Core Insights - Reservoir Media reported Q1 FY2026 results with GAAP revenue of $37.2 million, an 8% increase year-over-year, but below analyst expectations of $38.065 million [1][5] - The company experienced an increase in operating income and adjusted EBITDA, while net loss widened to $0.6 million from $0.5 million in Q1 FY2025 [1][6] Financial Performance - GAAP revenue for Q1 FY2026 was $37.2 million, up 8% from $34.3 million in Q1 FY2025 [2] - Operating income increased by 8% to $5.4 million, while adjusted EBITDA rose 10% to $13.9 million [2][5] - Net loss (GAAP) increased to $0.6 million, reflecting a 20% rise compared to the previous year [2][6] Business Strategy - Reservoir Media focuses on acquiring, managing, and monetizing music catalogs, serving as both a music publisher and recorded music rights holder [3] - The company emphasizes five strategic areas for growth: aggressive acquisition of music rights, investment in digital and streaming growth, expansion in emerging markets, rigorous protection of music rights, and leveraging an experienced management team [4] Segment Performance - The Music Publishing segment generated $24.9 million in GAAP revenue, a 4% increase, with synchronization licensing revenue surging 48% to $4.2 million [7] - The Recorded Music segment saw an 8% revenue growth to $10.4 million, with digital revenue increasing by 23% [8][11] Catalog and Digital Rights - During the quarter, Reservoir Media acquired master rights for five artists and invested in a London-based immersive entertainment company [10] - Digital sales in Recorded Music rose by 23% to $8.0 million, while digital revenue in Music Publishing declined by 2% [11] International Expansion - The company is prioritizing expansion into international markets, particularly in India and the Middle East, with previous announcements of new subsidiaries [12] Financial Outlook - Management targets FY2026 revenue between $164 million and $169 million, indicating a conservative growth outlook [14] - Total liquidity improved to $173 million, while net debt increased to $372.5 million [15]