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    Earnings call· Mar 2026(Q4 FY26)

    Reservoir Media Q4 FY26 earnings call RSVR

    May 28, 2026 Source

    Executive summary

    Reservoir Media, Inc. Q4 FY26 — Strong Growth Driven by Acquisitions and Digital Revenue

    Reservoir Media delivered a strong fiscal year 2026, driven by disciplined catalog acquisitions and robust digital revenue growth across both Music Publishing and Recorded Music segments. The company expanded its international footprint with strategic investments in high-growth markets like India and MENA, while also investing in contemporary hitmakers and reinforcing long-standing relationships. Management is focused on sustained long-term growth through continued capital deployment and value enhancement efforts.

    Highlights

    5

    • Generated 11% revenue growth to $175.7 million for FY26, with 6% organic growth.

    • Achieved 12% adjusted EBITDA growth to $73.6 million for FY26.

    • Q4 FY26 revenue increased 15% to $47.5 million, with Recorded Music up 27% and Music Publishing up 11%.

    • Digital revenue increased 7% in Music Publishing and 18% in Recorded Music for FY26.

    • Sync business grew 5% in Music Publishing and 39% in Recorded Music year-over-year.

    Concerns

    3

    • Interest expense increased to $26.5 million for FY26, up from $21.9 million in FY25, due to increased debt for acquisitions.

    • Q4 FY26 interest expense rose to $6.8 million from $6.1 million in the prior year.

    • FY27 adjusted EBITDA margin is expected to slightly step down due to lower-margin Viral Wave acquisition and investments in recorded business frontline.

    Guidance & targets

    2
    CategoryTargetConfidence
    Revenue
    $186 million to $191 million
    high materiality
    High
    Adjusted EBITDA
    $75 million to $79 million
    high materiality
    High

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Music Publishing
    Q4 FY26 revenue increase inclusive of acquisitions.
    Digital revenue: $16.9 million (+24%)Performance revenue: $5.5 million (-16%)Synchronization revenue: $5.8 million (+6%)Mechanical revenue: $1.3 million (+16%)Other revenue: $1.4 million (+20%)
    		$30.9 million11%——
    Recorded Music
    Q4 FY26 revenue increase.
    Digital revenue: +17% (due to subscriber growth and price increases at DSPs)Physical revenue: +35%Synchronization revenue: +161% (due to timing of licenses)Neighboring rights: $1.4 million (+18% due to additional direct affiliations with collection societies)
    		$15.2 million27%——
    Music Publishing
    Full year FY26 improvement largely a result of price increases at multiple music streaming services and catalog expansion through M&A. Synchronization revenue increased due to timing of licenses and performance revenue grew 14% as a result of hit songs.
    		—9%——
    Recorded Music
    Full year FY26 growth attributable to acquisition of additional music catalogs, continued user growth, and price increases at multiple streaming services. Partially offset by non-recurrence of royalty recoveries in the prior year. Increase aided by synchronization revenue driven by timing of licenses.
    		—16%——

    Operational metrics

    35
    Revenue
    $175.7 million+11% YoY
    FY26

    Above the top end of previously stated guidance range.

    Organic growth
    6%
    FY26

    N/A

    Adjusted EBITDA
    $73.6 million+12% YoY
    FY26

    N/A

    Acquisition and advances spend
    approximately $120 million
    FY26

    Deployed across acquisitions and advances for both publishing and recorded rights.

    Cost of revenue increase
    8%YoY
    FY26

    Attributed to a higher revenue base resulting from acquisitions and value enhancement efforts.

    Administration expenses
    $44.7 million+12% YoY
    FY26

    Primarily due to higher administrative expenses in both Music Publishing and Recorded Music segments, and costs associated with the Viral Wave acquisition.

    Interest expense
    $26.5 millionvs $21.9 million FY25
    FY26

    Higher interest expense due to an increase in debt resulting from acquisitions of music catalogs and writer signings.

    Net income
    $7.8 millionvs $7.7 million FY25
    FY26

    Increase primarily due to increased operating income and a decrease in loss on fair value of interest rate swaps, partially offset by higher interest and income tax expense.

    Diluted EPS
    $0.13vs $0.12 FY25
    FY26

    N/A

    Weighted average diluted outstanding shares
    66 million
    FY26

    N/A

    Cash flows from operating activities
    $50.1 million+$4.9 million YoY
    FY26

    Due to an increase in earnings and cash provided by working capital.

    Cash on hand
    $25.9 million
    March 31, 2026

    N/A

    Available revolver
    $91.2 million
    March 31, 2026

    N/A

    Total liquidity
    $117.1 million
    March 31, 2026

    Comprised of cash on hand and available under revolver.

    Total debt
    $455.7 million
    March 31, 2026

    Net of deferred financing costs.

    Net debt
    $429.8 millionvs $366.7 million FY25
    March 31, 2026

    N/A

    Music Publishing digital revenue growth
    7%YoY
    FY26

    N/A

    Recorded Music digital revenue growth
    18%YoY
    FY26

    N/A

    Music Publishing Sync growth
    5%YoY
    FY26

    N/A

    Recorded Music Sync growth
    39%YoY
    FY26

    N/A

    Music Publishing performance revenue growth
    14%YoY
    FY26

    N/A

    Global recorded music industry growth
    6%YoY
    2025

    According to IFPI.

    Global music publishing industry growth
    9.5%YoY
    2025

    According to Music & Copyright 2026 report.

    India streaming market projection
    over $4.8 billionCAGR of over 17%
    by 2030

    N/A

    MENA recorded revenues growth
    15.2%YoY
    2025

    N/A

    MENA market projection
    $8.5 billion
    by 2030

    N/A

    Revenue
    $47.5 million+15% YoY
    Q4 FY26

    N/A

    Cost of revenue increase
    13%YoY
    Q4 FY26

    N/A

    Depreciation and amortization increase
    20%YoY
    Q4 FY26

    Due to continued catalog acquisitions.

    Company administration expenses increase
    16%YoY
    Q4 FY26

    Partially due to costs incurred with the acquisition of Viral Wave.

    OIBDA
    $19.9 million+16% YoY
    Q4 FY26

    N/A

    Adjusted EBITDA
    $21.2 million+16% YoY
    Q4 FY26

    Largely driven by strong top line growth, particularly in digital category across both segments, partially offset by higher administration expenses.

    Interest expense
    $6.8 millionvs $6.1 million Q4 FY25
    Q4 FY26

    N/A

    Net income
    $4.1 millionvs $2.7 million Q4 FY25
    Q4 FY26

    N/A

    Diluted EPS
    $0.07vs $0.04 Q4 FY25
    Q4 FY26

    N/A

    Industry KPIs

    1
    MetricValueDetails
    Content spend title performanceSabrina Carpenter, espresso

    Product announcements

    3
    ProductTypeDetails
    Miles Davis Centennial Campaignmilestone
    Pop Indialaunch
    Palam Musicupdate

    Deals & partnerships

    6
    Miles Davis estateacquisition

    Acquired the catalog of music and culture icon Miles Davis.

    Fools Gold Recordsacquisition

    Acquisition of Catalog master rights of several of the label's artists and an exclusive partnership to market and distribute all their recordings via the Reservoir label platform.

    Music Craft Entertainmentacquisition

    Pop India executed its first catalog deal, acquiring the publishing and master rights to the entire Music Craft Entertainment catalog.

    Viral Waveacquisition

    Acquired label and digital distribution company together with Pop Arabia, Reservoir's partner in the MENA region.

    HFM production and Essa Almarzougacquisition

    Acquired the publishing and recorded music catalog of Iraqi production house HFM production and Kuwaiti Singer-Songwriter Essa Almarzoug.

    88 Youngpublishing deal

    Executed a publishing deal with Moroccan Artist producer, 88 Young.

    Risks & headwinds

    2
    Increased interest expenseFY26 and Q4 FY26

    $26.5 million for FY26 (vs $21.9 million FY25); $6.8 million for Q4 FY26 (vs $6.1 million Q4 FY25)

    Mitigation: Continued disciplined capital deployment and cost management.

    Adjusted EBITDA margin compressionFY27

    Slight step down in FY27 guidance

    Mitigation: Due to lower-margin Viral Wave acquisition and continued investments in the frontline of the recorded music business.

    Q&A highlights

    7

    Seeking more context on the size, scale, and financial impact of the Viral Wave catalog and business.

    Viral Wave is an established distribution business with existing clients and headcount, which Reservoir plans to expand upon. It's a lower-margin business but is expected to expand opportunities in the MENA region.

    “it is a business that comes with a stable of existing clients and existing relationships and existing product, hence the headcount. and we plan on expanding on that, but it's an investment in an entity that is already an established business.”

    asked by Griffin Boss · answered by Golnar Khosrowshahi

    2 min read5 chapters

    Detailed Narrative

    01

    Strategic Acquisitions & Catalog Expansion

    Reservoir deployed approximately $120 million in FY26 across acquisitions and advances for both publishing and recorded rights. This enabled the company to retain exceptional creators, sign leading contemporary hitmakers, and diversify its catalog by genre, era, and geographic representation. Notable acquisitions included the catalog of music and culture icon Miles Davis and the master rights of Fools Gold Records. The company also reinforced long-standing relationships, extending deals with artists like Joni Mitchell and Hans Zimmer.

    02

    International Market Expansion

    The company significantly expanded its international presence by launching Pop India, a Mumbai-based subsidiary, which signed a publishing deal with DIVINE and acquired the publishing and master rights to the Music Craft Entertainment catalog. In the MENA region, Pop Arabia acquired Viral Wave, a label and digital distribution company. This acquisition expanded Pop Arabia's team to over 30 employees across Egypt, Morocco, and the UAE, establishing a fully integrated distribution infrastructure and creating additional opportunities for cross-border collaboration. These moves target high-growth streaming markets, with India projected to reach over $4.8 billion by 2030 and MENA $8.5 billion by 2030.

    03

    Digital and Sync Business Growth

    Digital revenue increased 7% in Music Publishing and 18% in Recorded Music for FY26, driven by subscriber growth and price increases at Digital Service Providers (DSPs). The Sync business also demonstrated strong performance, growing 5% in Music Publishing and 39% in Recorded Music year-over-year. This growth was fueled by placements with leading global brands such as Anthoropic, Volkswagen, Netflix, Lexus, and Amazon, as well as major feature films and television shows like Happy Gilmore 2 and Stranger Things.

    04

    CRB Proceedings and Industry Outlook

    Management remains optimistic regarding the CRB (Copyright Royalty Board) proceedings, anticipating a positive impact on the share of income for songwriters and publishers, although this optimism is not factored into their current financial forecasts. The music industry continues to exhibit resilience, with global recorded music growing 6% and music publishing revenues growing 9.5% globally in 2025, according to IFPI and Music & Copyright reports, respectively.

    05

    Board Special Committee Formed

    In March 2026, the Board of Directors formed a special committee composed of independent and disinterested directors to evaluate nonbinding and unsolicited acquisition proposals received by the company. The committee engaged Morgan Stanley & Company LLC as its financial adviser and Wachtell Lipton, Rosen & Katz as its legal counsel. No additional updates were provided on the call, with the company stating it would provide further information as appropriate.

    AI-generated summary of the company’s earnings call. Not investment advice.