Reservoir Media(RSVR) - 2026 Q1 - Quarterly Results

First Quarter Fiscal 2026 Results Overview Reservoir Media's Q1 FY2026 saw strong revenue and Adjusted EBITDA growth, driven by strategic acquisitions and effective management Key Highlights and Management Commentary 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] - 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] Q1 FY2026 Financial Performance This section details Reservoir Media's consolidated financial results for Q1 FY2026, highlighting revenue growth, operating income, and net loss drivers Consolidated Financial Results 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] - 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] - Adjusted EBITDA increased by 10% to $13.9 million, mainly as a result of the increase in total revenue and improving margins[6] Segment Performance This section analyzes the individual performance of Reservoir Media's Music Publishing and Recorded Music segments in Q1 FY2026 Music Publishing 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] Recorded Music 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] - Recorded Music OIBDA increased 9% to $4.9 million, with the OIBDA margin remaining unchanged at 46%[12] Balance Sheet and Liquidity This section provides an overview of Reservoir Media's financial position, including liquidity, debt, and cash flow from operations Balance Sheet and Liquidity Summary 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] Fiscal Year 2026 Outlook Reservoir Media reaffirms its financial guidance for FY2026, projecting continued growth in revenue and Adjusted EBITDA FY2026 Guidance 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] Appendix: Financial Statements and Non-GAAP Reconciliations This appendix provides detailed unaudited financial statements and reconciliations of non-GAAP measures for Q1 FY2026 Condensed Consolidated Statements of Income 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 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 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 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 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 |