Reservoir Media (RSVR) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 performance exceeded guidance, with 10% annual revenue growth and 18% adjusted EBITDA growth, driven by strategic M&A, organic initiatives, and strong music publishing performance.

• Over $115 million was deployed toward acquisitions and advances, including major catalog deals and expansion into emerging markets.

• Notable publishing deals included Snoop Dogg, k.d. lang, and acquisitions such as Lastrada Entertainment and New State label.

• International expansion continued with Pop India and Pop Arabia, targeting high-growth regions like India and the Middle East, and a new Mumbai-based subsidiary with a deal for Yohani.

Financial highlights

• Fiscal 2025 revenue reached $158.7 million, up 10% year-over-year; Q4 revenue was $41.4 million, up 6%.

• Q4 adjusted EBITDA rose 14% to $18.2 million; full-year adjusted EBITDA grew 18% to $65.7 million.

• Net income for FY25 was $7.7 million ($0.12/share), up from $0.8 million ($0.01/share) last year; Q4 net income was $2.7 million ($0.04/share).

• Operating income for FY25 was $35.1 million (+43% YoY); Q4 operating income was $10.4 million (+19% YoY).

• Cash from operations was $45.3 million, up $9.1 million YoY; liquidity at $79.6 million as of March 31, 2025.

Outlook and guidance

• Fiscal 2026 revenue is expected between $164 million and $169 million; adjusted EBITDA is projected at $68 million to $72 million.

• Guidance reflects conservatism, not projecting one-time hits or audit recoveries.

• Free cash flow for 2026 is projected around $50 million, with ongoing M&A and writer signings planned.

• Management expects continued growth driven by catalog expansion and value enhancement practices.