Reservoir generated $41.5M in calendar Q2, up 12% YoY, with recorded music revenues up 35%

Reservoir Media has published its financial results for the three months ended June 30, 2026 – the company’s fiscal Q1 2027 (calendar Q2 2026).

The New York-headquartered music company generated $41.5 million in the quarter, up 12% YoY, or 6% organically excluding acquisitions.

Revenue growth was propelled by a 6% YoY rise in music publishing revenue and a 35% increase in recorded music revenue.

Operating income was $5.4 million, down 1% YoY, while OIBDA (operating income before depreciation and amortization) rose 7% to $13.7 million.

Adjusted EBITDA grew 13% YoY to $15.7 million.

Music Publishing

Reservoir‘s music publishing segment generated $26.5 million in calendar Q2, up 6% YoY, with OIBDA rising 3% YoY to $7.8 million.

Digital revenue climbed 7% YoY to $15.4 million, while performance revenue rose 17% YoY to $5.6 million.

Synchronization revenue fell 3% YoY to $4.0 million, mechanical revenue declined 7% YoY to $0.6 million, and other revenue decreased 12% YoY to $0.9 million.

Recorded Music

Reservoir‘s recorded music division generated $14.1 million in revenue, up 35% YoY, with segment OIBDA increasing 26% YoY to $6.1 million.

Digital revenue in the segment increased 23% YoY to $9.9 million, driven by catalog acquisitions and streaming growth.

Physical revenue climbed 54% YoY to $1.7 million, while neighboring rights revenue grew 7% YoY to $1.1 million and synchronization revenue rose to $1.4 million from $0.3 million.

On the company’s earnings call, CFO Jim Heindlmeyer attributed the recorded music synchronization jump to “a couple of large syncs that we closed during the quarter,” and described sync income as uneven from quarter to quarter.

The results accompanied a run of new deals for Reservoir, headlined by a publishing agreement with hip-hop star T.I. that spans his entire publishing catalog and future works.

Reservoir also deepened its position in Latin music, acquiring the catalogs of Nacional Records and its publishing arm Canciones Nacionales and forming a joint venture to sign and develop artists and songwriters.

The company additionally entered a joint venture with Latin music company TU Publishing and partnered with U.K. A&R executive Ollie Hodge to bring his label Some Action under its recorded music operations.

On the earnings call, CEO Golnar Khosrowshahi tied the Latin push to the region’s growth, citing IFPI data showing Latin America revenues grew 17.1% in 2025, its 16th consecutive year of growth.

Reservoir also added songwriter-producer Adam Kapit to its publishing roster, and signed alt-pop/rock artist Jarrett Doherty as the first signing via a new JV with Tinman, the publishing company founded by Reservoir writer Sam Tinnesz.

“We delivered a strong first quarter of fiscal 2027, with robust performance across both our Publishing and Recorded Music segments, underscoring the strength of our portfolio and the continued success of our strategy,” said Golnar Khosrowshahi, Founder and Chief Executive Officer of Reservoir.

“Whether signing marquee talent such as T.I., expanding our recorded music business with key frontline partners like Some Action, or establishing a stronger foothold in high-growth markets like Latin music, we have demonstrated a commitment to diversifying our business while ensuring we identify partners that share our long-term vision and dedication to creative stewardship.”

“WE ARE ENCOURAGED BY OUR RECENT MOMENTUM AND REMAIN CONFIDENT IN OUR ABILITY TO EXECUTE ON ATTRACTIVE OPPORTUNITIES, DEEPEN OUR GLOBAL PLATFORM, AND UNLOCK NEW VALUE FOR THE REMAINDER OF FISCAL 2027.”

Golnar Khosrowshahi, Reservoir

Reservoir reiterated its full-year fiscal 2027 guidance.

The company expects revenue of $186 million to $191 million, implying 7% growth at the midpoint.

Adjusted EBITDA guidance stands at $75 million to $79 million, implying 5% growth at the midpoint.

“Our strong first quarter performance was in line with our expectations, driven by top-line growth and disciplined cost containment, and provides a solid foundation for the remainder of fiscal 2027,” said Jim Heindlmeyer, Chief Financial Officer of Reservoir.

“Our strong first quarter performance was in line with our expectations, driven by top-line growth and disciplined cost containment, and provides a solid foundation for the remainder of fiscal 2027.”

Jim Heindlmeyer, Reservoir

Heindlmeyer added that the company’s “healthy cash flow generation and balance sheet flexibility” continues to support “strategic investments in new creators, notably in high-growth emerging markets,” and that it remains “on track to achieve” its full-year guidance.

Reservoir‘s results arrive with a Special Committee of its board still evaluating two take-private proposals disclosed in March.

Activist investor Irenic Capital Management proposed $10.00 to $11.00 per share, while existing shareholders Wesbild and Richmond Hill Investments made a rival bid of $10.50 per share.

On the earnings call, Khosrowshahi confirmed that the Special Committee of independent and disinterested directors, formed in March, has engaged Morgan Stanley & Co. as its financial adviser and Wachtell, Lipton, Rosen & Katz as legal counsel, but said the company had “no additional updates to share today.”Music Business Worldwide