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/RSVR
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Reservoir Media Inc

Reservoir Media Inc

RSVR
$10.22USD↑+0.29%+0.03 today

MARKET CAP

672.6M

P/E (TTM)

85.2x

FWD P/E

78.0x

DAY RANGE

$10 – $10

52W RANGE

$7
$13

AI Summary

Stalk
TrimLow

RSVR is trading in a Stage 3 distribution, struggling below recent highs with flattening short EMAs and contracting volume. Medium-term bias is bearish, favoring sell-on-rally engagement into the EMA cluster and horizontal resistance, while short-term timing remains neutral until a clear rejection emerges. The long-term uptrend persists, supported by the rising 200 DMA, but distribution risks signal a potential transition to Stage 4.

  • ↑Revenue rose 15% YoY to $175.7M in FY26, guided $186–191M for FY27.
  • ↑Adjusted EBITDA climbed 12% to $73.6M, reflecting improved operational efficiency.
  • ↓Total debt rose to $455.7M, fueling $21.9M in interest expense.
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

Reservoir Media Inc. (NASDAQ: RSVR) is an emerging player in the global music rights industry, specializing in music publishing and recorded music rights management. The company has a diverse portfolio that integrates iconic legacy artists with new and emerging talent, actively expanding its presence in significant markets such as India and the MENA region. Reservoir's aggressive acquisition strategy focuses on enhancing its catalog, aiming to leverage opportunities amidst the evolving landscape of the entertainment sector.

Bull says

  • ↑Revenue rose 15% YoY to $175.7M in FY26, guided $186–191M for FY27.
  • ↑Adjusted EBITDA climbed 12% to $73.6M, reflecting improved operational efficiency.
  • ↑Deployed ~$120M on acquisitions bolstering catalog with legacy & emerging artists.
  • ↑Operating cash flow improved to $50.1M, while total liquidity stands at $117.1M.
  • ↑Expansion in India and MENA underpins multi-year revenue tailwinds.
  • ↑Strong momentum factors support growth, with moderate leverage risk from debt.

Bear says

  • ↓Total debt rose to $455.7M, fueling $21.9M in interest expense.
  • ↓Administrative costs increased 12%, causing a slight EBITDA margin contraction.
  • ↓Revenue predictability is volatile due to hit-driven catalog dynamics.
  • ↓Kaskela Law investigation into acquisitions may undermine investor confidence.
  • ↓Competition from UMG, WMG and digital disruptors heightens pricing pressure.
  • ↓Weak profitability factors and low earnings yield challenge sustainable returns.

Earnings Call · Q4 2025 · Mgmt. Guidance

Updated 05-28-2026neutral

Transcript signals

Bull points

  • We certainly see better opportunities and along with volume in the emerging markets, and that does definitely lead to better ROIs and less competition. So we see that in India as well as in the Middle East.
  • look at our investor deck, see where we project our free cash flow to be, which is around $50 million as we move into fiscal 26.
  • We closed out our fiscal year 2025 in a position of strength with double-digit top-line growth.

Bear points

  • one of the difficult things with guidance in this business is we have been fortunate, or I'll say our creative team has done a very good job of signing good writers, and we've had hits. So when you have a hit like Espresso over the past year and that generates a significant amount of revenue, we are not necessarily going to project another hit like that in fiscal 26.
  • Interest expense was 6.1 million for the quarter compared to 5.2 million in the same period last year.
  • Our interest expense was $21.9 million for the full year compared to $21.1 million last year. The higher interest expense was due to an increase in debt resulting from acquisitions of music catalogs and writer signings and an increase in effective interest rates.
Read full transcript analysis ›