Reservoir Media, Inc. Delivers Record FY26 Results and Sets Mid-Single-Digit Growth Outlook for FY27
Summary of Key Financial Results and Highlights
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Record Financial Performance:
- Full-year Revenue: \$175.7 million, up 11% YoY (6% organic growth, 5% from acquisitions)
- Operating Income: \$38.2 million, up 9% YoY
- OIBDA: \$69.0 million, up 12% YoY
- Adjusted EBITDA: \$73.6 million, up 12% YoY
- Net Income: \$7.8 million (\$0.13 per diluted share), slightly above last year’s \$7.7 million (\$0.12 per share)
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Strong Q4 Results:
- Revenue: \$47.5 million, up 15% YoY
- Operating Income: \$11.8 million, up 13% YoY
- OIBDA: \$19.9 million, up 16% YoY
- Adjusted EBITDA: \$21.2 million, up 16% YoY
- Net Income: \$4.1 million (\$0.07 per diluted share), up from \$2.7 million (\$0.04 per share) last year
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Segment Growth:
- Music Publishing: FY26 revenue \$116.8 million, up 9% YoY; Q4 revenue \$30.9 million, up 11% YoY
- Recorded Music: FY26 revenue \$51.5 million, up 16% YoY; Q4 revenue \$15.2 million, up 27% YoY
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International Expansion and Strategic Acquisitions:
- Acquired the publishing catalog, recorded music, and name & likeness rights of Miles Davis
- Extended deals with Hans Zimmer (Remote Control Publishing), Joni Mitchell, and Khris Riddick-Tynes
- Launched PopIndia, a Mumbai-based subsidiary, signing local stars (Yohani, Musicraft catalog)
- Fool’s Gold Records deal: Acquired catalog master rights and exclusive marketing/distribution rights
- PopArabia acquired Viral Wave, expanding in the MENA region
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Robust Balance Sheet & Liquidity:
- Cash provided by operating activities: \$50.1 million (up \$4.9 million YoY)
- Cash & Equivalents: \$25.9 million as of March 31, 2026
- Total Available Liquidity: \$117.1 million (\$25.9M cash + \$91.2M credit facility access)
- Total Debt: \$455.7 million; Net Debt: \$429.8 million
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FY27 Financial Outlook (Guidance):
- Revenue: \$186-191 million (7% growth at midpoint)
- Adjusted EBITDA: \$75-79 million (5% growth at midpoint)
Details of Key Developments and Potential Price-Sensitive Information
- Major Catalog and Artist Acquisitions: The purchase of the Miles Davis publishing and recorded catalog, as well as shared rights to his name and likeness, is highly strategic. This could drive both near-term and long-term revenue from licensing, branding, and international exploitation.
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Expansion in High-Growth Markets:
- The launch of PopIndia (Mumbai) and signings of high-profile Indian talent (Yohani, Musicraft catalog) positions Reservoir for accelerated growth in one of the world’s fastest-growing music markets.
- PopArabia’s acquisition of Viral Wave increases Reservoir’s leverage and revenue potential in the MENA region, another music industry hotspot.
- Strategic Partnerships: Renewed deals with Hans Zimmer, Joni Mitchell, and Khris Riddick-Tynes further secure high-value, stable revenue streams and reinforce Reservoir’s reputation as a preferred partner for premier creators.
- Recorded Music Outperformance: Q4 2026 Recorded Music revenue grew 27% YoY, with Synchronization revenues up 161% in the quarter. This demonstrates the success of Reservoir’s recent catalog and label acquisitions and reflects strong demand for sync placements.
- Operational Leverage: OIBDA and Adjusted EBITDA margins both improved alongside revenue growth, supported by lower cost of revenue as a percentage of sales. This suggests strong scalability and operating efficiency.
- Debt & Liquidity: The company now holds higher net debt (\$429.8 million vs. \$366.7 million LY), mainly due to strategic acquisitions. Liquidity remains robust, with ample credit headroom.
- FY27 Outlook and Guidance: Reservoir expects mid-single-digit growth in both the top and bottom lines, driven by a robust deal pipeline and international expansion. If delivered, this would mark another year of record results.
Management Commentary
CEO Golnar Khosrowshahi emphasized the company’s “strong growth and continued strategic investment,” highlighting the expansion of the catalog, international presence, and relationships with iconic talent as drivers of Reservoir’s momentum. She also noted a “robust deal pipeline and a financial profile that supports both organic growth and disciplined capital deployment,” positioning the company for continued outperformance.
CFO Jim Heindlmeyer added that the “full-year 2026 results underscore the strength and resilience of our portfolio,” and pointed to the company’s guidance for 7% revenue and 5% Adjusted EBITDA growth as evidence of confidence in Reservoir’s strategy and execution.
Other Notable Points for Shareholders
- Acquisition Costs: The company incurred professional fees in connection with the Viral Wave acquisition and for a Special Committee evaluating unsolicited acquisition proposals. This suggests M&A interest around Reservoir, which may be price sensitive and could impact the share price if further developments occur.
- Non-GAAP Measures: Management highlights that OIBDA, Adjusted EBITDA, and Net Debt are key metrics, but notes that these are non-GAAP measures and should be considered alongside GAAP results.
- International Expansion: Reservoir’s aggressive moves into India and MENA are strategic bets to capture global music industry growth. Success in these regions could materially boost future earnings and add to long-term shareholder value.
- Investor Call: Reservoir is hosting a conference call to discuss results and outlook, which may provide further color on strategy and deal activity.
Conclusion
Reservoir Media, Inc. delivered another record year in FY26, driven by strong organic growth, strategic catalog acquisitions, and international expansion. The company’s robust pipeline, improved operating leverage, and new market entries in India and MENA set the stage for continued growth in FY27. Investors should closely monitor developments around further acquisitions, international performance, and any outcomes from the Special Committee’s review of acquisition proposals.
Disclaimer
This article is for informational purposes only and does not constitute investment advice. Forward-looking statements are subject to risk and uncertainty. Investors should review Reservoir Media, Inc.’s filings with the SEC and consult their own advisors before making any investment decisions.
