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Reservoir Media, Inc. (RSVR)
:RSVR

Reservoir Media (RSVR) AI Stock Analysis

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Reservoir Media

(NASDAQ:RSVR)

Rating:71Outperform
Price Target:
$8.50
▲(7.87%Upside)
Reservoir Media's strong financial performance, exceeding earnings expectations, and strategic growth initiatives are significant positives. However, high valuation, rising leverage, and liquidity challenges weigh on the overall score. The expanded credit agreement offers enhanced flexibility, contributing positively to the outlook.

Reservoir Media (RSVR) vs. SPDR S&P 500 ETF (SPY)

Reservoir Media Business Overview & Revenue Model

Company DescriptionReservoir 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 MoneyReservoir Media makes money primarily through the monetization of music rights, which includes collecting royalties from various sources such as streaming services, radio airplay, and public performances. The company's revenue streams are derived from music publishing, which involves licensing compositions for use in films, television shows, commercials, and other media. Additionally, Reservoir Media earns income from recorded music sales and digital streaming. Key partnerships with digital platforms, media companies, and other music industry stakeholders further enhance its revenue potential and market reach.

Reservoir Media Earnings Call Summary

Earnings Call Date:May 28, 2025
(Q4-2025)
|
% Change Since: 1.03%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
Reservoir Media demonstrated strong financial performance in fiscal 2025, exceeding revenue and EBITDA expectations, deploying significant capital for strategic acquisitions, and expanding internationally. However, challenges such as declines in physical and performance revenue and increased interest expenses were noted. Despite these lowlights, the positive achievements and strategic growth initiatives outweigh the negatives.
Q4-2025 Updates
Positive Updates
Exceeding Fiscal 2025 Expectations
Reservoir Media exceeded both guidance and expectations with a top-line annual revenue growth of 10% and an 18% improvement in adjusted EBITDA.
Significant Capital Deployment
Over $115 million was deployed towards acquisitions and advances, including notable publishing deals with artists like Snoop Dogg and k.d. lang.
Expansion and International Growth
The launch of PopIndia and the acquisition of Omar Kamal's catalog highlight Reservoir's international expansion and strategic focus on emerging markets.
Strong Fourth Quarter Performance
Fourth quarter revenue increased by 6% to $41.4 million, with a 14% increase in adjusted EBITDA to $18.2 million, driven by synchronization and digital growth.
Full Year Record Results
For fiscal 2025, revenue reached $158.7 million, a 10% year-over-year increase, with a 24% increase in OIBDA and an 18% increase in adjusted EBITDA.
Negative Updates
Physical Revenue Decline
Physical revenue decreased by 26% in the fourth quarter due to a lighter planned release schedule compared to the previous year.
Performance Revenue Decrease
Performance revenue in the Music Publishing segment decreased by 13% year-over-year in the fourth quarter.
Increased Interest Expense
Interest expense for the fourth quarter was $6.1 million, up from $5.2 million in the same period last year, due to increased debt from acquisitions.
Company Guidance
During Reservoir Media's Fourth Quarter Fiscal Year 2025 Earnings Conference Call, it was reported that the company exceeded its guidance with a notable annual revenue growth of 10% and an 18% improvement in adjusted EBITDA. The company deployed over $115 million towards acquisitions and advances, enhancing its portfolio with significant deals such as Snoop Dogg and k.d. lang publishing agreements. The fourth quarter revenue increased by 6% year-over-year to $41.4 million, driven by a 6% growth in the Music Publishing segment. Operating performance saw a 14% increase in adjusted EBITDA to $18.2 million, attributed to stronger revenue and improved margins in synchronization and digital segments. For the full fiscal year 2025, revenue reached $158.7 million, surpassing the guidance range, with Music Publishing and Recorded Music segments growing by 12% and 4% respectively. The company closed the year with a net income of $7.7 million, significantly up from $800,000 the previous year, and diluted earnings per share of $0.12. Looking ahead, Reservoir Media projects fiscal 2026 revenue to be between $164 million and $169 million, with adjusted EBITDA expected to range from $68 million to $72 million, leveraging a strong pipeline of potential acquisitions and continued organic growth efforts.

Reservoir Media Financial Statement Overview

Summary
Reservoir Media shows solid growth with impressive revenue gains and stable profit margins. However, rising leverage and negative free cash flow due to capital expenditures pose risks. Improvement in net profitability and cash management would enhance financial health.
Income Statement
78
Positive
Reservoir Media has demonstrated strong revenue growth, increasing from $63.2M in 2020 to $158.7M in 2025. The gross profit margin remains robust, hovering around 63.8% in 2025, indicating efficient cost management. However, net profit margin is lower at 4.9% for 2025, suggesting room for improving profitability. Consistent revenue growth and stable EBIT and EBITDA margins are positive signs, but net profit margins could be optimized for better financial performance.
Balance Sheet
72
Positive
The company maintains a manageable debt-to-equity ratio, though it has increased to 1.08 in 2025 from previous years, indicating rising leverage. The equity ratio is stable at 42.2%, suggesting a balanced capital structure. Return on Equity (ROE) is modest at 2.1%, highlighting potential for improved profitability. While the company's financial stability is adequate, increased leverage could pose risks if not managed carefully.
Cash Flow
65
Positive
Operating cash flow has shown improvement, with a significant increase from $11.9M in 2020 to $45.3M in 2025, reflecting strong operational efficiency. However, free cash flow remains negative, primarily due to high capital expenditures, which could impact liquidity. The operating cash flow to net income ratio is strong, indicating effective cash generation relative to profitability, but sustained negative free cash flow warrants attention to capital spending.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue158.71M144.86M122.29M107.84M80.25M
Gross Profit101.28M89.38M74.30M63.65M47.39M
EBITDA58.05M47.25M43.13M38.38M32.41M
Net Income7.75M644.94K2.54M13.08M9.25M
Balance Sheet
Total Assets865.13M783.53M754.08M684.27M461.86M
Cash, Cash Equivalents and Short-Term Investments21.39M18.13M14.90M17.81M9.21M
Total Debt393.86M337.51M318.56M269.86M212.53M
Total Liabilities498.93M429.05M404.42M336.82M267.49M
Stockholders Equity364.88M352.99M348.36M346.39M193.36M
Cash Flow
Free Cash Flow-51.28M-14.16M-41.03M-181.88M-103.89M
Operating Cash Flow45.28M36.19M31.20M12.48M14.71M
Investing Cash Flow-96.72M-50.55M-72.23M-196.82M-118.61M
Financing Cash Flow54.52M17.56M38.46M196.53M47.22M

Reservoir Media Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7.88
Price Trends
50DMA
7.43
Positive
100DMA
7.46
Positive
200DMA
7.99
Negative
Market Momentum
MACD
0.09
Negative
RSI
62.73
Neutral
STOCH
77.35
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 7.88 is above the 20-day moving average (MA) of 7.48, above the 50-day MA of 7.43, and below the 200-day MA of 7.99, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 62.73 is Neutral, neither overbought nor oversold. The STOCH value of 77.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RSVR.

Reservoir Media Risk Analysis

Reservoir Media disclosed 36 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 2 New Risks
1.
We may not be able to successfully execute our business strategy which may adversely affect our business, cash flows, financial condition and results of operation. Q1, 2025
2.
The development, deployment, and use of Artificial Intelligence (AI), including Generative AI, presents challenges for protecting our intellectual property and the rights of our artists and songwriters and could adversely affect our business and results of operation. Q1, 2025

Reservoir Media Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
WMWMG
72
Outperform
$15.32B34.1689.20%2.45%-0.91%-14.87%
71
Outperform
$515.91M67.242.16%9.56%1088.00%
58
Neutral
C$3.32B6.33-0.75%6.13%-2.19%-11.60%
56
Neutral
$8.21B-37.30%4.45%-4.08%-248.39%
52
Neutral
$14.30M-98.74%0.31%27.47%
41
Neutral
$33.42M-270.84%88.72%-85.53%
38
Underperform
$14.92M-218.47%-36.94%15.41%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RSVR
Reservoir Media
7.88
0.53
7.21%
SIRI
Sirius XM Holdings
24.29
-6.88
-22.07%
DLPN
Dolphin Entertainment
1.28
-0.30
-18.99%
WMG
Warner Music Group
29.39
-0.42
-1.41%
ANGH
Anghami Inc.
0.50
-0.44
-46.81%
KUKE
Kuke Music Holding
3.00
-10.30
-77.44%

Reservoir Media Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Reservoir Media Expands Credit Agreement by $100 Million
Positive
Jun 4, 2025

On June 3, 2025, Reservoir Media Management, Inc. amended its credit agreement to increase its revolving credit commitment from $450 million to $550 million and reset its incremental borrowing capacity to $150 million. This amendment aims to provide additional operational flexibility and adjust financial ratios, potentially enhancing the company’s ability to manage its music library assets and financial obligations.

The most recent analyst rating on (RSVR) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Reservoir Media stock, see the RSVR Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Reservoir Media Releases Investor Presentation June 2025
Neutral
Jun 4, 2025

On June 4, 2025, Reservoir Media, Inc. released an investor presentation on its website, providing insights into its financial condition and strategic initiatives. The presentation, however, contains forward-looking statements and unaudited financial information, which may be subject to change, highlighting the inherent risks and uncertainties in the company’s future performance and market positioning.

The most recent analyst rating on (RSVR) stock is a Buy with a $13.00 price target. To see the full list of analyst forecasts on Reservoir Media stock, see the RSVR Stock Forecast page.

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.Date of analysis: Jun 27, 2025