Reservoir Media (RSVR) AI Stock Analysis

• Market Cap: $588.43M
• Dividend Yield: N/A
• Average Volume (3M): 75.58K
• Price to Earnings (P/E): 90.6
• Beta (1Y): 0.64
• 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: 1.75
• Enterprise Value/Revenue: 6.06
• Enterprise Value/Gross Profit: 9.41
• Enterprise Value/Ebitda: 15.87
• 1Y Price Target: $13.25
• Price Target Upside: 47.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.1
• Revenue Forecast (FY): $169.70M

• Rating: 52 Neutral
• Price Target: $9.00 ▲(0.33% Upside)
• 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 & Raised Guidance

Management raised FY2026 revenue and adjusted EBITDA guidance after Q3 organic revenue growth, signaling durable top-line momentum across publishing and recorded music. Upward guidance increases visibility and supports multi-quarter planning for catalog investments and licensing monetization.

Improving Operating Cash Flow & Liquidity

Consistently positive and rising operating cash flow strengthens the company’s ability to service debt and fund organic growth. Substantial available revolver liquidity provides flexible capital for strategic acquisitions and working-capital needs, supporting durable execution of the catalog growth strategy.

Catalog Scale via Strategic M&A & Global Expansion

Active, targeted acquisitions, JV expansions into emerging markets, and high-profile signings broaden recurring royalty streams and geographic diversification. Cultural momentum and awards enhance sync and streaming potential, reinforcing a durable competitive advantage in rights ownership and catalog monetization.

Negative Factors

High and Rising Leverage

Leverage has increased materially to fund acquisitions, raising interest and refinancing exposure. Elevated net debt relative to equity reduces financial flexibility, increases fixed financing costs, and heightens downside risk if catalog cash flows slow or capital markets tighten, pressuring long-term returns.

Persistent Negative Annual Free Cash Flow

Despite positive operating cash flow, the company has reported negative annual free cash flow repeatedly, implying heavy cash deployment into acquisitions, capex, or working capital. Persistent FCF deficits force ongoing external financing and amplify leverage sensitivity over multiple quarters.

Regulatory Royalty-Rate Uncertainty

Pending rate-setting outcomes from CRB and similar processes can structurally alter future royalty rates for streaming and other uses. Adverse rulings or slower rate recovery would reduce long-term royalty cash flows and weaken returns on recent catalog buys, adding durable revenue visibility risk.

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: 8.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 8.97 is above the 20-day moving average (MA) of 7.71, above the 50-day MA of 7.56, and above the 200-day MA of 7.61, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 79.50 is Negative, neither overbought nor oversold. The STOCH value of 73.10 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	$14.94B	49.44	47.75%	2.47%	4.37%	-16.22%
GAIA	56 Neutral	$84.89M	-17.47	-5.63%	―	12.98%	27.93%
RSVR	52 Neutral	$588.43M	90.61	2.64%	―	11.17%	―
DLPN	50 Neutral	$19.88M	-3.01	-55.09%	―	3.86%	81.68%
LION	47 Neutral	$2.61B	-10.28	―	―	97.19%	-21.46%
ANGH	41 Neutral	$27.19M	-0.27	―	―	88.72%	-85.54%

Reservoir Media Corporate Events

Reservoir Media Issues Updated Investor Presentation and Outlook

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 and Adjusted EBITDA. The materials emphasize that the financial data is unaudited and preliminary, highlight the limitations of non-GAAP metrics and third‑party market data, and clarify that the presentation is for informational purposes only and does not constitute an offer or solicitation of securities.

The company also underscores that the investor materials include forward-looking information subject to significant business and market risks and should not be relied on as guarantees of future performance. Reservoir directs investors to its SEC filings and official website for more comprehensive and updated information, reinforcing a careful, disclosure-driven approach to communicating with the capital markets.

The most recent analyst rating on (RSVR) stock is a Buy with a $11.50 price target. To see the full list of analyst forecasts on Reservoir Media stock, see the RSVR Stock Forecast page.