Reservoir Media (RSVR) Q1 2025 earnings summary

Executive summary

• Revenue grew 8% year-over-year to $34.3 million for Q1 FY25, driven by a 15% increase in Music Publishing revenue and offset by a 7% decline in Recorded Music revenue.

• Adjusted EBITDA increased 25% to $12.6 million, with margin improving to 37% from 32% year-over-year.

• Net loss was $0.5 million, or ($0.01) per share, compared to net income of $0.2 million in the prior year, mainly due to a loss on interest rate hedges and swaps.

• Operating income rose 58% to $5.0 million, reflecting revenue growth and improved margins.

• Signed new publishing deals with Wrabel, Aaron Zuckerman, and Lewis Thompson, supporting future growth.

Financial highlights

• Music Publishing revenue grew 15% to $24.0 million, driven by catalog acquisitions and streaming price increases.

• Recorded Music revenue declined 7% to $9.6 million, mainly due to lower physical sales following prior year De La Soul releases.

• Synchronization revenue in Recorded Music surged 87%, and digital revenue grew 17%.

• Cash from operating activities was $8.6 million, up $9.4 million from the prior year, mainly due to higher royalty advance recoupments and improved collections.

• OIBDA margin increased to 33% from 29% year-over-year.

Outlook and guidance

• Maintained full-year revenue guidance of $148–$152 million, implying 4% growth at the midpoint.

• Reiterated adjusted EBITDA guidance of $58–$61 million, signaling 7% growth at the midpoint.

• Management expects interest expense to rise in future quarters as existing interest rate swaps mature and new contracts take effect.

• Liquidity is expected to be sufficient to support operations over the next twelve months.

• Management remains focused on consistent cash flow and achieving forecasted targets.