Reservoir Media (RSVR) Q1 2027 earnings summary

Executive summary

• Achieved 12% year-over-year revenue growth to $41.5 million, with 6% organic growth, driven by acquisitions, talent investments, and expansion in high-growth and emerging markets, especially Latin music.

• Both music publishing and recorded music segments posted year-over-year growth, supported by strategic partnerships, catalog acquisitions, and the Viral Wave Acquisition.

• Adjusted EBITDA rose 13% to $15.7 million, with OIBDA up 7% to $13.7 million, reflecting higher revenues and partially offset by increased administration expenses.

• Net loss narrowed to $508,000 from $644,000 in the prior year, with diluted EPS breakeven, up from a $0.01 loss.

• Strategic partnerships and publishing deals with T.I., Adam Kapit, Fretworm, Jarrett Doherty, and joint ventures in Latin music and with U.K. A&R executive Ollie Hodge.

Financial highlights

• Q1 revenue reached $41.5 million, up 12% year-over-year (6% organic); Music Publishing: $26.5 million (+6% YoY); Recorded Music: $14.1 million (+35% YoY).

• OIBDA increased 7% to $13.7 million (33% margin); Adjusted EBITDA rose 13% to $15.7 million (38% margin).

• Operating income was $5.4 million, down 1% year-over-year, with an operating margin of 13%.

• Net loss narrowed to $508,000 from $644,000; net loss per share was $0.00 vs. $(0.01) prior year.

• Total available liquidity was $98.9 million, with $13.7 million cash and $85.2 million under revolver; net debt increased to $448.5 million.

Outlook and guidance

• Maintained full-year revenue guidance of $186–$191 million, implying 7% growth at midpoint.

• Adjusted EBITDA guidance reiterated at $75–$79 million, signaling 5% growth at midpoint.

• Management remains confident in delivering on guidance, supported by strong investment pipeline, portfolio performance, and disciplined cost control.

• Primary sources of liquidity, including cash and credit facility, expected to be sufficient for operations over the next twelve months.

• The company continues to evaluate strategic growth initiatives and potential acquisitions.