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- **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

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