Reservoir Media, Inc. (RSVR) · Nov 4, 2026 · Earnings

Reservoir Media earnings beat as FY27 guidance rises

Beat — Revenue $49.9M vs ~$48.7M consensus; diluted EPS $0.07 vs ~$0.04

Reservoir Media earnings beat Q2 expectations, with both segments growing and FY27 revenue and adjusted EBITDA guidance raised.

Reservoir is an independent music company building a diversified catalog through publishing, recorded-music rights and acquisitions; catalog purchases remain central to its growth model, with Music Publishing still the larger segment. The prior fiscal 2027 outlook called for $186M-$191M of revenue and $75M-$79M of adjusted EBITDA, so this filing changes the trajectory rather than merely confirming the plan.

The quarter beat the published bar on both revenue and earnings. Revenue reached $49.9M versus a published consensus near $48.7M, while diluted EPS was $0.07 versus roughly $0.04 expected. Revenue grew across both divisions, with Recorded Music up 18% and its OIBDA up 26%, while Publishing delivered steadier 8% revenue and 9% OIBDA growth.

MetricQ2 FY27Q2 FY26Consensus / Prior
Revenue (Financial Highlights)$49.9M (+10%)$45.4M$48.7M consensus
Diluted EPS (Income Statement)$0.07$0.03~$0.04 consensus
Adjusted EBITDA (Adjusted EBITDA reconciliation)$22.1M (+14%)$19.4M—
Recorded Music revenue (Segment results — Recorded Music)$15.4M (+18%)$13.0M—
Recorded Music OIBDA (Segment results — Recorded Music)$8.3M (+26%)$6.6M—
FY27 revenue guidance (Outlook)$188M-$192M—$186M-$191M prior
FY27 adjusted EBITDA guidance (Outlook)$77M-$80M—$75M-$79M prior
Cash from operations, six months (Cash Flow statement)$21.6M$25.3M—
Net debt (Liquidity discussion)$433.8M$429.8M—

The guidance raise is the clearest change to the story. Management lifted the full-year revenue range by $2M at the low end and $1M at the high end, and raised adjusted EBITDA by $2M at both ends. 〔0〕 That implies the first-half momentum is now strong enough to support a modestly better full-year outcome, not just a one-quarter revenue spike.

Recorded Music is doing most of the incremental work, while Publishing remains dependable. Recorded Music benefited from catalog additions, streaming growth and neighboring-rights affiliations, and its margin expanded from 51% to 54%. Publishing grew more slowly and its margin stayed at 37%, which makes the quarter look like healthy execution across the portfolio rather than a single publishing timing event. 〔1〕

The main offset is cash conversion and leverage. Six-month operating cash flow fell by $3.7M because of royalty-payment and accounts-payable timing, while net debt increased to $433.8M and total liquidity declined to $113.9M from $117.1M at fiscal year-end. This does not negate the earnings beat, but it limits how much of the stronger operating result is translating into balance-sheet flexibility for further catalog investment.

Bottom line: Reservoir delivered a genuine earnings beat and raised its full-year targets, strengthening the catalog-growth story. The improvement is meaningful, though weaker cash generation and high debt keep the upgrade from being a complete change in the company’s risk profile.

What to watch next

Fiscal Q3 earnings report, expected February 2027

Original filing on SEC EDGAR

Reservoir Media earnings beat as FY27 guidance rises | RSVR Stock News
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