Reservoir Media, Inc. (RSVR) Market Cap
Reservoir Media, Inc. has a market capitalization of $656M.
Financials based on reported quarter end 2025-12-31
Price: $10.00
▲ 0.09 (0.91%)
Market Cap: 656.00M
NASDAQ · time unavailable
CEO: Golnar Khosrowshahi
Sector: Communication Services
Industry: Entertainment
IPO Date: 2021-01-05
Website: https://www.reservoir-media.com
Reservoir Media, Inc. (RSVR) - Company Information
Market Cap: 656.00M · Sector: Communication Services
Reservoir Media, Inc. operates as a music publishing company. It operates in two segments, Music Publishing and Recorded Music. The Music Publishing segment acquires interests in music catalogs, as well as signs songwriters. The Recorded Music segment engages in the acquisition of sound recording catalogs; discovery and development of recording artists; and marketing, distribution, sale, and licensing of the music catalogs. The company was founded in 2007 and is headquartered in New York, New York. Reservoir Media, Inc. is a subsidiary of Reservoir Holdings, Inc.
Analyst Sentiment
Based on 2 ratings
Analyst 1Y Forecast: $0.00
Average target (based on 1 sources)
Consensus Price Target
Low
$12
Median
$12
High
$12
Average
$12
Potential Upside: 15.0%
Price & Moving Averages
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Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"For the fiscal year ending December 31, 2025, RSVR reported revenue of $45.6M and a net income of $2.2M, translating to an earnings per share (EPS) of $0.0335. The company maintains solid operating cash flow of approximately $12.9B, indicating strong cash generation capacity despite a minimal capital expenditure of $128.4M. RSVR exhibits a healthy balance sheet with total assets of $941.9M, total liabilities of $567.1M, and total equity of $374.8M, resulting in a net debt level of $438.9M, suggesting manageable leverage. The company's stock price has shown positive momentum with a one-year price change of 24.7%, leading to strong shareholder returns despite the absence of dividends. Current price targets suggest further upside potential as the median target stands at $11.5, above the current trading price of $9.29. Overall, RSVR displays promising growth potential supported by robust cash flow and effective asset management."
Revenue Growth
Significant revenue of $45.6M shows promising growth.
Profitability
Net income of $2.2M indicates profitability but margin could improve.
Cash Flow Quality
Strong operating cash flow of $12.9B enhances cash generation quality.
Leverage & Balance Sheet
Manageable leverage with a net debt of $438.9M relative to assets.
Shareholder Returns
Strong one-year price appreciation of 24.7% indicates good total returns.
Analyst Sentiment & Valuation
Price targets suggest upside potential in the stock price.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
So What? Management is clearly in an execution-and-raising-guidance mode: Q3 revenue $45.6M (+5% organic / +8% with acquisitions), OIBDA $18.1M (+11%) and adjusted EBITDA $19.2M (+11%)—and they raised FY26 revenue to $170M–$173M and adjusted EBITDA to $71.5M–$73.5M. However, the Q&A pressure exposed that the clean story has financial noise underneath: net income fell to ~$2.2M (from $5.3M) primarily from a swaps fair value loss and higher interest expense tied to higher borrowings for M&A. On catalysts, they sounded confident on deal cadence (Q4 staying at the elevated clip; no change in weighted-average acquisition multiples). The caution is more “comps/uncertainty” than acute: no unusual Q4 one-offs unlike last year’s audit-based royalty recoveries, but there’s uncertainty around the CRB process for 2027. Net: optimistic growth tone vs underlying earnings-item volatility and macro/regulatory uncertainty.
Growth Catalysts
- Organic revenue up 5% YoY; total revenue up 8% including acquisitions (driven by digital revenue growth and acquisitions of catalogs)
- Music Publishing revenue up 12% YoY to $30.1M (performance revenue from hit songs + digital revenue from acquired catalogs and streaming growth)
- Recorded Music revenue up 8% YoY to $12.9M (digital revenue growth from streaming + higher neighboring rights; partially offset by lower sync revenue due to timing)
Business Development
- Acquisition of publishing + recorded music rights of yacht rock icon Bertie Higgins; includes evergreen hit "Key Largo"
- Partnerships with R&B legend Gladys Knight (rights to income streams across publishing and master recording catalogs)
- Partnership with HipHop icon TI (work across entire publishing back catalog and future works; select recorded music interests incl. master recordings, artist royalties, neighboring rights)
- Global publishing deal with band Say She She (past + future works)
- Added songwriter Allison Veltz Cruz (credits incl. artists Matt Stell, Tenille Arts, Jason Aldean, Luke Combs, Lady A; specifically noted as having #1 hits and credits)
- Added songwriter/producer Britten Newbill (writing/producing credits incl. Cap Burns, Olivia Dean, Daya, Meghan Trainor)
- Extended publishing agreement with Indian hip-hop artist Divine via Reservoir subsidiary PopIndia; partnership originally signed in 2020 and includes JV with Divine umbrella company Gully Gang Entertainment
- Joint venture with Dan's Hall publisher Abood Music and Jamaican creator Cordel Skatta Burrell (Coolie Dance Rhythm); plans to acquire catalogs and sign/develop Jamaican creators
Financial Highlights
- Reported revenue: $45.6M in Q3 FY26; +5% YoY organic and +8% including acquisitions
- Segment growth: Music Publishing +12% YoY to $30.1M; Recorded Music +8% YoY to $12.9M
- Cost trend: total cost +8% YoY (admin expenses +3%, cost of revenue +7%, amortization & depreciation +16%)
- Operating profitability: OIBDA $18.1M (+11% YoY); adjusted EBITDA $19.2M (+11% YoY)
- Net income decreased to ~$2.2M vs $5.3M prior-year quarter; drivers: loss on fair value of swaps (vs gain last year), higher interest expense and other income changes; partially offset by higher operating income and lower income tax expense
- EPS: $0.03 vs $0.08 in year-ago quarter; diluted shares ~66M
- Interest expense: $6.6M, up $0.8M YoY driven by higher borrowings for M&A strategy (partially offset by lower interest rates)
- No Q4 unusual one-time events called out by management; prior-year comps included royalty recoveries from two completed audits (Q3 and Q4 last year)
Capital Funding
- Liquidity: $114.8M total (cash $20.6M; revolver availability $94.2M)
- Debt: total debt $452.3M (net of $3.6M deferred financing costs); net debt $431.7M vs net debt $366.7M as of Mar 31, 2025
- No explicit buyback amount or share repurchase data provided in this transcript
Strategy & Ops
- Guided strategy emphasis: acquire quality catalogs while maintaining operating leverage; grow top line without excess cost
- M&A execution pace: management expects Q4 deal activity to remain at the same elevated clip as past two quarters (timing subject to shifts)
Market Outlook
- Raised FY26 revenue guidance range to $170M–$173M (from $167M–$170M); midpoint implies +8% growth vs FY25
- Raised FY26 adjusted EBITDA guidance range to $71.5M–$73.5M (from $70M–$72M); midpoint signals >10% growth vs prior year
- No specific date or additional Q4 financial guidance beyond intent to achieve increased full-year ranges
Risks & Headwinds
- EPS and net income volatility: net income down YoY despite operating improvement due to fair value swaps (loss this year vs gain last year) and higher interest expense
- Recorded Music: synchronization revenue partially offset by timing of licenses (implies quarter-to-quarter variability)
- Macro/market uncertainty: management cited uncertainty around CRB process (asked as tail/headwind in relation to 2027 outlook)
- Interest rate/liquidity pressure: interest expense increased due to higher borrowings to fund M&A (partially offset by decreased interest rates)
Sentiment: MIXED
Note: This summary was synthesized by AI from the RSVR Q3 2026 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.