Reservoir Media Inc. (RSVR) reported its fourth-quarter fiscal 2026 earnings, surpassing market expectations with an EPS of $0.05 against a forecast of $0.04, marking a 25% surprise. The company also reported revenue of $47.5 million, exceeding the forecast by 6.84%. Following these results, Reservoir Media’s stock rose by 1.44% in pre-market trading to $10.55, reflecting investor confidence in the company’s performance.
Reservoir Media demonstrated strong financial performance in fiscal 2026, with total revenue reaching $175.7 million, an 11% increase year-over-year. The company’s strategic focus on expanding its Recorded Music and Music Publishing segments contributed to this growth, with significant gains in digital and synchronization revenues.
Reservoir Media’s actual EPS of $0.05 surpassed the forecast of $0.04, resulting in a 25% earnings surprise. The revenue of $47.5 million also exceeded expectations by 6.84%, underscoring the company’s operational strength and market positioning.
Following the earnings announcement, Reservoir Media’s stock saw a 1.44% increase in pre-market trading, reaching $10.55. This positive reaction aligns with the company’s earnings and revenue beat, signaling investor confidence in its growth trajectory. The stock has delivered impressive returns with a 36% gain over the past six months and a 37% year-to-date increase, trading near its 52-week high of $10.54.
Yet valuation concerns merit attention. The company trades at a P/E ratio of 104, significantly above industry averages. According to InvestingPro analysis, RSVR appears overvalued relative to its Fair Value estimate, placing it among stocks on the Most Overvalued watchlist. For investors seeking deeper valuation insights, InvestingPro offers access to 10 additional ProTips for RSVR, along with comprehensive Fair Value analysis and advanced metrics.
Looking ahead, Reservoir Media has set ambitious EPS and revenue targets for the upcoming quarters, with forecasts of $0.13 EPS for FY2027 Q1 and revenue projections reflecting continued growth. The company’s strategic investments in catalog acquisitions are expected to support these targets.
CEO of Reservoir Media highlighted, "Our strong financial results reflect our strategic focus on expanding our music publishing and recorded music segments. We remain committed to driving growth through strategic acquisitions and enhancing our digital capabilities."
During the earnings call, analysts inquired about the company’s strategy for managing rising costs and its plans for further acquisitions. Executives emphasized their focus on operational efficiency and strategic investments to drive long-term growth.
Conference Call Operator: Greetings, welcome to Reservoir Media’s fourth quarter and fiscal year 2026 earnings conference call. At this time, all participants are on a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your keypad. As a reminder, this conference call is being recorded. I would now like to turn the call over to your host, Jackie Marcus. Thank you. You may begin.
Jackie Marcus, Investor Relations, Reservoir Media: Thank you, operator. Good morning, everyone, and thank you for participating in today’s earnings conference call. Reservoir Media issued a press release with its results for its fourth quarter and fiscal year 2026, ended March 31st, 2026, earlier this morning. If you did not receive a copy of our earnings press release, you may access it from the investor relations section of our website at investors.reservoir-media.com. With me on today’s call are Golnar Khosrowshahi, Founder and Chief Executive Officer, and Jim Heindlmeyer, Chief Financial Officer. As a reminder, this call is being simultaneously webcast and will be recorded and archived on the investor relations section of our website.
Before I turn the call over to Golnar and Jim, I’d like to note that today’s discussion will contain forward-looking statements that reflect the current views of Reservoir Media about our business, financial performance, and future events, and as such, involve certain risks and uncertainties. Our expectations, beliefs, and projections are expressed in good faith, and we believe there is a reasonable basis for them. However, there can be no assurance that our expectations, beliefs, and projections will result or be achieved. Please refer to our earnings press release and our filings with the Securities and Exchange Commission for more information on the specific risks, uncertainties, and other factors that could cause our actual results to differ materially from our expectations, beliefs, and projections described in today’s discussion.
Any forward-looking statements that we make on this call or in our earnings press release are as of today, and we undertake no obligation to update these statements as a result of new information or future events, except to the extent required by applicable law. In addition to financial results presented in accordance with generally accepted accounting principles, we plan to present during this call certain financial measures that do not conform to US GAAP if we believe they are useful to investors or if we believe they will help investors to better understand our performance or business trends. Reconciliations of these non-GAAP financial measures to the nearest comparable GAAP measures are included in our earnings press release. I would now like to turn the call over to Golnar.
Golnar Khosrowshahi, Founder and Chief Executive Officer, Reservoir Media: Thank you, Jackie. Good morning, everyone, and thank you for joining us today. Reservoir delivered another strong year, generating 11% in revenue growth with 6% organic growth and 12% adjusted EBITDA growth in fiscal 2026. These results reflect the continued success of our disciplined acquisition strategy, the strengths of our catalog, and the performance of our growing team around the world. Fiscal 2026 was a milestone year as we deployed approximately $120 million across acquisitions and advances for both publishing and recorded rights. This enabled us to retain exceptional creators, sign leading contemporary hitmakers, and further expand and diversify our catalog by genre, by era, and geographic representation. In September, we acquired the catalog of music and culture icon Miles Davis. As we officially mark his centennial this week, we have launched a global campaign with countless activations and press moments.
Highlights from this week alone included The Voice of Miles, A Symphonic Celebration by Park Avenue Artists, a billboard in Times Square on the Nasdaq Tower, and an event with the New York Public Library for the Performing Arts and Simon & Schuster for the centennial edition of Miles’ autobiography. With more to come this year, we look forward to continuing to celebrate Miles’ legacy, and it is an honor to steward his extraordinary body of work and bring it to new audiences. We also continue to invest in today’s hitmakers, signing talent including disco soul band Say She She, country pop songwriters Allison Veltz Cruz and Sam Tinnesz, U.K. singer-songwriter Benjamin Francis Leftwich, and multi-genre songwriter Britten Newbill, to name a few.
At the same time, we reinforced our long-standing relationships, extending deals with legendary singer-songwriter Joni Mitchell, Grammy-winning writer-producer Khris Riddick-Tynes, and the estate of seminal artist Nick Drake, as well as entering into a new deal with long-term client, Academy Award-winning composer Hans Zimmer. Our relationship with Zimmer extends as investors in Payam Music, an innovative piano school with a novel methodology for teaching. This past Sunday, Payam Music and Zimmer were featured on CBS 60 Minutes, highlighting the school’s successful approach to piano education and Zimmer’s involvement in advancing its mission. We are proud to support Payam Music to help nurture the next generation of pianists through technical training while fostering a lifelong love of music.
During this fiscal year, we also continued to expand Reservoir’s recorded music division, including a multifaceted deal with independent record label Fool’s Gold Records. The transaction included the acquisition of catalog master rights of several of the label’s artists and an exclusive partnership to market and distribute all their recordings on Fool’s Gold via the Reservoir label platform. Internationally, we expanded our presence in key growth markets. We launched our Mumbai-based subsidiary, Pop India, and signed a publishing deal with Sri Lankan star Yohani, while also extending our publishing agreement with multi-platinum Indian hip-hop artist Divine. Pop India also executed its first catalog deal, acquiring the publishing and master rights to the entire Music Craft Entertainment catalog.
The establishment of Pop India marks an important step in building a meaningful, on-the-ground presence in India, one of the fastest-growing music markets globally, with the streaming market alone projected to reach over $4.8 billion by 2030, with a compound annual growth rate of over 17%. This April, together with PopArabia, our partner in MENA region, we completed the acquisition of label and digital distribution company, Viral Wave, a transformational transaction that significantly expands both the scale and capabilities of the PopArabia platform. Beyond increasing PopArabia’s team to over 30 employees across Egypt, Morocco, and the UAE, the acquisition establishes a fully integrated distribution infrastructure alongside the company’s existing publishing and label services, creating one of the region’s most comprehensive independent music platforms.
Importantly, this move deepens Reservoir’s operational footprint and strategic positioning across MENA and creates additional opportunities for cross-border collaboratio