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

Reservoir Media (NASDAQ:RSVR) announced its earnings results on Wednesday. The company reported $0.07 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.04 by $0.03, FiscalAI reports. The firm had revenue of $49.91 million during the quarter, compared to analysts’ expectations of $48.70 million. Reservoir Media had a return on equity of 2.98% and a net margin of 6.09%.

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

Shares of NASDAQ:RSVR opened at $10.33 on Friday. Reservoir Media has a one year low of $7.07 and a one year high of $13.39. The stock has a market capitalization of $679.86 million, a price-to-earnings ratio of 60.76 and a beta of 0.82. The company has a 50-day simple moving average of $9.56 and a 200-day simple moving average of $9.58. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.31 and a current ratio of 1.31.

Analyst Upgrades and Downgrades

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

Reservoir Media Company Profile

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.