Why Reservoir Media May Be Significantly Undervalued – Irenic Capital’s Bold Take!

Reservoir Media, a company known for its engagement with talent and diverse music assets, delivered mixed results in its first quarter of fiscal year 2025. Like many companies in the music industry, it is navigating a complex landscape influenced by digital transformations and global market trends. On the positive side, Reservoir Media experienced notable growth in its Music Publishing segment, showing a 15% increase in revenue. The growth was largely driven by successful acquisitions of catalogues and revenue boosts from existing assets. Reservoir also benefited from price increases at major music streaming services. These developments contributed to a robust 25% jump in adjusted EBITDA, underscoring effective cost management and efficiency gains.