Reservoir Media Reports 12% Revenue Growth to $41.5 Million, Net Loss Narrows

Reservoir Media, Inc. reported a revenue increase of 12% for the three months ended June 30, 2026, reaching $41.5 million compared to $37.2 million in the same period last year. The growth was primarily driven by a 35% rise in Recorded Music revenues, which totaled $14.1 million, alongside a 6% increase in Music Publishing revenues, amounting to $26.5 million. Despite the revenue growth, the company experienced a net loss of $508,386, a reduction from a loss of $643,725 in the prior year, with the loss attributable to Reservoir Media, Inc. narrowing significantly to $93,111 from $555,659.

The company's costs and expenses also rose, totaling $36.1 million, up from $31.7 million in the previous year, largely due to increased administration expenses and amortization costs associated with new acquisitions. Operating income slightly decreased to $5.4 million from $5.4 million year-over-year, reflecting a stable operating margin of 13%. The increase in interest expense, which rose by 10% to $6.9 million, was attributed to higher debt levels resulting from acquisitions and catalog purchases.

Strategically, Reservoir Media completed the acquisition of Viral Wave Content Consultancy DWC-LLC in April 2026 for approximately $5.9 million, aimed at enhancing its presence in the Middle East and North Africa markets. This acquisition is expected to bolster the company's growth in emerging markets and expand its reach among Arabic-language audiences. Additionally, the company invested $14.7 million in music catalog acquisitions during the quarter, compared to $7.9 million in the same period last year, indicating a strong commitment to expanding its music portfolio.

Operationally, the company reported a slight increase in cash and cash equivalents, totaling $13.7 million as of June 30, 2026, down from $25.9 million at the end of the previous quarter. The total assets remained relatively stable at approximately $948.9 million. The company’s employee headcount increased, reflecting its growth strategy and expansion efforts. Looking ahead, Reservoir Media anticipates continued revenue growth driven by its strategic acquisitions and the ongoing expansion of its digital music services, although it remains cautious about market conditions and potential impacts on its operations.