Reservoir Media (RSVR) Q4 2026 earnings summary

Executive summary

• Achieved record financial performance in fiscal 2026, with 11% revenue growth and 12% adjusted EBITDA growth, including 6% organic revenue growth.

• Deployed $120 million in acquisitions and advances, expanding the catalog with iconic assets like Miles Davis and growing global presence in India and MENA.

• Signed and extended deals with major artists, composers, and songwriters, reinforcing relationships and expanding the portfolio.

• Expanded international operations with the acquisition of Viral Wave and launch of Pop India, enhancing presence in high-growth markets.

• Sync business and recorded music division saw strong growth, including major placements and partnerships such as Fool's Gold Records.

Financial highlights

• Fiscal 2026 revenue reached $175.7 million, up 11% year-over-year (6% organic growth); Q4 revenue was $47.5 million, up 15% year-over-year.

• Q4 net income was $4.1 million ($0.07 EPS), up from $2.7 million ($0.04 EPS) last year; full-year net income was $7.8 million ($0.13 EPS), slightly up from $7.7 million ($0.12 EPS) in FY25.

• Adjusted EBITDA for Q4 was $21.2 million (+16%); full-year adjusted EBITDA was $73.6 million (+12%).

• Operating income was $38.2 million (+9%); OIBDA rose 12% to $69.0 million.

• Cash flows from operations increased to $50.1 million; total liquidity at year-end was $117.1 million.

Outlook and guidance

• Fiscal 2027 revenue guidance: $186–$191 million (7% growth at midpoint); adjusted EBITDA guidance: $75–$79 million (5% growth at midpoint).

• Expect mid-single digit organic growth, with continued disciplined capital deployment and cost management.

• EBITDA margin expected to step down slightly due to lower-margin acquisitions and investments in frontline recorded music.

• Management expects continued growth, supported by a robust deal pipeline.