Reservoir Media | 10-K: FY2026 Revenue Beats Estimate at USD 175.66 M

Revenue: As of FY2026, the actual value is USD 175.66 M, beating the estimate of USD 172.63 M.

EPS: As of FY2026, the actual value is USD 0.13, beating the estimate of USD 0.1.

EBIT: As of FY2026, the actual value is USD 64.68 M.

Consolidated Results for Fiscal Year Ended March 31, 2026 vs. 2025

Revenue

• Total revenues increased by $16,958 thousand, or 11%, to $175,664 thousand in Fiscal 2026 from $158,706 thousand in Fiscal 2025.
• Music Publishing revenues represented 66% ($116,803 thousand) of total revenues in Fiscal 2026, compared to 68% ($107,412 thousand) in Fiscal 2025, an increase of $9,390 thousand or 9%.
  • Music Publishing digital revenue increased by $4,163 thousand.
  • Music Publishing performance revenue increased by $2,869 thousand.
  • Music Publishing other revenue increased by $1,114 thousand.
  • Music Publishing synchronization revenue increased by $897 thousand.
  • Music Publishing mechanical revenue increased by $347 thousand.
• Recorded Music revenues represented 29% ($51,514 thousand) of total revenues in Fiscal 2026, compared to 28% ($44,250 thousand) in Fiscal 2025, an increase of $7,264 thousand or 16%.
  • Recorded Music digital revenue increased by $5,682 thousand.
  • Recorded Music synchronization revenue increased by $1,211 thousand.
  • Recorded Music neighboring rights revenue increased by $457 thousand.
  • Recorded Music physical revenue decreased by - $87 thousand.
• Other revenue increased by $305 thousand, or 4%, to $7,348 thousand in Fiscal 2026 from $7,043 thousand in Fiscal 2025.
• Total digital revenues increased by $9,845 thousand, or 11%, in Fiscal 2026 compared to Fiscal 2025, representing 58% of consolidated revenues in both Fiscal 2026 and Fiscal 2025.
• U.S. revenues represented 56% ($98,709 thousand) of total revenues in Fiscal 2026, compared to 59% ($93,619 thousand) in Fiscal 2025, an increase of $5,090 thousand or 5%.
• International revenues represented 44% ($76,956 thousand) of total revenues in Fiscal 2026, compared to 41% ($65,087 thousand) in Fiscal 2025, an increase of $11,869 thousand or 18%.

Costs and Expenses

• Cost of Revenue: Increased by $4,561 thousand, or 8%, to $61,991 thousand in Fiscal 2026 from $57,430 thousand in Fiscal 2025. As a percentage of revenues, it decreased to 35% in Fiscal 2026 from 36% in Fiscal 2025.
  • Writer royalties and other publishing costs increased by $3,309 thousand, or 7%, to $48,470 thousand in Fiscal 2026 from $45,161 thousand in Fiscal 2025. As a percentage of Music Publishing revenues, it decreased to 41% in Fiscal 2026 from 42% in Fiscal 2025.
  • Artist royalties and other recorded music costs increased by $1,252 thousand, or 10%, to $13,521 thousand in Fiscal 2026 from $12,269 thousand in Fiscal 2025. As a percentage of Recorded Music revenues, it decreased to 26% in Fiscal 2026 from 28% in Fiscal 2025.
• Amortization and Depreciation: Increased by $4,484 thousand, or 17%, to $30,783 thousand in Fiscal 2026 from $26,299 thousand in Fiscal 2025.
• Administration Expenses: Increased by $4,744 thousand, or 12%, to $44,659 thousand in Fiscal 2026 from $39,915 thousand in Fiscal 2025. As a percentage of revenues, it remained at 25% in both Fiscal 2026 and Fiscal 2025.
  • Music Publishing administration expenses increased by $2,538 thousand, or 10%, to $27,445 thousand in Fiscal 2026 from $24,907 thousand in Fiscal 2025. As a percentage of Music Publishing revenues, it remained at 23% in both periods.
  • Recorded Music administration expenses increased by $1,897 thousand, or 21%, to $11,129 thousand in Fiscal 2026 from $9,232 thousand in Fiscal 2025. As a percentage of Recorded Music revenues, it increased to 22% in Fiscal 2026 from 21% in Fiscal 2025.
  • Other administration expenses increased by $308 thousand, or 5%, to $6,085 thousand in Fiscal 2026 from $5,777 thousand in Fiscal 2025.
  • Includes $328 thousand in professional fees and other costs related to the Viral Wave Acquisition and the Special Committee.

Operating Income

• Operating income increased by $3,170 thousand, or 9%, to $38,231 thousand in Fiscal 2026 from $35,061 thousand in Fiscal 2025. Operating income margin remained at 22% in both periods.

Other Income and Expenses

• Interest Expense: Increased by $4,569 thousand, or 21%, to - $26,452 thousand in Fiscal 2026 from - $21,883 thousand in Fiscal 2025.
• Gain on Foreign Exchange: Decreased to $231 thousand in Fiscal 2026 from $578 thousand in Fiscal 2025, a decrease of - $347 thousand or -60%.
• Loss on Fair Value of Swaps: Decreased significantly to - $351 thousand in Fiscal 2026 from - $4,214 thousand in Fiscal 2025, a decrease of - $3,863 thousand or -92%.
• Other (Expense) Income, Net: Was - $504 thousand in Fiscal 2026, compared to $330 thousand in Fiscal 2025.

Income Tax Expense

• Income tax expense increased to $3,328 thousand in Fiscal 2026 from $2,141 thousand in Fiscal 2025, an increase of $1,187 thousand or 55%. The effective income tax rate was 29.8% in Fiscal 2026, up from 21.7% in Fiscal 2025.

Net Income

• Net income increased by $96 thousand, or 1%, to $7,827 thousand in Fiscal 2026 from $7,731 thousand in Fiscal 2025.
• Net income attributable to Reservoir Media, Inc. increased by $553 thousand, or 7%, to $8,303 thousand in Fiscal 2026 from $7,750 thousand in Fiscal 2025.

OIBDA (Operating Income Before Depreciation and Amortization)

• Consolidated OIBDA increased by $7,654 thousand, or 12%, to $69,014 thousand in Fiscal 2026 from $61,360 thousand in Fiscal 2025. OIBDA Margin remained at 39% in both periods.
• Music Publishing OIBDA increased by $3,543 thousand, or 9%, to $40,888 thousand in Fiscal 2026 from $37,345 thousand in Fiscal 2025. OIBDA Margin remained at 35% in both periods.
• Recorded Music OIBDA increased by $4,115 thousand, or 18%, to $26,864 thousand in Fiscal 2026 from $22,749 thousand in Fiscal 2025. OIBDA Margin increased to 52% in Fiscal 2026 from 51% in Fiscal 2025.

EBITDA and Adjusted EBITDA

• EBITDA increased by $10,336 thousand, or 18%, to $68,390 thousand in Fiscal 2026 from $58,054 thousand in Fiscal 2025.
• Adjusted EBITDA increased by $7,868 thousand, or 12%, to $73,614 thousand in Fiscal 2026 from $65,745 thousand in Fiscal 2025.

Cash Flow

• Operating Activities: Cash provided by operating activities increased by $4,861 thousand to $50,140 thousand in Fiscal 2026 from $45,279 thousand in Fiscal 2025.
• Investing Activities: Cash used for investing activities increased by $7,601 thousand to - $104,320 thousand in Fiscal 2026 from - $96,719 thousand in Fiscal 2025, primarily due to increased acquisitions of music catalogs.
• Financing Activities: Cash provided by financing activities increased by $9,685 thousand to $64,203 thousand in Fiscal 2026 from $54,518 thousand in Fiscal 2025.

Debt and Liquidity

• As of March 31, 2026, total debt (net of deferred financing costs) was $455,705 thousand, with cash and equivalents of $25,927 thousand.
• Outstanding debt under the Senior Credit Facility was $458,828 thousand, with $91,172 thousand remaining borrowing availability.
• Reservoir Media, Inc. was in compliance with its financial covenants as of March 31, 2026, with a fixed charge coverage ratio of 3.36x and a consolidated senior debt to library value ratio less than 31%.
• Royalty advances committed for future payments totaled $2,529,075 through March 2027 and an additional $2,238,583 through March 2028.
• Asset acquisition and share purchase acquisition commitments totaled $2,175 thousand within 1 year, $255 thousand in 2-3 years, and $90 thousand in 4-5 years.

Outlook / Guidance

Management anticipates current liquidity sources will be adequate to cover debt service, working capital, and capital expenditure needs for the foreseeable future. Reservoir Media, Inc. plans to continue its disciplined acquisition strategy for high-quality copyrights and recordings, expand its active songwriter and artist roster, and pursue commercial innovation. The company also expects to continue refinancing and extending the maturity of its Senior Credit Facility and taking opportunistic steps to reduce interest expense.