Reservoir Media's Q3 2025: Contradictions in M&A Strategy, Revenue Growth, and Spotify Impact

These are the key contradictions discussed in Reservoir Media's latest 2025 Q3 earnings call, specifically including: M&A pipeline and strategy, revenue growth expectations, and expectations regarding Spotify's impact on royalty revenue:



Revenue Growth and M&A Activity:
- Reservoir Media reported total revenue of $42.3 million for Q3, up 19% year-over-year.
- Growth was driven by a 16% increase in music publishing revenue and a 20% increase in recorded music revenue, along with successful catalog acquisitions and strategic M&A.

Adjusted EBITDA Improvement:
- The company's adjusted EBITDA reached $17.3 million, representing a 26% improvement from the year-ago quarter.
- This improvement was due to cost containment and effective management of business operations, supported by higher revenues.

Catalog and Frontline Roster Expansion:
- Reservoir deployed over $70 million across catalog acquisitions and added notable talent to its active frontline roster, such as Snoop Dogg and k.d. lang.
- This expansion strategy has been effectively executed through off-market deals and strong industry relationships.

Recorded Music Revenue Increase:
- Recorded music revenue increased by 20% year-over-year to $12 million.
- The increase was primarily attributed to a royalty recovery related to underreported usage, along with continued growth in music streaming and price increases at various streaming services.