The company achieved a 14.7% year-over-year revenue increase in 2026Q4 while maintaining structural gross margins in the 64% to 66% range, signaling resilient profitability.
| Sales/Revenue | 175.66M | 158.71M | 144.86M | 122.29M | 107.84M | 80.25M | 0 | 49.23M | 49.23M |
| Revenue Growth % | 10.69% | 9.56% | 18.46% | 13.4% | 34.39% | - | -100% | - | - |
| Cost of Goods Sold | 61.99M | 57.43M | 55.48M | 47.99M | 44.19M | 32.85M | 0 | 20.59M | 20.59M |
| COGS % of Revenue | 35.29% | 36.19% | 38.3% | 39.24% | 40.97% | 40.94% | - | 41.82% | 41.82% |
| Gross Profit | 113.67M | 101.28M | 89.38M | 74.3M | 63.65M | 47.39M | 0 | 28.64M | 28.64M |
| Gross Margin % | 64.71% | 63.81% | 61.7% | 60.76% | 59.03% | 59.06% | - | 58.18% | 58.18% |
| Gross Profit Growth % | 12.24% | 13.31% | 20.29% | 16.72% | 34.32% | - | -100% | - | - |
| Operating Expenses | 75.44M | 66.21M | 64.8M | 53.24M | 44.3M | 29.06M | 0 | 17.23M | 17.23M |
| OpEx % of Revenue | 42.95% | 41.72% | 44.74% | 43.54% | 41.08% | 36.22% | - | 35% | 35% |
| Selling, General & Admin | 44.66M | 39.92M | 39.82M | 31.17M | 25.28M | 14.99M | 0 | 8.67M | 8.67M |
| SG&A % of Revenue | 25.42% | 25.15% | 27.49% | 25.49% | 23.44% | 18.68% | - | 17.61% | 17.61% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 30.78M | 26.3M | 24.99M | 22.07M | 19.02M | 14.08M | 0 | 0 | 0 |
| Operating Income | 38.23M | 35.06M | 24.58M | 21.06M | 19.35M | 18.33M | 0 | 13.57M | 13.57M |
| Operating Margin % | 21.76% | 22.09% | 16.97% | 17.22% | 17.95% | 22.84% | - | 27.57% | 27.57% |
| Operating Income Growth % | 9.04% | 42.66% | 16.71% | 8.81% | 5.59% | - | -100% | - | - |
| EBITDA | 69.01M | 61.36M | 49.56M | 43.13M | 38.38M | 32.41M | -1.22K | 19.97M | 19.97M |
| EBITDA Margin % | 39.29% | 38.66% | 34.21% | 35.27% | 35.59% | 40.38% | - | 40.57% | 40.57% |
| EBITDA Growth % | 12.47% | 23.81% | 14.9% | 12.4% | 18.42% | 2656257.87% | -100.01% | - | - |
| D&A (Non-Cash Add-back) | 30.78M | 26.3M | 24.99M | 22.07M | 19.02M | 14.08M | 0 | 6.4M | 6.4M |
| EBIT | 37.61M | 31.76M | 22.26M | 23.16M | 28.25M | 20.42M | -1.22K | 13.57M | 13.57M |
| Net Interest Income | -26.45M | -21.88M | -21.09M | -14.76M | -10.86M | -8.96M | 11.94M | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 10.51K | 13.24K | 11.94M | 6.66M | 6.66M |
| Interest Expense | 26.45M | 21.88M | 21.09M | 14.76M | 10.87M | 8.97M | 0 | 0 | 0 |
| Other Income/Expense | -27.08M | -25.19M | -23.4M | -12.65M | -1.97M | -6.88M | -1.23K | -8.82M | -8.82M |
| Pretax Income | 11.15M | 9.87M | 1.17M | 8.4M | 17.38M | 11.45M | -1.23K | 4.75M | 4.75M |
| Pretax Margin % | 6.35% | 6.22% | 0.81% | 6.87% | 16.12% | 14.26% | - | 9.65% | 9.65% |
| Income Tax | 3.33M | 2.14M | 334.8K | 5.62M | 4.25M | 2.15M | 0 | 893.06K | 893.06K |
| Effective Tax Rate % | 29.84% | 21.68% | 28.57% | 66.93% | 24.47% | 18.75% | 0% | 18.79% | 18.79% |
| Net Income | 8.3M | 7.75M | 644.94K | 2.54M | 13.08M | 9.25M | -1.23K | 3.86M | 3.86M |
| Net Margin % | 4.73% | 4.88% | 0.45% | 2.08% | 12.13% | 11.53% | - | 7.84% | 7.84% |
| Net Income Growth % | 7.13% | 1101.65% | -74.6% | -80.58% | 41.32% | 755443.27% | -100.03% | - | - |
| Net Income (Continuing) | 7.83M | 7.73M | 837.26K | 2.78M | 13.13M | 9.3M | -1.23K | 3.86M | 3.86M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 845.04K | 1.32M | 1.49M | 1.3M | 1.06M | 1.01M | 959.02K | 0 | 0 |
| EPS (Diluted) | 0.13 | 0.12 | 0.01 | 0.04 | 0.22 | 0.21 | 33.83 | 30.82 | 30.82 |
| EPS Growth % | 8.33% | - | -74.74% | -82.18% | 4.76% | -99.38% | 9.77% | - | - |
| EPS (Basic) | 0.13 | 0.12 | 0.01 | 0.04 | 0.23 | 0.21 | 51.38 | 30.82 | 30.82 |
| Diluted Shares Outstanding | 66.31M | 65.95M | 65.26M | 64.83M | 58.45M | 28.54M | 195.74K | 125.23K | 125.23K |
| Basic Shares Outstanding | 65.54M | 65.16M | 64.76M | 64.34M | 52.61M | 28.54M | 128.88K | 125.23K | 125.23K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Catalog acquisition cost inflation
As reported in recent financial filings, Reservoir Media achieved a 14.7% year-over-year revenue increase in 2026Q4, signaling that the company's active management model continues to capture incremental value from its music catalog portfolio despite the inherent lumpiness of sync licensing and project-based media revenue streams.
The consistent top-line expansion suggests that the company is successfully navigating the transition from passive royalty collection to active synchronization and creative marketing. Investors should monitor whether this growth trajectory remains sustainable as the company faces increasing competition for high-quality music assets in a maturing streaming market.
Based on the provided income statement data, Reservoir Media maintains a robust gross margin profile, consistently hovering around the 64% to 66% range, which underscores the inherent profitability of its intellectual property assets compared to the lower-margin operations typically seen in broader media and entertainment industry peers.
This margin stability indicates strong pricing power and effective management of royalty obligations to songwriters and artists. The ability to sustain these levels suggests that the company's core publishing business remains insulated from the direct inflationary pressures that often impact manufacturing-heavy or service-intensive business models.
According to the latest quarterly figures, Reservoir Media has demonstrated improved operating leverage, with operating income reaching $11.8 million in 2026Q4, as the company successfully scales its revenue base without a commensurate, proportional increase in its core administrative and overhead expenses relative to gross profit.
The divergence between revenue growth and SG&A expansion suggests that the company is achieving economies of scale in its legal and administrative functions. This trend warrants further investigation to determine if the current operating margin of 24.8% represents a sustainable ceiling or a platform for further profitability expansion.
As evidenced by the discrepancy between net income and operating income, Reservoir Media's reported bottom-line results are frequently impacted by non-cash amortization charges, which mask the underlying cash-generative capacity of the business and complicate a direct assessment of its true economic earnings power on a quarterly basis.
Investors should focus on adjusted metrics that strip out these accounting-driven intangible asset write-downs to better understand the company's ability to fund future acquisitions. The volatility in net income, including the negative results seen in 2026Q1, appears more reflective of accounting timing than a fundamental deterioration in operational health.
While the company maintains a conservative debt-to-equity ratio of 1.22%, the primary analytical challenge remains the potential for margin compression if the cost of acquiring new music catalogs continues to rise, potentially forcing management to overpay for assets to maintain its current double-digit revenue growth rate.
Short-term observers might argue that the reliance on inorganic growth through acquisitions creates a hidden vulnerability to interest rate cycles and valuation multiple expansion. If the company fails to maintain its disciplined acquisition strategy, the resulting impact on free cash flow could quickly erode the current valuation premium.
Quick answers to the most common questions about buying RSVR stock.
For fiscal year 2026, Reservoir Media, Inc. (RSVR) reported total revenue of $175.7M. This represents a 256.8% increase compared to $49.2M in 2018.
Reservoir Media, Inc. (RSVR) is profitable, generating $8.3M in net income for the fiscal year ending 2026 with a net profit margin of 4.7%.
Reservoir Media, Inc. (RSVR) reported an operating income of $38.2M, resulting in an operating profit margin of 21.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Reservoir Media, Inc. (RSVR) generated $113.7M in gross profit for the year, representing a gross profit margin of 64.7%. This demonstrates the company's core pricing power and production efficiency.