Reservoir Media Q4 2025 Earnings Call Transcript

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May 28, 2025
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Operator

Greetings, and welcome to Reservoir Media's Fourth Quarter Fiscal Year twenty twenty five Earnings Conference Call. At this time, all participants are on a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jackie Marcus, Investor Relations. Thank you. Please go ahead.

Jackie Marcus
Senior Managing Director at Alpha IR Group

Thank you, operator. Good morning, everyone, and thank you for participating in today's earnings conference call. Reservoir Media issued a press release with results for its fourth quarter and fiscal year twenty twenty five ended 03/31/2025 earlier this morning. If you did not receive a copy of our earnings press release, you may access it from the Investor Relations section of our website at investors.reservoirmedia.com. With me on today's call are Gulnar Khosrowshahi, Founder and Chief Executive Officer and Jim Heindelmeyer, Chief Financial Officer.

Jackie Marcus
Senior Managing Director at Alpha IR Group

As a reminder, this call is being simultaneously webcast and will be recorded and archived on the Investor Relations section of our website. Before I turn the call over to Golnar and Jim, I'd like to note that today's discussion will contain forward looking statements that reflect the current views of Reservoir Media about our business, financial performance and future events and, as such, involve certain risks and uncertainties. Our expectations, beliefs and projections are expressed in good faith, and we believe there is a reasonable basis for them. However, there can be no assurance that our expectations, beliefs, and projections will result or be achieved. Please refer to our earnings press release and our filings with the Securities and Exchange Commission for more information on the specific risks, uncertainties and other factors that could cause our actual results to differ materially from our expectations, beliefs, and projections described in today's discussion.

Jackie Marcus
Senior Managing Director at Alpha IR Group

Any forward looking statements that we make on this call or in our earnings press release are as of today, and we undertake no obligation to update these statements as a result of new information or future events except to the extent required by applicable law. In addition to the financial results presented in accordance with generally accepted accounting principles, we plan to present during this call certain financial measures that do not conform to U. S. GAAP if we believe they are useful to investors or if we believe they will help investors to better understand our performance or business trends. Reconciliations of these non GAAP financial measures to the nearest comparable GAAP measures are included in our earnings press release.

Jackie Marcus
Senior Managing Director at Alpha IR Group

I would now like to turn the call over to Gulnar.

Golnar Khosrowshahi
Golnar Khosrowshahi
Founder, CEO & Director at Reservoir Media

Thank you, Jackie. Good morning, everyone, and thank you for joining us today. Reservoir's fiscal twenty twenty five performance exceeded both guidance and expectations. At a high level, this year's results are hallmarked by top line annual revenue growth of 10%, an 18% improvement in adjusted EBITDA and significant capital deployment with over a 15,000,000 towards acquisitions and advances. Our accomplishments in the fiscal year are a testament to the strength of our strategy, the team and expertise we have at Reservoir and the quality of our portfolio.

Golnar Khosrowshahi
Golnar Khosrowshahi
Founder, CEO & Director at Reservoir Media

We are meeting our objectives as a public company and are well positioned to continue doing so in fiscal twenty twenty six. Strategic off market m and a continued to drive the company's growth. We signed notable publishing deals with legendary artists this year, such as Snoop Dogg and Katie Lang, and acquired and ingested large catalogs and assets accretive to the portfolio as a whole. Earlier this calendar year, we announced the acquisition of La Strada Entertainment's full publishing catalog of more than 5,600 compositions spanning multiple generations and genres. LASTRADA was a pioneer in understanding the importance and value of increasing the longevity of compositions via sampled music and syncs.

Golnar Khosrowshahi
Golnar Khosrowshahi
Founder, CEO & Director at Reservoir Media

Its assets have contributed to such mega hits as Tupac's California Love, Mariah Carey's We Belong Together, and Will Smith's Miami. Through the acquisitions of Chrysalis Records in 2019 and Tommy Boy Records in 2021, Reservoir grew and diversified our business, establishing a deep well of recorded music expertise on our team and a solid infrastructure that has enabled us to support the addition of many more assets in that vertical. In February, we acquired UK dance and electronic label, New State, and its entire recorded music catalog of over 13,000 tracks. Included in the transaction were the rights to continue to market and release new music by New State artists. The recorded music segment of our business showed continued growth in both the fourth quarter and the full fiscal year.

Golnar Khosrowshahi
Golnar Khosrowshahi
Founder, CEO & Director at Reservoir Media

We believe there is considerable operational leverage in the segment to help us drive organic growth from our value enhancement efforts and easily integrate additional acquisitions into our catalog in the future. Alongside our successful investment philosophy is our commitment to organic growth. We have the necessary rights and infrastructure to aggressively market our portfolio and the relationships to secure opportunities with strong ROIs. For example, in the fourth quarter, we had four Super Bowl sync placements, including Papa Loves Mambo in a Michelob Ultra ad, This Is America in a him and her spot, Mama Said Knock You Out in a Pfizer ad, and Take Me Home Country Roads for Rocket Mortgage. Within the full year, our evergreen hit Deo by Harry Belafonte featured prominently in the feature film Beetlejuice Beetlejuice while also driving a resurgence in listenership across DSPs.

Golnar Khosrowshahi
Golnar Khosrowshahi
Founder, CEO & Director at Reservoir Media

We also saw tremendous commercial success for Reservoir's active songwriters, earning a top 10 US market share in the last four quarters according to Billboard's Publishers Quarterly with our talent cowriting and contributing to chart topping records by Sabrina Carpenter, Dasha, SZA, and more. While North America has historically driven much of the music industry's growth, We have long focused on building our business in emerging markets in recognition of the massive opportunities in these territories, particularly as Internet connectivity and consequently, listenership is on the rise. We took an early stake in establishing a presence in The Middle East with our subsidiary, POP Arabia, to build relationships with the region's most influential creators. Our successful boots on the ground approach relationships allows us to remain deeply involved in these important markets and participate in off market deals. In March, we announced our acquisition of the publishing and master rights to Egyptian star Omar Kamal's catalog.

Golnar Khosrowshahi
Golnar Khosrowshahi
Founder, CEO & Director at Reservoir Media

Having brought Moragunat, a genre of music that mixes Egyptian rhythms, electronic music, and rap lyrics to listeners throughout the Arab world, Kamal's Moragun Bent El Ghiran was one of Rolling Stone's 50 best Arabic pop songs of the twenty first century. Just last month, we continued our international expansion with the launch of our latest subsidiary, Pop India, and the opening of a new office in Mumbai. Pop India is led by Spec, a longtime member of the Reservoir team with extensive experience in emerging markets, including founding and running Pop Arabia. Pop India is focused on signing and developing regional talent as well as acquiring catalogs across both publishing and recorded music while also providing music supervision and sub publisher services in the country. We are incredibly excited by the signing of Pop India's first publishing deal with singer songwriter, rapper, and YouTube star, Yohani.

Golnar Khosrowshahi
Golnar Khosrowshahi
Founder, CEO & Director at Reservoir Media

With more than 175,000,000 people streaming music across channels and analysts expecting the industry to grow at a 13% CAGR through 2027, India is an ideal market for us to further grow our international roster at attractive valuations. We look forward to the potential partnerships with some of the region's most celebrated artists and up and coming talent. I will now turn the call over to Jim to discuss our fourth quarter and full fiscal year financial results as well as our fiscal twenty twenty six guidance in greater detail. Jim?

Jim Heindlmeyer
Jim Heindlmeyer
CFO at Reservoir Media

Thank you, Gulnar, and good morning, everyone. We closed out our fiscal year '20 '20 '5 in a position of strength with double digit top line growth. We are pleased with the fiscal twenty twenty five results, and we look forward to fiscal twenty twenty six, during which we expect the combination of high quality catalog, chart topping new releases, and targeted strategic capital deployment will contribute to continued strong results. Let's first start with a review of the fourth quarter. Revenue for the fourth fiscal quarter was $41,400,000 which was a 6% increase compared to the fourth quarter of fiscal twenty twenty four.

Jim Heindlmeyer
Jim Heindlmeyer
CFO at Reservoir Media

Strong growth in both segments was led by 6% growth in the Music Publishing segment, inclusive of the acquisitions of various catalogs. With respect to our operating expenses for the quarter, our overall cost of revenue decreased 1% versus the prior year quarter. Our depreciation and amortization costs increased 6% year over year due to our continued catalog acquisitions. Company administration expenses saw a 3% increase year over year. Turning to operating performance, fourth quarter OIBDA increased 14% year over year to 17,200,000.0 Adjusted EBITDA increased 14% to $18,200,000 The increase in adjusted EBITDA in the fourth quarter was largely driven by stronger revenue and improved margins, particularly in synchronization within the Publishing segment and digital within the Recorded Music segment.

Jim Heindlmeyer
Jim Heindlmeyer
CFO at Reservoir Media

However, this was partially offset by higher administration expenses. Interest expense was 6,100,000.0 for the quarter compared to 5,200,000.0 in the same period last year. Net income for the fourth quarter of fiscal twenty twenty five was $2,700,000 versus $2,900,000 in the fourth quarter of fiscal twenty twenty four. This resulted in diluted earnings per share for the quarter of $04 compared to $04 per share in the prior year period. Moving to our full fiscal year twenty twenty five results.

Jim Heindlmeyer
Jim Heindlmeyer
CFO at Reservoir Media

Revenue was $158,700,000 a 10% year over year increase and above the top end of our previously stated guidance range. This beat was the result of growth in both the music publishing and recorded music segments, which posted growth of 124% respectively. Turning to our operating expenses for fiscal twenty twenty five. Our overall cost of revenue saw a 4% increase from fiscal twenty twenty four. This increase is attributed to a higher revenue base resulting from acquisitions and value enhancement efforts.

Jim Heindlmeyer
Jim Heindlmeyer
CFO at Reservoir Media

The lower increase in cost of revenue as compared to the increase in revenue resulted in a higher gross margin in fiscal year twenty twenty five. Administration expenses for fiscal twenty twenty five rose less than 1% from the prior year to 39,900,000.0, primarily due to the nonrecurrence of the write off of recoupable legal expenses and attorney's fees from the prior year and improved operating leverage, which was partially offset by an increase in cost to support the company's growth. OIBDA in fiscal twenty twenty five increased 24% year over year to $61,400,000 while adjusted EBITDA grew 18% to $65,700,000 These increases mostly attributable to a higher gross margin and improved operating leverage. As a reminder, we have reconciliations for these metrics in our earnings press release and 10 k filing. Our interest expense was 21,900,000.0 for the full year compared to 21,100,000.0 last year.

Jim Heindlmeyer
Jim Heindlmeyer
CFO at Reservoir Media

The higher interest expense was due to an increase in debt resulting from acquisitions of music catalogs and writer signings and an increase in effective interest rates. Net income for fiscal twenty twenty five was 7,700,000.0 versus 800,000 last year. The increase in net income was primarily the result of increased operating income, partially offset by an increase in the loss on fair value of swaps. This resulted in diluted earnings per share for the year of $0.12 compared to $01 per share for fiscal twenty twenty four. Our weighted average diluted outstanding share count for the full year is 66,000,000.

Jim Heindlmeyer
Jim Heindlmeyer
CFO at Reservoir Media

Turning to our segment breakdown for the fourth quarter, Music Publishing generated revenue of $27,900,000 in the quarter, which represents a 6% increase when including acquisitions versus the same period last year. Our digital revenue increased $600,000 to $13,600,000 or 5%. The performance revenue decreased by 13% to 6,500,000.0. Synchronization revenue in the publishing segment totaled 5,500,000.0, a 51% increase from the fourth quarter of last year. This is primarily due to the timing of licenses.

Jim Heindlmeyer
Jim Heindlmeyer
CFO at Reservoir Media

Mechanical revenue within the Publishing segment posted a 6% decrease year over year to 1,200,000.0. Other revenue within the Publishing segment was 1,200,000.0, an increase of 15% year over year. Our Recorded Music segment generated 12,000,000 in revenue in the fourth quarter, representing an increase of 7% versus the prior year quarter. Digital revenue within the recording segment increased 19%, primarily due to price increases and subscriber growth at DSPs. Physical revenue decreased 26%, largely due to a lighter planned release schedule in the fourth quarter of fiscal twenty twenty five compared to the fourth quarter of fiscal twenty twenty four.

Jim Heindlmeyer
Jim Heindlmeyer
CFO at Reservoir Media

Our synchronization revenue decreased 29% as a result of the timing of licenses, while neighboring rights increased 15% to 1,100,000 in part due to additional direct affiliations with collection societies. For the full year, our music publishing segment revenue rose 12% compared to the prior year. Our improvement is largely a result of price increases of multiple music streaming services as well as the expansion of our catalog through M and A. Additionally, synchronization revenue increased because of the timing of licenses. These factors were partially offset by a decrease in performance revenue driven by the timing of hit songs.

Jim Heindlmeyer
Jim Heindlmeyer
CFO at Reservoir Media

Recorded music revenues increased 4% compared to fiscal twenty twenty four. The growth is attributable to continued user growth and price increases of multiple streaming services as well as royalty recoveries related to underreported usage for music catalogs. These factors were partially offset by a decrease in physical sales after the robust sales of new de la Sol releases in fiscal twenty twenty four. Let's move on to our balance sheet. As of March 31, our credit facility was at roughly 391,800,000.0.

Jim Heindlmeyer
Jim Heindlmeyer
CFO at Reservoir Media

We closed the year with total liquidity of 79,600,000.0 comprised of 21,400,000.0 of cash on hand and 58,200,000.0 available under our revolver, which gives us the capital to fund our strategic objectives. We ended the year with 388,100,000.0 of total debt, which was net of 3,700,000.0 of deferred financing costs, and thus, we maintained 366,700,000.0 of net debt. That compares to net debt of 312,700,000.0 as of last fiscal year end. Reservoir had a standout fiscal year, capitalizing on our opportunities to boost our organic revenue, thanks to our value enhancement team. The deals we closed this year were substantial and delivered notable value to the company, and profitability was further aided by our internal efforts to control costs.

Jim Heindlmeyer
Jim Heindlmeyer
CFO at Reservoir Media

Turning to the 2026 fiscal year. We expect revenue to be in the range of $164,000,000 to $169,000,000 and adjusted EBITDA to be in the range of $68,000,000 to $72,000,000 We have maintained a strong pipeline of potential acquisitions and are in a solid financial position to continue executing on transactions where we see the greatest ROI. We also have the right tools and teams in place to drive organic growth from our existing catalog. With that, I'll now pass the call back to Goldner.

Golnar Khosrowshahi
Golnar Khosrowshahi
Founder, CEO & Director at Reservoir Media

Thank you, Jim. The music industry has a long standing ability to weather broader macroeconomic headwinds as consumers believe in the value that music brings to their daily lives. Our top line growth is a testament to the demand and resiliency of our catalog from today's top records to a variety of evergreen classics. We are pleased with the fiscal year twenty twenty five results, and we look forward to fiscal year twenty twenty six, during which we expect the combination of high quality catalog, chart topping new releases, and targeted strategic capital deployment will contribute to outperformance. In closing, our long term strategy is rooted in building scale with portfolio accretive m and a and long term value additive signings to our global roster of artists and songwriters.

Golnar Khosrowshahi
Golnar Khosrowshahi
Founder, CEO & Director at Reservoir Media

Our recent announcements as well as our operational and financial performance in both the fourth quarter and full fiscal year are in lockstep with where we believe our greatest opportunities for growth lie and our ability to drive value for all our shareholders. With that, we will now open the line for questions.

Operator

Thank you. The floor is now open for questions. Today's first question is coming from Richard Baldry of ROTH Capital Partners. Please go ahead.

Richard Baldry
MD & Senior Research Analyst at Roth Capital Partners, LLC

Thanks. Adding the India operation brings sort of the question to, are you seeing markedly better ROIs in international geographies? Or is it still pretty one off deals that are driving sort of where you're making your investments?

Golnar Khosrowshahi
Golnar Khosrowshahi
Founder, CEO & Director at Reservoir Media

Hi, Rich. It's Vollnar. We certainly see better opportunities and along with volume in the emerging markets, and that does definitely lead to better ROIs and less competition. So we see that in India as well as in The Middle East.

Richard Baldry
MD & Senior Research Analyst at Roth Capital Partners, LLC

K. And then, you know, this year, the seasonality sort of changed a little bit with third quarter above fourth quarter, and there's some onetime impacts in that. How do you look at sort of revenue seasonality in 2026? Does it sort of get back to your regular cadence most likely?

Jim Heindlmeyer
Jim Heindlmeyer
CFO at Reservoir Media

Yeah. I think that, you know, we're obviously, always evaluating our our accruals and trying to do the best job we can there. We do have some of those one off type items, but I would expect that we'd probably get back a little bit to the second and fourth quarter potentially being slightly higher than the the first and third quarters just based on the timing of of certain things. But, you know, we're doing our best that, with the accruals to try and, reflect revenue accurately by quarter, in the quarter that it's earned.

Richard Baldry
MD & Senior Research Analyst at Roth Capital Partners, LLC

And, yeah, interest rates have been a little bit volatile lately. Could you talk a little bit about, you know, sort of where you're hedged and what your strategy is on that in the sort of near to intermediate term?

Jim Heindlmeyer
Jim Heindlmeyer
CFO at Reservoir Media

Yeah. So we're we're still sitting at a hundred and 50,000,000 hedged, which is where we've been for a while. And as our debt has, ticked up a little bit with our ongoing M and A activity, we are constantly evaluating whether we should put on an additional hedge. We'll to do that. And, you know, obviously, with some of the volatility right now, it's we haven't we haven't seen compelling data to to pull the trigger on that yet, but it's something that we constantly evaluate.

Richard Baldry
MD & Senior Research Analyst at Roth Capital Partners, LLC

Last for me, sir. You know, you talked lately on you know, you thought the pipeline looked good. Do can you talk a little bit more about sort of how much capital you're targeting to deploy in '26? So is there any sort of expected split between, you know, the publishing side, sorry, versus the recorded side? Or, again, will that be sort of on an as come deal basis?

Golnar Khosrowshahi
Golnar Khosrowshahi
Founder, CEO & Director at Reservoir Media

We generally have to be opportunistic around deal flow. So while we may have desires around how much recorded or publishing assets we want to acquire, that's not really how it always shakes out because we have to be opportunistic, and we're at the whim of what is in front of us and what we have a high likelihood to execute on. And then I'll let Jim answer on how the free cash flow goes into our into our modeling there.

Jim Heindlmeyer
Jim Heindlmeyer
CFO at Reservoir Media

Yeah. And and on that part, Rich, you know, you you can look at our investor deck, see where we project our free cash flow to be, which is around $50,000,000 as we move into fiscal twenty twenty six. And typically, what we are looking at with respect to guidance is you know, an assumption around deploying that free cash flow to ongoing m and a writer signings, as we have in the past. It is, you know, again, something that we constantly evaluate what's the best use of our capital deployment, but that's, that's generally how we look at it.

Richard Baldry
MD & Senior Research Analyst at Roth Capital Partners, LLC

Just maybe one last one for me. Your capital deployment this year seemed to be a little more heavily weighted in the second half, and the revenue sort of reflects sort of a step up there because of that. If I take that second half and run rate it, it looks pretty close to where your revenues for '26 would be. So can you talk about sort of, you know, what factors go into that '26 guide? If it's, you know, more conservatism, or are there some onetime impacts on the second half of twenty five that we have to keep in mind as we're modeling the year out? Thanks.

Jim Heindlmeyer
Jim Heindlmeyer
CFO at Reservoir Media

Yeah. So on our end, you know, one of the difficult things with guidance in this business is, you know, we have been fortunate, or I'll say our our creative team has done a a very good job of signing good writers, and and we've had hits. So when you have a hit like espresso, you know, over the past year and that generates a significant amount of revenue, we are not necessarily going to project another hit like that in fiscal twenty six. We have been fortunate, like I said, to have hits, you know, year after year, but but it's not something that we build into our guide. So sometimes those types of things will impact what seems like conservatism in in our guide.

Jim Heindlmeyer
Jim Heindlmeyer
CFO at Reservoir Media

And, I know it makes your job a little bit more difficult, but that's, you know, just probably one of the the the factors that goes into it that, that you should be aware of.

Richard Baldry
MD & Senior Research Analyst at Roth Capital Partners, LLC

Great. Thanks.

Golnar Khosrowshahi
Golnar Khosrowshahi
Founder, CEO & Director at Reservoir Media

Thank you.

Operator

Thank you. Our next question is coming from Griffin Boss of B. Riley Securities. So

Griffin Boss
Equity Research Analyst at B.Riley Securities

just wanted to jump back on the capital deployed. I just want to make sure that I heard that correctly. When you mentioned $150,000,000 number, was that for the year? Or was that for the fourth quarter? And I'm sure we'll see it in the 10 ks, but maybe talk about how much of that was allocated to LASTRADA in the fourth quarter?

Golnar Khosrowshahi
Golnar Khosrowshahi
Founder, CEO & Director at Reservoir Media

Sure. Good morning. It was 115,000,000, and it was for the year, $1.01 5.

Griffin Boss
Equity Research Analyst at B.Riley Securities

Oh, one okay. Thank you. Great. And then in terms of the Pop India initiative there, I I I could you just help us handicap how India stacks up to to other regions? You mentioned the 13% expected CAGR growth through 2027 for that region, but maybe if you could just dig into how that stacks up to other regions like The US and maybe if you could talk a little bit more about the monetization in that in that region, particularly on the digital side, how how that compares to a market like The US?

Golnar Khosrowshahi
Golnar Khosrowshahi
Founder, CEO & Director at Reservoir Media

Sure. I mean, the market like The US and Western Europe, for example, are advanced and just don't have the same saturation as far as the DSPs go and the subscription numbers. And the growth on that is not as significant as what is happening in the emerging markets just because of the population and the number of people in that opportunity that exists to get people converted to becoming paying subscribers. As far as the growth rates go, it varies country by country, but the growth rate in India is pretty significant given both the size of the population and the opportunity for just the number of people to to become streamers of music. So the monetization in the regions works similarly to other regions.

Golnar Khosrowshahi
Golnar Khosrowshahi
Founder, CEO & Director at Reservoir Media

There are differences in how performance royalties are mon monetized, and, again, that varies country by country. And so we we just anticipate that there is a future across The Middle East, in India, where there's going to be significant growth on a subscription basis, where there's going to be significant growth in listenership and number of subscribers, and where there's going to be convention around the monetization of public performance.

Griffin Boss
Equity Research Analyst at B.Riley Securities

Got it. Okay. Thanks, Colette. And I know you touched on it in the last question as well in terms of the revenue guide, Jim, but just curious if you can I mean, you had $115,000,000 deployed for acquisitions, m and a, royalty advances this year, and the guide for 2026? I just I is is that an organic growth rate that we should expect for the current catalog, call it mid single digit going forward?

Griffin Boss
Equity Research Analyst at B.Riley Securities

Just it seems conservative given the the amount of additions you had coming into fiscal twenty six.

Jim Heindlmeyer
Jim Heindlmeyer
CFO at Reservoir Media

Yeah.

Griffin Boss
Equity Research Analyst at B.Riley Securities

And I know you talked on the head, but yeah. Yeah. Yeah. Maybe elaborate a little bit more.

Jim Heindlmeyer
Jim Heindlmeyer
CFO at Reservoir Media

You know, again, there's a there's a couple things that, are difficult for you know, to compare from year to year. Right? So I touched on the fact that, you know, we we've had hits in in the past year. And while we hope to, expect to, continue to have quality music, you know, continued hits, we don't project for for that. We're not going to project that, you know, this writer is going to write another number one song that's gonna perform in this way, we're gonna be a little bit more conservative around that kind of stuff.

Jim Heindlmeyer
Jim Heindlmeyer
CFO at Reservoir Media

So that goes against us a little bit in our guide. We obviously evaluate that as we move through the year, and we will update our guidance when we get to to q two. We had a couple of things that we called out in in q three, and you'll see it in in the 10 k around audit recoveries and, you know, revenue that that generated in fiscal twenty five. We don't project for that kind of, stuff in the the coming year. So those types of things, one can call it conservatism or just being prudent with respect to how we we project and and guide for the coming fiscal year.

Jim Heindlmeyer
Jim Heindlmeyer
CFO at Reservoir Media

But those are some of the types of things that will make that comp look a little bit more conservative than maybe it is. You know, we have we have consistently outperformed, in our time as a public company, and and we look forward to continuing to do that. And and we'll update our guidance as we move through the year and have better information.

Golnar Khosrowshahi
Golnar Khosrowshahi
Founder, CEO & Director at Reservoir Media

Thank you, operator. This has been another incredible fiscal year for Reservoir as we added legendary talent to our roster, grew our publishing and recorded catalog with high quality music, and further expanded our global presence. I believe we are well positioned to drive top line growth and further improve our bottom line. We appreciate your interest and look forward to sharing our first fiscal quarter results with you this summer. Thank you.

Operator

Ladies and gentlemen, this concludes today's event. You may disconnect your lines or log off the webcast at this time, and enjoy the rest of your day.

Executives
    • Golnar Khosrowshahi
      Golnar Khosrowshahi
      Founder, CEO & Director
    • Jim Heindlmeyer
      Jim Heindlmeyer
      CFO
Analysts
    • Jackie Marcus
      Senior Managing Director at Alpha IR Group
    • Richard Baldry
      MD & Senior Research Analyst at Roth Capital Partners, LLC
    • Griffin Boss
      Equity Research Analyst at B.Riley Securities
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Key Takeaways

  • Reservoir Media outperformed guidance with 10% top-line revenue growth, an 18% increase in adjusted EBITDA, and invested over $15 million in acquisitions and advances during fiscal 2025.
  • Strategic off-market M&A, including the acquisitions of La Strada Entertainment’s catalog and the New State label—alongside earlier deals like Chrysalis and Tommy Boy—has significantly expanded and diversified Reservoir’s publishing and recorded music portfolios.
  • Organic growth was fueled by high-ROI sync placements—such as four Super Bowl ads and a feature-film spot for Harry Belafonte’s “Day-O”—and a top-10 US market share for Reservoir songwriters contributing to multiple hit records.
  • International expansion continued with the launch of Pop India, a new Mumbai office, and the acquisition of Egyptian star Omar Kamal’s catalog, positioning Reservoir to capitalize on emerging markets’ high streaming growth.
  • Reservoir ended fiscal 2025 with net debt of $366.7 million (up from $312.7 million) and interest expenses rising to $21.9 million, reflecting increased leverage from catalog acquisitions.
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Earnings Conference Call
Reservoir Media Q4 2025
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