Reservoir Media, Inc.

Independent music-rights company with top-decile operating and cash-flow margins from a durable royalty catalog, with takeover interest in play.

Strengths

• Top-decile operating margin (22%, 96th pct) and FCF margin (28%, 94th pct); high gross margin (65%, 77th pct)
• Durable, recurring streaming/publishing royalties; net margin 81st pct and active buyout proposals at ~$10-11/share

Risks

• Low ROE (2.2%, 45th pct) and ROA depressed by heavy catalog amortization; leverage elevated (D/E 1.2)
• Modest scale (~$177M revenue) and copyright-recapture/termination risk

Notable findings

• Exec changeRecent 8-K item 5.02 8-K ↗
• Customer concentration~13% of revenue from one customer/distributor — For the year ended March 31, 2026, synchronization accounted for 13% of our total revenues
• Chronic dilutionShare count +10%/yr over 4y (dilution, book value/share -26%)