Reservoir (RSVR) Q4 2026 Earnings Transcript
Reservoir reported robust fourth-quarter results for 2026, with revenue of $47.5 million, up 15% year over year, driven by both music publishing and recorded-music segments. For the full year, revenue reached $175.7 million, an 11% rise that included 6% organic growth and exceeded the upper end of prior guidance. Segment performance showed recorded music up 27% in the quarter and publishing up 11%; for the year, recorded music rose 16% and publishing 9%. Synchronization revenue rose to $5.8 million in the quarter for publishing (up 6%) while the recorded-music sync revenue jumped 161% due to license timing.
Digital revenue climbed 24% in publishing to $16.9 million and 17% in recorded music for the quarter, with full-year digital growth of 7% in publishing and 18% in recorded music. Cost of revenue rose 13% for the quarter and 8% for the year, while administrative expenses increased 16% in the quarter and 12% for the year, reflecting the Viral-Wave acquisition. Fourth-quarter OIBDA was $19.9 million, up 16%, and adjusted EBITDA reached $21.2 million, up 16% year over year. Net income for the quarter was $4.1 million ($0.07 per share), with full-year net income of $7.8 million ($0.13 per share); liquidity ended at $117.1 million and net debt at $429.8 million.
Management guided for fiscal 2027 revenue of $186‑$191 million and adjusted EBITDA of $75‑$79 million; the board has formed a special committee to evaluate unsolicited acquisition proposals. International expansion included India and MENA; partnerships drove 5% annual sync revenue growth in publishing and 39% in recorded music. Risks include Viral-Wave’s lower margin, international operations with lower EBITDA margins, and rising interest expense.
