Reservoir Media raised its fiscal 2027 guidance after revenue reached $49.9 million in calendar Q3 2026, its fiscal second quarter, up 10% from a year earlier. Publishing and recorded music both grew, while organic revenue, which excludes acquisitions, rose 4%.
Publishing and recorded music results
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 14% year on year to $22.1 million, and operating income rose 15% to $12.3 million.
Music publishing revenue grew 8% to $33.2 million. Its digital revenue increased 10% to $17.6 million, primarily reflecting catalog acquisitions and streaming growth.
Recorded music revenue rose 18% to $15.4 million. Within that division, digital revenue climbed 33% to $11.5 million, also driven mainly by acquisitions and streaming. Neighboring rights revenue increased 40% to $1.5 million, supported by acquisitions and “new affiliations,” while physical revenue rose 6% to $1.4 million.
Recorded music operating income before depreciation and amortization (OIBDA) increased 26% to $8.3 million, with its margin rising from 51% to 54%. Publishing sync revenue grew 13% to $5.2 million, while recorded music sync revenue fell 54% to $0.9 million. Reservoir attributed both changes to “the timing of licenses.”
Updated full-year outlook
For the fiscal year ending March 31, 2027, Reservoir now expects revenue of $188 million to $192 million and adjusted EBITDA of $77 million to $80 million. The midpoints of those ranges represent growth of 8% and 7%, respectively.
