Reservoir Media reported third‑quarter fiscal 2026 revenue of $45.6 million, a 5% organic increase and 8% overall growth driven by a 12% rise in music‑publishing revenue to $30.1 million and an 8% rise in recorded‑music revenue to $12.9 million. The mix shift toward higher‑margin publishing contributed to the overall top‑line lift.
Operating income climbed to $10.3 million, while OIBDA increased 11% year‑over‑year to $18.1 million. The company’s OIBDA margin expanded modestly, reflecting higher‑margin publishing streams and effective cost controls, though the reported 21% margin expansion figure is not supported by the data; the actual increase in OIBDA was 11%.
Net income fell to $2.2 million, or $0.03 per share, down from $5.3 million ($0.08) a year earlier. The decline was largely due to a loss on fair‑value swaps, higher interest expense, and a change in other income, offsetting the earnings beat of $0.01 per share against a consensus estimate of $0.02. Revenue also beat expectations by $2.97 million, surpassing the $42.63 million estimate.
Management raised its full‑year guidance, now projecting revenue of $170 million to $173 million and adjusted EBITDA of $71.5 million to $73.5 million, up from the prior $167 million to $170 million and $70 million to $72 million range. The upward revision signals confidence in continued demand for the company’s publishing and recorded‑music catalog, as well as the expected impact of recent acquisitions.
The quarter also highlighted several strategic moves: a joint venture with Jamaican publisher Abood Music, the acquisition of the Bertie Higgins catalog, and new publishing deals with Say She She, Allison Veltz Cruz, and Britten Newbill. These transactions reinforce Reservoir’s off‑market acquisition strategy and expand its global catalog footprint, positioning the company for sustained growth across both segments.
CEO Golnar Khosrowshahi said the company “continued to execute with focus and discipline, advancing our top‑line objectives while maintaining strong cost and balance‑sheet control.” CFO Jim Heindlmeyer added that the raised guidance reflects “strong demand for our talent portfolio and disciplined sourcing of high‑return deals.” Investors responded with mixed sentiment, balancing the earnings beat and guidance lift against concerns over the net‑income decline and headwinds such as higher interest costs and fair‑value losses.
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