What does Reservoir Media do and what are its main business segments?

What is Reservoir Media's gross profit margin?

What is the revenue and EPS growth rate for Reservoir Media year over year?

What guidance did Reservoir Media's management provide for the next earnings period?

What is the market's earnings forecast for Reservoir Media next quarter?

Did Reservoir Media beat or miss consensus estimates last quarter?

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

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

- **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).

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