Cash generation is robust, as evidenced by a 2026Q4 OCF/NI ratio of 2.96, although free cash flow remains volatile due to the lumpy nature of capital deployment for catalog acquisitions.
| Cash from Operations | 50.14M | 45.28M | 36.19M | 31.2M | 12.48M | 14.71M | 11.88M | 2.55M | 2.55M |
| Operating CF Margin % | 28.54% | 28.53% | 24.99% | 25.52% | 11.57% | 18.34% | - | 5.18% | 5.18% |
| Operating CF Growth % | 10.73% | 25.11% | 15.99% | 150.06% | -15.2% | 23.85% | 366.24% | - | - |
| Net Income | 8.3M | 7.73M | 837.26K | 2.78M | 13.13M | 9.3M | 10.06M | 3.86M | 3.86M |
| Depreciation & Amortization | 30.78M | 26.3M | 24.99M | 22.07M | 19.02M | 14.08M | 8.42M | 6.4M | 6.4M |
| Stock-Based Compensation | 4.27M | 4.39M | 3.39M | 3.2M | 2.89M | 102.7K | 90.94K | 0 | 0 |
| Deferred Taxes | 2.33M | 467.2K | -220.94K | 5.25M | 4.04M | 1.62M | 9.97M | 0 | 0 |
| Other Non-Cash Items | 2.09M | 6.05M | 3.56M | 249.06K | -6.89M | -2.2M | 1.06M | 2.13M | 2.13M |
| Working Capital Changes | 2.36M | 343.16K | 3.65M | -2.35M | -19.71M | -8.18M | -7.75M | -9.83M | -9.83M |
| Change in Receivables | -2.98M | -4.62M | -1.97M | -6.04M | -9.4M | -6.07M | -532.8K | -1.54M | -1.54M |
| Change in Inventory | 0 | 0 | -842.39K | -1.42M | -2.64M | -975.35K | -203.93K | -66.54K | -66.54K |
| Change in Payables | -1.38M | -3.58M | 1.08M | 15.26M | 8.05M | -350.86K | 736.73K | 0 | 0 |
| Cash from Investing | -104.61M | -96.72M | -50.55M | -72.23M | -196.82M | -118.61M | -107.81M | -32.41M | -32.41M |
| Capital Expenditures | -102.08M | -81.54K | -225.68K | -406.4K | -194.36M | -79.9K | -529.95K | -115.18K | -115.18K |
| CapEx % of Revenue | 58.11% | 0.05% | 0.16% | 0.33% | 180.23% | 0.1% | - | 0.23% | 0.23% |
| Acquisitions | -287.65K | -1.1M | -200K | 0 | -2.46M | -13.37K | -380.42K | -53.56K | -53.56K |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | -96.48M | -50.13M | -71.82M | -196.62M | -118.52M | -106.9M | -32.25M | -32.25M |
| Cash from Financing | 64.49M | 54.52M | 17.56M | 38.46M | 196.53M | 47.22M | 147.03M | 33.16M | 33.16M |
| Debt Issued (Net) | 65.86M | 56M | 18M | 42.18M | 59.76M | 39.9M | 69.54M | 0 | 0 |
| Equity Issued (Net) | 13.68K | 100.92K | 0 | 0 | 0 | 7.97M | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | -16.88M | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 39.92M | 0 | 0 |
| Other Financing | -1.38M | -1.58M | -440K | -3.72M | 136.77M | -648.77K | 94.36M | 33.16M | 33.16M |
| Net Change in Cash | 9.92M | 3.25M | 3.23M | -2.91M | 8.6M | -49.03M | -39.67M | 3.15M | 3.15M |
| Free Cash Flow | 49.66M | -51.28M | -14.16M | -41.03M | -181.88M | -103.89M | 11.35M | 2.43M | 2.43M |
| FCF Margin % | 28.27% | -32.31% | -9.78% | -33.55% | -168.66% | -129.46% | - | 4.94% | 4.94% |
| FCF Growth % | 196.83% | -262.16% | 65.48% | 77.44% | -75.08% | -1015.17% | 366.53% | - | - |
| FCF per Share | 0.75 | -0.78 | -0.22 | -0.63 | -3.11 | -3.64 | 57.99 | 19.43 | 19.43 |
| FCF Conversion (FCF/Net Income) | 6.04x | 5.84x | 56.12x | 12.29x | 0.95x | 1.59x | -9699.22x | 0.66x | 0.66x |
| Interest Paid | 0 | 22.75M | 17.47M | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 1.4M | 357.95K | 0 | 0 | 0 | 0 | 0 | 0 |
Catalog acquisition cost inflation
As reported in recent financial statements, Reservoir Media consistently generates operating cash flow significantly higher than net income, with the 2026Q4 OCF/NI ratio reaching 2.96, illustrating that non-cash amortization charges are the primary driver of the wide divergence between accounting profit and actual cash generation.
The persistent gap between net income and operating cash flow suggests that the company's reported earnings are a poor proxy for its true economic performance. Investors should focus on the cash-generative capacity of the underlying music catalogs, which appears far more robust than the thin net margins imply.
Based on the provided quarterly data, Reservoir Media's free cash flow trajectory remains highly inconsistent, swinging from a positive $12.9 million in 2026Q4 to a negative $48.4 million in 2025Q3, reflecting the lumpy nature of capital deployment and the impact of periodic large-scale catalog acquisitions.
The erratic FCF margins suggest that the company's cash flow is heavily influenced by the timing of investment activities rather than purely operational performance. This volatility warrants caution, as it complicates the predictability of cash available for debt service or shareholder returns.
According to recent SEC filings, Reservoir Media maintains a remarkably low capital intensity, with CapEx/Revenue ratios frequently below 0.5%, confirming that the business model requires minimal physical infrastructure investment to maintain its existing portfolio of intellectual property assets and generate recurring royalty streams.
The minimal maintenance CapEx requirements highlight the scalability of the publishing model, as the company does not need to reinvest heavily in its existing assets to sustain revenue. This allows for a greater portion of operating cash flow to be directed toward new catalog acquisitions.
As evidenced by the quarterly cash flow data, Reservoir Media experiences meaningful swings in working capital, such as the $6.6 million inflow in 2026Q2 followed by a $1.1 million outflow in 2026Q4, which suggests that timing differences in royalty collections and payments create temporary liquidity variance.
These fluctuations appear to be a function of the complex, multi-party nature of music royalty distribution rather than operational inefficiency. Analysts should monitor whether these working capital swings become more pronounced as the company expands its footprint in emerging markets.
Quick answers to the most common questions about buying RSVR stock.
Reservoir Media, Inc. (RSVR) generated $50.1M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
Reservoir Media, Inc. (RSVR) generated $49.7M in free cash flow in 2026. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Reservoir Media, Inc. (RSVR) spent $102.1M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.