Reservoir Media Inc. (NASDAQ: RSVR) saw its stock price surge over 10% in pre-market trading on Wednesday as the company reported strong third-quarter fiscal 2025 results that exceeded expectations and raised its full-year guidance.

The independent music company's total revenue for Q3 grew 19% year-over-year to $42.3 million, driven by robust growth in both its Music Publishing and Recorded Music segments. The company's profitability metrics also saw significant improvements:

• Operating income jumped 47% to $9.6 million
• OIBDA (Operating Income Before Depreciation & Amortization) rose 26% to $16.3 million
• Adjusted EBITDA grew 26% to $17.3 million

The strong performance was driven by a combination of factors, including acquisitions of new catalogs, price increases at multiple music streaming services, and continued growth in music streaming. Reservoir's management also cited disciplined cost controls and value-additive practices as contributing to the margin expansion.

Golnar Khosrowshahi, Founder and CEO of Reservoir Media, commented: "Our third fiscal quarter marks another strong period of growth across both the top and bottom lines of our business. With our team's expertise and strong relationships across the industry, Reservoir consistently ushers in accretive opportunities that further shape our catalog and roster of talent into a diverse and valuable portfolio."

Boosted by the impressive quarterly results, Reservoir raised its full-year fiscal 2025 guidance, now expecting revenue of $155 million to $158 million (up 8% year-over-year at the midpoint) and Adjusted EBITDA of $61.5 million to $64.5 million (up 13%).