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Reservoir Media
(NASDAQ:RSVR)
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Rating:55Neutral
Price Target:
$10.50
▲(5.00% Upside)
Action:Reiterated
Date:06/10/26
The score is driven primarily by solid revenue growth and improving gross margins, tempered by leverage, uneven profitability, and historically weak free-cash-flow consistency. Technicals are neutral-to-mildly positive, while valuation is a key headwind due to the very high P/E. Earnings call guidance supports continued growth but also points to margin pressure and higher financing costs to monitor.
Positive Factors
Sustained Revenue Growth & Improved Gross Margin
Reservoir’s multi-year revenue uptrend and rising gross margin (to ~64% in 2025) reflect durable catalog monetization and favourable unit economics. Recurring royalty streams from publishing and masters underpin revenue visibility and margin resilience over the medium term.
Negative Factors
Elevated Leverage and Rising Interest Costs
High debt levels and rising interest expense materially increase financial risk and reduce net income sensitivity to rate cycles. Leverage constrains capital allocation optionality, raises refinancing risk if market conditions shift, and amplifies downside during revenue volatility.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Growth & Improved Gross Margin
Reservoir’s multi-year revenue uptrend and rising gross margin (to ~64% in 2025) reflect durable catalog monetization and favourable unit economics. Recurring royalty streams from publishing and masters underpin revenue visibility and margin resilience over the medium term.
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
$670.65M
Dividend YieldN/A
Average Volume (3M)75.58K
Price to Earnings (P/E)78.4
Beta (1Y)0.63
Revenue Growth10.69%
EPS Growth6.48%
CountryUS
Employees99
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 Cap1.65
Enterprise Value/Revenue6.30
Enterprise Value/Gross Profit9.75
Enterprise Value/Ebitda16.01
Forecast
1Y Price Target
$15.00Price Target Upside50.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
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 monetizing the copyrights it owns or administers across two main segments: (1) Music Publishing and (2) Recorded Music. In Music Publishing, the company earns revenue from the exploitation of musical compositions...
Reservoir Media Earnings Call Summary
Earnings Call Date:May 28, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call presented multiple meaningful growth highlights — double-digit revenue growth, strong Q4 performance, sustained adjusted EBITDA expansion, active M&A deployment (~$120M), digital and sync momentum, international expansion, and healthy operating cash flow and liquidity. Counterbalancing these positives are rising leverage and interest expense, higher administrative costs, margin pressure from lower‑margin acquisitions (e.g., Viral-Wave) and international investments, revenue volatility from timing/nonrecurring items, and only modest net income improvement. On balance the company demonstrated clear growth and operational execution, but with notable financial leverage and margin headwinds to monitor.Positive Updates
Full Year Revenue and EBITDA Growth
Fiscal 2026 revenue of $175.7M, up ~11% year-over-year with 6% organic growth; adjusted EBITDA grew 12% to $73.6M and OIBDA increased 12% to $69.0M.
Negative Updates
Rising Leverage and Interest Expense
Total debt of $455.7M and net debt of $429.8M (up from $366.7M prior year; net debt +~17%). Interest expense increased to $26.5M for the year from $21.9M prior (~+21%), reflecting higher debt levels from acquisitions and signings.
Read all updates
Q4-2026 Updates
Positive
Negative
Full Year Revenue and EBITDA Growth
Fiscal 2026 revenue of $175.7M, up ~11% year-over-year with 6% organic growth; adjusted EBITDA grew 12% to $73.6M and OIBDA increased 12% to $69.0M.
Read all positive updates
Company Guidance
Reservoir guided fiscal 2027 revenue of $186 million to $191 million and adjusted EBITDA of $75 million to $79 million (compared with FY26 revenue of $175.7M and adjusted EBITDA of $73.6M), implying roughly 6–9% top‑line growth year‑over‑year and a modest adj. EBITDA increase (about 1.9%–7.4%) with a slight decline in adjusted EBITDA margin (FY26 ~41.9% to an implied FY27 margin near ~40–41%), which management attributed to the lower‑margin Viral‑Wave acquisition and continued investments in frontline recorded music; they also reiterated expectations of mid‑single‑digit organic growth, disciplined cost management and steady operating cash flow, and closed FY26 with $25.9M cash, $91.2M revolver (total liquidity $117.1M), total debt $455.7M (net debt $429.8M) and FY26 interest expense of $26.5M.Reservoir Media Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
55
Neutral
Cash Flow
49
Neutral
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 175.66M | 158.71M | 144.86M | 122.29M | 107.84M |
| Gross Profit | 113.67M | 101.28M | 89.38M | 74.30M | 63.65M |
| EBITDA | 68.39M | 58.05M | 47.25M | 45.24M | 47.27M |
| Net Income | 8.30M | 7.75M | 644.94K | 2.54M | 13.08M |
Balance Sheet | |||||
| Total Assets | 949.68M | 865.13M | 783.53M | 754.08M | 684.27M |
| Cash, Cash Equivalents and Short-Term Investments | 25.93M | 21.39M | 18.13M | 14.90M | 17.81M |
| Total Debt | 463.15M | 393.86M | 337.51M | 318.56M | 269.86M |
| Total Liabilities | 571.11M | 498.93M | 429.05M | 404.42M | 336.82M |
| Stockholders Equity | 377.72M | 364.88M | 352.99M | 348.36M | 346.39M |
Cash Flow | |||||
| Free Cash Flow | 49.66M | -51.28M | -14.16M | -41.03M | -181.88M |
| Operating Cash Flow | 50.14M | 45.28M | 36.19M | 31.20M | 12.48M |
| Investing Cash Flow | -104.61M | -96.72M | -50.55M | -72.23M | -196.82M |
| Financing Cash Flow | 64.49M | 54.52M | 17.56M | 38.46M | 196.53M |
Reservoir Media Technical Analysis
Positive
10.00
Price Trends
10.17
Positive
9.77
Positive
8.64
Positive
Market Momentum
>-0.01
Positive
50.93
Neutral
47.93
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 10 is below the 20-day moving average (MA) of 10.19, below the 50-day MA of 10.17, and above the 200-day MA of 8.64, indicating a bullish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 50.93 is Neutral, neither overbought nor oversold. The STOCH value of 47.93 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 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $15.20B | 33.44 | 67.11% | 2.47% | 12.55% | -0.50% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | $52.15M | -10.70 | -5.46% | ― | 7.48% | 15.04% | |
57 Neutral | $3.92B | -18.96 | 16.27% | ― | -17.64% | -54.79% | |
55 Neutral | $670.65M | 78.38 | 8.77% | ― | 10.69% | 6.48% | |
44 Neutral | $30.82M | -0.26 | -205.22% | ― | 27.16% | -18.55% | |
40 Underperform | $13.80M | -3.78 | -55.09% | ― | 17.92% | 86.34% |
* Communication Services Sector Average
RSVR
Reservoir Media
10.20
2.21
27.66%
GAIA
Gaia
2.14
-1.80
-45.69%
DLPN
Dolphin Entertainment
1.07
-0.15
-12.30%
WMG
Warner Music Group
28.99
-0.23
-0.78%
ANGH
Anghami Inc.
3.38
-1.43
-29.73%
LION
Lionsgate Studios
13.47
6.47
92.43%
Reservoir Media Corporate Events
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.