Reservoir Media (NASDAQ:RSVR) Posts Earnings Results, Beats Estimates By $0.03 EPS

Reservoir Media (NASDAQ:RSVR) issued its earnings results on Wednesday. The company reported $0.07 earnings per share for the quarter, beating the consensus estimate of $0.04 by $0.03, FiscalAI reports. The business had revenue of $49.91 million for the quarter, compared to analyst estimates of $48.70 million. Reservoir Media had a net margin of 4.87% and a return on equity of 2.33%.

Here are the key takeaways from Reservoir Media’s conference call:

• Revenue and profitability grew: Q2 revenue increased 10% year over year, including 4% organic growth, while Adjusted EBITDA rose 14% to $22.1 million. Net income more than doubled to approximately $4.6 million.
• Management raised and narrowed its full-year outlook: Reservoir now expects revenue of $188 million–$192 million and Adjusted EBITDA of $77 million–$80 million, citing first-half performance and continued cost discipline.
• Both segments expanded, with acquisitions contributing: Music Publishing revenue grew 8% and Recorded Music revenue grew 18%; digital growth and catalog acquisitions supported both businesses. Management said Recorded Music’s improved margin partly reflects acquired rights with low expenses.
• Cash flow declined and debt remains substantial: Operating cash flow for the first half fell $3.7 million year over year, which the company attributed mainly to working-capital timing. Net debt was $433.8 million, up from $429.8 million at fiscal year-end, with interest expense also higher due partly to acquisition financing.

Reservoir Media Price Performance

NASDAQ:RSVR traded up $0.44 on Wednesday, reaching $10.28. The stock had a trading volume of 84,949 shares, compared to its average volume of 73,516. The company has a market capitalization of $676.53 million, a P/E ratio of 79.08 and a beta of 0.82. Reservoir Media has a 1-year low of $7.07 and a 1-year high of $13.39. The company has a quick ratio of 1.31, a current ratio of 1.31 and a debt-to-equity ratio of 1.22. The stock has a fifty day moving average price of $9.54 and a 200-day moving average price of $9.55.

Analyst Ratings Changes

Separately, Weiss Ratings cut shares of Reservoir Media from a “hold (c)” rating to a “hold (c-)” rating in a research note on Thursday, August 20th. Two research analysts have rated the stock with a Hold rating. According to MarketBeat.com, the company currently has a consensus rating of “Hold”.

About Reservoir Media

Reservoir Media, Inc is a global independent music company that owns, administers and manages rights to musical compositions and sound recordings. Its business includes music publishing, recorded music, rights management and royalty collection, serving songwriters, artists, producers and other rights holders.

The company’s catalog spans a broad range of genres and includes contemporary and historic songs, recordings and music-related intellectual property. Reservoir also operates record labels and provides services such as creative support, licensing, synchronization and administration for uses of music in film, television, advertising, video games and other media.

Founded in 2007, Reservoir has expanded through acquisitions and partnerships involving music publishing catalogs, recorded-music assets and related businesses.