Reservoir Media, Inc. Q1 FY2026 earnings call

• Invested in London-based entertainment company Lightroom, a single-digit equity stake, with potential for content development based on future M&A. • Acquired Fool's Gold Records, adding master rights and marketing/distribution, following additions of New State and partnership with Off Road Records to strengthen Recorded Music platform. • Extended publishing deals with Khris Riddick-Tynes (co-wrote SZA's 'Snooze' and Kehlani's 'Folded') and Joni Mitchell, supporting culturally impactful creators. • Q1 revenue was $37.2 million, 8% top line growth (5% organic); OIBDA $12.8 million, adjusted EBITDA $13.9 million.

Music Publishing had a 4% increase in revenue versus the prior year quarter at $24.9 million, contributing approximately 67% to the total revenue of $37.2 million. Recorded Music segment had an 8% increase to $10.4 million, contributing approximately 28% to the total revenue.

• Maintained full year revenue guidance: $164 million to $169 million (5% growth vs fiscal 2025). • Maintained adjusted EBITDA guidance: $68 million to $72 million (7% growth over prior year).

• Forward-looking statements involve risks and uncertainties; actual results may differ from expectations. • Refer to SEC filings for specific risks, uncertainties, and other factors that could cause actual results to differ materially.

Q: Could you provide more color on the size of the Lightroom investment and if there was certain IP in mind to monetize through immersive experiences?

A: Golnar said it's an opportunistic endeavor with potential future content development based on future M&A; Jim mentioned a single-digit equity stake in Lightroom.

Q: Was Digital revenue decline due to weakness at DSPs?

A: No, not indicative of a trend; result of timing of receipts from certain DSPs.

Q: Will administrative expenses be structurally higher due to inflationary pressures?

A: Majority of increase driven by higher management revenue; efforts to control costs.

Q: Talk about blended gross margins and sustainability?

A: Lower physical revenue on recorded side helps margin; improvement from mix of assets.

Q: M&A pipeline and focus between publishing and recording?

A: Pipeline is strong, even split; more substantial deals from off-market relationships.

Q: How much of deals are organically sourced vs open market?

A: Majority share of value is off-market; organic deals are higher in number but not dollar amount.