RSVR earnings analysis
What we found in RSVR's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Reservoir delivered 12% year-over-year revenue growth to $41.482 million, led by 35% Recorded Music growth, and Adjusted EBITDA increased 13% to $15.695 million. However, operating income declined 1% and operating margin contracted to 13% as administrative costs and amortization rose. Liquidity is supported by $85.172 million of revolver capacity, but operating cash flow turned negative and gross debt reached $464.828 million amid stepped-up catalog and Viral Wave acquisition spending.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue grew 12% on digital momentum
- Revenue increased $4.318 million, or 12%, to $41.482 million. Digital revenue rose $2.866 million (13%), driven by additional catalog acquisitions and continued streaming-service growth.
- Recorded Music led segment growth
- Recorded Music revenue rose $3.656 million, or 35%, to $14.100 million. Digital revenue increased $1.821 million, synchronization rose $1.182 million, and physical revenue increased $0.579 million.
- Publishing grew despite licensing timing
- Music Publishing revenue increased $1.579 million, or 6%, to $26.513 million, including a $1.045 million digital increase and an $0.836 million performance-revenue increase.
- Adjusted EBITDA increased 13%
- Adjusted EBITDA increased $1.800 million, or 13%, to $15.695 million, while consolidated OIBDA rose $0.913 million, or 7%, to $13.674 million.
- GAAP net loss narrowed year over year
- Net loss narrowed to $0.508 million from $0.644 million, while net loss attributable to Reservoir narrowed to $0.093 million from $0.556 million.
- Revolver liquidity remains available
- The company had $85.172 million of remaining revolver availability at June 30, 2026 and reported compliance with all financial and non-financial credit-facility covenants.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Operating margin contracted despite growth
- Operating income declined $0.068 million, or 1%, to $5.378 million, and operating margin fell to 13% from 15% as administration expense rose to 31% of revenue from 30%.
- Operating cash flow turned negative
- Operating cash flow swung to an outflow of $1.407 million from an inflow of $6.014 million, primarily due to working-capital timing involving receivable collections, artist royalty payments, and royalty-advance recoupments.
- High leverage and rising interest expense
- Debt net of deferred financing costs was $462.152 million and gross Senior Credit Facility borrowings were $464.828 million at June 30, 2026. Interest expense increased $0.609 million, or 10%, to $6.905 million.
- Recorded Music mix pressured margins
- Recorded Music cost of revenue increased to 31% of segment revenue from 26%, reflecting greater physical-sales mix and Viral Wave revenue, which carry higher costs; segment OIBDA margin fell to 43% from 46%.
- Acquisition spending exceeds operating cash flow
- Cash used in investing activities increased to $19.788 million from $9.659 million, principally for music-catalog acquisitions and the Viral Wave acquisition, while cash and equivalents were $13.660 million at quarter-end.
- Refinancing exposure ahead of 2027 maturity
- The Senior Credit Facility matures December 16, 2027; management expects to continue refinancing and extending it. Although Item 1A reports no material changes to risk factors, this refinancing dependence remains material given $464.828 million of borrowings.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.0
- Gross margin
- 64.4%
- Operating margin
- 13.0%
- Segment
- Music Publishing revenue: $26.513 million, up $1.579 million (6%) year over year.
- Segment
- Recorded Music revenue: $14.100 million, up $3.656 million (35%) year over year.
- Segment
- Other revenue: $0.869 million, down $0.918 million (51%) year over year.
What they said about what is next.
The 10-Q does not provide quantitative revenue or EPS guidance. Management states it believes operating cash flow, available cash and revolver capacity will support operations for the next 12 months and expects to continue refinancing/extending the Senior Credit Facility.
The filing reads about the same as the one before it.
What came before.
- 10-K · May 28, 2026
- Reservoir Media, Inc. (RSVR) demonstrated solid financial performance in FY2026, with revenues rising to $175.7 million, a growth of 11% from $158.7 million in FY2025. However, net income increased only slightly to $8.3…
- 10-Q · February 4, 2026
- Reservoir Media, Inc. (RSVR) reported a mixed Q3 2026 performance with a revenue increase of 8% to $45.6 million, exceeding estimates by 6.9% but an EPS of $0.03 fell short of expectations. Significant growth was noted…
- 10-Q · November 4, 2025
- Reservoir Media, Inc. reported a strong revenue increase of 12% YoY to $45.4 million for Q2 2026, driven by consistent growth across both music publishing and recorded music segments. However, earnings per share (EPS)…
- 10-Q · August 5, 2025
- Reservoir Media reported growth in revenue but faced challenges with a net loss for the quarter. Total revenue for Q1 2025 reached $37.16 million, an 8% increase compared to Q1 2024, but the diluted EPS saw a decline to…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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