Overview

• Reservoir Media Q2 revenue grows 12% yr/yr, beating analyst expectations

• Adjusted EBITDA for Q2 rises 10% yr/yr, reflecting revenue growth

• Company acquires Miles Davis catalog, partners with estate for centennial

Outlook

• Reservoir raises fiscal 2026 revenue guidance to $167M-$170M

• Company lifts fiscal 2026 adjusted EBITDA forecast to $70M-$72M

Result Drivers

• RECORDED MUSIC GROWTH - Recorded Music Revenue increased by 21% yr/yr, driven by digital and synchronization revenue growth

• MUSIC PUBLISHING GROWTH - Music Publishing Revenue rose 8% yr/yr, supported by performance and mechanical revenue increases

• MILES DAVIS CATALOG - Acquisition of Miles Davis catalog expected to enhance future revenue streams

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the entertainment production peer group is "buy"

• Wall Street's median 12-month price target for Reservoir Media Inc is $11.50, about 35.8% above its November 3 closing price of $7.38

• The stock recently traded at 54 times the next 12-month earnings vs. a P/E of 54 three months ago

Press Release: ID:nACSC3ZSWa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)