Reservoir Media (RSVR) Q3 2025 Earnings Transcript

Core Insights - Reservoir Media reported strong financial results for Q3 FY2025, with total revenue of $42.3 million, reflecting a 19% year-over-year increase driven by growth in both music publishing and recorded music revenues [1][11][12] Financial Performance - Total revenue increased by 19% year-over-year, with music publishing revenue up 16% and recorded music revenue up 20% [1][12] - Adjusted EBITDA reached $17.3 million, a 26% improvement from the previous year [5][12] - Net income for the quarter was approximately $5.3 million, compared to a net loss of $2.9 million in Q3 FY2024 [13][14] - Earnings per share for the quarter was $0.08, compared to a loss of $0.05 in the same quarter last year [14] Revenue Drivers - The growth in music publishing revenue was primarily driven by price increases at multiple music streaming services and the acquisition of new catalogs [14][15] - Recorded music revenue growth was supported by a royalty recovery related to underreported usage from a specific music catalog [12][15] Strategic Initiatives - The company has deployed over $70 million in catalog acquisitions year-to-date, including notable talents like Snoop Dogg and k.d. lang [6][18] - Reservoir's strategy includes focusing on off-market deals facilitated by extensive industry relationships, which have been key to successful M&A execution [5][21] Market Position - Reservoir achieved the sixth largest market share of top radio airplay and the eighth largest share of the Billboard Hot 100 [10] - The company celebrated six Grammy wins across its roster, highlighting its strong presence in the music industry [10][11] Future Outlook - The company raised its full-year revenue guidance from $150 million to a new range of $155 million to $158 million, indicating an expected growth of 8% compared to FY2024 [17] - Adjusted EBITDA guidance was also increased to a range of $61.5 million to $64.5 million, signaling growth of over 13% year-over-year [17][18]