catalogs and signing songwriters[70](index=70&type=chunk)[75](index=75&type=chunk) - The Recorded Music segment focuses on acquiring sound recording catalogs, discovering and developing artists, and marketing/distributing music, with revenues from Digital, Physical, Neighboring Rights, and Synchronization[73](index=73&type=chunk)[79](index=79&type=chunk) [Use of Non-GAAP Financial Measures](index=26&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) This section explains the company's use of non-GAAP financial measures like OIBDA and Adjusted EBITDA for performance evaluation - The Company uses non-GAAP financial measures such as OIBDA, OIBDA Margin, EBITDA, and Adjusted EBITDA to evaluate operations and performance, providing additional insights beyond U.S. GAAP measures[107](index=107&type=chunk) - OIBDA (Operating Income Before Depreciation and Amortization) is considered an important indicator of operational strengths, while Adjusted EBITDA further excludes non-cash charges, foreign exchange gains/losses, interest rate swap losses, equity-based compensation, and unusual items[108](index=108&type=chunk)[109](index=109&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) This section analyzes the company's consolidated financial performance, including revenue, expenses, and net loss, for the reporting period Consolidated Income Statement Summary (Three Months Ended June 30) | Metric | 2025 ($ in thousands) | 2024 ($ in thousands) | $ Change (in thousands) | % Change | | :-------------------------------- | :-------------------- | :-------------------- | :------- | :------- | | Revenues | $37,164 | $34,317 | $2,847 | 8% | | Total costs and expenses | $31,718 | $29,355 | $2,362 | 8% | | Operating income | $5,447 | $4,962 | $485 | 10% | | Interest expense | $(6,296) | $(5,059) | $(1,237) | 24% | | Gain (loss) on foreign exchange | $1,095 | $(59) | $1,155 | NM | | Loss on fair value of swaps | $(997) | $(490) | $(507) | 103% | | Net loss attributable to Reservoir Media, Inc. | $(556) | $(347) | $(209) | 60% | - Total revenues increased by **8% YoY** to **$37.16 million**, driven by a **4%** increase in Music Publishing and an **8%** increase in Recorded Music revenues[82](index=82&type=chunk) - Music Publishing revenues increased by **$933 thousand** (**4%**), primarily due to a **$1,342 thousand** increase in synchronization revenue and a **$312 thousand** increase in other revenue, partially offset by decreases in performance and digital revenue[84](index=84&type=chunk) - Recorded Music revenues increased by **$814 thousand** (**8%**), mainly due to a **$1,477 thousand** increase in digital revenue from catalog acquisitions and streaming growth, partially offset by decreases in synchronization and physical revenue[86](index=86&type=chunk) - Cost of revenue decreased by **1% YoY** to **$13.19 million**, primarily due to a decrease in writer royalties and other publishing costs, despite an increase in artist royalties and other recorded music costs[88](index=88&type=chunk) - Amortization and depreciation expense increased by **15% YoY** to **$7.31 million**, mainly due to the acquisition of additional music catalogs[91](index=91&type=chunk) - Total administration expenses increased by **16% YoY** to **$11.21 million**, driven by increases in Other administration expenses (**151%**), Music Publishing (**5%**), and Recorded Music (**12%**) segments, reflecting inflation and investments[93](index=93&type=chunk)[94](index=94&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk) - Operating income increased by **10% YoY** to **$5.45 million**, with the operating income margin rising to **15%** from **14%**, due to increased revenues and a lower cost of revenue as a percentage of revenues[97](index=97&type=chunk) - Interest expense increased by **24% YoY** to **$6.30 million**, primarily due to higher debt balances from catalog acquisitions and increased effective interest rates on hedged borrowings[98](index=98&type=chunk) - The Company reported a net loss of **$644 thousand** for Q2 2025, an increase from **$453 thousand** in Q2 2024, mainly due to higher interest expense and loss on fair value of swaps, partially offset by improved foreign exchange results and operating income[105](index=105&type=chunk) [Non-GAAP Reconciliations](index=32&type=section&id=Non-GAAP%20Reconciliations) This section provides reconciliations of non-GAAP financial measures, such as OIBDA and Adjusted EBITDA, to their most directly comparable GAAP measures Consolidated OIBDA (Three Months Ended June 30) | Metric | 2025 ($ in thousands) | 2024 ($ in thousands) | $ Change (in thousands) | % Change | | :------------------------ | :-------------------- | :-------------------- | :------- | :------- | | Revenues | $37,164 | $34,317 | $2,847 | 8% | | Cost of revenue | $13,193 | $13,281 | $(88) | (1)% | | Administration expenses | $11,211 | $9,689 | $1,522 | 16% | | OIBDA | $12,760 | $11,346 | $1,414 | 12% | | OIBDA Margin | 34% | 33% | | | - Consolidated OIBDA increased by **12% YoY** to **$12.76 million**, with OIBDA Margin rising to **34%** from **33%**, driven by increases in both Music Publishing OIBDA (**12%**) and Recorded Music OIBDA (**9%**)[112](index=112&type=chunk)[113](index=113&type=chunk)[115](index=115&type=chunk) Adjusted EBITDA Reconciliation (Three Months Ended June 30) | Metric | 2025 ($ in thousands) | 2024 ($ in thousands) | $ Change (in thousands) | % Change | | :------------------------------ | :-------------------- | :-------------------- | :------- | :------- | | Net loss | $(644) | $(453) | $(191) | 42% | | Income tax benefit | $(271) | $(294) | $23 | (8)% | | Interest expense | $6,296 | $5,059 | $1,237 | 24% | | Amortization and depreciation | $7,314 | $6,385 | $929 | 15% | | EBITDA | $12,695 | $10,697 | $1,998 | 19% | | (Gain) loss on foreign exchange | $(1,095) | $59 | $(1,155) | NM | | Loss on fair value of swaps | $997 | $490 | $507 | 103% | | Non-cash share-based compensation | $1,134 | $1,274 | $(140) | (11)% | | Other (income) expense, net | $164 | $100 | $64 | 64% | | Adjusted EBITDA | $13,895 | $12,620 | $1,274 | 10% | - Adjusted EBITDA increased by **10% YoY** to **$13.90 million**, primarily due to increased revenues, partially offset by higher administration expenses[116](index=116&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's ability to generate and manage cash flows, including debt levels, borrowing capacity, and compliance with financial covenants - As of June 30, 2025, the Company had **$387.37 million** in debt (net of deferred financing costs) and **$14.86 million** in cash and cash equivalents[117](index=117&type=chunk) Cash Flow Summary (Three Months Ended June 30) | Cash Flow Activity | 2025 ($ in thousands) | 2024 ($ in thousands) | $ Change (in thousands) | % Change | | :------------------------ | :-------------------- | :-------------------- | :------- | :------- | | Operating activities | $6,014 | $8,556 | $(2,542) | (30)% | | Investing activities | $(9,659) | $(1,899) | $(7,760) | NM | | Financing activities | $(2,509) | $(8,415) | $5,906 | (70)% | - Cash provided by operating activities decreased by **30% YoY** to **$6.01 million**, mainly due to cash used for working capital, particularly timing of royalty payments and advance recoupments[121](index=121&type=chunk) - Cash used for investing activities significantly increased by **$7.76 million** to **$9.66 million**, primarily driven by higher acquisitions of music catalogs[122](index=122&type=chunk) - Cash used for financing activities decreased by **70% YoY** to **$2.51 million**, mainly reflecting a decrease in net repayments of the secured line of credit[123](index=123&type=chunk) - The Senior Credit Facility's revolving credit commitment increased to **$550 million**, with **$158.17 million** remaining borrowing availability as of June 30, 2025[127](index=127&type=chunk)[126](index=126&type=chunk) - The Company was in compliance with all financial covenants (fixed charge coverage ratio and consolidated senior debt to library value ratio) and non-financial covenants under the Senior Credit Facility as of June 30, 2025[136](index=136&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Reservoir Media, Inc. is not required to provide detailed quantitative and qualitative disclosures about market risk - The Company is exempt from providing detailed market risk disclosures as it qualifies as a smaller reporting company[144](index=144&type=chunk) [Item 4. Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) This section addresses the effectiveness of the Company's disclosure controls and procedures and the status of remediation efforts for previously identified material weaknesses in internal control over financial reporting, with one related to the third-party Recorded Music royalty system remaining - Disclosure controls and procedures were deemed ineffective as of June 30, 2025, due to an unremediated material weakness in internal controls over financial reporting[145](index=145&type=chunk) - The remaining material weakness is related to the improper design of control activities for the third-party Recorded Music royalty system[146](index=146&type=chunk) - Management is actively implementing a remediation plan, including training, policy enhancements, new controls, and improved documentation, with ongoing evaluation of effectiveness[147](index=147&type=chunk)[148](index=148&type=chunk) [PART II. OTHER INFORMATION](index=42&type=section&id=Part%20II.%20Other%20Information) This section provides additional information on legal proceedings, risk factors, equity sales, defaults, and exhibits [Item 1. Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) The Company is subject to various legal claims and contingencies in the normal course of business but does not believe any current proceedings would have a material adverse effect on its financial position, results of operations, or cash flows - The Company is not currently involved in any legal proceedings expected to have a material adverse effect on its business, financial condition, or results of operations[153](index=153&type=chunk) [Item 1A. Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the Company's risk factors from those disclosed in its Annual Report on Form 10-K for the year ended March 31, 2025 - No material changes to the Company's risk factors have occurred since the Annual Report on Form 10-K filed on March 31, 2025[154](index=154&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Company reports no previously undisclosed unregistered sales of equity securities during the three months ended June 30, 2025 - No unregistered sales of equity securities occurred during the three months ended June 30, 2025, that have not been previously disclosed[155](index=155&type=chunk) [Item 3. Defaults Upon Senior Securities](index=42&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The Company reports no defaults upon senior securities - There were no defaults upon senior securities[156](index=156&type=chunk) [Item 4. Mine Safety Disclosures](index=42&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the Company - Mine Safety Disclosures are not applicable to the Company[157](index=157&type=chunk) [Item 5. Other Information](index=42&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended June 30, 2025 - No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted, modified, or terminated by directors or officers during the quarter[158](index=158&type=chunk) [Item 6. Exhibits](index=43&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of, or incorporated by reference into, the Quarterly Report, including organizational documents, credit agreement amendments, and certifications - Key exhibits include the Third Amendment to the Fourth Amended and Restated Credit Agreement, dated June 3, 2025, and certifications from the CEO and CFO[161](index=161&type=chunk)

Financial Data and Key Metrics Changes - Revenue for the first fiscal quarter was $37.2 million, representing a 5% year-over-year improvement on an organic basis and an 8% increase when including acquisitions [12][13] - OIBDA was $12.8 million, an increase of 12% year-over-year, and adjusted EBITDA was up 10% to $13.9 million compared to Q1 in fiscal 2025 [13] - Net loss for the first quarter was approximately $600,000 compared to a net loss of $500,000 in the previous year [13] Business Line Data and Key Metrics Changes - Music Publishing revenue increased by 4% to $24.9 million, driven by synchronization revenue and other publishing revenue [14] - Recorded Music segment revenue increased by 8% to $10.4 million, primarily due to growth in digital revenue from music streaming services [16] Market Data and Key Metrics Changes - The global immersive entertainment industry was valued at $133 billion in 2024 and is expected to reach $473 billion by 2030, indicating significant growth potential in this sector [7] Company Strategy and Development Direction - The company is advancing a robust pipeline of acquisition opportunities and diversifying its portfolio to enhance long-term value [6] - Recent investments include a partnership with Lightroom, an immersive entertainment company, and the acquisition of independent label Fools Gold Records [6][9] - The company aims to build and strengthen its recorded music platform with commercially relevant assets, focusing on independent music [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about fiscal 2026, indicating that the financial performance in the first quarter is a strong indicator that the company's strategy is working [19] - The company maintains its full-year guidance for revenue and adjusted EBITDA, signaling confidence in achieving its targets [18] Other Important Information - The company amended its senior credit facility to increase its revolving credit commitment from $450 million to $550 million, providing greater flexibility for future transactions [17] Q&A Session Summary Question: Details on the Lightroom investment and IP monetization - Management indicated that the investment in Lightroom represents a single-digit equity stake and is seen as synergistic to the company's asset base [22][23] Question: Confirmation on digital revenue timing - Management clarified that the digital revenue fluctuations were due to timing of receipts and not indicative of weakness in certain digital service providers [24][26] Question: Future administrative expenses and inflationary pressures - Management noted that while inflationary pressures exist, the bulk of the increase in administrative expenses is driven by increased management revenue, with efforts to control costs [27] Question: Trends in gross margins and sustainability - Management explained that lower physical revenue contributed to margin benefits, and the mix of assets is driving revenue improvements [31][34] Question: M&A pipeline and geographic focus - Management stated that the M&A pipeline remains strong with an even split between publishing and recording opportunities, focusing on transactions that provide the highest returns [37][38] Question: Sourcing of deals - Management indicated that most substantial deals are sourced off-market, with a smaller portion coming from auction processes [39][40]

Group 1 - Reservoir Media, Inc. reported a quarterly loss of $0.01 per share, consistent with the Zacks Consensus Estimate, and the same loss as the previous year [1] - The company posted revenues of $37.16 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 2.47%, and up from $34.32 million year-over-year [2] - Reservoir Media shares have declined approximately 13.7% since the beginning of the year, contrasting with the S&P 500's gain of 7.6% [3] Group 2 - The earnings outlook for Reservoir Media is mixed, with the current consensus EPS estimate at $0.05 on revenues of $43.22 million for the upcoming quarter, and $0.16 on revenues of $166.56 million for the current fiscal year [7] - The Zacks Industry Rank indicates that the Media Conglomerates sector is in the bottom 27% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] Group 3 - The estimate revisions trend for Reservoir Media was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

[First Quarter Fiscal 2026 Results Overview](index=1&type=section&id=First%20Quarter%20Fiscal%202026%20Results%20Overview) Reservoir Media's Q1 FY2026 saw strong revenue and Adjusted EBITDA growth, driven by strategic acquisitions and effective management [Key Highlights and Management Commentary](index=1&type=section&id=Key%20Highlights%20and%20Management%20Commentary) Reservoir Media achieved 8% revenue and 10% Adjusted EBITDA growth in Q1 FY2026, driven by strategic acquisitions and cost management Q1 FY2026 Key Financial Metrics | Metric | Q1 FY2026 | YoY Change | | :--- | :--- | :--- | | **Total Revenue** | $37.2 million | +8% | | **Music Publishing Revenue** | $24.9 million | +4% | | **Recorded Music Revenue** | $10.4 million | +8% | | **Operating Income** | $5.4 million | +10% | | **Adjusted EBITDA** | $13.9 million | +10% | | **Net Loss** | ($0.6) million | - | | **Loss per Share** | ($0.01) | Unchanged | - Management emphasized healthy top-line growth and a **10% year-over-year improvement in Adjusted EBITDA**, attributing it to effective cost management and a focus on capital deployment and value enhancement[3](index=3&type=chunk) - Key strategic initiatives in the quarter include: - Acquiring master rights from the independent label Fool's Gold Records - Investing in London-based immersive entertainment company Lightroom - Extending publishing deals with Joni Mitchell and Khris Riddick-Tynes[4](index=4&type=chunk) [Q1 FY2026 Financial Performance](index=2&type=section&id=Q1%20FY2026%20Financial%20Performance) This section details Reservoir Media's consolidated financial results for Q1 FY2026, highlighting revenue growth, operating income, and net loss drivers [Consolidated Financial Results](index=2&type=section&id=Consolidated%20Financial%20Results) Q1 FY2026 saw 8% revenue growth to $37.2 million, 10% operating income increase to $5.4 million, and 10% Adjusted EBITDA rise to $13.9 million, with net loss widening Consolidated Financial Results ($M) | Financial Metric | Q1 FY2026 ($M) | Q1 FY2025 ($M) | YoY Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $37.2 | $34.3 | 8% | | **Operating Income** | $5.4 | $5.0 | 10% | | **OIBDA** | $12.8 | $11.3 | 12% | | **Net Loss** | ($0.6) | ($0.5) | 42% | | **Adjusted EBITDA** | $13.9 | $12.6 | 10% | - Revenue growth was attributed to strong synchronization licensing in the Music Publishing segment and continued growth of digital revenue within the Recorded Music segment[5](index=5&type=chunk) - The increase in net loss was primarily driven by higher interest expense and losses on fair value swaps, partially offset by foreign exchange gains and higher operating income[7](index=7&type=chunk) - **Adjusted EBITDA increased by 10% to $13.9 million**, mainly as a result of the increase in total revenue and improving margins[6](index=6&type=chunk) [Segment Performance](index=3&type=section&id=First%20Quarter%20Fiscal%202026%20Segment%20Review) This section analyzes the individual performance of Reservoir Media's Music Publishing and Recorded Music segments in Q1 FY2026 [Music Publishing](index=3&type=section&id=Music%20Publishing) Music Publishing revenue increased 4% to $24.9 million, driven by synchronization and other revenue, leading to 12% OIBDA growth and margin expansion Music Publishing Revenue by Type ($M) | Revenue by Type | Q1 FY2026 ($M) | Q1 FY2025 ($M) | YoY Change | | :--- | :--- | :--- | :--- | | Digital | $14.3 | $14.6 | (2)% | | Performance | $4.8 | $5.1 | (7)% | | Synchronization | $4.2 | $2.8 | 48% | | Mechanical | $0.6 | $0.7 | (7)% | | Other | $1.1 | $0.8 | 42% | | **Total Revenue** | **$24.9** | **$24.0** | **4%** | - The segment's **OIBDA increased 12% to $7.6 million**, and the OIBDA margin improved to **30%** from 28% in the prior-year quarter, reflecting stronger revenue and margin expansion[9](index=9&type=chunk) [Recorded Music](index=3&type=section&id=Recorded%20Music) Recorded Music revenue grew 8% to $10.4 million, driven by a 23% increase in digital revenue, with OIBDA up 9% and margins stable Recorded Music Revenue by Type ($M) | Revenue by Type | Q1 FY2026 ($M) | Q1 FY2025 ($M) | YoY Change | | :--- | :--- | :--- | :--- | | Digital | $8.0 | $6.6 | 23% | | Physical | $1.1 | $1.4 | (21)% | | Neighboring Rights | $1.1 | $1.1 | (3)% | | Synchronization | $0.3 | $0.6 | (57)% | | **Total Revenue** | **$10.4** | **$9.6** | **8%** | - The increase in revenue was primarily driven by **digital revenue growth**, supported by the expansion of music streaming services and acquisitions of additional catalogs[11](index=11&type=chunk) - Recorded Music **OIBDA increased 9% to $4.9 million**, with the OIBDA margin remaining unchanged at **46%**[12](index=12&type=chunk) [Balance Sheet and Liquidity](index=4&type=section&id=Balance%20Sheet%20and%20Liquidity) This section provides an overview of Reservoir Media's financial position, including liquidity, debt, and cash flow from operations [Balance Sheet and Liquidity Summary](index=4&type=section&id=Balance%20Sheet%20and%20Liquidity%20Summary) As of June 30, 2025, Reservoir had $173.0 million in liquidity, $372.5 million Net Debt, and $6.0 million operating cash flow Balance Sheet and Liquidity ($M) | Metric | As of June 30, 2025 ($M) | As of March 31, 2025 ($M) | | :--- | :--- | :--- | | Cash and cash equivalents | $14.8 | $21.4 | | Available under credit facility | $158.2 | $58.2 | | **Total available liquidity** | **$173.0** | **$79.6** | | Total debt | $387.4 | $388.1 | | **Net Debt** | **$372.5** | **$366.7** | - Cash provided by operating activities was **$6.0 million** for the three months ended June 30, 2025, a decrease of **$2.5 million** compared to the prior year, primarily due to the timing of royalty payments[13](index=13&type=chunk) [Fiscal Year 2026 Outlook](index=4&type=section&id=Fiscal%20Year%202026%20Outlook) Reservoir Media reaffirms its financial guidance for FY2026, projecting continued growth in revenue and Adjusted EBITDA [FY2026 Guidance](index=4&type=section&id=FY2026%20Guidance) Reservoir Media reaffirmed FY2026 guidance, expecting revenue of $164-169 million and Adjusted EBITDA of $68-72 million FY2026 Financial Guidance | Outlook | Guidance Range | Growth (at mid-point) | | :--- | :--- | :--- | | Revenue | $164M - $169M | 5% | | Adjusted EBITDA | $68M - $72M | 6% | - The Chief Financial Officer confirmed the company is "squarely on the path to achieving our previously issued revenue and adjusted EBITDA guidance for fiscal year 2026"[16](index=16&type=chunk) [Appendix: Financial Statements and Non-GAAP Reconciliations](index=6&type=section&id=Appendix%3A%20Financial%20Statements%20and%20Non-GAAP%20Reconciliations) This appendix provides detailed unaudited financial statements and reconciliations of non-GAAP measures for Q1 FY2026 [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q1 FY2026 income statement shows total revenues of $37.2 million, operating income of $5.4 million, and a net loss of ($0.6) million Condensed Consolidated Statements of Income (in thousands) | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Revenues** | **$37,164** | **$34,317** | | Total costs and expenses | $31,718 | $29,355 | | **Operating income** | **$5,447** | **$4,962** | | Loss before income taxes | ($915) | ($747) | | **Net loss attributable to Reservoir Media, Inc.** | **($556)** | **($347)** | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were $857.0 million, liabilities $486.9 million, and shareholders' equity $370.1 million Condensed Consolidated Balance Sheets (in thousands) | (in thousands) | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | **Total current assets** | **$69,472** | **$79,284** | | **Total assets** | **$856,976** | **$865,127** | | **Total current liabilities** | **$53,703** | **$65,837** | | **Total liabilities** | **$486,868** | **$498,927** | | **Total shareholders' equity** | **$370,109** | **$366,200** | [Non-GAAP Reconciliations](index=9&type=section&id=Non-GAAP%20Reconciliations) This section reconciles non-GAAP financial measures, detailing OIBDA at $12.8 million and Adjusted EBITDA at $13.9 million for Q1 FY2026 [Reconciliation of Operating Income to OIBDA](index=11&type=section&id=Reconciliation%20of%20Operating%20Income%20to%20OIBDA) Operating income of $5.4 million is reconciled to OIBDA of $12.8 million for Q1 FY2026 by adding amortization and depreciation Reconciliation of Operating Income to OIBDA (in thousands) | (in thousands) | Q1 FY2026 | Q1 FY2025 | | :--- | :--- | :--- | | **Operating income** | **$5,447** | **$4,962** | | Amortization and depreciation | $7,314 | $6,385 | | **OIBDA** | **$12,760** | **$11,346** | [Reconciliation of Net Loss to Adjusted EBITDA](index=12&type=section&id=Reconciliation%20of%20Net%20Loss%20to%20Adjusted%20EBITDA) Net loss of ($0.6) million is reconciled to Adjusted EBITDA of $13.9 million for Q1 FY2026 through various adjustments Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | (in thousands) | Q1 FY2026 | Q1 FY2025 | | :--- | :--- | :--- | | **Net Loss** | **($644)** | **($453)** | | Income Tax Benefit | ($271) | ($294) | | Interest Expense | $6,296 | $5,059 | | Amortization and Depreciation | $7,314 | $6,385 | | **EBITDA** | **$12,695** | **$10,697** | | Other Adjustments | $1,200 | $1,923 | | **Adjusted EBITDA** | **$13,895** | **$12,620** |