Reservoir Media Q3 revenue rises 8%, raises FY26 outlook

Overview

• Music company reported fiscal Q3 revenue up 8% yr/yr

• Net income for fiscal Q3 fell due to swap losses and higher interest expenses

• Company raised fiscal 2026 revenue and adjusted EBITDA outlook

Outlook

• Reservoir raises fiscal 2026 revenue guidance to $170 mln - $173 mln

• Company boosts fiscal 2026 adjusted EBITDA forecast to $71.5 mln - $73.5 mln

• Reservoir attributes positive outlook to strong talent portfolio and disciplined deal sourcing

Result Drivers

• MUSIC PUBLISHING GROWTH - Music Publishing revenue rose 12% yr/yr, driven by performance and digital revenues from hit songs and catalog acquisitions

• RECORDED MUSIC INCREASE - Recorded Music revenue increased 8% yr/yr, supported by digital revenue growth and neighboring rights

• NEW DEALS AND VENTURES - Entered joint venture with Abood Music and signed new publishing deals, enhancing revenue streams

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the entertainment production peer group is "buy"

• Wall Street's median 12-month price target for Reservoir Media Inc is $13.25, about 83.5% above its February 3 closing price of $7.22

• The stock recently traded at 67 times the next 12-month earnings vs. a P/E of 53 three months ago

Press Release: ID:nACSWC18Sa

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