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Reservoir Media
(NASDAQ:RSVR)
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Rating:53Neutral
Price Target:
$10.50
▼(-1.22% Downside)
Action:Reiterated
Date:08/04/26
RSVR’s score is primarily held back by mixed financial quality—uneven profitability, elevated leverage/interest burden, and historically negative free cash flow despite improving operations. Technicals are neutral to slightly weak in the near term (below 20/50-day averages with muted momentum), while valuation is a clear headwind given the very high P/E and no dividend support. The earnings call adds some offsetting strength via reiterated FY27 guidance and improving EBITDA metrics, but also underscores cost, debt, and cash-flow timing risks.
Positive Factors
Multi‑year revenue growth & improving gross margin
Sustained top-line growth and a rising gross margin (~64% in 2025) indicate durable unit economics from recurring royalty streams. As catalogs scale, fixed-costs dilute and royalty yields improve, supporting persistent revenue generation independent of short-term release cycles.
Negative Factors
Elevated and rising leverage
High and increasing leverage raises interest burden and limits financial flexibility. Heavy debt used to fund acquisitions amplifies refinancing and covenant risk, constraining the balance sheet's ability to absorb shocks or pursue accretive deals without adding further leverage or diluting shareholders.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi‑year revenue growth & improving gross margin
Sustained top-line growth and a rising gross margin (~64% in 2025) indicate durable unit economics from recurring royalty streams. As catalogs scale, fixed-costs dilute and royalty yields improve, supporting persistent revenue generation independent of short-term release cycles.
Read all positive factors
Reservoir Media Key Performance Indicators (KPIs)
Any
Revenue by Segment
Allocates total revenue across the company’s lines of business (e.g., recorded music, publishing, licensing), showing where growth is coming from, how concentrated revenue is, and which areas could drive future upside or pose concentration risk.
Allocates total revenue across the company’s lines of business (e.g., recorded music, publishing, licensing), showing where growth is coming from, how concentrated revenue is, and which areas could drive future upside or pose concentration risk.
Data provided by:
The Fly
The FlyReservoir Media (RSVR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$673.94M
Dividend YieldN/A
Average Volume (3M)75.58K
Price to Earnings (P/E)78.8
Beta (1Y)0.66
Revenue Growth10.69%
EPS Growth6.48%
CountryUS
Employees100
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)0.13
Shares Outstanding65,814,330
10 Day Avg. Volume89,413
30 Day Avg. Volume75,578
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)1.36
Price to Sales (P/S)3.13
P/FCF Ratio-9.69
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$13.00Price Target Upside22.30% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.11
Revenue Forecast (FY)$179.80M
Reservoir Media Business Overview & Revenue Model
Company Description
Reservoir Media, Inc. is a company dedicated to managing music rights, structured into two core divisions: Music Publishing and Recorded Music. The Music Publishing segment focuses on acquiring ownership interests in existing musical catalogs and ...
How the Company Makes Money
Reservoir primarily makes money by owning or controlling music copyrights and collecting royalties and fees when those works are used. Key revenue streams typically include: (1) Music publishing income: revenue generated from the ownership/control...
Reservoir Media Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call communicated a generally positive operational and strategic picture: strong top-line growth (12% total, 6% organic), outsized Recorded Music growth (35%), improvements in OIBDA and adjusted EBITDA, active catalog expansion and reiterated guidance. However, the quarter also showed rising costs (cost of revenue +12%, admin +16%, amortization +13%), higher interest expense and growing net debt, a small operating cash outflow, and some lumpy revenue components (sync). On balance, the business shows momentum driven by acquisitions and partnerships but with near-term financial headwinds tied to integration, financing and timing of cash flows.Positive Updates
Top-line Growth
Total revenue for Q1 was $41.5 million, up 12% year-over-year including acquisitions and up 6% organically, driven by acquisitions, roster success, price increases across streaming services and international subscriber growth.
Negative Updates
Rising Operating Costs
Total cost of revenue increased 12% year-over-year; administration expenses rose 16% and amortization & depreciation increased 13%, reflecting integration and amortization from recent catalog acquisitions.
Read all updates
Q1-2027 Updates
Positive
Negative
Top-line Growth
Total revenue for Q1 was $41.5 million, up 12% year-over-year including acquisitions and up 6% organically, driven by acquisitions, roster success, price increases across streaming services and international subscriber growth.
Read all positive updates
Company Guidance
Reservoir reiterated its fiscal 2027 guidance, maintaining revenue of $186–191 million (midpoint ≈ +7% vs. FY26) and adjusted EBITDA of $75–79 million (midpoint ≈ +5% vs. FY26); management said it remains confident it can deliver on those targets after Q1 results of $41.5 million revenue (12% YoY incl. acquisitions; 6% organic), OIBDA $13.7 million (+7% YoY), adjusted EBITDA $15.7 million (+13% YoY) and breakeven diluted EPS (weighted average diluted shares ≈66 million), and noted available liquidity of $98.9 million (cash $13.7M; $85.2M revolver), total debt $462.2 million (net debt $448.5M) while continuing to review the forecast and update guidance as appropriate.Reservoir Media Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
55
Neutral
Cash Flow
49
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 175.70M | 175.66M | 158.71M | 144.86M | 122.29M | 107.84M |
| Gross Profit | 113.49M | 113.67M | 101.28M | 89.38M | 74.30M | 63.65M |
| EBITDA | 69.13M | 68.39M | 58.05M | 47.25M | 45.24M | 47.27M |
| Net Income | 8.31M | 8.30M | 7.75M | 644.94K | 2.54M | 13.08M |
Balance Sheet | ||||||
| Total Assets | 949.68M | 949.68M | 865.13M | 783.53M | 754.08M | 684.27M |
| Cash, Cash Equivalents and Short-Term Investments | 25.93M | 25.93M | 21.39M | 18.13M | 14.90M | 17.81M |
| Total Debt | 463.15M | 463.15M | 393.86M | 337.51M | 318.56M | 269.86M |
| Total Liabilities | 571.11M | 571.11M | 498.93M | 429.05M | 404.42M | 336.82M |
| Stockholders Equity | 377.72M | 377.72M | 364.88M | 352.99M | 348.36M | 346.39M |
Cash Flow | ||||||
| Free Cash Flow | -47.10M | 49.66M | -51.28M | -14.16M | -41.03M | -181.88M |
| Operating Cash Flow | 51.28M | 50.14M | 45.28M | 36.19M | 31.20M | 12.48M |
| Investing Cash Flow | -104.32M | -104.61M | -96.72M | -50.55M | -72.23M | -196.82M |
| Financing Cash Flow | 63.06M | 64.49M | 54.52M | 17.56M | 38.46M | 196.53M |
Reservoir Media Technical Analysis
Neutral
10.63
Price Trends
10.28
Negative
10.08
Positive
8.86
Positive
Market Momentum
0.10
Positive
44.40
Neutral
31.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RSVR, the sentiment is Neutral. The current price of 10.63 is above the 20-day moving average (MA) of 10.37, above the 50-day MA of 10.28, and above the 200-day MA of 8.86, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 44.40 is Neutral, neither overbought nor oversold. The STOCH value of 31.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RSVR.
Reservoir Media Risk Analysis
Reservoir Media disclosed 37 risk factors in its most recent earnings report. Reservoir Media reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Reservoir Media Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $13.54B | 29.86 | 67.11% | 2.86% | 12.55% | -0.50% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | $46.83M | -9.59 | -5.46% | ― | 7.48% | 15.04% | |
53 Neutral | $673.94M | 78.77 | 2.23% | ― | 10.69% | 6.48% | |
48 Neutral | $3.95B | -18.70 | 16.27% | ― | -17.64% | -54.79% | |
44 Neutral | $30.75M | -0.26 | -205.22% | ― | 27.16% | -18.55% | |
40 Underperform | $13.28M | -3.57 | -41.42% | ― | 17.92% | 86.34% |
* Communication Services Sector Average
RSVR
Reservoir Media
10.06
2.53
33.60%
GAIA
Gaia
1.91
-2.31
-54.74%
DLPN
Dolphin Entertainment
1.16
0.00
0.00%
WMG
Warner Music Group
25.80
-3.53
-12.02%
ANGH
Anghami Inc.
3.41
-0.15
-4.21%
LION
Lionsgate Studios
13.02
7.25
125.65%
Reservoir Media Corporate Events
Business Operations and StrategyFinancial Disclosures
Reservoir Media Releases Updated Investor Presentation and Outlook
Neutral
Jun 17, 2026
On June 17, 2026, Reservoir Media, Inc. posted a new investor presentation on its website and furnished it to the market via a current report, outlining financial data and management’s views on the business using non-GAAP measures such as EB...
Executive/Board ChangesShareholder Meetings
Reservoir Media Announces Board Changes and New Director Nominee
Positive
Jun 9, 2026
On June 5, 2026, Reservoir Media announced that director Stephen M. Cook will retire from the Board at the end of his current term and will not stand for re-election as a Class II director at the 2026 Annual Meeting of Stockholders. The company em...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.