Reservoir Media(US:RSVR)2026-02-04 21:05Financial Performance - Revenues for the three months ended December 31, 2025, were $45,568,000, an increase of 8% compared to $42,304,000 for the same period in 2024[79] - For the nine months ended December 31, 2025, revenues reached $128,167,000, reflecting a 9% increase from $117,288,000 in 2024[79] - Operating income for the three months ended December 31, 2025, was $10,327,000, an 8% increase from $9,558,000 in 2024[79] - Net income for the three months ended December 31, 2025, was $2,203,000, a decrease of 59% from $5,312,000 in 2024[79] - Total revenues increased by $3,264 thousand, or 8%, for the three months ended December 31, 2025, compared to the same period in 2024, driven by a 12% increase in Music Publishing revenues and an 8% increase in Recorded Music revenues[80] - Total revenues for the nine months ended December 31, 2025, increased by $10,879 thousand, or 9%, compared to the same period in 2024[87] - Revenues for the nine months ended December 31, 2025, were $117,288 thousand, reflecting a 9% increase compared to $107,409 thousand in 2024[130] Revenue Breakdown - Digital revenues increased by $1,968 thousand, or 8%, during the three months ended December 31, 2025, representing 59% of total revenues[82] - Music Publishing revenues increased by $3,228 thousand, or 12%, during the three months ended December 31, 2025, with performance revenue contributing $1,850 thousand to this increase[83] - Recorded Music revenues increased by $908 thousand, or 8%, during the three months ended December 31, 2025, primarily due to a $1,208 thousand increase in digital revenue[85] - Total digital revenues for the nine months ended December 31, 2025, increased by $5,085 thousand, or 7%, representing 58% of total revenues[88] - Music Publishing revenues for the nine months ended December 31, 2025, increased by $6,441 thousand, or 8%, driven by a $3,905 thousand increase in performance revenue[89] - Recorded Music revenues for the nine months ended December 31, 2025, increased by $4,012 thousand, or 12%, mainly due to a $4,162 thousand increase in digital revenue[91] Costs and Expenses - The cost of revenue for the three months ended December 31, 2025, was $16,198,000, a 7% increase from $15,068,000 in 2024[79] - Administration expenses for the three months ended December 31, 2025, were $11,253,000, a 3% increase from $10,964,000 in 2024[79] - The total costs and expenses for the three months ended December 31, 2025, were $35,240,000, an 8% increase from $32,746,000 in 2024[79] - Cost of revenue increased by $1,130 thousand, or 7%, during the three months ended December 31, 2025, with a cost of revenue as a percentage of revenues at 36%[94] - Writer royalties and other publishing costs increased by $886 thousand, or 8%, during the three months ended December 31, 2025, with costs as a percentage of Music Publishing revenues decreasing to 42%[95] - Cost of revenue increased by $2,742 thousand, or 6%, for the nine months ended December 31, 2025, with cost of revenue as a percentage of revenues decreasing to 36% from 37%[97] - Writer royalties and other publishing costs for the Music Publishing segment increased by $1,952 thousand, or 6%, with costs as a percentage of Music Publishing revenues decreasing to 42% from 43%[98] - Artist royalties and other recorded music costs for the Recorded Music segment increased by $790 thousand, or 9%, with costs as a percentage of Recorded Music revenues decreasing to 27% from 28%[100] Income and Profitability - Net income attributable to Reservoir Media, Inc. for the three months ended December 31, 2025, was $2,196,000, a 58% decrease from $5,244,000 in 2024[79] - OIBDA increased by $4,951 thousand, or 11%, during the nine months ended December 31, 2025, compared to the same period in 2024, driven by increases in Music Publishing and Recorded Music OIBDA[135] - OIBDA Margin remained stable at 38% for both the nine months ended December 31, 2025, and December 31, 2024[135] - Music Publishing OIBDA increased by $3,031 thousand, or 11%, for the nine months ended December 31, 2025, with the OIBDA Margin rising to 35% from 34%[136] - Recorded Music OIBDA increased by $1,923 thousand, or 12%, for the nine months ended December 31, 2025, maintaining an OIBDA Margin of 50%[137] - Operating income increased by $1,819 thousand, or 7%, for the nine months ended December 31, 2025, with an operating income margin of 21%[114] - OIBDA for the three months ended December 31, 2025, increased by $1,845 thousand, or 11%, compared to the same period in 2024, with an OIBDA Margin of 40%[132] - Music Publishing OIBDA for the three months ended December 31, 2025, increased by $1,894 thousand, or 21%, with an OIBDA Margin of 37%[133] - Recorded Music OIBDA for the three months ended December 31, 2025, increased by $328 thousand, or 5%, with a slight decrease in OIBDA Margin to 52%[134] Debt and Financing - As of December 31, 2025, the company had $452,259 thousand of debt and $20,591 thousand of cash and cash equivalents[142] - The company’s outstanding debt under the Senior Credit Facility was $455,828 thousand as of December 31, 2025, with remaining borrowing availability of $94,172 thousand[151] - The Senior Credit Facility was amended to increase the revolving credit commitment from $450,000 thousand to $550,000 thousand[153] - The company expects to continue to take steps to extend maturity dates and reduce related interest expenses, depending on market conditions[155] - Cash provided by financing activities was $61,203 thousand for the nine months ended December 31, 2025, an increase of $22,687 thousand or 59% compared to $38,516 thousand in 2024[148] Cash Flow - Cash provided by operating activities was $38,230 thousand for the nine months ended December 31, 2025, an increase of $5,125 thousand or 15% compared to $33,105 thousand in 2024[146] - Cash used for investing activities was $100,019 thousand for the nine months ended December 31, 2025, an increase of $28,089 thousand or 39% compared to $71,930 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, leading to a conclusion that disclosure controls and procedures were not effective as of December 31, 2025[172] - The company successfully remediated three of four material weaknesses related to segregation of duties, lack of qualified personnel, and ineffective risk assessment processes as of March 31, 2025[173] - Corrective actions have been implemented to address the fourth material weakness related to the third-party Recorded Music royalty system as of December 31, 2025[173] - Ongoing evaluation of the effectiveness of improved control activities is in progress, with management monitoring remediation plans[174] - No changes in internal control over financial reporting materially affecting the company were reported during the three months ended December 31, 2025[175]