Reservoir Media raised its fiscal 2027 outlook as recorded music revenue rose 18% in the September quarter

Reservoir Media said on November 4, 2026, that revenue rose 10% to $49.9 million in the three months to September 30, the second quarter of its fiscal year. Without acquisitions, the company puts growth at 4%. It also lifted and narrowed its outlook for the year ending March 31, 2027, to revenue of $188 million to $192 million, from $186 million to $191 million in August, and Adjusted EBITDA of $77 million to $80 million, from $75 million to $79 million.

The New York company owns and administers song and recording rights. Recorded music revenue rose 18% to $15.4 million, and music publishing revenue rose 8% to $33.2 million. Net income was $4.6 million, against $2.2 million a year earlier, and Adjusted EBITDA rose 14% to $22.1 million.

Digital did most of the work

The quarterly report puts total digital revenue up 18%, to 58% of all revenue from 55% a year earlier. Reservoir credits both newly bought catalogs and growth in streaming, without splitting the two. Its own 10% and 4% figures suggest that purchases supplied more than half of the quarter's growth (our inference).

Synchronization, the use of music alongside film, TV, ads and games, went in opposite directions: up 13% in publishing and down 54% in recorded music. Reservoir puts both moves down to the timing of licenses.

New catalogs, and what they cost

Among its recent deals, Reservoir lists the recorded music catalog of José Feliciano, the writer and singer of the 1970 holiday song “Feliz Navidad,” and the publishing catalog of the jazz figure Billy Strayhorn. The release gives no prices. The quarterly report shows catalog purchases of $23.9 million in the six months to September 30, including deferred payments, down from $43.5 million a year earlier. Reservoir also bought Viral Wave, a content distributor in the Middle East and North Africa, for $5.9 million, including $170,000 of contingent consideration, in a deal that closed on April 7.

Net debt was $433.8 million on September 30, up from $429.8 million on March 31. Interest expense rose 4% in the quarter, which the company ties to borrowing for catalogs and writer signings.

The buyout proposals

The results arrive with an open question about ownership. In March, the board set up a special committee to assess offers from shareholders, which the company describes as unsolicited and non-binding. According to the company's annual report, Irenic Capital Management indicated $10 to $11 a share in cash on February 12, and Richmond Hill Investment and Wesbild proposed $10.50 a share in cash on March 3 for the shares they do not already own. The committee hired Morgan Stanley and the law firm Wachtell, Lipton, Rosen & Katz, the company announced on May 1.

The November 4 filing reports no outcome. It says there is “no assurance that any definitive agreement will result,” and the earnings release mentions the evaluation only in its forward-looking statement and in a footnote on transaction costs. Founder and chief executive Golnar Khosrowshahi's comments do not address it. She said the company remains confident it can build on its momentum for the rest of the fiscal year.

The wider market

Sony's music arm gives a much larger comparison for the same three months. Sony reported Recorded Music - Streaming revenue of 242.2 billion yen, up from 208.6 billion yen, a rise of about 16% (our calculation). Exchange rates helped: they account for 34.3 billion yen of the Music segment's 56.0 billion yen increase in sales. For Universal Music's quarter, see our earlier report.

Streaming income is also the subject of a separate U.S. inquiry. In a notice published on November 5, the Copyright Office extended the comment periods in its music streaming fraud inquiry. Initial comments are now due by 5:00 p.m. Eastern Time on December 18, instead of November 23, and reply comments by 11:59 p.m. on January 29, 2027, instead of December 21. The Office gives two reasons: more time for the public to prepare, and a complete record for its inquiry.