Reservoir Media (RSVR)
NASDAQ:RSVR
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Reservoir Media
(NASDAQ:RSVR)
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Rating:57Neutral
Price Target:
$10.00
▼(-0.50% Downside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Reservoir Media (RSVR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$659.28M
Dividend YieldN/A
Average Volume (3M)75.58K
Price to Earnings (P/E)56.3
Beta (1Y)0.62
Revenue Growth11.17%
EPS GrowthN/A
CountryUS
Employees99
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)0.03
Shares Outstanding65,600,220
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 Cap1.67
Enterprise Value/Revenue6.47
Enterprise Value/Gross Profit10.05
Enterprise Value/Ebitda16.97
Forecast
1Y Price Target
$13.00Price Target Upside29.35% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.11
Revenue Forecast (FY)$179.75M
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 seg...
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 s...
Reservoir Media Key Performance Indicators (KPIs)
Reservoir Media Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jun 03, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive operational and strategic picture: revenue, OIBDA and adjusted EBITDA grew year-over-year, management raised full-year revenue and adjusted EBITDA guidance, and the company is actively expanding and diversifying its catalog via notable acquisitions and partnerships (including momentum from Grammy wins). Key near-term negatives include a meaningful decline in net income and EPS, higher amortization and interest relating to increased acquisition-driven borrowing, and regulatory/seasonal visibility risks. Overall the positives around top-line growth, margin expansion, stronger cash generation, raised guidance, and accretive catalog investments outweigh the lowlights tied to financing costs and one-time/non-cash items.Positive Updates
Revenue Growth and Scale
Q3 revenue of $45.6 million, up 5% year-over-year on an organic basis and up 8% including acquisitions.
Negative Updates
Decline in Net Income and EPS
Net income fell to approximately $2.2 million in Q3 from $5.3 million a year ago. EPS declined to $0.03 from $0.08, driven by a loss on fair value of swaps (vs prior-year gain), higher interest expense and other income changes.
Read all updates
Q3-2026 Updates
Positive
Negative
Revenue Growth and Scale
Q3 revenue of $45.6 million, up 5% year-over-year on an organic basis and up 8% including acquisitions.
Read all positive updates
Company Guidance
Reservoir raised its full‑year FY2026 revenue guidance from $167–$170M to $170–$173M and its adjusted EBITDA guidance from $70–$72M to $71.5–$73.5M (midpoints imply ~8% revenue growth and >10% adjusted EBITDA growth vs. FY2025), citing Q3 performance of $45.6M revenue (organic +5% YoY; +8% including acquisitions), Music Publishing $30.1M (+12% YoY), Recorded Music $12.9M (+8% YoY), OIBDA $18.1M (+11% YoY), adjusted EBITDA $19.2M (+11% YoY), operating cash flow of $38.2M (up $5.1M YoY), total liquidity $114.8M (cash $20.6M; $94.2M revolver), total debt $452.3M (net debt $431.7M), interest expense $6.6M, net income ~$2.2M (EPS $0.03) and a weighted average diluted share count of 66M, and said it is well positioned to achieve the raised guidance in Q4.Reservoir Media Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
54
Neutral
Cash Flow
42
Neutral
| 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
Positive
10.05
Price Trends
8.82
Positive
8.13
Positive
7.92
Positive
Market Momentum
0.28
Negative
67.10
Neutral
90.04
Negative
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 10.05 is above the 20-day moving average (MA) of 9.61, above the 50-day MA of 8.82, and above the 200-day MA of 7.92, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 67.10 is Neutral, neither overbought nor oversold. The STOCH value of 90.04 is Negative, 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 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 |
|---|---|---|---|---|---|---|---|
61 Neutral | $14.89B | 22.61 | 48.36% | 2.47% | 4.37% | -16.22% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
57 Neutral | $659.28M | 56.34 | 2.64% | ― | 11.17% | ― | |
56 Neutral | $70.94M | -20.19 | -5.18% | ― | 12.98% | 27.93% | |
52 Neutral | $19.00M | 4.14 | -55.09% | ― | 3.86% | 81.68% | |
51 Neutral | $3.16B | -10.73 | 20.86% | ― | 97.19% | -21.46% | |
41 Neutral | $36.26M | -0.37 | -270.84% | ― | 88.72% | -85.54% |
* Communication Services Sector Average
RSVR
Reservoir Media
10.05
2.99
42.35%
GAIA
Gaia
2.84
-0.72
-20.22%
DLPN
Dolphin Entertainment
1.53
0.50
48.54%
WMG
Warner Music Group
28.50
-0.05
-0.18%
ANGH
Anghami Inc.
4.00
-1.65
-29.20%
LION
Lionsgate Studios
10.88
4.59
72.97%
Reservoir Media Corporate Events
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Reservoir Media Issues Updated Investor Presentation and Outlook
Neutral
Feb 18, 2026
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 an...
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.