Reservoir Media has published its financial results for the three months ended September 30, 2025 – the company’s fiscal Q2 2026 (calendar Q3 2025).
The New York-headquartered music company generated $45.4 million in the quarter, representing 12% YoY growth, or 7% organically excluding acquisitions.
The company’s revenue growth was propelled by an 8% YoY rise in music publishing revenue and a 21% YoY surge in recorded music revenue.
Operating income reached $10.7 million, up 6% YoY, while OIBDA (Operating Income Before Depreciation and Amortization) climbed 10% YoY to $18.2 million.
Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew 10% YoY to $19.4 million (see below).
Music Publishing
Reservoir’s music publishing segment generated $30.9 million in Calendar Q3, up 8% YoY, with OIBDA increasing 3% YoY to $11.3 million.
Digital revenue climbed 3% YoY to $16.1 million, while performance revenue surged 47% to $7.5 million.
Synchronization revenue declined 21% YoY to $4.6 million, and mechanical revenue increased 45% YoY to $1.6 million.
Recorded Music
Reservoir’s recorded music division delivered particularly strong results, with revenue jumping 21% YoY to $13 million. OIBDA for the segment grew 22% YoY to $6.6 million.
Digital revenue in the recorded music segment increased 21% YoY to $8.7 million, driven by catalog acquisitions and continued growth at streaming services.
Physical revenue declined 10% YoY to $1.3 million, while synchronization revenue grew 106% YoY to $1.8 million.
The quarter’s standout development was Reservoir’s acquisition of the publishing catalog of jazz icon Miles Davis. The deal, valued at between $40-$60 million, encompasses Davis’ music publishing rights as well as the estate’s income from his recordings.
“Our second fiscal quarter was hallmarked by the addition of the publishing catalog of musical and cultural icon Miles Davis, in addition to his recorded music and shared rights to his name and likeness,” said Golnar Khosrowshahi, Founder and CEO.
“We are building a scalable platform for sustainable growth and meaningful value creation, and we remain focused on driving consistent, long-term returns for our shareholders.”
Golnar Khosrowshahi
Added Khosrowshahi: “We are honored to partner with his estate ahead of his centennial year in 2026 to collaborate on unique value enhancement opportunities and share his legacy with the next generation across platforms.
“Beyond this marquee deal, Reservoir has continued our long-term growth strategy through disciplined investments in our catalog, key strategic partnerships, and global diversification. We are building a scalable platform for sustainable growth and meaningful value creation, and we remain focused on driving consistent, long-term returns for our shareholders.”
The company also struck an extended publishing deal for the catalog of Nick Drake, and executed a new deal with the Drake estate to represent the catalog of Nick’s mother Molly Drake together with Blue Raincoat Music Publishing.
Elsewhere in the quarter, Reservoir announced emerging markets deals in conjunction with PopArabia for the publishing and recorded music catalog of Iraqi production house HFM production and the publishing and recorded music catalog of Kuwaiti singer-songwriter Essa Almarzoug, as well as a publishing deal with Moroccan singer-rapper-songwriter-producer 88 Young.
Additionally, Reservoir Signed publishing deals with Platinum-selling songwriter Emily Reid, Grammy-nominated songwriter-producer Dave Pittenger, and 1960s “teen idol” Bobby Vinton.
“Our financial performance emphasizes our ability to drive value from our existing portfolio and consistently identify high-quality, high-demand assets with attractive economics.”
Jim Heindlmeyer, Reservoir
Based on its first-half performance, Reservoir raised its fiscal 2026 guidance.
The company now expects revenue of $167 million-$170 million, up from previous guidance of $164 million-$169 million. Adjusted EBITDA guidance was raised to $70 million-$72 million from $68 million-$72 million previously.
Jim Heindlmeyer, Chief Financial Officer of Reservoir, said, “Our financial performance emphasizes our ability to drive value from our existing portfolio and consistently identify high-quality, high-demand assets with attractive economics.
“With the first half of the fiscal year behind us, we have the confidence to positively adjust our guidance ranges for both revenue and adjusted EBITDA for the 2026 fiscal year.”
Music Business Worldwide