Reservoir Media, Inc. (NASDAQ: RSVR) has just released its financial results for the third quarter of fiscal 2026, ended December 31, 2025. The company reported a total revenue of $45.6 million, showing an 8% increase compared to the same period in the previous fiscal year. The increase was primarily driven by a 12% rise in music publishing revenue, reaching $30.1 million, and an 8% increase in recorded music revenue, which totaled $12.9 million.
Operating income for the third quarter of fiscal 2026 was reported at $10.3 million, up 8% year-over-year, while OIBDA (Operating Income Before Depreciation & Amortization) increased by 11% to $18.1 million. Adjusted EBITDA also saw an 11% increase, reaching $19.2 million.
Net income for the quarter was $2.2 million, or $0.03 per share, compared to $5.3 million, or $0.08 per share, in the same period the previous year. The decrease in net income was primarily due to a loss on fair value of swaps, increased interest expense, and changes in other income, partially offset by an increase in operating income and a decrease in income tax expense.
Looking at the segment review, music publishing revenue saw a 12% increase, driven by a 42% rise in performance revenue and a 5% increase in digital revenue. OIBDA for the music publishing segment rose by 21% to $11.0 million.
Recorded music revenue increased by 8%, mainly due to a 15% rise in digital revenue and a 29% increase in neighboring rights revenue. However, the recorded music OIBDA margin decreased to 52% from 53% in the prior-year quarter, primarily reflecting an increase in administration expenses as a percentage of revenues.
In terms of the fiscal year 2026 outlook, Reservoir increased its previously provided financial outlook ranges. The company now expects revenue for the year to be in the range of $170 million to $173 million, representing an 8% growth at the mid-point, and adjusted EBITDA in the range of $71.5 million to $73.5 million, reflecting a 10% growth at the mid-point.
Reservoir Media, Inc. continues to position itself as a trusted global partner in the music industry. The company's diversified pipeline and disciplined approach to transactions have contributed to its strong financial performance in the third quarter of fiscal 2026. The market has reacted to these announcements by moving the company's shares -0.93% to a price of $7.49. Check out the company's full 8-K submission here.
