Core Insights - Reservoir Media is focusing on diversification through acquisitions of iconic catalogs and newer creators, including the recent acquisition of Bertie Higgins' music rights and the Miles Davis catalog [1][5] - The company reported a 12% increase in music publishing revenue and an 8% increase in recorded music revenue year-over-year, driven by acquisitions and growth in digital revenue and streaming services [2][14] - CEO Golnar Khosrowshahi emphasized the strategy of deepening relationships with top-tier talent and expanding into emerging markets, with organic growth of 5% year-over-year [3][10] Financial Performance - For fiscal Q3 2026, Reservoir reported revenue of $45.6 million, reflecting 5% organic growth and 8% growth including acquisitions, with OIBDA and adjusted EBITDA both up 11% to $18.1 million and $19.2 million respectively [6][11] - The company raised its full-year 2026 revenue guidance to $170–173 million and adjusted EBITDA guidance to $71.5–73.5 million, indicating more than 10% growth at the midpoint [16][19] - Total debt increased to $452.3 million, with net income of approximately $2.2 million, down from $5.3 million in the previous year, primarily due to higher interest expenses and a loss on fair value of swaps [4][13] Strategic Initiatives - Reservoir's acquisition strategy includes partnerships with artists like Gladys Knight and T.I., focusing on both publishing and recorded music rights [7][9] - The company is investing in emerging markets, with initiatives such as a joint venture with Abood Music and partnerships with Indian hip-hop artist Divine, aimed at talent development in the hip-hop ecosystem [8][10] - Management noted that while some emerging markets offer favorable acquisition multiples, the Latin market is considered mature and comparable to Western markets [10][19] Market Outlook - The company anticipates continued M&A activity at a similar pace in the upcoming quarter, with no significant changes in acquisition multiples observed [17][19] - Management highlighted both tailwinds and uncertainties in the broader music industry, including subscription growth and price increases across streaming platforms, but remains optimistic about continued industry growth [19][20]