Reservoir Media, Inc 10-Q for FY2027 Q1

Reservoir Media, Inc. (RSVR)

10-Q 2026-08-04 For: 2026-06-30

Added on August 04, 2026

About this 10-Q

Reservoir Media, Inc filed this 10-Q on August 4, 2026, covering the quarter ended June 30, 2026 (FY2027 Q1).

Headline figures

Quarter ended June 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $41.48M; up 11.6% from $37.16M a year earlier
Net loss: $93.11K; compared with a net loss of $555.66K a year earlier

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Delaware		83-3584204
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

Title of each class		Trading symbol(s)		Name of each exchange on which registered
Common Stock, $0.0001 par value per share (the “Common Stock”)		RSVR		The Nasdaq Stock Market LLC

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☒
		Emerging growth company	☐

Part I. Financial Information		1
Item 1. Financial Statements		1
Condensed Consolidated Statements of Operations for the Three Months Ended June 30, 2026 and 2025 (unaudited)		1
Condensed Consolidated Statements of Comprehensive (Loss) Income for the Three Months Ended June 30, 2026 and 2025 (unaudited)		2
Condensed Consolidated Balance Sheets as of June 30, 2026 and March 31, 2026 (unaudited)		3
Condensed Consolidated Statements of Changes in Shareholders’ Equity for the Three Months Ended June 30, 2026 and 2025 (unaudited)		4
Condensed Consolidated Statements of Cash Flows for the Three Months Ended June 30, 2026 and 2025 (unaudited)		5
Notes to Condensed Consolidated Financial Statements		7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		17
Item 3. Quantitative and Qualitative Disclosures About Market Risk		31
Item 4. Controls and Procedures		31
Part II. Other Information		32
Item 1. Legal Proceedings		32
Item 1A. Risk Factors		32
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		32
Item 3. Defaults Upon Senior Securities		32
Item 4. Mine Safety Disclosures		32
Item 5. Other Information		32
Item 6. Exhibits		33
Part III. Signatures		34


	Three Months Ended June 30,
	2026		2025
Revenues	$	41,482,053	$	37,164,293
Costs and expenses:
Cost of revenue		14,788,122		13,192,715
Amortization and depreciation		8,295,471		7,313,737
Administration expenses		13,020,086		11,211,147
Total costs and expenses		36,103,679		31,717,599

Operating income		5,378,374		5,446,694

Interest expense		(6,905,300)		(6,295,958)
(Loss) gain on foreign exchange		(43,542)		1,095,414
Gain (loss) on fair value of swaps		925,853		(997,165)
Other (expense) income, net		(102,896)		(163,776)
Loss before income taxes		(747,511)		(914,791)
Income tax benefit		(239,125)		(271,066)
Net loss		(508,386)		(643,725)
Net loss attributable to noncontrolling interests		415,275		88,066
Net loss attributable to Reservoir Media, Inc.	$	(93,111)	$	(555,659)

Loss per common share (Note 13):
Basic	$	—	$	(0.01)
Diluted	$	—	$	(0.01)

Weighted average common shares outstanding (Note 13):
Basic		65,752,884		65,369,891
Diluted		65,752,884		65,369,891


	June 30,		March 31,
	2026		2026
Assets
Current assets
Cash and cash equivalents	$	13,660,380	$	25,927,462
Accounts receivable		42,706,945		40,832,075
Current portion of royalty advances		15,999,934		16,368,968
Other current assets		4,938,838		9,409,757
Total current assets		77,306,097		92,538,262

Intangible assets, net		799,847,481		788,740,821
Equity method and other investments		2,704,261		2,830,766
Royalty advances, net of current portion and reserves		56,004,440		54,128,586
Property and equipment, net		803,656		661,986
Operating lease right of use assets, net		7,587,776		7,889,862
Fair value of swap assets		1,993,188		1,356,878
Other assets		2,641,076		1,529,920
Total assets	$	948,887,975	$	949,677,081

Liabilities
Current liabilities
Accounts payable and accrued liabilities	$	3,363,899	$	4,116,221
Royalties payable		45,334,589		52,323,565
Accrued payroll		807,728		2,672,350
Deferred revenue		3,755,963		2,472,734
Other current liabilities		5,159,837		3,408,651
Income taxes payable		682,208		547,932
Total current liabilities		59,104,224		65,541,453

Secured line of credit		462,151,603		455,705,468
Deferred tax liability		42,013,356		41,786,064
Operating lease liabilities, net of current portion		7,110,527		7,445,152
Fair value of swap liability		—		289,543
Other liabilities		318,697		345,149
Total liabilities		570,698,407		571,112,829

Contingencies and commitments (Note 15)

Shareholders’ Equity
Preferred stock, $0.0001 par value 75,000,000 shares authorized, 0 shares issued and outstanding at June 30, 2026 and March 31, 2026		—		—
Common stock, $0.0001 par value; 750,000,000 shares authorized, 65,930,743 shares issued and outstanding at June 30, 2026; 65,602,509 shares issued and outstanding at March 31, 2026		6,594		6,561
Additional paid-in capital		347,020,691		346,933,189
Retained earnings		31,357,123		31,450,234
Accumulated other comprehensive loss		(624,605)		(670,772)
Total Reservoir Media, Inc. shareholders’ equity		377,759,803		377,719,212
Noncontrolling interest		429,765		845,040
Total shareholders’ equity		378,189,568		378,564,252
Total liabilities and shareholders’ equity	$	948,887,975	$	949,677,081


	For the Three Months Ended June 30, 2026
	Common Stock							Accumulated other
				Additional paid-in		Retained		comprehensive		Noncontrolling		Shareholders’
	Shares	Amount		capital		earnings		(loss) income		interests		equity
Balance, March 31, 2026	65,602,509	$	6,561	$	346,933,189	$	31,450,234	$	(670,772)	$	845,040	$	378,564,252
Share-based compensation	—		—		1,295,456		—		—		—		1,295,456
Vesting of restricted stock units, net of shares withheld for employee taxes	328,234		33		(2,054,621)		—		—		—		(2,054,588)
Reclassification of liability-classified awards to equity-classified awards	—		—		846,667		—		—		—		846,667
Net loss	—		—		—		(93,111)		—		(415,275)		(508,386)
Other comprehensive income	—		—		—		—		46,167		—		46,167
Balance, June 30, 2026	65,930,743	$	6,594	$	347,020,691	$	31,357,123	$	(624,605)	$	429,765	$	378,189,568


Cash and cash equivalents	$	340,119
Other current assets		491,394
Intangible assets		3,379,457
Royalty advances		1,530,120
Property and equipment		133,590
Current liabilities		(550,120)
Deferred tax liability		(302,271)
Total identifiable net assets		5,022,289
Goodwill		870,445
Total consideration	$	5,892,734


	Three Months Ended June 30 ,
	2026			2025
Balance at beginning of period	$	70,497,554		$	70,690,618
Recognized in Viral Wave Acquisition		1,530,120			—
Additions		3,702,065			2,686,189
Recoupments		(3,740,454)			(4,382,511)
Foreign currency translation		15,089			433,472
Balance at end of period	$	72,004,374		$	69,427,768


	Notional
	Amount at
	June 30,		Pay Fixed
Effective Date	2026		Rate		Maturity
September 30, 2024	$	100,000,000	2.946	%	December 2027
September 30, 2024	$	50,000,000	3.961	%	December 2027
August 29, 2025	$	65,000,000	3.405	%	December 2027


	Three Months Ended June 30, 2026
	Music		Recorded
	Publishing		Music		Total
Reportable segment revenue	$	26,512,891	$	14,100,392	$	40,613,283
Other revenue^(a)						868,770
Consolidated revenue					$	41,482,053
Significant segment expenses:
Cost of revenue		10,475,141		4,312,981
Administration expenses		8,266,979		3,677,771
Reportable segment OIBDA	$	7,770,771	$	6,109,640		13,880,411
Other loss^(a)						(206,566)
Amortization and depreciation						(8,295,471)
Interest expense						(6,905,300)
Loss on foreign exchange						(43,542)
Gain on fair value of swaps						925,853
Other expense, net						(102,896)
Loss before income taxes					$	(747,511)


		Three Months Ended June 30, 2025
	Music		Recorded
	Publishing		Music		Total
Reportable segment revenue	$	24,933,466	$	10,444,323	$	35,377,789
Other revenue^(a)						1,786,504
Consolidated revenue					$	37,164,293
Significant segment expenses:
Cost of revenue		10,436,807		2,755,908
Administration expenses		6,932,820		2,834,435
Reportable segment OIBDA	$	7,563,839	$	4,853,980		12,417,819
Other profit^(a)						342,612
Amortization and depreciation						(7,313,737)
Interest expense						(6,295,958)
Gain on foreign exchange						1,095,414
Loss on fair value of swaps						(997,165)
Other expense, net						(163,776)
Loss before income taxes					$	(914,791)


		For the Three Months Ended
		June 30,						2026 vs. 2025
		2026			2025			$ Change			% Change
Revenues		$	41,482		$	37,164		$	4,318		12	%
Costs and expenses:
Cost of revenue			14,788			13,193			1,595		12	%
Amortization and depreciation			8,295			7,314			982		13	%
Administration expenses			13,020			11,211			1,809		16	%
Total costs and expenses			36,104			31,718			4,386		14	%

Operating income			5,378			5,447			(68)		(1)	%

Interest expense			(6,905)			(6,296)			(609)		10	%
(Loss) gain on foreign exchange			(44)			1,095			(1,139)		NM
Gain (loss) on fair value of swaps			926			(997)			1,923		NM
Other (expense) income, net			(103)			(164)			61		(37)	%
Loss before income taxes			(748)			(915)			167		(18)	%
Income tax benefit			(239)			(271)			32		(12)	%
Net loss			(508)			(644)			135		(21)	%
Net loss attributable to noncontrolling interests			415			88			327		NM
Net loss attributable to Reservoir Media, Inc.		$	(93)		$	(556)		$	463		(83)	%


		Consolidated
		For the Three Months Ended
		June 30,						2026 vs. 2025
		2026			2025			$ Change		% Change
Revenues		$	41,482		$	37,164		$	4,318	12	%
Cost of revenue			14,788			13,193			1,595	12	%
Administration expenses			13,020			11,211			1,809	16	%
OIBDA			13,674			12,760			913	7	%
Amortization and depreciation			8,295			7,314			982	13	%
Operating income		$	5,378		$	5,447		$	(68)	(1)	%

OIBDA Margin			33	%		34	%


	Music Publishing
	For the Three Months Ended
	June 30,							2026 vs. 2025
	2026			2025			$ Change			% Change
Revenues	$	26,513		$	24,933		$	1,579		6	%
Cost of revenue		10,475			10,437			38		—	%
Administration expenses		8,267			6,933			1,334		19	%
OIBDA	$	7,771		$	7,564		$	207		3	%

OIBDA Margin		29	%		30	%


	Three Months Ended June 30,
	2026		2025
Revenue by Type
Digital	$	15,354,854	$	14,310,164
Performance		5,620,830		4,784,639
Synchronization		4,021,242		4,153,411
Mechanical		580,344		621,622
Other		935,621		1,063,630
Total Music Publishing		26,512,891		24,933,466

Digital		9,856,228		8,035,214
Physical		1,650,606		1,071,879
Neighboring rights		1,146,975		1,072,507
Synchronization		1,446,583		264,723
Total Recorded Music		14,100,392		10,444,323

Other revenue		868,770		1,786,504
Total revenue	$	41,482,053	$	37,164,293


	Three Months Ended June 30,
	2026		2025
Revenue by Geographical Location
United States Music Publishing	$	15,035,925	$	14,119,702
United States Recorded Music		6,434,001		5,411,322
United States other revenue		868,770		1,786,504
Total United States		22,338,696		21,317,528
International Music Publishing		11,476,966		10,813,764
International Recorded Music		7,666,391		5,033,001
Total International		19,143,357		15,846,765
Total revenue	$	41,482,053	$	37,164,293


	June 30,		March 31,
	2026		2026
Intangible assets subject to amortization:
Publishing and recorded music catalogs	$	991,906,727	$	975,400,109
Other intangible assets		3,783,699		954,397
Gross intangible assets		995,690,426		976,354,506
Accumulated amortization		(195,842,945)		(187,613,685)
Intangible assets, net	$	799,847,481	$	788,740,821


	Recorded Music
	For the Three Months Ended
	June 30,						2026 vs. 2025
	2026			2025			$ Change		% Change
Revenues	$	14,100		$	10,444		$	3,656	35	%
Cost of revenue		4,313			2,756			1,557	56	%
Administration expenses		3,678			2,834			843	30	%
OIBDA	$	6,110		$	4,854		$	1,256	26	%

OIBDA Margin		43	%		46	%


	For the Three Months Ended
	June 30,						2026 vs.2025
	2026			2025			$ Change			% Change
Cash (used for) provided by:
Operating activities	$	(1,407)		$	6,014		$	(7,421)		NM
Investing activities	$	(19,788)		$	(9,659)		$	(10,129)		105	%
Financing activities	$	3,945		$	(2,509)		$	6,454		NM

No.		Description of Exhibit
3.1		Second Amended and Restated Certificate of Incorporation of Reservoir Media, Inc. (incorporated by reference to Exhibit 3.1 to Reservoir Media, Inc.’s Current Report on Form 8 K filed with the SEC on July 28, 2021).
3.2		Amended and Restated Bylaws of Reservoir Media, Inc. (incorporated by reference to Exhibit 3.2 to Reservoir Media, Inc.’s Current Report on Form 8 K filed with the SEC on July 28, 2021).
31.1*		Certification of Chief Executive Officer Pursuant to Securities Exchange Act Rule 13a-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*		Certification of Chief Financial Officer Pursuant to Securities Exchange Act Rule 13a-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**		Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**		Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*		Inline XBRL Instance Document.
101.SCH*		Inline XBRL Taxonomy Extension Schema Document.
101.CAL*		Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF*		Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB*		Inline XBRL Taxonomy Extension Labels Linkbase Document.
101.PRE*		Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

	RESERVOIR MEDIA, INC.

Date: August 4, 2026	By:	/s/ Golnar Khosrowshahi
		Name: Golnar Khosrowshahi
		Title: Chief Executive Officer (Principal Executive Officer)

Date: August 4, 2026	By:	/s/ Jim Heindlmeyer
		Name: Jim Heindlmeyer
		Title: Chief Financial Officer
		(Principal Financial and Accounting Officer)

Dated: August 4, 2026

	By:	/s/ Golnar Khosrowshahi
		Name: Golnar Khosrowshahi
		Title: Chief Executive Officer (Principal Executive Officer)