Reservoir Media (RSVR) AI Stock Analysis

• Market Cap: $491.35M
• Dividend Yield: N/A
• Average Volume (3M): 75.58K
• Price to Earnings (P/E): 76.6
• Beta (1Y): 0.67
• 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: 1.91
• Enterprise Value/Revenue: 5.52
• Enterprise Value/Gross Profit: 8.57
• Enterprise Value/Ebitda: 14.46
• 1Y Price Target: $13.25
• Price Target Upside: 74.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.09
• Revenue Forecast (FY): $169.70M

• Rating: 52 Neutral
• Price Target: $7.50 ▼(-1.06% Downside)
• Action: Reiterated Date: 02/05/26
• Date: Action: Reiterated 02/05/26

The score is driven primarily by middling financial quality (volatile profitability, negative annual free cash flow, and rising leverage) and only neutral technicals. A high P/E with no dividend support pressures the valuation component, partially offset by a positive earnings-call signal with raised FY2026 guidance and improving operating cash flow.

Positive Factors

Revenue Growth and Scale

Consistent top-line growth and segment strength indicate an expanding recurring-revenue base from royalties. Organic growth plus acquisitive growth increases catalog scale, improving negotiating leverage with platforms and licensing partners and supporting durable royalty cash flows over multiple years.

Improved Cash Generation & Liquidity

Rising operating cash flow and substantial liquidity (cash plus revolver) provide durable funding for catalog investments and working capital. Positive OCF supports recurring royalty operations and cushions near-term refinancing needs, enabling strategic M&A without immediate equity dilution.

Active Catalog M&A & Global Expansion

Ongoing strategic acquisitions, partnerships and emerging-market expansion diversify revenue streams and lengthen royalty tails. Building culturally valuable catalogs and JVs increases long-term licensing opportunities, sync placements, and geographic exposure that sustain recurring income beyond short cycles.

Negative Factors

Rising Debt/Leverage

Acquisition-driven borrowings have materially increased leverage, raising interest and amortization charges. Higher net debt reduces financial flexibility, heightens refinancing and rate sensitivity, and can constrain future M&A or capital allocation if cash flows weaken or rates rise over the medium term.

Persistently Negative Annual Free Cash Flow

Despite positive operating cash flow, annual free cash flow has been consistently negative due to heavy reinvestment and acquisition outlays. This structural FCF gap implies reliance on external financing for growth and limits capacity for dividends or buybacks until acquisition spending normalizes.

Regulatory/Royalty Rate Uncertainty

Reservoir's revenue depends on royalty rates set via regulatory and industry processes. Unfavorable CRB outcomes or prolonged uncertainty could structurally reduce or delay royalty income across catalogs, weakening long-term revenue visibility and return on recent catalog investments.

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

Strong multi-year revenue growth and generally solid gross/EBITDA profitability, but profitability has been volatile, leverage is trending higher, and annual free cash flow has been persistently negative despite positive operating cash flow. Some TTM inconsistencies also reduce confidence in the income-statement signal quality.

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: 7.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 7.58 is above the 20-day moving average (MA) of 7.55, above the 50-day MA of 7.50, and below the 200-day MA of 7.59, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 51.46 is Neutral, neither overbought nor oversold. The STOCH value of 21.90 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
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
WMG	59 Neutral	$14.33B	47.42	47.75%	2.47%	4.37%	-16.22%
GAIA	56 Neutral	$81.89M	-17.53	-5.63%	―	12.98%	27.93%
RSVR	52 Neutral	$491.35M	76.57	2.64%	―	11.17%	―
DLPN	50 Neutral	$20.61M	-3.25	-55.09%	―	3.86%	81.68%
LION	49 Neutral	$2.39B	-9.42	―	―	97.19%	-21.46%
ANGH	41 Neutral	$23.57M	-0.24	―	―	88.72%	-85.54%

Reservoir Media Corporate Events

Reservoir Media Releases Investor Presentation on 8-K

On November 17, 2025, Reservoir Media, Inc. released an investor presentation on its website, which is also attached to its current report on Form 8-K. The presentation includes forward-looking statements about the company’s future financial condition, growth initiatives, and market opportunities, but cautions that actual results may differ due to various risks and uncertainties. The presentation also contains unaudited financial information and non-GAAP financial measures, which are intended to provide investors with additional insights into the company’s operations and performance.

The most recent analyst rating on (RSVR) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Reservoir Media stock, see the RSVR Stock Forecast page.