Reservoir Media reported on Tuesday (Aug. 5) that its revenue rose 8% to $37.2 million in the first quarter of fiscal 2026, which ended on June 30. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), a popular measure of profitability, was $13.9 million, up 10%.
“We achieved healthy top-line growth in the first fiscal quarter, while continuing to manage our costs to generate a 10% year-over-year improvement in our adjusted EBITDA,” said Golnar Khosrowshahi, founder/CEO of Reservoir Media, in a statement. “We are building on strong momentum and are well-positioned to continue focusing on organic growth opportunities for our catalog of high-quality music.”
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On the publishing side, revenue grew 4% to $24.9 million in the quarter. Digital, publishing’s largest revenue stream, fell 2% to $14.3 million. Performance revenue dropped 7% to $4.8 million. Sync revenue jumped 48% to $4.2 million and mechanical royalties fell 7% to $600,000.
Recorded music revenue improved 8% to $10.4 million, with digital recorded revenue jumping 23% to $8 million due mainly to price increases and subscriber growth at subscription platforms. Neighboring rights fell 3% to $1.1 million. Physical sales fell 21% to $1.1 million, and sync revenue fell 57% to $300,000.
During the quarter, Reservoir struck a strategic partnership with Fool’s Gold Records to acquire the master rights catalogs of several artists, including A-Trak, Danny Brown and Low Pros. Reservoir also took on exclusive marketing and distribution responsibilities for Fool’s Gold’s past and future releases, while Fool’s Gold joined Reservoir’s roster of independent labels, which includes Chrysalis Records, Tommy Boy Music and New State.
Reservoir also invested in the London-based immersive entertainment company Lightroom, which develops exhibitions and experiences around intellectual property. Lightroom’s past collaborations include features with Coldplay, Tom Hanks and Hans Zimmer. As part of the deal, Reservoir will provide music IP for Lightroom productions.
Reservoir executives said the company is on track to meet its fiscal 2026 financial targets of revenue in the range of $164 million to $169 million, implying a 5% annual growth rate at the midpoint. Adjusted EBITDA guidance of $68 million to $72 million would represent 6% growth at the midpoint.
Reservoir Media shares closed down 3.6% at $7.53.
