Reservoir Media has published its financial results for the three months ended December 31, 2025 – the company’s fiscal Q3 2026 (calendar Q4 2025).
The New York-headquartered music company generated $45.6 million in the quarter, representing8% YoYgrowth, or 5%organically excluding acquisitions.
The company’s revenue growth was propelled by a12% YoYrise in music publishing revenue and an8% YoY increase in recorded music revenue.
Operating income reached $10.3 million, up8% YoY, while OIBDA (Operating Income Before Depreciation and Amortization) climbed 11% YoY to $18.1 million.
Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew 11% YoYto $19.2 million (see below).
Music Publishing
Reservoir’s music publishing segment generated $30.1 million in Calendar Q4, up12% YoY, with OIBDA increasing21% YoYto $11 million.
Digital revenue climbed 5% YoYto $17.4 million, while performance revenue surged 42% to $6.2 million.
Synchronization revenue increased 11% YoY to $4.6 million, and mechanical revenue decreased37% YoY to $0.6 million.
Recorded Music
Reservoir’s recorded music division generated $12.9 million in revenue, an increase of 8% YoY. OIBDA for the segment grew 5% YoY to $6.7 million.
Digital revenue in the recorded music segment increased 15% YoY to $9.3 million, driven by catalog acquisitions and continued growth at streaming services.
Physical revenue declined6% YoY to $1.9 million, while neighboring rights revenue grew 29% YoY to $1.1 million. Synchronization revenue fell 47% YoY to $0.5 million.
The quarter saw Reservoir strike deals with R&B legend Gladys Knight and hip-hop star T.I.
“This quarter was also marked by new partnerships with two music icons, R&B legend Gladys Knight, and Hip-Hop icon, T.I.,” confirmed CEO Golnar Khosrowshahi on the company’s earnings call.
Added Khosrowshahi: “The agreement with Gladys Knight includes rights to her income streams across both publishing and master recording catalogs.
“The deal with T.I. will see Reservoir work with the acclaimed rap superstar across his entire publishing back catalog and future works as well as select recorded music interests, including master recordings, artist royalties and neighboring rights.
“These agreements mark our team’s proven ability to structure and execute unique flexible deals with legendary talent and further build our portfolio of evergreen hits that are accretive to the portfolio as a whole.”
Elsewhere in calendar Q4, Reservoir also acquired the catalog of yacht rock icon and singer-songwriter Bertie Higgins, including publishing and recorded music rights.
Reservoir also said that it continues to prioritize emerging markets, where Khosrowshahi said acquisition multiples remain “favorable” and streaming growth rates “outpace” the US and Europe.
Recent moves include a joint venture with Jamaican dancehall publisher Abood Music and genre star Cordell “Skatta” Burrell to acquire catalogs and develop Jamaican creators; and the extension of DIVINE’s publishing deal through Reservoir’s Indian subsidiary, PopIndia.
Additionally, the company announced publishing deals with female-led disco-soul group Say She She, 2x-Platinum selling country and pop songwriter Allison Veltz Cruz, and multi-genre songwriter-producer Britten Newbill.
“This quarter, we continued to execute with focus and discipline, advancing our top-line objectives while maintaining strong cost and balance sheet control,” said Golnar Khosrowshahi, Founder and CEO.
Credit: Becky Yee
“Across a range of new deals this quarter, spanning emerging talent and enduring cultural icons, and with our commitment to creators at the forefront of everything we do, Reservoir remains a trusted global partner.”
Golnar Khosrowshahi
Added Khosrowshahi: “Our strong, diversified pipeline positions us well to continue to execute on transactions while delivering attractive returns.”
Based on its nine-month performance, Reservoir raised its fiscal 2026 guidance.
The company now expects revenue of $170 million-$173 million, representing 8% growth at the midpoint.
Adjusted EBITDA guidance was raised to $71.5 million-$73.5 million, representing 10% growth at the midpoint.
“We are raising our guidance ranges for both revenue and adjusted EBITDA for the full 2026 fiscal year.”
Jim Heindlmeyer, Reservoir
Jim Heindlmeyer, Chief Financial Officer of Reservoir, said: “Our financial results through the first three fiscal quarters underscore the strength of our portfolio of talent and our disciplined approach to sourcing deals with strong fundamentals and compelling return potential.
“We are raising our guidance ranges for both revenue and adjusted EBITDA for the full 2026 fiscal year.”
