Reservoir Raises Fiscal 2027 Revenue and Adjusted EBITDA Outlook

The Tip Desk · November 11, 2026 · 3 min read

Second-quarter revenue reached $49.9 million as the independent music company set fiscal 2027 revenue at $188 million–$192 million.

Reservoir Media, Inc. (RSVR), an independent music company, reported second-quarter fiscal 2027 revenue of $49.9 million, up 10% from a year earlier, and raised its full-year outlook for the period ending March 31, 2027.

The company now expects fiscal 2027 revenue of $188 million to $192 million, or 8% growth at the midpoint, and Adjusted EBITDA of $77 million to $80 million, or 7% growth at the midpoint. Chief Financial Officer Jim Heindlmeyer said first-half results supported the higher ranges.

Organic revenue growth slowed to 4% from 6% in the first quarter. Including acquisitions, top-line growth was 10% after 12% in the prior quarter.

Recorded Music remained the faster-growing segment but at a slower pace than the first quarter. Recorded Music revenue rose 18% to $15.4 million, after 35% growth in the first quarter. The company said the increase was driven by digital revenue, which rose 33% to $11.5 million, and neighboring rights, which rose 40% to $1.5 million, largely from additional catalogs and new affiliations. Synchronization fell 54% to $0.9 million on the timing of licenses. Physical revenue was $1.4 million.

Recorded Music OIBDA rose 26% to $8.3 million. Segment OIBDA margin expanded from 51% to 54%, which the company said primarily reflected a lower cost of revenue as a percentage of revenue.

Music Publishing revenue increased 8% to $33.2 million, after 6% growth in the first quarter. Digital publishing rose 10% to $17.6 million, which the company attributed to additional catalogs and continued growth at streaming services. Synchronization rose 13% to $5.2 million on the timing of licenses. Performance was $7.5 million and mechanical was $1.6 million. Publishing OIBDA rose 9% to $12.4 million, with the OIBDA margin remaining at 37%.

Companywide operating income increased 15% to $12.3 million, after a 1% decline in the first quarter. OIBDA rose 14% to $20.7 million. Adjusted EBITDA rose 14% to $22.1 million, which the company said primarily reflected higher revenue, partially offset by higher cost of revenue and administration expenses.

Net income was $4.6 million, or $0.07 a share, compared with $2.2 million, or $0.03 a share, a year earlier, after a net loss of $0.5 million in the first quarter. The company said the increase was primarily driven by higher operating income and changes in gain on fair value of swaps and foreign exchange, partially offset by higher income tax and interest expense.

During the quarter Reservoir acquired recorded-music rights to the catalog of José Feliciano and the publishing catalog of Billy Strayhorn, and signed publishing deals with Jake Sinclair, Fred Ball, Orla Gartland, The Snuts, Justin Dukes, Ava Liv Mabry, Riley Biederer and The Reklaws. Founder and Chief Executive Officer Golnar Khosrowshahi said the quarter marked the end of a strong first half, with growth across both segments.

For the six months ended September 30, 2026, cash provided by operating activities was $21.6 million, down $3.7 million from the same period last year, primarily due to a change in cash used for working capital resulting from the timing of royalty payments to creators and payments of accounts payable, partially offset by the timing of royalty advance recoupments. As of September 30, 2026, cash and cash equivalents were $24.8 million, total available liquidity was $113.9 million, total debt was $458.6 million, and net debt was $433.8 million.