Reservoir Media (RSVR) AI Stock Analysis

• Market Cap: $635.67M
• Dividend Yield: N/A
• Average Volume (3M): 75.58K
• Price to Earnings (P/E): 56.3
• Beta (1Y): 0.57
• Revenue Growth: 11.17%
• EPS Growth: N/A
• Country: US
• Employees: 99
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 0.03
• Shares Outstanding: 65,600,220
• 10 Day Avg. Volume: 89,413
• 30 Day Avg. Volume: 75,578
• PEG Ratio: 0.06
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 3.13
• P/FCF Ratio: -9.69
• Enterprise Value/Market Cap: 1.67
• Enterprise Value/Revenue: 6.26
• Enterprise Value/Gross Profit: 9.71
• Enterprise Value/Ebitda: 16.39
• 1Y Price Target: $13.00
• Price Target Upside: 34.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.1
• Revenue Forecast (FY): $172.63M

• Rating: 57 Neutral
• Price Target: $10.00 ▲(3.20% Upside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is held back primarily by weaker financial quality (persistent negative annual free cash flow and rising leverage) and a demanding valuation (high P/E). These are partly offset by strong technical momentum (price above key moving averages, positive MACD) and a constructive earnings call with raised FY2026 guidance and improving operating cash flow, though higher debt and interest costs remain key risks.

Positive Factors

Revenue Growth & Scale

Sustained top-line growth from organic streaming/licensing plus acquisitions signals durable expansion of royalty-bearing assets. Rising revenue and a raised FY2026 guide reflect scalable catalog monetization and improved odds of persistent recurring cash flows from publishing and masters.

Strong Segment Performance

Balanced growth across publishing and recorded music reduces single-stream risk and leverages multiple royalty pools. Strong publishing gains (higher-margin) combined with recorded music growth from streaming and sync create durable, diversified revenue drivers and better long-term margin stability.

Improved Cash Generation & Liquidity

Growing operating cash flow and a sizable revolver provide financing flexibility for acquisitions and working capital. Consistent positive OCF supports reinvestment in catalogs and reduces near-term refinancing pressure, strengthening ability to execute the buy-and-monetize strategy.

Negative Factors

Rising Leverage

Debt-funded acquisitions have materially increased net leverage, raising interest and refinancing sensitivity. Higher leverage constrains strategic optionality, magnifies earnings volatility from amortization and rates, and could force prioritization of debt service over reinvestment or distributions.

Persistent Negative Annual Free Cash Flow

Although operating cash flow is positive, annual free cash flow remains negative historically, implying acquisitions, capex, or working-capital uses outpace internal cash generation. This pattern increases dependence on external financing and raises execution risk for long-term catalog investment plans.

Copyright Rate-Setting Uncertainty

Regulatory uncertainty around royalty rates is a structural risk for publishing revenues. Changes from CRB decisions can alter long-term royalty economics, undermine revenue visibility, and complicate valuation and acquisition pricing for catalogs, increasing fundamental cash-flow variability.

Reservoir Media Business Overview & Revenue Model

Company Description

Reservoir Media, Inc. operates as a music publishing company. It operates in two segments, Music Publishing and Recorded Music. The Music Publishing segment acquires interests in music catalogs, as well as signs songwriters. The Recorded Music segment engages in the acquisition of sound recording catalogs; discovery and development of recording artists; and marketing, distribution, sale, and licensing of the music catalogs. The company was founded in 2007 and is headquartered in New York, New York. Reservoir Media, Inc. is a subsidiary of Reservoir Holdings, Inc.

How the Company Makes Money

Reservoir Media generates revenue primarily through the licensing of its music catalog for use in television, film, advertising, and other media platforms. The company earns money from performance royalties when its songs are played on radio and streaming services, as well as mechanical royalties from physical and digital sales. Additionally, Reservoir Media engages in strategic partnerships with artists and labels, allowing for collaborative projects that enhance its catalog and revenue potential. The management of music rights and the provision of related services, such as synchronization licensing, further contribute to its diverse revenue streams.

Reservoir Media Financial Statement Overview

Summary

Multi-year revenue growth and generally solid gross/EBITDA profitability are positives, but earnings quality is uneven (volatile net/EBIT margins and noted TTM inconsistencies). Cash flow is the biggest drag: operating cash flow is positive, yet annual free cash flow has been persistently negative, and leverage is manageable but trending higher.

Income Statement

Annual results show solid top-line momentum over several years (revenue rising from 2021 through 2025), with generally healthy gross profitability and strong EBITDA margins in the annual periods. However, profitability has been volatile: net margin fell sharply in 2024 before recovering in 2025, and leverage to operating profit is inconsistent (EBIT margins swing notably). The TTM (Trailing-Twelve-Months) figures look internally inconsistent (gross profit above revenue and an unusually low EBIT margin), which reduces confidence in the quality/consistency of the income statement signals.

Balance Sheet

The balance sheet is moderately leveraged, with debt-to-equity generally around ~0.8–1.1 in the annual periods and moving higher in the latest readings (including TTM (Trailing-Twelve-Months) above 1). Returns on equity are positive but low overall, improving in 2025 versus 2024 but still not strong, suggesting the capital base is not being monetized efficiently. Asset and equity levels have grown, but rising leverage is a key risk to monitor.

Cash Flow

Operating cash flow is consistently positive across the annual periods and increased in 2025, which is a clear strength. That said, free cash flow is negative in every annual year shown (with particularly large outflows in 2022 and 2025), indicating heavy reinvestment, working-capital pressure, or other cash uses that are not translating into near-term cash generation. While TTM (Trailing-Twelve-Months) shows positive free cash flow and near 1x free cash flow to net income, the annual trend remains weak and volatile, limiting the score.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2022	Mar 2021
Income Statement
Total Revenue	169.62M	158.71M	144.86M	122.29M	107.84M	80.25M
Gross Profit	109.23M	101.28M	89.38M	74.30M	63.65M	47.39M
EBITDA	64.72M	58.05M	47.25M	45.24M	47.27M	34.50M
Net Income	6.57M	7.75M	644.94K	2.54M	13.08M	9.25M
Balance Sheet
Total Assets	941.91M	865.13M	783.53M	754.08M	684.27M	461.86M
Cash, Cash Equivalents and Short-Term Investments	20.59M	21.39M	18.13M	14.90M	17.81M	9.21M
Total Debt	459.45M	393.86M	337.51M	318.56M	269.86M	212.53M
Total Liabilities	567.10M	498.93M	429.05M	404.42M	336.82M	267.49M
Stockholders Equity	373.61M	364.88M	352.99M	348.36M	346.39M	193.36M
Cash Flow
Free Cash Flow	-74.08M	-51.28M	-14.16M	-41.03M	-181.88M	-103.89M
Operating Cash Flow	50.40M	45.28M	36.19M	31.20M	12.48M	14.71M
Investing Cash Flow	-124.81M	-96.72M	-50.55M	-72.23M	-196.82M	-118.61M
Financing Cash Flow	77.21M	54.52M	17.56M	38.46M	196.53M	47.22M

Reservoir Media Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RSVR, the sentiment is Positive. The current price of 9.69 is above the 20-day moving average (MA) of 9.00, above the 50-day MA of 8.09, and above the 200-day MA of 7.74, indicating a bullish trend. The MACD of 0.58 indicates Negative momentum. The RSI at 71.12 is Negative, neither overbought nor oversold. The STOCH value of 40.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RSVR.

Reservoir Media Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WMG	61 Neutral	$13.83B	22.61	48.36%	2.47%	4.37%	-16.22%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
RSVR	57 Neutral	$635.67M	56.34	2.64%	―	11.17%	―
GAIA	56 Neutral	$77.18M	-20.19	-5.18%	―	12.98%	27.93%
DLPN	50 Neutral	$19.64M	-10.31	-55.09%	―	3.86%	81.68%
LION	47 Neutral	$2.81B	-14.33	20.86%	―	97.19%	-21.46%
ANGH	41 Neutral	$27.10M	-0.27	-270.84%	―	88.72%	-85.54%

Reservoir Media Corporate Events

Reservoir Media Issues Updated Investor Presentation and Outlook

On February 18, 2026, Reservoir Media, Inc. posted an investor presentation on its website and furnished it to the market, outlining the company’s business outlook and financial metrics using both GAAP and non-GAAP measures such as EBITDA and Adjusted EBITDA. The materials emphasize that the financial data is unaudited and preliminary, highlight the limitations of non-GAAP metrics and third‑party market data, and clarify that the presentation is for informational purposes only and does not constitute an offer or solicitation of securities.

The company also underscores that the investor materials include forward-looking information subject to significant business and market risks and should not be relied on as guarantees of future performance. Reservoir directs investors to its SEC filings and official website for more comprehensive and updated information, reinforcing a careful, disclosure-driven approach to communicating with the capital markets.

The most recent analyst rating on (RSVR) stock is a Buy with a $11.50 price target. To see the full list of analyst forecasts on Reservoir Media stock, see the RSVR Stock Forecast page.