Reservoir Media 2026 Q1 Earnings Misses Targets Despite Revenue Growth

Reservoir Media reported fiscal 2026 Q1 earnings on Aug 05th, 2025, showing an 8.3% increase in total revenue to $37.16 million, but the net loss widened by 42%, and the stock continued to decline. The company maintained its full-year guidance and reaffirmed confidence in its long-term growth strategy.

Revenue
Total revenue for Reservoir Media rose to $37.16 million in 2026 Q1, up from $34.32 million in the prior-year period. The growth was driven by strong performance across both core segments. Music Publishing revenue reached $24.93 million, reflecting a 4% year-over-year increase, primarily fueled by a 48% surge in synchronization revenue and a 42% rise in other revenue, largely from stage rights. This growth partially offset declines in digital and performance revenue. Meanwhile, Recorded Music revenue climbed 8% to $10.44 million, with digital revenue up 23% due to the expansion of music streaming services and additional catalog acquisitions. However, synchronization revenue in this segment fell sharply by 57%, and physical sales dropped by 21%. Other revenue added $1.79 million to the top line, contributing to the overall 8.3% increase in total revenue.

Earnings/Net Income
Reservoir Media reported a stable EPS of $-0.01 in 2026 Q1, matching the $-0.01 from the previous year. However, the company’s net loss expanded to $-643,725, a 42% increase from the $-453,177 loss in the year-ago quarter. The widening loss was driven by higher interest expense and losses on fair value swaps, partially offset by gains in foreign exchange and higher operating income. Despite the continued losses, management emphasized margin expansion and improved operating efficiency.

Price Action
The stock price of Reservoir Media has declined in recent sessions, dropping 1.05% during the latest trading day, 5.52% for the week, and 4.44% month-to-date. The bearish trend has persisted post-earnings, with the stock failing to catch a broader market upswing.

Post-Earnings Price Action Review
A post-earnings strategy of buying Reservoir Media (RSVR) shares after a revenue decline quarter-over-quarter and holding for 30 days generated a 6.27% return. However, this significantly underperformed the benchmark return of 48.58%. The strategy exhibited a CAGR of 2.12%, a maximum drawdown of 0.00%, and a Sharpe ratio of 0.05, indicating a low-risk yet low-return profile. The weak performance highlights the challenges investors face in capitalizing on the stock’s post-earnings momentum.

CEO Commentary
Golnar Khosrowshahi, CEO of Reservoir Media, expressed confidence in the company’s Q1 results, noting that the performance aligned with full-year expectations. She highlighted an 8% top-line growth driven by 5% organic gains and emphasized the robust demand across both Music Publishing and Recorded Music segments. Khosrowshahi pointed to strategic investments such as Lightroom and Fool’s Gold Records as key initiatives to diversify and expand the company’s portfolio. She also mentioned entering the immersive entertainment vertical as a high-growth opportunity and noted the company’s $1 billion acquisition pipeline and ongoing client retention as signs of continued momentum. Her tone was clearly optimistic, reflecting a strong belief in the company’s ability to execute its long-term vision.

Guidance
Reservoir Media reaffirmed its full-year 2026 guidance, projecting revenue between $164 million and $169 million, representing approximately 5% growth from fiscal 2025. Adjusted EBITDA is expected to range between $68 million and $72 million, signaling a 7% growth at the midpoint. The company remains confident in its ability to achieve these targets through disciplined capital deployment and value-enhancing acquisitions. No material changes to guidance are currently anticipated.

Additional News
Reservoir Media made significant moves in the first quarter, including the acquisition of Fool’s Gold Records, a prominent independent label, to expand its Recorded Music portfolio. The company also announced an investment in Lightroom, a London-based immersive entertainment firm, to unlock new IP-driven experiences for its catalog. Additionally, it extended publishing deals with music icons such as Joni Mitchell and Grammy-winning songwriter Khris Riddick-Tynes, further strengthening its roster of top-tier creators. These strategic acquisitions and partnerships reflect the company’s ongoing efforts to diversify its offerings and enhance long-term value.