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1. Company Snapshot

1.a. Company Description

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.

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1.b. Last Insights on RSVR

Reservoir Media's recent performance was driven by strong Q4 2025 earnings, with revenue increasing 10% year-over-year to $158.7 million, and operating income rising 43% to $35.1 million. Music publishing revenue grew 12% year-over-year, while recorded music revenue increased 4%. The company also expanded its portfolio across genres and geographies, signing publishing deals with notable artists such as Snoop Dogg and Death Row Records. Additionally, Reservoir launched a new subsidiary, PopIndia, in Mumbai, India, marking its seventh global office and further solidifying its presence in the global music industry.

1.c. Company Highlights

2. Reservoir's Q2 Earnings: A Strong Performance

Reservoir's financial performance in the second fiscal quarter was impressive, with revenue reaching $45.4 million, a 7% year-over-year improvement on an organic basis and a 12% increase when including acquisitions. Operating income before depreciation and amortization (OIBDA) was $18.2 million, an increase of 10% year-over-year, while adjusted EBITDA was also up 10% to $19.4 million. The company's actual EPS came out at $0.03, below estimates of $0.05. The revenue growth was driven by a mix of organic growth, acquisitions, and industry tailwinds, with Jim Heindlmeyer noting that "we're always working to maximize and grow the new assets that we acquire."

Publication Date: Nov -18

📋 Highlights
  • Revenue Growth:: Q2 revenue reached $45.4 million, reflecting 7% organic growth and 12% total growth (including acquisitions) year-over-year.
  • Miles Davis Acquisition:: Added iconic catalog, name, and likeness of Miles Davis, with plans for a 2026 centennial celebration spanning films, tours, and re-releases.
  • Client Retention:: Extended publishing deals for Nick Drake’s catalog and secured rights to Molly Drake’s catalog, reinforcing long-term asset management expertise.
  • Adjusted EBITDA:: Increased 10% year-over-year to $19.4 million, with updated full-year guidance raised to $70–72 million (midpoint implies 8% growth).
  • Revenue Guidance:: Revised upward to $167–170 million (from $164–169 million), reflecting confidence in 6% growth at midpoint versus fiscal 2025.

Revenue Growth Drivers

The 7% organic growth was driven by a combination of industry growth, price increases, and initiatives within Reservoir's control, such as increasing the value of acquired assets and leveraging the catalog. The company is also seeing growth in digital revenue, with a 20% increase driven by the acquisition of catalogs and continued growth at music streaming services.

Acquisition and Expansion

The acquisition of Miles Davis' publishing catalog, recorded music, and name and likeness is expected to provide unique value enhancement opportunities, with several activities planned to commemorate the 100th anniversary of Davis' birth next year. The company has an active and robust deal pipeline of over $1 billion and is well-positioned to achieve its full-year financial goals.

Valuation and Outlook

Reservoir's valuation metrics indicate a relatively low price-to-sales ratio of 0.01 and an EV/EBITDA ratio of 94.41. The company's return on invested capital (ROIC) is 0.89%, while the return on equity (ROE) is 1.84%. Analysts estimate next year's revenue growth at 7.2%. With a strong track record of client retention and a proactive collaborative approach in managing and developing iconic catalogs, Reservoir is poised for continued growth.

3. NewsRoom

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Reservoir Media (NASDAQ:RSVR) Stock Price Down 2.4% – Time to Sell?

Dec -02

Source: defenseworld.net

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Reservoir Media, Inc. (RSVR) Q2 2026 Earnings Call Transcript

Nov -04

Source: seekingalpha.com

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Reservoir Media, Inc. (RSVR) Q2 Earnings Lag Estimates

Nov -04

Source: zacks.com

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Reservoir Media Announces Second Quarter Fiscal 2026 Results

Nov -04

Source: accessnewswire.com

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Reservoir Media to Release Second Quarter Fiscal Year 2026 Results on November 4, 2025

Oct -21

Source: accessnewswire.com

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Reservoir Media (NASDAQ:RSVR) versus Lionsgate Studios (NYSE:LION) Head to Head Contrast

Oct -20

Source: defenseworld.net

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Reservoir Acquires Catalog of Music and Cultural Icon Miles Davis

Sep -09

Source: accessnewswire.com

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Reservoir Media (RSVR) Q1 Revenue Up 8%

Aug -06

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.25%)

6. Segments

Music Publishing

Expected Growth: 10%

Reservoir Media's 10% growth in Music Publishing is driven by increasing demand for licensed music in streaming, film, and TV, as well as strategic acquisitions of iconic catalogs. The company's focus on emerging markets, digital marketing, and royalty collection efficiency also contribute to its growth.

Recorded Music

Expected Growth: 11%

Reservoir Media's 11% growth in Recorded Music is driven by increasing music streaming subscriptions, rising demand for independent music, and strategic acquisitions of music catalogs. Additionally, the company's focus on emerging artists and genres, such as hip-hop and electronic dance music, contributes to its growth.

Other

Expected Growth: 9%

Reservoir Media, Inc.'s 9% growth in 'Other' segment is driven by increasing demand for music publishing and administration services, expansion into new markets, and strategic acquisitions. Additionally, growth in digital music consumption, rise of independent artists, and increasing importance of music in advertising and media also contribute to this growth.

7. Detailed Products

Music Publishing

Reservoir Media, Inc. offers music publishing services, which involve the administration and management of musical compositions, including songwriting, production, and publishing rights.

Recorded Music

Reservoir Media, Inc. provides recorded music services, which include the production, distribution, and marketing of recorded music content.

Sync Licensing

Reservoir Media, Inc. offers sync licensing services, which involve the placement of music in film, television, commercials, and other media.

Artist Development

Reservoir Media, Inc. provides artist development services, which include talent scouting, artist management, and career development.

Music Distribution

Reservoir Media, Inc. offers music distribution services, which involve the delivery of music content to digital platforms and physical retailers.

8. Reservoir Media, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Reservoir Media, Inc. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the evolving nature of the music industry.

Bargaining Power Of Customers

Reservoir Media, Inc. has a diverse client base, which reduces the bargaining power of individual customers. Additionally, the company's strong brand reputation and high-quality services further reduce customer bargaining power.

Bargaining Power Of Suppliers

Reservoir Media, Inc. relies on a network of suppliers, including music publishers, record labels, and other industry partners. While the company has some bargaining power due to its size and reputation, suppliers still have some leverage in negotiations.

Threat Of New Entrants

The music industry is highly competitive, and new entrants can easily disrupt the market. Reservoir Media, Inc. must continually innovate and adapt to stay ahead of new competitors.

Intensity Of Rivalry

The music industry is highly competitive, with many established players and new entrants vying for market share. Reservoir Media, Inc. must focus on differentiating itself and maintaining its market position to succeed.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 47.82%
Debt Cost 8.78%
Equity Weight 52.18%
Equity Cost 8.78%
WACC 8.78%
Leverage 91.65%

11. Quality Control: Reservoir Media, Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Reservoir Media

A-Score: 3.7/10

Value: 4.5

Growth: 2.6

Quality: 4.5

Yield: 0.0

Momentum: 3.0

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Quality: 3.4

Yield: 0.0

Momentum: 4.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

7.43$

Current Price

7.43$

Potential

-0.00%

Expected Cash-Flows