Reservoir Media Inc (RSVR) AI Stock Analysis

Reservoir Media, Inc. operates within the music industry through two core segments: Music Publishing and Recorded Music. In Music Publishing, the company acquires rights to music catalogs and partners with songwriters to expand its musical composition assets. In Recorded Music, it acquires sound recording catalogs, develops emerging artists, and executes distribution, marketing, licensing, and sales strategies across its library. Founded in 2007 and headquartered in New York, the company is a subsidiary of Reservoir Holdings, Inc. and focuses on strategic acquisitions and partnerships to grow its music catalog.

Reservoir Media expanded annual revenue from $107.8M in FY2022 to $175.7M in FY2026, achieving a 5-year revenue CAGR of 17.0%. Gross margin widened from 60.8% in FY2023 to 64.7% in FY2026, while operating margin expanded to 21.8% in FY2026 compared to 17.9% in FY2022. Net income rose to $8.3M in FY2026, up from $644,937 in FY2024 and $7.7M in FY2025. Over the trailing twelve months, revenue totaled $180.0M with a profit margin of 4.9% and operating margin of 13.0%. In the latest quarter ended June 30, 2026, quarterly revenue grew 11.6% year-over-year, while quarterly earnings expanded 67.9%.

As of June 30, 2026, Reservoir Media held $13.7M in cash and short-term investments against $469.3M in total debt, resulting in net debt of $455.6M. Shareholders' equity stood at $377.8M, representing a debt-to-equity ratio of 1.24 and a current ratio of 1.31. Operating cash flow improved from $12.5M in FY2022 to $50.1M in FY2026. Free cash flow swung from -$51.3M in FY2025 to $49.7M in FY2026, while FY2026 capital expenditures remained modest at $482,000. Over five years, the company's share count increased 1.6%.

At a share price of $9.44, Reservoir Media has a market capitalization of $622.4M and an enterprise value of $1.09B. The stock trades at a trailing P/E of 72.6x and a forward P/E of 13.3x, compared to medians of 16.2x and 14.1x for its US-listed Communication Services peers. Its price-to-sales multiple is 3.5x, above the peer median of 0.8x, and its EV/EBITDA is 15.5x versus 10.0x for peers. Over the past year, the stock returned 23.1%, beating the S&P 500 return of 16.8%, but its 5-year gain of 5.0% trails the index return of 83.0%.

Wall Street coverage includes 1 Strong Buy and 1 Hold rating. The mean price target is $13.00, representing 37.7% upside relative to the last close of $9.44. For the fiscal year ending March 31, 2027, consensus estimates project EPS of $0.72, indicating 105.5% annual growth, and revenue of $188.0M. For the following fiscal year, 1 analyst models EPS of $0.76 and revenue of $198.5M, reflecting 5.6% revenue growth. Over the last 4 quarters, the company beat earnings estimates 2 times. The next earnings date is November 3, 2026.

This page is an AI-written research summary of Reservoir Media Inc (RSVR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: RSVR income statement, RSVR balance sheet, RSVR key metrics, RSVR analyst forecast, RSVR chart. See the RSVR stock overview for the latest quote and news.