Reservoir Media, Inc 10-Q for FY2027 Q2

Reservoir Media, Inc. (RSVR)

10-Q 2026-11-04 For: 2026-09-30

Added on November 04, 2026

About this 10-Q

Reservoir Media, Inc filed this 10-Q on November 4, 2026, covering the quarter ended September 30, 2026 (FY2027 Q2).

For the six months ended September 30, 2026, Reservoir Media, Inc. reported revenue growth of 11% and net income growth of 164%, while Recorded Music revenue rose 26% amid catalog acquisitions and streaming growth. AI summary

Headline figures

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

Revenue: $49.91M; up 9.8% from $45.44M a year earlier
Net income: $4.73M; up 109.3% from net income of $2.26M a year earlier
Diluted EPS: $0.07; up 133.3% from $0.03 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 and Six Months Ended September 30, 2026 and 2025 (unaudited)		1
Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended September 30, 2026 and 2025 (unaudited)		2
Condensed Consolidated Balance Sheets as of September 30, 2026 and March 31, 2026 (unaudited)		3
Condensed Consolidated Statements of Changes in Shareholders’ Equity for the Three and Six Months Ended September 30, 2026 and 2025 (unaudited)		4
Condensed Consolidated Statements of Cash Flows for the Six Months Ended September 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		18
Item 3. Quantitative and Qualitative Disclosures About Market Risk		34
Item 4. Controls and Procedures		34
Part II. Other Information		35
Item 1. Legal Proceedings		35
Item 1A. Risk Factors		35
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		35
Item 3. Defaults Upon Senior Securities		35
Item 4. Mine Safety Disclosures		35
Item 5. Other Information		35
Item 6. Exhibits		36
Part III. Signatures		37



	Three Months Ended September 30,				Six Months Ended September 30,
	2026		2025		2026		2025
Revenues	$	49,909,614	$	45,435,051	$	91,391,667	$	82,599,344
Costs and expenses:
Cost of revenue		17,750,512		16,532,205		32,538,634		29,724,920
Amortization and depreciation		8,452,316		7,556,863		16,747,787		14,870,600
Administration expenses		11,444,356		10,659,442		24,464,442		21,870,589
Total costs and expenses		37,647,184		34,748,510		73,750,863		66,466,109

Operating income		12,262,430		10,686,541		17,640,804		16,133,235

Interest expense		(7,036,524)		(6,741,657)		(13,941,824)		(13,037,615)
Gain (loss) on foreign exchange		25,826		(387,010)		(17,716)		708,404
Gain (loss) on fair value of swaps		1,099,731		(315,998)		2,025,584		(1,313,163)
Other (expense) income, net		(290,282)		(90,707)		(393,178)		(254,483)
Income before income taxes		6,061,181		3,151,169		5,313,670		2,236,378
Income tax expense		1,428,290		947,313		1,189,165		676,247
Net income		4,632,891		2,203,856		4,124,505		1,560,131
Net loss attributable to noncontrolling interests		93,230		53,985		508,505		142,051
Net income attributable to Reservoir Media, Inc.	$	4,726,121	$	2,257,841	$	4,633,010	$	1,702,182

Earnings per common share (Note 13):
Basic	$	0.07	$	0.03	$	0.07	$	0.03
Diluted	$	0.07	$	0.03	$	0.07	$	0.03

Weighted average common shares outstanding (Note 13):
Basic		65,995,372		65,566,514		65,874,790		65,468,739
Diluted		66,801,791		66,273,757		66,764,142		66,166,846



	September 30,		March 31,
	2026		2026
Assets
Current assets
Cash and cash equivalents	$	24,777,667	$	25,927,462
Accounts receivable		41,091,407		40,832,075
Current portion of royalty advances		14,495,343		16,368,968
Other current assets		5,172,648		9,409,757
Total current assets		85,537,065		92,538,262

Intangible assets, net		799,790,785		788,740,821
Equity method and other investments		2,413,775		2,830,766
Royalty advances, net of current portion and reserves		55,371,509		54,128,586
Property and equipment, net		805,721		661,986
Operating lease right of use assets, net		7,282,027		7,889,862
Fair value of swap assets		3,092,919		1,356,878
Other assets		2,828,011		1,529,920
Total assets	$	957,121,812	$	949,677,081

Liabilities
Current liabilities
Accounts payable and accrued liabilities	$	4,342,681	$	4,116,221
Royalties payable		50,336,208		52,323,565
Accrued payroll		1,404,788		2,672,350
Deferred revenue		2,474,699		2,472,734
Other current liabilities		5,047,980		3,408,651
Income taxes payable		498,122		547,932
Total current liabilities		64,104,478		65,541,453

Secured line of credit		458,597,737		455,705,468
Deferred tax liability		43,489,465		41,786,064
Operating lease liabilities, net of current portion		6,770,578		7,445,152
Fair value of swap liability		—		289,543
Other liabilities		451,423		345,149
Total liabilities		573,413,681		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 September 30, 2026 and March 31, 2026		—		—
Common stock, $0.0001 par value; 750,000,000 shares authorized, 66,011,327 shares issued and outstanding at September 30, 2026; 65,602,509 shares issued and outstanding at March 31, 2026		6,602		6,561
Additional paid-in capital		347,741,382		346,933,189
Retained earnings		36,083,244		31,450,234
Accumulated other comprehensive loss		(459,632)		(670,772)
Total Reservoir Media, Inc. shareholders’ equity		383,371,596		377,719,212
Noncontrolling interest		336,535		845,040
Total shareholders’ equity		383,708,131		378,564,252
Total liabilities and shareholders’ equity	$	957,121,812	$	949,677,081



	For the Three and Six Months Ended September 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
Share-based compensation	—		—		640,699		—		—		—		640,699
Vesting of restricted stock units	80,584		8		(8)		—		—		—		—
Reclassification of liability-classified awards to equity-classified awards	—		—		80,000		—		—		—		80,000
Net income (loss)	—		—		—		4,726,121		—		(93,230)		4,632,891
Other comprehensive income	—		—		—		—		164,973		—		164,973
Balance, September 30, 2026	66,011,327	$	6,602	$	347,741,382	$	36,083,244	$	(459,632)	$	336,535	$	383,708,131



		Six Months Ended
		September 30,
		2026			2025
Balance at beginning of period		$	2,472,734		$	1,885,462
Recognized in Viral Wave Acquisition			90,553			—
Cash received during period			3,763,959			6,647,362
Revenue recognized during period^(a)			(3,852,547)			(3,527,093)
Balance at end of period		$	2,474,699		$	5,005,731



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



	September 30, 2026		March 31, 2026
Intangible assets subject to amortization:
Publishing and recorded music catalogs	$	1,000,269,403	$	975,400,109
Other intangible assets		3,786,856		954,397
Gross intangible assets		1,004,056,259		976,354,506
Accumulated amortization		(204,265,474)		(187,613,685)
Intangible assets, net	$	799,790,785	$	788,740,821



	Notional
	Amount at
	September 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				Six Months Ended
	September 30,				September 30,
	2026		2025		2026		2025
Basic earnings per common share
Net income attributable to Reservoir Media, Inc.	$	4,726,121	$	2,257,841	$	4,633,010	$	1,702,182
Weighted average common shares outstanding - basic		65,995,372		65,566,514		65,874,790		65,468,739
Earnings per common share - basic	$	0.07	$	0.03	$	0.07	$	0.03

Diluted earnings per common share
Net earnings attributable to Reservoir Media, Inc.	$	4,726,121	$	2,257,841	$	4,633,010	$	1,702,182
Weighted average common shares outstanding - basic		65,995,372		65,566,514		65,874,790		65,468,739
Weighted average effect of potentially dilutive securities:
Effect of dilutive stock options and RSUs		806,419		707,243		889,352		698,107
Weighted average common shares outstanding - diluted		66,801,791		66,273,757		66,764,142		66,166,846
Earnings per common share - diluted	$	0.07	$	0.03	$	0.07	$	0.03



	Three Months Ended September 30, 2026
	Music		Recorded
	Publishing		Music		Total
Reportable segment revenue	$	33,247,941	$	15,350,936	$	48,598,877
Other revenue^(a)						1,310,737
Consolidated revenue					$	49,909,614
Significant segment expenses:
Cost of revenue		14,049,475		3,701,037
Administration expenses		6,841,406		3,359,450
Reportable segment OIBDA	$	12,357,060	$	8,290,449		20,647,509
Other profit^(a)						67,237
Amortization and depreciation						(8,452,316)
Interest expense						(7,036,524)
Gain on foreign exchange						25,826
Gain on fair value of swaps						1,099,731
Other expense, net						(290,282)
Income before income taxes					$	6,061,181



		Three Months Ended September 30, 2025
	Music		Recorded
	Publishing		Music		Total
Reportable segment revenue	$	30,874,938	$	12,982,176	$	43,857,114
Other revenue^(a)						1,577,937
Consolidated revenue					$	45,435,051
Significant segment expenses:
Cost of revenue		13,046,596		3,485,609
Administration expenses		6,511,710		2,900,600
Reportable segment OIBDA	$	11,316,632	$	6,595,967		17,912,599
Other profit^(a)						330,805
Amortization and depreciation						(7,556,863)
Interest expense						(6,741,657)
Loss on foreign exchange						(387,010)
Loss on fair value of swaps						(315,998)
Other expense, net						(90,707)
Income before income taxes					$	3,151,169



	Six Months Ended September 30, 2026
	Music		Recorded
	Publishing		Music		Total
Reportable segment revenue	$	59,760,832	$	29,451,328	$	89,212,160
Other revenue^(a)						2,179,507
Consolidated revenue					$	91,391,667
Significant segment expenses:
Cost of revenue		24,524,616		8,014,018
Administration expenses		15,108,385		7,037,221
Reportable segment OIBDA	$	20,127,831	$	14,400,089		34,527,920
Other loss^(a)						(139,329)
Amortization and depreciation						(16,747,787)
Interest expense						(13,941,824)
Loss on foreign exchange						(17,716)
Gain on fair value of swaps						2,025,584
Other expense, net						(393,178)
Income before income taxes					$	5,313,670



	Three Months Ended September 30,					Six Months Ended September 30,
	2026		2025			2026			2025
Revenue by Type
Digital	$	17,612,567	$	16,075,345		$	32,967,421		$	30,385,509
Performance		7,535,631		7,488,162			13,156,461			12,272,801
Synchronization		5,216,740		4,601,493			9,237,982			8,754,904
Mechanical		1,565,047		1,647,356			2,145,391			2,268,978
Other		1,317,956		1,062,582			2,253,577			2,126,212
Total Music Publishing		33,247,941		30,874,938			59,760,832			55,808,404

Digital		11,517,570		8,688,339			21,373,798			16,723,553
Physical		1,432,670		1,345,912			3,083,276			2,417,791
Neighboring rights		1,546,378		1,102,274			2,693,353			2,174,781
Synchronization		854,318		1,845,651			2,300,901			2,110,374
Total Recorded Music		15,350,936		12,982,176			29,451,328			23,426,499

Other revenue		1,310,737		1,577,937			2,179,507			3,364,441
Total revenue	$	49,909,614	$	45,435,051		$	91,391,667		$	82,599,344



	Three Months Ended September 30,					Six Months Ended September 30,
	2026		2025			2026		2025
Revenue by Geographical Location
United States Music Publishing	$	16,573,550	$	15,708,098		$	31,609,475	$	29,827,800
United States Recorded Music		8,301,553		7,179,350			14,735,554		12,590,672
United States other revenue		1,310,737		1,577,937			2,179,507		3,364,441
Total United States		26,185,840		24,465,385			48,524,536		45,782,913
International Music Publishing		16,674,391		15,166,840			28,151,357		25,980,604
International Recorded Music		7,049,383		5,802,826			14,715,774		10,835,827
Total International		23,723,774		20,969,666			42,867,131		36,816,431
Total revenue	$	49,909,614	$	45,435,051		$	91,391,667	$	82,599,344



	Six Months Ended September 30, 2025
	Music		Recorded
	Publishing		Music		Total
Reportable segment revenue	$	55,808,404	$	23,426,499	$	79,234,903
Other revenue^(a)						3,364,441
Consolidated revenue					$	82,599,344
Significant segment expenses:
Cost of revenue		23,483,403		6,241,517
Administration expenses		13,444,530		5,735,035
Reportable segment OIBDA	$	18,880,471	$	11,449,947		30,330,418
Other profit^(a)						673,417
Amortization and depreciation						(14,870,600)
Interest expense						(13,037,615)
Gain on foreign exchange						708,404
Loss on fair value of swaps						(1,313,163)
Other expense, net						(254,483)
Income before income taxes					$	2,236,378



		For the Three Months Ended											For the Six Months Ended
		September 30,						2026 vs. 2025					September 30,						2026 vs. 2025
		2026			2025			$ Change			% Change		2026			2025			$ Change			% Change
Revenues		$	49,910		$	45,435		$	4,475		10	%	$	91,392		$	82,599		$	8,792		11	%
Costs and expenses:
Cost of revenue			17,751			16,532			1,218		7	%		32,539			29,725			2,814		9	%
Amortization and depreciation			8,452			7,557			895		12	%		16,748			14,871			1,877		13	%
Administration expenses			11,444			10,659			785		7	%		24,464			21,871			2,594		12	%
Total costs and expenses			37,647			34,749			2,899		8	%		73,751			66,466			7,285		11	%

Operating income			12,262			10,687			1,576		15	%		17,641			16,133			1,508		9	%

Interest expense			(7,037)			(6,742)			(295)		4	%		(13,942)			(13,038)			(904)		7	%
Gain (loss) on foreign exchange			26			(387)			413		NM			(18)			708			(726)		NM
Gain (loss) on fair value of swaps			1,100			(316)			1,416		NM			2,026			(1,313)			3,339		NM
Other (expense) income, net			(290)			(91)			(200)		NM			(393)			(254)			(139)		55	%
Income before income taxes			6,061			3,151			2,910		92	%		5,314			2,236			3,077		138	%
Income tax expense			1,428			947			481		51	%		1,189			676			513		76	%
Net income			4,633			2,204			2,429		110	%		4,125			1,560			2,564		164	%
Net loss attributable to noncontrolling interests			93			54			39		73	%		509			142			366		NM
Net income attributable to Reservoir Media, Inc.		$	4,726		$	2,258		$	2,468		109	%	$	4,633		$	1,702		$	2,931		172	%



		Consolidated
		For the Three Months Ended										For the Six Months Ended
		September 30,						2026 vs. 2025				September 30,						2026 vs. 2025
		2026			2025			$ Change		% Change		2026			2025			$ Change		% Change
Revenues		$	49,910		$	45,435		$	4,475	10	%	$	91,392		$	82,599		$	8,792	11	%
Cost of revenue			17,751			16,532			1,218	7	%		32,539			29,725			2,814	9	%
Administration expenses			11,444			10,659			785	7	%		24,464			21,871			2,594	12	%
OIBDA			20,715			18,243			2,471	14	%		34,389			31,004			3,385	11	%
Amortization and depreciation			8,452			7,557			895	12	%		16,748			14,871			1,877	13	%
Operating income		$	12,262		$	10,687		$	1,576	15	%	$	17,641		$	16,133		$	1,508	9	%

OIBDA Margin			42	%		40	%						38	%		38	%



	Music Publishing
	For the Three Months Ended												For the Six Months Ended
	September 30,							2026 vs. 2025					September 30,						2026 vs. 2025
	2026			2025			$ Change			% Change		2026			2025			$ Change			% Change
Revenues	$	33,248		$	30,875		$	2,373		8	%	$	59,761		$	55,808		$	3,952		7	%
Cost of revenue		14,049			13,047			1,003		8	%		24,525			23,483			1,041		4	%
Administration expenses		6,841			6,512			330		5	%		15,108			13,445			1,664		12	%
OIBDA	$	12,357		$	11,317		$	1,040		9	%	$	20,128		$	18,880		$	1,247		7	%

OIBDA Margin		37	%		37	%							34	%		34	%



	Recorded Music
	For the Three Months Ended										For the Six Months Ended
	September 30,						2026 vs. 2025				September 30,						2026 vs. 2025
	2026			2025			$ Change		% Change		2026			2025			$ Change		% Change
Revenues	$	15,351		$	12,982		$	2,369	18	%	$	29,451		$	23,426		$	6,025	26	%
Cost of revenue		3,701			3,486			215	6	%		8,014			6,242			1,773	28	%
Administration expenses		3,359			2,901			459	16	%		7,037			5,735			1,302	23	%
OIBDA	$	8,290		$	6,596		$	1,694	26	%	$	14,400		$	11,450		$	2,950	26	%

OIBDA Margin		54	%		51	%						49	%		49	%

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

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

Dated: November 4, 2026

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