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Did Reservoir Media beat or miss consensus estimates last quarter?

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What were the key takeaways from Reservoir Media's earnings call?

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What factors drove the changes in Reservoir Media's revenue and profit?

- **Revenue Expansion**: Q3 revenue $45.6M (+5% YoY organic), driven by 12% Music Publishing and 8% Recorded Music growth. Digital revenue and catalog acquisitions key contributors.
- **Strategic Acquisitions**: Added Bertie Higgins, Miles Davis centennial, Gladys Knight, and TI partnerships. New signings include Say She She and Britten Newbill.
- **Financial Strength**: OIBDA $18.1M (+11% YoY), EBITDA $19.2M (+11% YoY). Raised FY26 guidance to $170M-$173M revenue and $71.5M-$73.5M EBITDA.
- **Emerging Markets Focus**: Expanded in India and Jamaica with favorable acquisition multiples, positioning for long-term growth.

**【CEO Summary Section】**
- **Revenue Growth**: Organic revenue up 5% YoY, driven by 12% Music Publishing and 8% Recorded Music growth. Digital revenue expansion and catalog acquisitions contributed significantly.
- **Strategic Acquisitions**: Added Bertie Higgins' yacht rock catalog, Miles Davis centennial celebrations, and partnerships with Gladys Knight and TI. New signings include Say She She, Allison Veltz Cruz, and Britten Newbill.
- **Emerging Markets Expansion**: Extended partnership with Indian hip-hop artist Divine through PopIndia, and launched a joint venture with Abood Music in Jamaica to develop new talent.
- **Grammy Wins**: Portfolio artists won 10 Grammys, highlighting the strength of the catalog and creator partnerships.

**【CFO Financial Commentary】**
- **Revenue Performance**: Q3 revenue $45.6M (5% YoY organic, 8% including acquisitions). Music Publishing up 12%, Recorded Music up 8%, both driven by Digital growth.
- **Profitability**: OIBDA $18.1M (+11% YoY), Adjusted EBITDA $19.2M (+11% YoY). Net income $2.2M, EPS $0.03, impacted by fair value swap losses and interest expenses.
- **Balance Sheet**: Total debt $452.3M, liquidity $114.8M. Raised FY26 guidance to $170M-$173M revenue (midpoint +8%) and $71.5M-$73.5M EBITDA (midpoint +10%).
- **Cost Management**: Operating margins expanded despite 8% cost increase, driven by administrative and amortization expenses.

**【Q&A Highlights】**
- **Deal Activity**: Q4 M&A expected to continue at a robust pace, with no material change in acquisition multiples.
- **Emerging Markets ROI**: Favorable multiples in India and Jamaica, with Latin America pricing similar to Western markets.
- **Royalty Environment**: Mixed tailwinds (streaming growth, price increases) and headwinds (CRB uncertainty), but net optimism on growth.
- **Shareholder Engagement**: No updates on activist investor discussions; management focused on business growth.

Reservoir Media, Inc. (RSVR) Q3 2026 Earnings Call Transcript

- **Revenue Surge**: 12% YoY growth ($45.4M) driven by 21% recorded music expansion and 8% publishing rise, fueled by Miles Davis acquisition and MENA expansion.
- **Catalog Power**: Sync placements in *Happy Gilmore 2* and *Don't Tap the Glass* highlight catalog value. Monster Mash movie and Miles Davis centennial (2026) set to unlock new revenue streams.
- **Financial Strength**: OIBDA up 10% to $18.2M, with updated FY2026 guidance of $167-170M revenue and $70-72M EBITDA, reflecting strong cash flow and strategic acquisitions.
- **Growth Catalysts**: MENA market expansion, digital streaming growth, and active catalog management (e.g., Miles Davis, Nick Drake) position Reservoir for sustained organic growth.

### **CEO Summary Section**
- **Revenue Growth**: 12% year-over-year (YoY) total revenue, with 7% organic growth and 5% from acquisitions. Notable contributions include Miles Davis' catalog and MENA market expansions.
- **Catalog Expansion**: Acquired Miles Davis' publishing, recorded music, and name/likeness rights, alongside extensions with Nick Drake and Molly Drake estates. New MENA deals with HFM Production and Essa Almarzoug, and signings of Emily Reid, Dave Pittenger, and Bobby Vinton.
- **Sync and Streaming Success**: Sync revenue growth across both segments, with placements in major films (e.g., *Happy Gilmore 2*, *Monster Mash* movie) and albums (*I'm the Problem*, *Am I the Drama*).
- **Milesstones**: 14-week #1 run for *Missing* and *Smile*, and *Don't Tap the Glass* topping charts.

### **CFO Financial Commentary**
- **Q2 Financials**: Revenue of $45.4M (+12% YoY, +7% organic). Music Publishing up 8% ($30.9M), driven by performance revenue (+47%) and digital growth. Recorded Music up 21% ($13M), led by digital streaming and sync licensing.
- **Profitability**: OIBDA $18.2M (+10% YoY), Adjusted EBITDA $19.4M (+10% YoY). Net income $2.2M vs. $0.15M prior year, with EPS $0.03.
- **Balance Sheet**: Cash flow $25.3M, total debt $421.8M. Guidance updated to $167-170M revenue (+6% YoY) and $70-72M EBITDA (+8% YoY).

### **Q&A Key Highlights**
- **Growth Drivers**: 7% organic growth reflects industry tailwinds and catalog integration. Miles Davis' 100th anniversary activations (2026) will drive long-term value without incremental OpEx.
- **Catalog Impact**: Monster Mash movie and Miles Davis collaborations expected to boost revenue in FY2026. Sync placements and streaming growth offset prior-year hit song declines.
- **Cost Management**: G&A stability (excluding manager comp variability). Focus on cost containment to meet EBITDA guidance.
- **Industry Trends**: Anticipated subscriber growth and price increases, alongside Reservoir's active catalog enhancement (e.g., *Monster Mash* licensing).

Reservoir Media, Inc. (RSVR) Q2 2026 Earnings Call Transcript

- **Revenue Growth**: 8% YoY to $37.2M, with 5% organic expansion and strategic acquisitions in immersive entertainment and Recorded Music.
- **Profitability**: OIBDA up 12% to $12.8M; EBITDA guidance reaffirmed at $68-72M (7% growth).
- **Strategic Moves**: $1B+ deal pipeline, Lightroom partnership, and Fool's Gold acquisition diversify into high-growth sectors.
- **Financial Health**: $173M liquidity; inflation-driven expenses offset by margin improvements from asset mix and lower physical revenue.

**【CEO Summary Section】**
- Q1 2026 revenue grew 8% YoY ($37.2M), with 5% organic growth and 3% from acquisitions. Music Publishing and Recorded Music segments both expanded.
- Strategic investments include Lightroom (immersive entertainment) and Fool's Gold Records (dance/electronic music). These moves diversify into high-growth verticals and strengthen Recorded Music platform.
- Client retention remains strong, with extensions of deals with Khris Riddick-Tynes and Joni Mitchell, reflecting cultural impact of catalog.
- Deal pipeline exceeds $1B, positioning for future M&A-driven growth.

**【CFO Financial Commentary】**
- OIBDA increased 12% to $12.8M; adjusted EBITDA rose 10% to $13.9M, driven by higher revenues and gross margins.
- Administrative expenses grew 16% YoY due to inflation and higher management revenue; total debt $387.4M, with $173M liquidity.
- Full-year guidance reaffirmed: $164-169M revenue (5% growth) and $68-72M EBITDA (7% growth).

**【Q&A Highlights】**
- Lightroom investment: single-digit equity stake; potential to monetize existing IP through immersive experiences.
- Digital revenue timing delays, not indicative of weakness; Spotify price hikes expected to boost Digital revenue.
- Administrative expenses structurally higher due to inflation; gross margin improvements from lower physical revenue and asset mix.
- M&A pipeline balanced between Publishing and Recorded Music; most deals off-market to avoid auctions.

Reservoir Media, Inc. (RSVR) Q1 2026 Earnings Call Transcript

- **10% Revenue Growth**: Fiscal 2025 revenue hit $158.7 million, driven by 12% Music Publishing growth and $115M in strategic acquisitions.
- **Emerging Market Expansion**: Launched PopIndia in Mumbai to tap India's 175M+ streaming audience and 13% CAGR growth.
- **Financial Strength**: Adjusted EBITDA up 18% to $65.7M; 2026 guidance projects $164-169M revenue with $50M free cash flow for M&A.
- **International ROI Advantage**: CEO highlights better ROIs in India/Middle East due to lower competition and higher growth rates.
- **Interest Rate Hedging**: $150M hedged, with flexibility to expand based on market conditions.


**【CEO Summary Section】**
- Fiscal 2025 revenue grew 10% YoY to $158.7 million, driven by 12% growth in Music Publishing and 4% in Recorded Music. Adjusted EBITDA rose 18% to $65.7 million.
- Strategic acquisitions included Lastrada Entertainment (5,600+ compositions), New State Records (13,000+ tracks), and Omar Kamal's Mahraganat catalog. Total capital deployed in M&A reached $115 million.
- Organic growth initiatives yielded 4 Super Bowl sync placements in Q4 and a top 10 US share in Billboard's Publishers Quarterly.
- International expansion accelerated with PopIndia launch in Mumbai, targeting India's 175M+ streaming audience and 13% CAGR growth through 2027.

**【CFO Financial Commentary】**
- Q4 2025 revenue: $41.4 million (+6% YoY), with Music Publishing up 6% and Recorded Music +7%. Adjusted EBITDA: $18.2 million (+14% YoY).
- Full-year OIBDA: $61.4 million (+24% YoY), driven by higher gross margins and cost control (admin expenses +<1%).
- Fiscal 2026 guidance: Revenue $164-169 million, Adjusted EBITDA $68-72 million. Free cash flow projected at $50 million for M&A and writer signings.
- Debt: $388.1 million as of Q4, with $150 million hedged against interest rate volatility.

**【Q&A Highlights】**
- **Emerging Markets ROI**: CEO noted better ROIs in India and Middle East due to lower competition and higher growth rates (e.g., India's 13% CAGR vs. mature markets).
- **Seasonality**: CFO expects Q2 and Q4 to remain stronger, but 2026 guidance excludes one-time hits like "Espresso" to avoid over-optimism.
- **Capital Allocation**: Management will remain opportunistic, targeting $50 million in free cash flow for M&A. No fixed split between publishing and recorded music.
- **Interest Rate Strategy**: Current $150 million hedge is sufficient, but monitoring for potential expansion.
- **India Monetization**: Similar to US model, but with higher growth potential in subscriptions and public performance royalties.


Reservoir Media, Inc. (RSVR) Q4 2025 Earnings Conference Call Transcript

- **Revenue Surge**: Q3 $42.3M (+19% YoY), driven by catalog acquisitions and artist deals.
- **Profit Growth**: EBITDA up 26% to $17.3M; FY25 guidance raised 5%.
- **Strategic Wins**: 6 Grammys, Lion King catalog, and *Mantra* K-pop hit.
- **Debt Management**: 50% hedged to 2027; $92M liquidity for M&A.
- **Risk Mitigation**: Conservative guidance; one-time royalty recovery offsets Q4 softness.


**【CEO Summary Section】**
- Total revenue reached $42.3 million, up 19% year-over-year, driven by 16% growth in music publishing and 20% in recorded music. Adjusted EBITDA rose 26% to $17.3 million.
- Acquired Lebo M's Lion King catalog and Lastrada Entertainment's 5,600-song archive, including hits like *Bad, Bad Leroy Brown* and *California Love*.
- Expanded roster with Snoop Dogg and k.d. lang; Serban Cazan's *Mantra* hit #2 on Billboard Global chart.
- 6 Grammy wins for affiliated artists, including Arlo Parks and Steph Jones.

**【CFO Financial Commentary】**
- Q3 GAAP net income: $5.3 million (vs. $2.9M loss last year). Non-GAAP EPS: $0.08 (vs. -$0.05).
- OIBDA: $16.3 million (+26% YoY). Total costs up 13% due to admin (+17%), COGS (+14%), and amortization (+6%).
- FY25 guidance raised: Revenue $155-158M (+8%), EBITDA $61.5-64.5M (+13%).
- Debt: $371.8M (hedged 50% to 2027). Cash: $17.8M; liquidity: $92M.

**【Q&A Highlights】**
- **OpEx Growth**: Driven by manager compensation tied to rising revenue. Sustained by M&A pipeline.
- **M&A Pipeline**: Robust off-market deals; $70M deployed YTD.
- **Spotify Deal**: Neutral on impact, but optimistic on industry normalization.
- **Q4 Guidance**: Sequential dip due to one-time royalty recovery; conservative but achievable.
- **Neighboring Rights**: Lumpy but growing; direct deals enhance predictability.
- **Debt Management**: 50% hedged; monitoring rate environment.
- **Industry Trends**: Catalog streams dominate (73% of U.S. streams); long-term growth via M&A.


Reservoir Media (RSVR)-5 Feb 25-2025 Q3 Earnings call transcript

Reservoir Media (RSVR)-30 Oct 24-2025 Q2 Earnings call transcript

Reservoir Media (RSVR)-31 Jul 24-2025 Q1 Earnings call transcript

Reservoir Media (RSVR)-30 May 24-2024 Q4 Earnings call transcript

- **Revenue Growth**: 19% YoY to $35.5 million, with 32% surge in Recorded Music.
- **Margin Expansion**: EBITDA +25% to $13.7 million, guided to $53-55 million (+16.5%).
- **International Expansion**: $2B pipeline, India/MENA deals, 0.5T streams for Snooze by SZA.
- **AI & Royalties**: Generative tools enhancing efficiency, CRB 3 true-ups to boost 2024.

**【CEO Opening Remarks】**
- Highlighted 19% year-over-year revenue growth driven by organic growth and acquisitions.
- Emphasized expansion into international markets (India, Middle East) with deals like Nancy Ajram and PopArabia partnership.
- Noted $2 billion pipeline of prospective deals, including off-market opportunities.
- Highlighted catalog strength with 39 Grammy nominations and 10 wins, including Snooze by SZA (0.5 billion streams).
- Highlighted genre growth: Hip Hop (25% U.S. streaming), Latin (20% growth), Country (11% growth).
- India streaming volume up 0.5 trillion year-over-year, poised to surpass U.S. in 2024.

**【CFO Financial Commentary】**
- Q3 revenue: $35.5 million (+19% YoY), with 32% growth in Recorded Music segment.
- Adjusted EBITDA: $13.7 million (+25% YoY), OIBDA: $12.9 million (+27% YoY).
- Raised FY24 guidance: Revenue $140-142 million (+15% midpoint), EBITDA $53-55 million (+16.5% midpoint).
- Balance sheet: $121.7 million liquidity, $342.5 million debt (hedged 50% at attractive rates).
- Key drivers: Digital revenue (+30%), Sync revenue (+101% in Recorded Music), and cost control.

**【Q&A Highlights】**
- **International Strategy**: Focus on India and MENA with local partnerships (PopArabia, musicsees). 80% of Gen Z/Millennials consume international music.
- **Organic Growth**: 14% of Q3 growth organic, driven by CRB rate increases and improved accruals.
- **AI Impact**: Songwriters using generative tools for efficiency, but no threat to creative process. Company using AI in marketing and deal-making.
- **CRB 3 True-Ups**: $ millions expected from DSPs in 2024, flattening revenue volatility.


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