Reservoir Media (RSVR) investor relations material

Executive summary

• Revenue grew 8% year-over-year to $37.2 million, driven by organic growth, acquisitions, and expansion in both Music Publishing and Recorded Music.

• Adjusted EBITDA increased 10% to $13.9 million, with OIBDA margin improving to 34%.

• Net loss was $0.6 million ($0.01 per share), up from the prior year due to higher interest expense and swap losses.

• Strategic acquisitions included master rights from Fool's Gold Records and investment in Lightroom, expanding into immersive entertainment.

• Extended key publishing deals with Grammy-winning creators and added new writer-producers.

Financial highlights

• Music Publishing revenue grew 4% to $24.9 million, with synchronization revenue up 48% and OIBDA margin rising to 30%.

• Recorded Music revenue increased 8% to $10.4 million, led by 23% digital revenue growth and stable 46% OIBDA margin.

• Cost of revenue decreased 1% to $13.2 million, with cost as a percentage of revenue dropping to 35%.

• Cash from operating activities was $6.0 million, down from the prior year due to timing of royalty payments.

• Total liquidity at quarter-end was $173 million, with net debt at $372.5 million.

Outlook and guidance

• Full-year revenue guidance maintained at $164M–$169M, implying 5% growth at midpoint.

• Adjusted EBITDA guidance reiterated at $68M–$72M, signaling 6–7% growth at midpoint.

• Management expects liquidity from operations, cash, and credit facility to be sufficient for foreseeable needs.

• Management remains disciplined in capital deployment and confident in achieving forecasted targets.