Reservoir Media Q3 Earnings Beat Expectations

Written by Emily J. Thompson, Senior Investment Analyst

Source: seekingalpha

Updated: 4d ago

0mins

RSVR+1.07%

Should l Buy RSVR?

Source: seekingalpha

Strong Earnings Report: Reservoir Media reported Q3 GAAP EPS of $0.03, beating expectations by $0.02, which highlights the company's robust profitability and boosts investor confidence.
Revenue Growth: The company achieved $45.57 million in revenue for Q3, a 7.7% year-over-year increase that surpassed market expectations by $2.94 million, indicating effective business expansion amidst market challenges.
Adjusted EBITDA Increase: Adjusted EBITDA reached $19.2 million, up 11% year-over-year, reflecting the company's success in cost control and operational efficiency, thereby strengthening its financial foundation.
Fiscal 2026 Outlook Raised: Reservoir raised its revenue and adjusted EBITDA guidance for fiscal 2026, now expecting revenue between $170 million and $173 million, an increase from previous estimates, demonstrating confidence in future growth prospects.

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Analyst Views on RSVR

Wall Street analysts forecast RSVR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RSVR is 13.25 USD with a low forecast of 11.50 USD and a high forecast of 15.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

2 Analyst Rating

2 Buy

0 Hold

0 Sell

Moderate Buy

Current: 7.460

Low

11.50

Averages

13.25

High

15.00

Current: 7.460

Low

11.50

Averages

13.25

High

15.00

B. Riley

Griffin Boss

Buy

downgrade

2025-06-06

Reason

B. Riley

Griffin Boss

Price Target

AI Analysis

2025-06-06

downgrade

Buy

Reason

B. Riley analyst Griffin Boss lowered the firm's price target on Reservoir Media to $11.50 from $12.50 and keeps a Buy rating on the shares. Reservoir Media's Q4 revenue and EBITDA beat the firm's above-consensus estimates, as the company generated organic growth on its existing catalog of 4% year over year, the analyst tells investors in a research note. The firm is "pleased" to see the company continue to grow its presence internationally, most recently expanding its emerging markets presence with the April launch of a new subsidiary, PopIndia, based in Mumbai, and says Reservoir remains well-positioned with a strong asset base.

About RSVR

Reservoir Media, Inc. is an independent music company. The Company operates a music publishing business, a recorded music business, a management business and a rights management entity in the Middle East. Operations of the Music Publishing segment involve the acquisition of interests in music catalogs from which royalties are earned as well as signing songwriters to exclusive agreements which give the Company an interest in the future delivery of songs. Operations of the Recorded Music segment involve the acquisition of sound recording catalogs as well as the discovery and development of recording artists and the marketing, distribution, sale and licensing of the music catalog. The publishing catalog includes historic compositions written and performed by greats like Joni Mitchell, The Isley Brothers, Sonny Rollins, Louis Prima, and John Denver. The Recorded Music business includes Chrysalis Records LTD (Chrysalis Records), Tommy Boy Music (Tommy Boy) and Reservoir Recordings.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

Reservoir Media Reports Strong Q3 2026 Earnings and Raises Guidance

4 days agoseekingalpha

Significant Revenue Growth: Reservoir Media reported Q3 revenue of $45.6 million, reflecting a 5% year-over-year increase, with Music Publishing revenue up 12% and Recorded Music revenue up 8%, indicating strong performance in digital streaming and catalog acquisitions that further solidify its market position.
Strategic Acquisition Expansion: The company announced the acquisition of Bertie Higgins' publishing and recorded music rights, alongside partnerships with Gladys Knight and TI, signaling Reservoir Media's proactive approach to expanding its portfolio to enhance future revenue potential and market competitiveness.
Upgraded Financial Outlook: Reservoir raised its full-year revenue guidance to a range of $170 million to $173 million, implying an 8% growth over fiscal 2025, while also increasing adjusted EBITDA guidance to $71.5 million to $73.5 million, demonstrating the company's confidence in its future performance.
Emerging Market Investments: The company continues to increase investments in emerging markets such as India and Jamaica, extending its partnership with Divine and establishing a new joint venture with Abood Music and Cordel Skatta Burrell, aiming to leverage growth opportunities in these regions for long-term development.