Reservoir Media Announces First Quarter Fiscal 2027 Results.

August 4, 2026

Reservoir Media, Inc. today announced financial results for the first quarter of fiscal 2027 ended June 30, 2026.

Recent Highlights:

Revenue of $41.5 million, increased 6% organically, or 12% including acquisitions year-over-year
- Music Publishing Revenue rose 6% year-over-year
- Recorded Music Revenue increased 35% year-over-year
Operating Income of $5.4 million, decreased 1% year-over-year
OIBDA (“Operating Income Before Depreciation & Amortization”) of $13.7 million, an increase of 7% year-over-year
Net Loss of ($0.5) million, or $0.00 per share, compared to a net loss of ($0.6) million, or ($0.01) per share in the year-ago period
Adjusted EBITDA of $15.7 million, up 13% year-over-year
Invested in two new complementary strategic partnerships in Latin music:
- Announced the acquisition of the catalog of independent Latin label Nacional Records, along with the catalog of its publishing arm, Canciones Nacionales. Reservoir and Nacional also entered a joint venture to sign and develop recording artists and songwriters
- Entered into a new joint venture with Latin music company TU Publishing to publish all current and future writers signed to the company, as well as catalogs acquired by the company
Partnered with U.K. A&R Executive Ollie Hodge to bring his independent label, Some Action, under Reservoir’s label operations via a new joint venture
Announced a publishing deal with Grammy Award-winning and multi-Platinum-selling hip-hop icon T.I. that spans his entire publishing catalog and future works
Welcomed multi-Platinum global pop songwriter-producer Adam Kapit and alt-pop/rock artist Jarrett Doherty, frontman of Jady, to the roster

Management Commentary:

“We delivered a strong first quarter of fiscal 2027, with robust performance across both our Publishing and Recorded Music segments, underscoring the strength of our portfolio and the continued success of our strategy,” said Golnar Khosrowshahi, Founder and Chief Executive Officer of Reservoir Media. “Whether signing marquee talent such as T.I., expanding our recorded music business with key frontline partners like Some Action, or establishing a stronger foothold in high-growth markets like Latin music, we have demonstrated a commitment to diversifying our business while ensuring we identify partners that share our long-term vision and dedication to creative stewardship. We are encouraged by our recent momentum and remain confident in our ability to execute on attractive opportunities, deepen our global platform, and unlock new value for the remainder of fiscal 2027.”

First Quarter Fiscal 2027 Financial Results

Total revenue in the first quarter of fiscal 2027 increased 12% to $41.5 million, compared to $37.2 million in the first quarter of fiscal 2026. This increase was driven by a 6% increase in Music Publishing revenue, largely attributable to strong digital and performance revenue, and a 35% increase in Recorded Music revenue, largely attributable to continued growth of digital revenue, as well as synchronization revenue driven by the timing of licenses.

Operating income in the first quarter of fiscal 2027 was $5.4 million compared to operating income of $5.4 million in the first quarter of fiscal 2026. OIBDA in the first quarter of fiscal 2027 increased 7% to $13.7 million, compared to $12.8 million in the prior year’s quarter. Adjusted EBITDA in the first quarter of fiscal 2027 increased 13% to $15.7 million, compared to $13.9 million last year, primarily as a result of an increase of total revenue. See below for calculations and reconciliations of OIBDA and Adjusted EBITDA to operating income and net loss, respectively.

Net loss in the first quarter of fiscal 2027 was ($0.5) million, or $0.00 per share, compared to net loss of ($0.6) million, or ($0.01) per share, in the year-ago quarter. The decrease in net loss was primarily driven by the gain on fair value of swaps, partially offset by the loss on foreign exchange and an increase in interest expense.

First Quarter Fiscal 2027 Segment Review

Music Publishing Revenue in the first quarter of fiscal 2027 was $26.5 million, an increase of 6% compared to $24.9 million in last year’s first quarter. The increase was mainly driven by an increase in digital revenue, primarily due to the acquisition of additional music catalogs and continued growth at music streaming services and an increase in performance revenue driven by hit songs.

In the first quarter of fiscal 2027, Music Publishing OIBDA increased 3% to $7.8 million, compared to $7.6 million in the first quarter of fiscal 2026. Music Publishing OIBDA margin in the first quarter decreased from 30% to 29%. The increase in Music Publishing OIBDA primarily reflects an increase in revenues, partially offset by an increase in administration expenses, and the decrease in OIBDA Margin reflects an increase in administration expenses as percentages of revenues, partially offset by a decrease in cost of revenue as a percentage of revenue.

Recorded Music Revenue in the first quarter of fiscal 2027 was $14.1 million, an increase of 35% compared to $10.4 million in last year’s first quarter. The increase was driven by an increase in digital revenue, primarily due to the acquisition of additional music catalogs and continued growth at music streaming services, an increase in synchronization revenue driven by the timing of licenses, and an increase in physical due to timing of release schedules.

In the first quarter of fiscal 2027, Recorded Music OIBDA increased 26%, to $6.1 million, compared to $4.9 million in the first quarter of fiscal 2026. Recorded Music OIBDA margin in the first quarter decreased from 46% to 43%. The increase in OIBDA primarily reflects an increase in revenues, while the decrease in OIBDA margin primarily reflects an increase in cost of revenue as a percentage of revenues, partially offset by a decrease in administration expenses as a percentage of revenues.

Balance Sheet and Liquidity

For the three months ended June 30, 2026, cash used in operating activities was ($1.4) million, a decrease of $7.4 million compared to the same period last year, primarily due to the timing of royalty payments and the recoupment of royalty advances.

As of June 30, 2026, Reservoir had cash and cash equivalents of $13.7 million and $85.2 million available for borrowing under its revolving credit facility, for total available liquidity of $98.9 million. Total debt was $462.2 million (net of $2.7 million of deferred financing costs) and Net Debt was $448.5 million (defined as total debt, less cash and equivalents and deferred financing costs). This compares to cash and cash equivalents of $25.9 million and $91.2 million available for borrowing under its revolving credit facility, for total available liquidity of $117.1 million as of March 31, 2026. Total debt was $455.7 million (net of $3.1 million of deferred financing costs) and Net Debt was $429.8 million as of March 31, 2026.

Fiscal Year 2027 Outlook

Reservoir reiterates its previously provided financial outlook range for fiscal year 2027, and expects the financial results for the year ending March 31, 2027, to be as follows:

Jim Heindlmeyer, Chief Financial Officer of Reservoir, said, “Our strong first quarter performance was in line with our expectations, driven by top-line growth and disciplined cost containment, and provides a solid foundation for the remainder of fiscal 2027. Our healthy cash flow generation and balance sheet flexibility continues to support strategic investments in new creators, notably in high-growth emerging markets, while maintaining a position of financial strength. We remain on track to achieve our previously issued revenue and adjusted EBITDA guidance for fiscal year 2027.”