Reservoir Media, Inc. (RSVR) · Nov 4, 2026 · Earnings
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.
| Metric | Q2 FY27 | Q2 FY26 | Consensus / 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.
Fiscal Q3 earnings report, expected February 2027
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