Financial Performance - Revenues for the three months ended September 30, 2024, were $40,667,000, representing a 6% increase from $38,397,000 in the same period of 2023[76]. - Operating income increased by 65% to $10,122,000 for the three months ended September 30, 2024, compared to $6,145,000 in the prior year[76]. - Net income attributable to Reservoir Media, Inc. was $185,000 for the three months ended September 30, 2024, down 65% from $535,000 in the same period of 2023[76]. - Total revenues increased by $2,270 thousand, or 6%, during the three months ended September 30, 2024, compared to the same period in 2023, driven by a 10% increase in Music Publishing revenue[79]. - Total revenues increased by $4,750 thousand, or 7%, during the six months ended September 30, 2024, driven by a 13% increase in Music Publishing revenue[84]. - Net income was $152 thousand during the three months ended September 30, 2024, compared to $682 thousand during the same period in 2023, primarily due to the loss on fair value of swaps[109]. - Net loss was $301 thousand during the six months ended September 30, 2024, compared to net income of $847 thousand during the same period in 2023, driven by the loss on fair value of swaps[110]. Revenue Breakdown - The Music Publishing segment represents over 150,000 copyrights, while the Recorded Music segment includes over 36,000 master recordings[62]. - Recorded Music revenues are derived from digital, physical, neighboring rights, and synchronization sources[71]. - The company has over 5,000 clients across diverse genres in its Music Publishing catalog[64]. - The Recorded Music business is primarily managed through Chrysalis Records and Tommy Boy record labels[68]. - Digital revenues increased by $2,779 thousand, or 14%, during the three months ended September 30, 2024, representing 56% of total revenues[80]. - Music Publishing revenues increased by $2,688 thousand, or 10%, during the three months ended September 30, 2024, primarily due to catalog acquisitions and price increases at streaming services[81]. - Recorded Music revenues decreased by $135 thousand, or 1%, during the three months ended September 30, 2024, reflecting a decline in physical revenue[83]. - Total digital revenues increased by $6,449 thousand, or 17%, during the six months ended September 30, 2024, representing 59% of consolidated revenues[85]. - Music Publishing revenues increased by $5,897 thousand, or 13%, during the six months ended September 30, 2024, mainly driven by catalog acquisitions and price increases[86]. - Recorded Music revenues decreased by $889 thousand, or 4%, during the six months ended September 30, 2024, despite growth in streaming services[88]. Cost and Expenses - Total costs and expenses decreased by 5% to $30,545,000 for the three months ended September 30, 2024, compared to $32,252,000 in 2023[76]. - The principal costs associated with the Recorded Music business include artist royalties and other recorded costs, as well as administration expenses[72]. - Cost of revenues increased by $389 thousand, or 3%, during the three months ended September 30, 2024, with a decrease in cost of revenues as a percentage of revenues to 36%[90]. - Writer royalties and other publishing costs increased by $514 thousand, or 5%, during the three months ended September 30, 2024, with a decrease in percentage of Music Publishing revenues to 41%[91]. - Artist royalties and other recorded music costs decreased by $1,446 thousand, or 20%, for the six months ended September 30, 2024, compared to the same period in 2023, with costs as a percentage of recorded music revenues decreasing to 28% from 34%[94]. - Writer royalties and other publishing costs increased by $1,645 thousand, or 8%, during the six months ended September 30, 2024, with costs as a percentage of Music Publishing revenues decreasing to 43% from 44%[93]. - Total administration expenses decreased by $2,311 thousand, or 20%, during the three months ended September 30, 2024, reflecting the nonrecurrence of a $2,700 thousand write-off related to legal expenses[97]. OIBDA and EBITDA - Consolidated OIBDA increased by $4,192 thousand, or 34%, for the three months ended September 30, 2024, compared to the same period in 2023, with an OIBDA Margin increase to 41% from 32%[119]. - Music Publishing OIBDA rose by $4,759 thousand, or 77%, for the three months ended September 30, 2024, with the OIBDA Margin increasing to 38% from 24%[120]. - Recorded Music OIBDA decreased by $124 thousand, or 2%, for the three months ended September 30, 2024, maintaining an OIBDA Margin of 51%[121]. - For the six months ended September 30, 2024, consolidated OIBDA increased by $6,338 thousand, or 29%, with an OIBDA Margin increase to 37% from 31%[121]. - Music Publishing OIBDA increased by $5,842 thousand, or 49%, for the six months ended September 30, 2024, with the OIBDA Margin rising to 34% from 25%[122]. - Recorded Music OIBDA increased by $834 thousand, or 9%, for the six months ended September 30, 2024, with an OIBDA Margin increase to 48% from 43%[123]. - OIBDA is considered an important indicator of operational strengths and performance, excluding non-cash depreciation and amortization[113]. - Adjusted EBITDA is a key measure for understanding operating performance, but has limitations regarding capital expenditures and cash flow sufficiency[114]. - OIBDA Margin is defined as OIBDA as a percentage of revenue, providing insight into profitability relative to sales[113]. - Adjusted EBITDA for the three months ended September 30, 2024, increased by $1,736 thousand, or 11%, reaching $17,605 thousand compared to $15,869 thousand in 2023[126]. - Adjusted EBITDA margin improved to 43% for the three months ended September 30, 2024, up from 41% in the same period of 2023[126]. Cash Flow and Debt - Cash provided by operating activities was $21,872 thousand for the six months ended September 30, 2024, an increase of $3,015 thousand or 16% compared to $18,857 thousand in 2023[131]. - Cash used for investing activities decreased to $10,702 thousand for the six months ended September 30, 2024, down from $32,516 thousand in 2023, primarily due to fewer acquisitions of music catalogs[132]. - Cash used in financing activities was $(8,338) thousand for the six months ended September 30, 2024, compared to cash provided of $19,573 thousand in 2023, reflecting a $27,911 thousand change[133]. - As of September 30, 2024, total debt was $328,828 thousand, with $121,172 thousand available for borrowing under the Senior Credit Facility[135]. - The company maintained compliance with financial covenants under the Senior Credit Facility, including a fixed charge coverage ratio of not less than 1.10:1.00[143]. - The interest rate on borrowings under the Senior Credit Facility is either a base rate plus a margin of 1.00% or a SOFR rate plus a margin of 2.00%[138]. - The company did not pay any dividends to stockholders during the three months ended September 30, 2024, due to restrictions from the Senior Credit Facility[145]. Internal Controls and Compliance - The company identified material weaknesses in internal controls over financial reporting, concluding that disclosure controls and procedures were not effective as of September 30, 2024[151]. - The company is actively working on a remediation plan to address material weaknesses, including hiring additional accounting personnel and improving risk assessment activities[152]. - The company has not experienced any changes in internal control over financial reporting that materially affected its operations during the three months ended September 30, 2024[155]. - The company emphasizes that its control systems can only provide reasonable assurance, not absolute assurance, against errors and fraud[156]. - The certifications of the Chief Executive Officer and Chief Financial Officer were filed pursuant to the Sarbanes-Oxley Act of 2002, ensuring compliance with securities regulations[31.1][31.2]. - The Inline XBRL Instance Document and related taxonomy extension documents were submitted, indicating the use of interactive data formats for financial reporting[101.INS][101.SCH][101.CAL][101.DEF][101.LAB][101.PRE]. - The report was signed by Golnar Khosrowshahi as the Chief Executive Officer and Jim Heindlmeyer as the Chief Financial Officer, confirming the authenticity of the financial statements[168]. Legal and Risk Factors - There are no ongoing legal proceedings that could have a material adverse effect on the company's business or financial condition as of the date of the report[159]. - The company has not identified any material changes in risk factors from those disclosed in the Annual Report for the year ended March 31, 2024[160].

Financial Performance - Total revenue for Q2 fiscal 2025 was $40.7 million, a 6% increase from $38.4 million in Q2 fiscal 2024[4] - Music Publishing revenue rose 10% year-over-year to $28.6 million, while Recorded Music revenue decreased by 1% to $10.7 million[2] - Operating income increased by 65% to $10.1 million compared to $6.1 million in the prior year[5] - OIBDA grew 34% year-over-year to $16.6 million, with Adjusted EBITDA up 11% to $17.6 million[2] - Net income for Q2 fiscal 2025 was $0.2 million, down 78% from $0.7 million in the same quarter last year[6] - Revenues for the three months ended September 30, 2024, increased by 6% to $40,667,393 compared to $38,397,300 for the same period in 2023[6] - Operating income for the three months ended September 30, 2024, rose by 65% to $10,122,026, up from $6,145,090 in the prior year[6] - Adjusted EBITDA for the three months ended September 30, 2024, was $17,605 thousand, a 10.3% increase from $15,869 thousand in the same period of 2023[31] - The recorded music segment's operating income for the three months ended September 30, 2024, was $3,508 thousand, a decrease of 15.0% from $4,130 thousand in 2023[30] Revenue Outlook - The company raised its fiscal 2025 revenue outlook to between $150 million and $153 million, reflecting a 5% growth at the mid-point[13] - Adjusted EBITDA guidance for fiscal 2025 is now projected to be between $59 million and $62 million, indicating a 9% growth[13] Liquidity and Debt - As of September 30, 2024, total available liquidity was $142.3 million, with total debt at $324.5 million[11] - Total current assets increased to $77,011,766 as of September 30, 2024, from $70,908,320 as of March 31, 2024[20] - Cash and cash equivalents increased to $21,067,735 as of September 30, 2024, compared to $18,132,015 as of March 31, 2024[20] - Total liabilities decreased to $418,966,283 as of September 30, 2024, from $429,049,587 as of March 31, 2024[20] - Total assets decreased to $778,231,835 as of September 30, 2024, from $783,534,568 as of March 31, 2024[20] Expenses and Write-offs - The company reported a 20% decrease in administration expenses for the three months ended September 30, 2024, totaling $9,283,977 compared to $11,595,004 in the prior year[6] - Amortization and depreciation expense for the six months ended September 30, 2024, totaled $12,815 thousand, compared to $12,270 thousand in the same period of 2023, indicating a 4.5% increase[31] - The company experienced a one-time write-off of $2,695 thousand related to recoupable legal fees during the six months ended September 30, 2024[31] Artist and Catalog Developments - The company signed new publishing deals with notable artists including Snoop Dogg and k.d. lang, and acquired catalogs from Billy Strange and Jack Douglas[2] Shareholder Information - Basic weighted average common shares outstanding increased to 65,186,357 for the three months ended September 30, 2024, from 64,783,974 in the prior year[6] Foreign Exchange and Non-Cash Compensation - The company reported a loss on foreign exchange of $36 thousand for the three months ended September 30, 2024[31] - Non-cash share-based compensation for the six months ended September 30, 2024, was $2,327 thousand, compared to $1,727 thousand in the same period of 2023, reflecting a 34.7% increase[31]

Balance Sheet and Liquidity For the three months ended June 30, 2024, cash provided by operating activities was $8.6 million, an increase of $9.4 million compared to the same period last year. As of June 30, 2024, Reservoir had cash and cash equivalents of $16.4 million and $121.2 million available for borrowing under its revolving credit facility, for total available liquidity of $137.6 million. Total debt was $324.1 million (net of $4.7 million of deferred financing costs) and Net Debt was $307.8 million ...

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Interested parties may also participate in the call using the registration link here. Once registered, participants will receive a dial-in number as well as a PIN to enter the event. Participants may reregister for the conference call in the event of a lost dial-in number or PIN. Reservoir is an independent music company based in New York City and with offices in Los Angeles, Nashville, Toronto, London, and Abu Dhabi. Reservoir is the first female-founded and led publicly traded independent music company in ...

Company Overview - Reservoir Media, Inc. is an independent music company based in New York City, with additional offices in Los Angeles, Nashville, Toronto, London, and Abu Dhabi [7] - It is the first female-founded and led publicly traded independent music company in the U.S. [7] - Founded in 2007 as a family-owned music publisher, Reservoir has grown to represent over 150,000 copyrights and 36,000 master recordings, with titles dating back to 1900 [7] - The company frequently holds a Top 10 U.S. Market Share according to Billboard's Publishers Quarterly and has received multiple awards, including Publisher of the Year by Music Business Worldwide's The A&R Awards [7] Financial Results Announcement - Reservoir Media will release its financial results for the first fiscal quarter of 2025, which ended on June 30, 2024, before market open on July 31, 2024 [1] - A conference call to discuss these results will be held at 10 a.m. Eastern Daylight Time on the same day [5] - Interested parties can participate in the call by registering through a provided link, after which they will receive a dial-in number and PIN [2][6]

Core Viewpoint - Reservoir Media, Inc. (RSVR) has experienced a bearish price trend recently, losing 7.2% over the past week, but the formation of a hammer chart pattern suggests a potential trend reversal as buying interest may be increasing [1] Technical Analysis - The hammer chart pattern indicates a possible bottoming out of the stock price, with reduced selling pressure, suggesting that bulls may be gaining control [1] - A hammer pattern forms when there is a small candle body with a long lower wick, signaling a potential reversal during a downtrend [1] - Hammer candles can appear on various timeframes and should be used alongside other bullish indicators for confirmation [1] Fundamental Analysis - There has been a positive trend in earnings estimate revisions for RSVR, with a 14.3% increase in the consensus EPS estimate for the current year over the last 30 days, indicating improved earnings expectations [1] - The company holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks, which typically outperform the market [1] - A Zacks Rank of 1 serves as a strong indicator of a potential trend reversal, helping investors identify improving company prospects [1]

Reservoir Media, Inc. (RSVR) has been beaten down lately with too much selling pressure. While the stock has lost 11.1% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier. This technical indicator is not the only factor that calls for a potential rebound for the stock. There is a fundamental indicator as well. A strong agreement among sell-side analysts covering ...

Financial Data and Key Metrics Changes - Revenue for the fourth fiscal quarter was $39.1 million, a 12% increase compared to the fourth quarter of fiscal 2023, driven by strong growth in both segments [25] - For the full fiscal year 2024, revenue reached $144.9 million, an 18% year-over-year increase, exceeding the top end of guidance [52][87] - Net income for the fourth quarter was $2.9 million, compared to $2.3 million in the same period last year, resulting in diluted earnings per share of $0.04, unchanged from the prior year [27] - OIBDA for fiscal 2024 increased 15% year-over-year to $49.6 million, while adjusted EBITDA grew 20% to $55.6 million [29] Business Line Data and Key Metrics Changes - Music publishing segment revenue for the fourth quarter was $26.4 million, a 14% increase including acquisitions [81] - Recorded music revenue increased 22% compared to fiscal 2023, driven by subscriber growth and price increases at streaming services [33] - Performance revenue in the music publishing segment increased by 73% in the fourth quarter [81] Market Data and Key Metrics Changes - The total performance revenue, including live performances, rose 37% year-over-year in fiscal 2024, indicating increased demand for concerts and music festivals [7] - User engagement remained high despite price increases by global streaming platforms, with 83 million new paid subscribers added in 2023 [22] Company Strategy and Development Direction - The company aims to leverage AI tools to enhance revenue capture and automate time-consuming tasks, allowing human resources to focus on higher-value work [6][21] - The strategy includes expanding the catalog through acquisitions and partnerships, such as the acquisition of Saudi Arabian hip-hop label Mashrex and a deal with In2Musica [8][19] - The company is focused on driving organic growth and capitalizing on projected growth in the music industry, particularly in emerging markets [92] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the deal flow, noting a robust pipeline of potential acquisitions valued at $1 billion [40] - The company anticipates revenue for fiscal 2025 to be in the range of $148 million to $152 million, with adjusted EBITDA expected between $58 million and $61 million [35] - Management acknowledged the impact of Spotify's recent accounting changes and the need for ongoing adjustments to ensure fair compensation for their roster [46] Other Important Information - The company reported a 16% increase in overall cost of revenue for fiscal 2024, attributed to a higher revenue base from acquisitions [28] - Interest expense for the full fiscal year was $21.1 million, a 43% increase compared to the previous year [54] - The company ended the year with total debt of $330.8 million and maintained a strong liquidity position of $132.3 million [58] Q&A Session Summary Question: What drove the decision to pay down $11.5 million of debt? - Management indicated that the decision was related to ongoing cash management and balance sheet management, not due to a shortage of acquisition opportunities [39] Question: Can you provide insight into the change in the acquisition pipeline from $2 billion to $1 billion? - Management confirmed that the pipeline is still robust with interesting off-market opportunities, and the reduction was not due to a lack of opportunities [40][41] Question: How much conservatism is built into the fiscal year '25 guidance? - Management acknowledged that there are one-off items impacting guidance and that they typically operate with a level of conservatism until more data is available [76] Question: What is the outlook for M&A in fiscal year '25? - Management stated that they are optimistic about the deal flow and are continuously evaluating opportunities while considering the impact of recent industry changes [12][41]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (MARK ONE) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-39795 RESERVOIR MEDIA, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of in ...