Why did RSVR outperform forecasts in 2025?

Reservoir Media (RSVR) outperformed forecasts in 2025 due to several key factors: 1. **Strong Revenue Growth**: Reservoir Media reported a total revenue of $42.3 million for Q3 2025, marking a 19% increase year-over-year. This growth was driven by a 16% increase in music publishing revenue and a 20% increase in recorded music revenue. The company's ability to leverage high-quality rosters and expand its catalog through strategic acquisitions is a significant factor in this growth. 2. **Strategic Acquisitions**: Reservoir Media has completed over $70 million in catalog acquisitions year-to-date, adding high-profile assets such as Grammy-winning composer Lebo M.'s catalog and Lastrada Entertainment's 5,600 compositions. These acquisitions have strengthened the company's portfolio and contributed to its revenue growth. 3. **Cost Controls**: Despite increased operating expenses, Reservoir Media has maintained profitability by implementing effective cost controls. The company's prudent cost management and value-additive practices have maximized the impact of these deals on its business, supporting this growth. 4. **Market Positioning**: Reservoir Media's strong relationships across the industry and its ability to consistently usher in accretive opportunities have further shaped its catalog and roster of talent into a diverse and valuable portfolio. The company's active roster continued to grow, with notable additions like Snoop Dogg, k.d. lang, and Serban Cazan. In conclusion, Reservoir Media's outperformance in 2025 can be attributed to its strategic acquisitions, cost controls, strong revenue growth, and effective market positioning. These factors have collectively contributed to the company's robust financial performance and optimistic outlook for the future.