Reservoir Media's Q4 2025: Unpacking Key Contradictions in Hedging, Revenue, and International Growth

Hedging strategy and interest rate volatility, revenue seasonality, opportunities in international markets, M&A strategy and pipeline, and international growth opportunities are the key contradictions discussed in Reservoir Media's latest 2025Q4 earnings call.



Revenue and Earnings Growth:
- Reservoir Media reported fiscal year 2025 revenue of $158.7 million, a 10% year-over-year increase, exceeding guidance and expectations.
- This growth was driven by strategic M&A, acquisitions of high-quality catalogs, and organic growth from existing assets.

Acquisition and Capital Deployment:
- The company deployed over $115 million towards acquisitions and advances during the fiscal year.
- Significant capital investments were made in high-profile catalogs and assets, such as the Lastrada Entertainment catalog and the UK dance and electronic label New State.

International Expansion and Emerging Markets:
- Reservoir expanded its presence in international markets, notably in India and the Middle East, through strategic acquisitions and launching new subsidiaries.
- This expansion strategy capitalizes on the growing music industry in emerging markets, where there is significant potential for growth in listenership and subscription bases.

Digital Revenue and Synchronization:
- Digital revenue increased by 5% in the Music Publishing segment and 19% in the Recorded Music segment.
- Growth in digital revenue was primarily driven by price increases and subscriber growth at digital streaming platforms (DSPs), alongside the expansion of the company's catalog through M&A.