New York-headquartered Reservoir Media reported income progress according to steering for its fiscal first quarter, with the music rights firm highlighting its transfer into immersive leisure on its newest earnings name.
Reservoir reported $37.2 million in income for Q1 of its fiscal 2026, which corresponds to Q2 of calendar 2025. That’s a rise of 8% YoY, or 5% YoY on an natural foundation excluding acquisitions, pushed ahead by a big enhance in synch revenues in its music publishing division and continued progress in digital revenues in its recorded music division.
The corporate’s working earnings grew 10% YoY to $5.4 million. Adjusted EBITDA additionally grew 10% to $13.9 million, whereas OIBDA jumped 12% to $12.8 million. The corporate attributed the will increase to the expansion of general income and bettering margins.
Nonetheless, Reservoir’s web loss widened barely to round $640,000, or roughly $0.01 per share, from round $450,000 in the identical interval a yr earlier.
Reservoir’s music publishing division, which nonetheless accounts for the lion’s share of its income, introduced in $24.9 million within the quarter, up 4% YoY, whereas OIBDA got here in at $7.6 million, up 12%.
Driving the expansion was a 48% YoY soar in synchronization revenues, to $4.2 million, partly offset by small declines in digital income (down 2% to $14.3 million) and efficiency rights (down 7% to $4.8 million).
In its recorded music division, Reservoir reported an 8% YoY soar in income to $10.4 million, whereas OIBDA grew 9% to $4.9 million.
That was pushed by a 23% YoY enhance in digital income to $8.0 million, partly offset by a 21% lower in bodily recorded income to $1.1 million and a 57% drop in synch rights to $0.3 million.
The corporate caught to its steering for fiscal 2026, which ends March 31, 2026. It sees income coming in at $164 million–$169 million, which might be a year-over-year enhance of 5% on the mid-point, and adjusted EBITDA of $68 million–$72 million, up 6% on the mid-point.
“We proceed to see wholesome demand for our portfolio throughout music publishing and recorded music,” Founder and CEO Golnar Khosrowshahi stated on the corporate’s earnings name Tuesday (August 5).
“We’re actively advancing a strong pipeline of acquisition alternatives and persevering with to diversify our portfolio in ways in which improve long-term worth.”
Khosrowshahi burdened the corporate’s enlargement into immersive leisure final month with an funding into Lightroom, a London-based firm that has created immersive experiences in collaboration with the likes of Billie Eilish, Coldplay, and Hans Zimmer.
The funding “diversifies Reservoir’s funding portfolio into the high-growth immersive leisure vertical and unlocks extra worth from our IP’s use as the muse for future reveals,’ Khosrowshahi stated.
“Immersive experiences constructed round music are significantly enticing to the rising superfan market of highly-engaged music followers which has risen to twenty% of paid streaming subscribers as of the tip of 2024, in line with Luminate.”
“We proceed to see wholesome demand for our portfolio throughout music publishing and recorded music.”
Golnar Khosrowshahi, Reservoir
The worth of Reservoir’s funding into Lightroom wasn’t revealed, however CFO Jim Heindlmeyer informed analysts on the investor name that the corporate had taken a “single digit fairness stake” in Lightroom.
Globally, the immersive leisure market was estimated at over $100 billion in 2024, and is predicted to exceed $440 billion by 2030, in line with Grand View Analysis.
Reservoir additionally revealed that in fiscal Q1 it had prolonged its publishing administration cope with music legend Joni Mitchell, which had initially been inked in 2021, and its world publishing deal with writer-producer Khris Riddick-Tynes, identified for his work with artists similar to Rick Ross, Kehlani, Ariana Grande and Wiz Khalifa, amongst others.Music Enterprise Worldwide
