Reservoir Media Raises Full-Year Guidance After 10% Q3 Revenue Jump

Reservoir Media generated USD $49.9 million in calendar Q3 2026 (its fiscal Q2 2027), up 10% year-on-year, prompting the company to raise its full-year revenue and Adjusted EBITDA guidance.

Calendar Q3 revenue growth:

• Organic revenue growth, excluding acquisitions, was 4%, indicating that catalog investments also contributed to the overall increase.

• Adjusted EBITDA climbed 14% YoY to $22.1 million, while operating income increased 15% YoY to $12.3 million.

Music publishing:

• Music publishing revenue rose 8% YoY to $33.2 million.

• Digital revenue grew 10% YoY to $17.6 million, primarily driven by catalog acquisitions and streaming growth.

Recorded music:

• Recorded music revenue increased 18% YoY to $15.4 million.

• Digital revenue jumped 33% YoY to $11.5 million, with catalog acquisitions and streaming growth again the main drivers.

• Neighboring rights revenue rose 40% YoY to $1.5 million, supported by acquisitions and “new affiliations.”

• Physical revenue rose 6% YoY to $1.4 million.

• Recorded music OIBDA increased 26% to $8.3 million, with margins expanding from 51% to 54%.

• Sync revenue diverged between divisions: publishing grew 13% YoY to $5.2 million, while recorded music sync revenue fell 54% to $0.9 million. Reservoir attributed both movements to “the timing of licenses.”

Raised guidance:

• Reservoir now expects revenue of $188 million to $192 million for its fiscal year ending March 31, 2027, and Adjusted EBITDA of $77 million to $80 million, representing midpoint growth of 8% and 7%, respectively.

What they said:

• Golnar Khosrowshahi, Founder and Chief Executive Officer of Reservoir Media: “Our second quarter results marked the end of a strong first half of fiscal 2027, with growth across both our Publishing and Recorded Music segments reflecting the continued successful execution of our long-term strategy. Our recent investments span across established songwriters and catalogs with enduring cultural and commercial significance and the hitmakers of tomorrow. We continue to thoughtfully expand and diversify our portfolio, while deepening our established reputation as a trusted steward for exceptional music talents and catalogs. We remain confident in our ability to build on this momentum for the remainder of fiscal year 2027.”