Key Highlights

• Reservoir Media (NASDAQ:RSVR) posted total Revenue of $49.9 million in Q2 fiscal 2027, up 10% year-over-year, with 4% organic growth.

• Recorded Music revenue increased 18% year-over-year, driven by digital growth and neighboring rights.

• Net Income rose to $4.6 million, or $0.07 per share, more than doubling from $2.2 million, or $0.03 per share, a year ago.

• The company raised its fiscal 2027 outlook for both revenue and adjusted EBITDA.

Reservoir Media Inc. (NASDAQ:RSVR), an independent music company, has reported financial results for the second quarter of fiscal 2027 ended September 30, 2026, posting double-digit revenue growth across both its publishing and recorded music segments. The company also raised its full-year fiscal 2027 outlook for revenue and adjusted EBITDA.

Revenue Growth Across Both Segments

Total revenue for the quarter reached $49.9 million, a 10% increase from $45.4 million in the same period a year ago. On an organic basis, excluding acquisitions, revenue grew 4%. Music Publishing revenue rose 8% to $33.2 million, driven by increases in digital revenue from the Acquisition of additional music catalogs and continued growth at streaming services, as well as a 13% increase in synchronization revenue. Recorded Music revenue jumped 18% to $15.4 million, with digital revenue surging 33% and neighboring rights revenue climbing 40%, the latter reflecting catalog acquisitions and new affiliations.

The Recorded Music segment's digital growth was the standout metric, with revenue climbing from $8.7 million to $11.5 million year-over-year. Neighboring rights revenue also expanded from $1.1 million to $1.5 million. However, synchronization revenue within the Recorded Music segment declined 54% to $0.9 million from $1.8 million, reflecting timing variability in license activity.

Profitability Improvements

Operating income increased 15% to $12.3 million. Operating Income Before Depreciation and Amortization (OIBDA) rose 14% to $20.7 million, while adjusted EBITDA also climbed 14% to $22.1 million. Net income more than doubled to $4.6 million, or $0.07 per share, from $2.2 million, or $0.03 per share, in the prior-year quarter. The improvement in net income was supported by higher operating income and favorable movements in the Fair Value of swaps and foreign exchange gains, partially offset by higher income tax expense and interest expense.

Music Publishing OIBDA Margin held steady at 37%, while Recorded Music OIBDA rose 26% to $8.3 million, reflecting the higher-margin nature of digital revenue growth.

Catalog Acquisitions and Signings

During the quarter, Reservoir acquired the recorded music catalog of legendary Puerto Rican singer-songwriter José Feliciano, whose 1970 holiday classic "Feliz Navidad" remains one of the most recognizable seasonal songs worldwide. The company also acquired the publishing catalog of jazz ICON Billy Strayhorn, expanding a relationship originally established in 2014. On the talent side, Reservoir signed publishing deals with songwriter-producer Jake Sinclair, Fred Ball, Ivor Novello-winning singer-songwriter Orla Gartland, Scottish indie rock band The Snuts, and several other artists.

CEO Golnar Khosrowshahi noted that recent investments span both established catalogs with enduring commercial significance and emerging talent, reflecting the company's dual approach to portfolio growth.

The Bottom Line

Reservoir Media closes the first half of fiscal 2027 with accelerating momentum in both revenue and profitability, supported by catalog acquisitions that enhance its Recurring Revenue base and digital streaming growth that continues to drive the broader music industry. The raised fiscal 2027 outlook for revenue and adjusted EBITDA signals management's confidence in sustaining these trends through the remainder of the year.