Reservoir Media Inc (RSVR) 2026 Q4 法說會逐字稿

Greetings, and welcome to Reservoir Media's fourth quarter and fiscal year 2026 earnings conference call. (Operator Instructions) As a reminder, this conference call is being recorded.

各位好，歡迎參加 Reservoir Media 2026 會計年度第四季暨全年財報電話會議。（接線員指示）提醒各位，本次電話會議將被錄音。

I would now like to turn the call over to your host, Jackie Marcus. Thank you. You may begin.

現在我想把電話交給本次會議主持人 Jackie Marcus。謝謝。您可以開始了。

Thank you, operator. Good morning, everyone, and thank you for participating in today's earnings conference call. Reservoir Media issued a press release with its results for its fourth quarter and fiscal year 2026 ended March 31, 2026, earlier this morning. If you did not receive a copy of our earnings press release, you may access it from the Investor Relations section of our website at investors.reservoir-media.com.

謝謝接線員。各位早安，感謝大家參與今天的財報電話會議。Reservoir Media 今早稍早已發布新聞稿，公布截至 2026 年 3 月 31 日止之 2026 會計年度第四季與全年業績。若您尚未收到我們的財報新聞稿，可至 investors.reservoir-media.com 我們網站的投資人關係（Investor Relations）專區取得。

With me on today's call are Golnar Khosrowshahi, Founder and Chief Executive Officer; and Jim Heindlmeyer, Chief Financial Officer. As a reminder, this call is being simultaneously webcast and will be recorded and archived on the Investor Relations section of our website.

今天與我一同出席電話會議的有：創辦人兼執行長 Golnar Khosrowshahi，以及財務長 Jim Heindlmeyer。提醒各位，本次電話會議亦同步網路直播，並將錄音並存檔於我們網站的投資人關係專區。

Before I turn the call over to Golnar and Jim, I'd like to note that today's discussion will contain forward-looking statements that reflect the current views of Reservoir Media about our business, financial performance, and future events, and as such, involve certain risks and uncertainties. Our expectations, beliefs, and projections are expressed in good faith, and we believe there is a reasonable basis for them. However, there can be no assurance that our expectations, beliefs, and projections will result or be achieved.

在我把電話交給 Golnar 與 Jim 之前，我想先說明，今天的討論將包含前瞻性陳述，反映 Reservoir Media 目前對我們業務、財務表現與未來事件的看法，因此涉及若干風險與不確定性。我們的預期、信念與推估係基於善意表達，且我們相信其具有合理依據。然而，無法保證我們的預期、信念與推估必然會實現或達成。

Please refer to our earnings press release and our filings with the Securities and Exchange Commission for more information on the specific risks, uncertainties, and other factors that could cause our actual results to differ materially from our expectations, beliefs, and projections described in today's discussion. Any forward-looking statements that we make on this call or in our earnings press release are as of today, and we undertake no obligation to update these statements as a result of new information or future events, except to the extent required by applicable law.

請參閱我們的財報新聞稿以及向美國證券交易委員會（SEC）提交的文件，以取得更多關於特定風險、不確定性及其他可能導致實際結果與我們在今日討論中所述之預期、信念與推估出現重大差異的因素之資訊。我們在本次電話會議或財報新聞稿中所作的任何前瞻性陳述均以今日為準；除非適用法律另有要求，否則我們不承擔因新資訊或未來事件而更新該等陳述之義務。

In addition to financial results presented in accordance with generally accepted accounting principles, we plan to present during this call certain financial measures that do not conform to US GAAP if we believe they are useful to investors or if we believe they will help investors to better understand our performance or business trends. Reconciliations of these non-GAAP financial measures to the nearest comparable GAAP measures are included in our earnings press release.

除依一般公認會計原則（GAAP）呈列的財務結果外，若我們認為對投資人有用，或認為可協助投資人更好理解我們的表現或業務趨勢，我們也計畫在本次電話會議中提供若干不符合美國 GAAP 的財務衡量指標。這些非 GAAP 財務衡量指標與最接近之可比 GAAP 指標的調節表已載於我們的財報新聞稿。

I would now like to turn the call over to Golnar.

現在我想把電話交給 Golnar。

Thank you, Jackie. Good morning, everyone, and thank you for joining us today. Reservoir delivered another strong year, generating 11% in revenue growth with 6% organic growth and 12% adjusted EBITDA growth in fiscal 2026. These results reflect the continued success of our disciplined acquisition strategy, the strength of our catalog and the performance of our growing team around the world.

謝謝你，Jackie。各位早安，感謝大家今天加入我們。Reservoir 在 2026 會計年度再度交出亮眼成績，營收成長 11%，其中有機成長 6%，調整後 EBITDA 成長 12%。這些成果反映了我們嚴謹的併購策略持續奏效、我們曲庫的實力，以及我們遍布全球、持續壯大的團隊表現。

Fiscal 2026 was a milestone year as we deployed approximately $120 million across acquisitions and advances for both publishing and recorded rights. This enabled us to retain exceptional creators, sign leading contemporary hitmakers, and further expand and diversify our catalog by genre, by era, and geographic representation.

2026 會計年度是重要的里程碑，我們在出版與錄音權利方面的併購與預付款合計投入約 1.2 億美元。這使我們得以留住傑出的創作者、簽下當代頂尖暢銷製作人，並進一步按曲風、年代與地理分布擴大並多元化我們的曲庫。

In September, we acquired the catalog of music and culture icon Miles Davis. As we officially marketed centennial this week, we have launched a global campaign with countless activations and press moments. Highlights from this week alone included the Voice of Miles: A Symphonic Celebration by Park Avenue Artist, a Billboard in Times Square on the Nasdaq Tower and an event with the New York public library for the Performing Arts, and Simon & Schuster for the centennial edition

9 月，我們收購了音樂與文化指標人物 Miles Davis 的曲庫。本週我們正式啟動其百年誕辰的市場推廣，並推出全球性活動，包含無數行銷啟動與媒體曝光時刻。僅就本週亮點而言，包括由 Park Avenue Artist 呈現的《The Voice of Miles: A Symphonic Celebration》、在時代廣場納斯達克大樓（Nasdaq Tower）上的 Billboard 看板，以及與紐約公共圖書館表演藝術館（New York Public Library for the Performing Arts）和 Simon & Schuster 合作推出百年紀念版

of Miles' autobiography. With more to come this year, we look forward to continuing to celebrate Miles' legacy, and it is an honor to steward his extraordinary body of work and bring it to new audiences.

Miles 自傳。隨著今年還有更多活動即將推出，我們期待持續致敬 Miles 的傳奇；能夠管理並守護他非凡的作品，並將其帶給新的受眾，對我們而言是一項榮幸。

We also continue to invest in today's hitmakers signing talent, including disco-soul band, Say She She; country pop songwriters, Allison Veltz Cruz and Sam Tanis; UK singer-songwriter, Benjamin Francis Leftwich; and multi-genre song writer, Britten Newbill, to name a few.

我們也持續投資於當今的暢銷創作者並簽約新秀，包括迪斯可靈魂樂團 Say She She；鄉村流行詞曲作者 Allison Veltz Cruz 與 Sam Tanis；英國創作歌手 Benjamin Francis Leftwich；以及跨曲風詞曲作者 Britten Newbill 等等。

At the same time, we reinforced our long-standing relationships extending deals with legendary singer-songwriter, Joni Mitchell; Grammy-winning writer-producer, Chrisette Payne; and the estate of seminal Artist Nick Drake, as well as entering into a new deal with long-term client Academy Award winning Composer, Hans Zimmer. Our relationship with Zimmer extends as investors in Payam Music, an innovative piano school with a novel methodology for teaching. This past Sunday, Payam Music and Zimmer were featured on CBS 60 minutes, highlighting the school's successful approach to piano education and Zimmer's involvement in advancing its mission.

同時，我們也鞏固長期合作關係，續約了傳奇創作歌手 Joni Mitchell、葛萊美獲獎詞曲作者兼製作人 Chrisette Payne，以及具開創性藝人 Nick Drake 的遺產管理方；並與長期客戶、奧斯卡獲獎作曲家 Hans Zimmer 達成新的合作協議。我們與 Zimmer 的關係也延伸至投資 Payam Music——一所採用創新教學法的鋼琴學校。本週日，Payam Music 與 Zimmer 登上 CBS《60 Minutes》專題報導，凸顯該校成功的鋼琴教育方法，以及 Zimmer 在推動其使命上的參與。

We are proud to support Payam Music to help nurture the next generation of pianists through technical training while fostering a lifelong love of music.

我們很榮幸能支持 Payam Music，透過技術訓練培育下一代鋼琴家，同時培養對音樂的終身熱愛。

During this fiscal year, we also continued to expand Reservoir's Recorded Music division, including a multifaceted deal with independent record label Fool's Gold Records. The transaction included the acquisition of catalog master rights of several of the labels artists and an exclusive partnership to market and distribute all their recordings on Fool's Gold via the Reservoir label platform.

在本會計年度期間，我們也持續擴展 Reservoir 的錄音音樂（Recorded Music）事業部，包括與獨立唱片廠牌 Fool's Gold Records 達成一項多面向交易。該交易包含收購該廠牌多位藝人的曲庫母帶權利，並建立獨家合作夥伴關係，透過 Reservoir 廠牌平台行銷與發行 Fool's Gold 旗下所有錄音作品。

Internationally, we expanded our presence in key growth markets. We launched our Mumbai-based subsidiary, PopIndia, and signed a publishing deal with Sri Lankan star Yohani, while also extending our publishing agreement with multi-platinum Indian hip-hop artists Divine. PopIndia also executed its first catalog deal, acquiring the publishing and master rights to the entire music craft entertainment catalog.

在國際市場方面，我們擴大在關鍵成長市場的布局。我們成立以孟買為基地的子公司 PopIndia，並與斯里蘭卡明星 Yohani 簽訂出版合約，同時延長與多白金印度嘻哈藝人 Divine 的出版協議。PopIndia 也完成其首筆曲庫交易，收購 Music Craft Entertainment 全部曲庫的出版與母帶權利。

The establishment of PopIndia marks an important step in building a meaningful on-the-ground presence in India, one of the fastest-growing music markets globally with the streaming market alone projected to reach over $4.8 billion by 2030 with a compound annual growth rate of over 17%.

PopIndia 的成立，標誌著我們在印度建立具實質意義的在地據點邁出重要一步。印度是全球成長最快的音樂市場之一，僅串流市場預計到 2030 年將超過 48 億美元，年複合成長率超過 17%。

This April, together with PopArabia, our partner in MENA region, we completed the acquisition of label and digital distribution company, Viral Wave. A transformational transaction that significantly expands both the scale and capabilities of the PopArabia platform.

今年 4 月，我們與在中東與北非（MENA）地區的合作夥伴 PopArabia 一同完成對唱片與數位發行公司 Viral Wave 的收購。這是一筆具轉型意義的交易，顯著擴大 PopArabia 平台的規模與能力。

Beyond increasing PopArabia's team to over 30 employees across Egypt, Morocco and the UAE, the acquisition establishes a fully integrated distribution infrastructure alongside the company's existing publishing and label services creating one of the region's most comprehensive independent music platforms. Importantly, this move deepens Reservoir's operational footprint and strategic positioning across MENA and creates additional opportunities for cross-border collaboration and global reach for regional artists.

除將 PopArabia 的團隊擴增至在埃及、摩洛哥與阿聯酋合計超過 30 名員工外，此次收購也在公司既有的出版與廠牌服務之外，建立一套完整整合的發行基礎設施，打造該地區最全面的獨立音樂平台之一。更重要的是，此舉深化 Reservoir 在 MENA 的營運足跡與策略定位，並為區域藝人創造更多跨境合作與全球觸達的機會。

In addition, in fiscal year 2026, we acquired the publishing and recorded music catalog of Iraqi production house HFM production and Kuwaiti singer-songwriter Essa Almarzoug and executed a publishing deal with Moroccan artists producer, 88 Young.

此外，在 2026 會計年度，我們收購了伊拉克製作公司 HFM Production 以及科威特創作歌手 Essa Almarzoug 的出版與錄音音樂曲庫，並與摩洛哥藝人製作人 88 Young 簽訂出版合約。

MENA continues to be one of the fastest-growing regions with recorded revenues increasing by 15.2% in 2025 and with growth projections reaching $8.5 billion by 2030, driven by streaming and digital adoption. We believe the proven success and expertise of our team and platform in MENA will continue to provide us a competitive advantage in securing top talent and capitalizing on the momentum across the region. Our ability to attract high-caliber talent globally is due in large part to the quality and performance of our existing portfolio, unlocking value for our assets and identifying opportunities to introduce our music to the next generation of fans are key factors of that growth.

MENA 仍是成長最快的地區之一，2025 年錄音音樂收入成長 15.2%，且在串流與數位採用推動下，預計到 2030 年成長規模將達 85 億美元。我們相信，我們團隊與平台在 MENA 已被驗證的成功與專業能力，將持續為我們在爭取頂尖人才並把握區域動能方面提供競爭優勢。我們在全球吸引高水準人才的能力，很大程度來自既有投資組合的品質與表現；為資產釋放價值並找出將我們的音樂介紹給下一代樂迷的機會，是推動該成長的關鍵因素。

In the last fiscal year, we partnered with leading global brands, including Anthoropic, Volkswagen, Netflix, Lexus and Amazon and had placements in major feature films and television shows such as Hoppers, Happy Gilmore 2, Marvel's Fantastic 4 and Stranger Things. This drove continued strength in our Sync business with growth of 5% in Music Publishing and 39% in recorded music year over year.

在上一個會計年度，我們與多個全球領先品牌合作，包括 Anthoropic、Volkswagen、Netflix、Lexus 與 Amazon，並在多部重要電影與電視節目中取得授權置入，例如《Hoppers》、《Happy Gilmore 2》、漫威《驚奇4超人》（Fantastic 4）以及《怪奇物語》（Stranger Things）。這帶動我們同步授權（Sync）業務持續強勁，其中音樂出版年增 5%，錄音音樂年增 39%。

As we have previously noted, the music industry continues to demonstrate resilience within overall market fluctuations. The recorded music industry grew 6% globally in 2025, according to the IFPI, while Music Publishing global revenues grew 9.5% globally, according to music and copyright 2026 report. Against this backdrop, Reservoir also continued our growth trajectory.

如我們先前所述，音樂產業在整體市場波動中仍展現韌性。根據 IFPI，全球錄音音樂產業於 2025 年成長 6%；而根據《Music and Copyright 2026》報告，全球音樂出版收入成長 9.5%。在此背景下，Reservoir 也持續維持成長軌跡。

Digital revenue increased 7% in Music Publishing and 18% in recorded music. We were also proud to be included in Billboard's full year top 10 market share ranking with Sabrina Carpenter's espresso co-written by Steph Jones contributing to the company's position.

數位營收在音樂出版業務成長 7%，在錄製音樂業務成長 18%。我們也很榮幸入選 Billboard 全年市場占有率前 10 名排行榜；Sabrina Carpenter 的〈espresso〉由 Steph Jones 共同創作，為公司在該排名中的表現作出貢獻。

In addition to market share, Reservoir's music boasted commercial and charting successes as well as countless awards throughout fiscal 2026, demonstrating the widely recognized value of the assets and the creators. We curate not only catalogs but also relationships with the creators behind them and are honored to be the partner of choice for so many talented songwriters.

除市場占有率外，Reservoir 的音樂在 2026 會計年度亦展現商業與榜單佳績，並獲得無數獎項，彰顯資產與創作者廣受認可的價值。我們不僅策展曲庫，也經營與其背後創作者的關係；能成為眾多才華洋溢詞曲作者的首選合作夥伴，我們深感榮幸。

Before turning to our financial performance, I would like to briefly address the previously disclosed nonbinding and unsolicited acquisition proposals received by the company. In March 2026, the Board formed a special committee of independent and disinterested directors to evaluate the proposals, and the special committee engaged Morgan Stanley & Company LLC as its financial adviser and Wachtell, Lipton, Rosen & Katz as its legal counsel. Beyond that, we have no additional updates to share today, and we'll provide further information as appropriate.

在談及我們的財務表現之前，我想先簡要說明公司先前已揭露所收到的、非具約束力且非邀約的收購提案。2026 年 3 月，董事會成立由獨立且無利害關係董事組成的特別委員會以評估該等提案；特別委員會聘請 Morgan Stanley & Company LLC 擔任財務顧問，並聘請 Wachtell, Lipton, Rosen & Katz 擔任法律顧問。除此之外，我們今天沒有更多更新可分享，並將在適當時機提供進一步資訊。

I will now turn the call over to Jim to discuss our fourth quarter and full fiscal year financial results as well as our fiscal 2027 guidance in greater detail. Jim?

接下來我將把電話會議交給 Jim，更詳細說明我們第四季與 2026 會計年度全年財務結果，以及 2027 會計年度的指引。Jim？

Thank you, Golnar, and good morning, everyone. As Golnar highlighted, we executed at a very high level in fiscal 2026, drove strong growth across all our key performance metrics and expect that to continue into fiscal 2027. These results affirm the effectiveness of our strategy, the quality of our portfolio of assets and our ability to acquire new assets for Reservoir's platform while unlocking the fullest potential of their value.

謝謝你，Golnar，各位早安。如 Golnar 所強調，我們在 2026 會計年度以非常高的水準執行，帶動所有關鍵績效指標的強勁成長，並預期這股動能將延續至 2027 會計年度。這些成果印證了我們策略的有效性、資產組合的品質，以及我們為 Reservoir 平台收購新資產並釋放其最大價值潛力的能力。

Let's start with a review of the fourth quarter. Revenue for the fourth fiscal quarter was $47.5 million, which was a 15% increase compared to the fourth quarter of fiscal 2025. Strong growth across both segments was led by 27% growth in recorded music and 11% growth in our Music Publishing segment, inclusive of the acquisition of various catalogs.

先從第四季回顧開始。第四會計季營收為 4,750 萬美元，較 2025 會計年度第四季成長 15%。兩大業務部門皆呈現強勁成長，其中以錄製音樂成長 27% 及音樂出版部門成長 11% 為主，並包含多項曲庫收購的貢獻。

With respect to our operating expenses for the quarter, our overall cost of revenue increased 13% versus the prior year quarter. Our depreciation and amortization costs increased 20% year over year due to our continued catalog acquisitions. Company administration expenses saw a 16% increase year over year, partially due to costs incurred with our acquisition of Viral Wave.

就本季營業費用而言，我們整體營收成本較去年同期增加 13%。由於持續進行曲庫收購，折舊與攤銷費用年增 20%。公司管理費用年增 16%，部分原因是與我們收購 Viral Wave 相關所產生的成本。

Turning to operating performance. Fourth quarter OIBDA increased 16% year-over-year to $19.9 million. Adjusted EBITDA increased 16% to $21.2 million, which was largely driven by strong top line growth particularly in our digital category across both segments, partially offset by higher administration expenses. Interest expense was $6.8 million for the quarter compared to $6.1 million in the same period last year.

接著看營運表現。第四季 OIBDA 年增 16% 至 1,990 萬美元。調整後 EBITDA 年增 16% 至 2,120 萬美元，主要受惠於營收端的強勁成長，尤其是兩大部門的數位類別表現突出；但部分被較高的管理費用所抵銷。本季利息費用為 680 萬美元，去年同期為 610 萬美元。

Net income for the fourth quarter of fiscal 2026 was $4.1 million versus $2.7 million in the fourth quarter of fiscal 2025. This resulted in diluted earnings per share for the quarter of $0.07 compared to $0.04 per share in the prior year period.

2026 會計年度第四季淨利為 410 萬美元，去年同期為 270 萬美元。因此，本季稀釋後每股盈餘為 0.07 美元，去年同期為每股 0.04 美元。

Moving to our full fiscal year 2026 results. Revenue was $175.7 million above the top end of our previously stated guidance range. This beat was the result of growth in both the Music Publishing and Recorded Music segments, which posted annual growth of 9% and 16%, respectively. Turning to our operating expenses for fiscal 2026.

接著看 2026 會計年度全年結果。營收為 1.757 億美元，高於我們先前所提供指引區間的上緣。此一超出預期主要來自音樂出版與錄製音樂兩大部門的成長，兩者全年分別成長 9% 與 16%。接著說明 2026 會計年度的營業費用。

Our overall cost of revenue saw an 8% increase from fiscal 2025. This increase was attributed to a higher revenue base resulting from acquisitions and value enhancement efforts. The lower increase in cost of revenue as compared to the increase in revenue resulted in a higher gross margin in fiscal year 2026. Administration expenses for fiscal 2026 rose 12% from the prior year to $44.7 million, primarily due to higher administrative expenses in both the Music Publishing and Recorded Music segments, and to a lesser extent, increase in other administrative expenses.

我們整體營收成本較 2025 會計年度增加 8%。此增幅主要歸因於收購與價值提升措施帶來較高的營收基礎。由於營收成本的增幅低於營收增幅，2026 會計年度的毛利率因此提高。2026 會計年度管理費用較前一年增加 12% 至 4,470 萬美元，主要因音樂出版與錄製音樂兩大部門的管理費用上升，此外其他管理費用亦有一定程度增加。

We also incurred costs in fiscal 2026 associated with our acquisition of Viral Wave. OIBDA in fiscal 2026 increased 12% year over year to $69 million, while adjusted EBITDA grew 12% to $73.6 million. These increases were mostly attributable to increased revenues and higher gross margin. As a reminder, we have reconciliations for these metrics in our earnings press release and 10-K filing. Our interest expense was $26.5 million for the full year compared to $21.9 million last year. The higher interest expense was due to an increase in debt resulting from acquisitions of music catalogs and rider signings.

我們在 2026 會計年度亦發生與收購 Viral Wave 相關的成本。2026 會計年度 OIBDA 年增 12% 至 6,900 萬美元，而調整後 EBITDA 年增 12% 至 7,360 萬美元。上述增幅主要歸因於營收增加與毛利率提升。提醒各位，我們在盈餘新聞稿與 10-K 申報文件中提供了這些指標的調節表。全年利息費用為 2,650 萬美元，去年為 2,190 萬美元。利息費用上升係因收購音樂曲庫與簽下藝人（rider signings）而使負債增加。

Net income for fiscal 2026 was $7.8 million versus $7.7 million last year. The increase in net income was primarily the result of increased operating income as well as a decrease in the loss on fair value of interest rate swaps, partially offset by higher interest expense and income tax expense. This resulted in diluted earnings per share for the year of $0.13 compared to $0.12 per share for fiscal 2025. Our weighted average diluted outstanding share count for the full year is 66 million.

2026 會計年度淨利為 780 萬美元，去年為 770 萬美元。淨利增加主要來自營業利益提升，以及利率交換合約公允價值損失減少；但部分被較高的利息費用與所得稅費用所抵銷。因此，全年稀釋後每股盈餘為 0.13 美元，2025 會計年度為每股 0.12 美元。全年加權平均稀釋流通股數為 6,600 萬股。

Turning to our segment breakdown for the fourth quarter. Music Publishing generated revenue of $30.9 million in the quarter, which represents an 11% increase when including acquisitions versus the same period last year. Our digital revenue increased $3.2 million or 24% to $16.9 million and performance revenue decreased by 16% to $5.5 million. Synchronization revenue in the Publishing segment totaled $5.8 million, a 6% increase from the fourth quarter of last year. This is primarily due to the timing of licenses.

接著看第四季的部門拆分。音樂出版部門本季營收為 3,090 萬美元，若包含收購因素，較去年同期增加 11%。我們的數位營收增加 320 萬美元（或 24%）至 1,690 萬美元，而表演權（performance）營收下降 16% 至 550 萬美元。出版部門的同步授權（synchronization）營收合計 580 萬美元，較去年第四季增加 6%，主要與授權時點有關。

Mechanical revenue within the Publishing segment posted a 16% increase year over year to $1.3 million. Other revenue within the Publishing segment was $1.4 million, an increase of 20% year over year. Our Recorded Music segment generated $15.2 million in revenue, representing an increase of 27% versus the prior year quarter.

出版部門的機械權（mechanical）營收年增 16% 至 130 萬美元。出版部門其他營收為 140 萬美元，年增 20%。錄製音樂部門營收為 1,520 萬美元，較去年同期增加 27%。

Digital revenue within the reported segment increased 17%, primarily due to subscriber growth and price increases at DSPs, while physical revenue increased 35%. Our synchronization revenue increased 161% as a result of the timing of licenses, while neighboring rights increased 18% to $1.4 million, in part due to additional direct affiliations with collection societies.

該報告部門內的數位營收增加 17%，主要受惠於 DSP 訂閱用戶成長與價格上調；實體營收則增加 35%。由於授權時點因素，我們的同步授權營收增加 161%；鄰接權（neighboring rights）營收增加 18% 至 140 萬美元，部分原因是與更多集體管理組織建立直接合作關係。

For the full year, our Music Publishing segment revenue rose 9% compared to the prior year. Our improvement is largely a result of price increases at multiple music streaming services as well as the expansion of our catalog through M&A. Additionally, synchronization revenue increased because of the timing of licenses and performance revenue grew 14% as a result of hit songs.

就全年而言，我們的音樂出版部門營收較前一年成長 9%。改善主要來自多家音樂串流服務的價格上調，以及透過併購（M&A）擴充曲庫。此外，由於授權時點因素，同步授權營收增加；而表演權營收則因熱門歌曲帶動而成長 14%。

Recorded music revenues increased 16% compared to fiscal 2025. The growth is attributable to the acquisition of additional music catalogs and continued user growth and price increases at multiple streaming services. This was partially offset by the non-recurrence of royalty recoveries in the prior year related to underreported usage for music catalogs. Additionally, the increase in revenue was aided by an increase in synchronization revenue driven by the timing of licenses.

錄製音樂營收較 2025 會計年度成長 16%。成長主要歸因於收購更多音樂曲庫，以及多家串流服務的持續用戶成長與價格上調；但部分被前一年因曲庫使用量低報而產生的權利金追溯回收（royalty recoveries）未再發生所抵銷。此外，營收增加亦受惠於同步授權營收因授權時點而上升。

Let's move on to our balance sheet. As of March 31, cash flows from operating activities increased by $4.9 million year over year to $50.1 million due to an increase in earnings as well as an increase in cash provided by working capital. We closed the year with total liquidity of $117.1 million comprised of $25.9 million of cash on hand and $91.2 million available under our revolver, which gives us the capital to fund our strategic objectives.

接著看資產負債表。截至 3 月 31 日，營業活動現金流量年增 490 萬美元至 5,010 萬美元，主要因獲利增加以及營運資金提供的現金增加。我們在年末的總流動性為 1.171 億美元，包括 2,590 萬美元的手頭現金與循環信貸（revolver）項下可用額度 9,120 萬美元，為我們提供資金以支持策略目標。

We ended the year with $455.7 million of total debt which was net of $3.1 million of deferred financing costs, and thus, we maintained $429.8 million of net debt, that compares to net debt of $366.7 million as of last fiscal year-end.

我們在年末的總負債為 4.557 億美元（已扣除 310 萬美元的遞延融資成本），因此淨負債為 4.298 億美元；相較之下，上個會計年度年末的淨負債為 3.667 億美元。

Turning to the 2027 fiscal year. We expect revenue to be in the range of $186 million to $191 million and adjusted EBITDA to be in the range of $75 million to $79 million. After our strong results in fiscal year 2026, we believe we are well positioned to continue our track record of growth. Remaining true to our proven capital deployment strategy and value enhancement efforts combined with disciplined cost management and consistent operating cash flows should enable us to deliver on our initiated fiscal year 2027 guidance ranges.

接著談到 2027 會計年度。我們預期營收將介於 1.86 億美元至 1.91 億美元之間，調整後 EBITDA 將介於 7,500 萬美元至 7,900 萬美元之間。在 2026 會計年度取得強勁成果之後，我們相信我們已做好充分準備，能夠延續一貫的成長紀錄。秉持我們經驗證的資本配置策略與價值提升作為，並結合嚴謹的成本管理與穩定的營運現金流，應可使我們達成已提出的 2027 會計年度財測區間。

With that, I'll now pass the call back to Golnar.

接下來，我把電話交回給 Golnar。

Thank you, Jim. At Reservoir, we take a long-term view, focused on protecting our creators, growing the value of their work and running the business with discipline. That approach has driven strong growth and consistent cash flow since our debut as a public company and positions us well for sustained long-term growth.

謝謝你，Jim。在 Reservoir，我們採取長期觀點，專注於保護我們的創作者、提升其作品價值，並以紀律經營公司。自我們成為上市公司以來，這樣的做法帶動了強勁成長與穩定現金流，也讓我們具備持續長期成長的良好基礎。

With that, we will now open the line for questions.

接下來，我們將開放提問。

(Operator Instructions) Griffin Boss, B. Riley Securities.

（接線員指示）Griffin Boss，B. Riley Securities。

Apologize for a background noise here. I just want to start off on Viral Wave. Golnar, you mentioned the over 30 employees that come with that acquisition, cross-border collaboration activities. But is there any more context you could give us as to the size or scale of the catalog that Viral Wave brings? Is that more early days and there's opportunity for expansion? Just curious if there's anything on the financial side there that you could elaborate on.

先為背景雜音致歉。我想先從 Viral Wave 談起。Golnar，你提到這項收購帶來超過 30 名員工，以及跨境協作活動。但你是否能再提供一些背景，說明 Viral Wave 帶來的曲庫規模或量體？這是否仍屬早期階段、未來有擴張機會？我也想了解是否有任何財務面資訊可以再多談一些。

Not specifically. I will say that it is a business that comes with a stable of existing clients and existing relationships and existing product, hence the headcount, and we plan on expanding on that, but it's an investment in an entity that is already an established business.

目前沒有特別可補充的。我可以說的是，這是一個擁有既有客戶、既有關係與既有產品的業務，因此才會有相應的人力編制；我們計畫在此基礎上擴張。這是一項對已具規模、已建立的企業所做的投資。

Yes. And I would just add to that Griffin that, as Golnar said, it's an established business. It's a distribution business. So a little different than some of the other businesses that we've been in, a little bit lower margin, but we are excited about the way it will expand our opportunities in the region.

是的。我也補充一下，Griffin，正如 Golnar 所說，這是一個已建立的業務。它是發行／分銷業務，因此與我們過去涉足的一些業務略有不同，毛利率也稍低一些，但我們對它能在該地區擴大我們的機會感到興奮。

Okay. I appreciate that color. And then -- so next for me on the guidance Jim, if you take the midpoint there, it looks like it's implying a slight step down in EBITDA margin for '27. Is the expectation there just higher administrative expenses going forward? Or is it something else?

好的，謝謝你的補充。接著談財測，Jim，如果看你給的區間中點，似乎暗示 2027 年 EBITDA 利潤率會小幅下滑。這是否主要是因為未來管理費用較高？還是有其他因素？

Yes. There's a couple of things there. I would say, one, not that Viral Wave is the most significant piece certainly of our consolidated financials, but it is a lower-margin business. So that slightly impacts that, and we are continuing to make some investments on the frontline side of the recorded business, and that is certainly an area where we are very cautious about the revenue and conservative with respect to the cost associated with it. So that's why you're seeing a little bit of that step down in guided EBITDA margin.

是的，這裡有幾個因素。我會說，第一，雖然 Viral Wave 當然不是我們合併財務中最重要的一塊，但它確實是較低毛利的業務，因此會帶來些微影響。第二，我們也持續在錄製音樂業務的前線端進行一些投資；在這一塊，我們對營收預估相當謹慎，對相關成本也採取保守態度。因此你會看到我們在指引中的 EBITDA 利潤率略有下滑。

And then just one more if I could squeeze it in. I'm just curious if I could get any insights from Golnar into the CRB 5 proceedings Obviously, we're relatively early days there, but I would love to hear kind of what your expectation is, generally speaking, if you have one in terms of what you're looking for to get negotiated there over the next couple of years?

如果可以我再追問一題。我想請 Golnar 分享一下對 CRB 5 程序的看法。顯然目前還在相對早期階段，但我很想聽聽你對未來幾年談判可能達成的結果，整體上有什麼期待或目標？

Yes. There isn't any material update at this point, still sort of in discussion phase. I think we remain optimistic, but that's not optimism that we bake into our own forecast. We do, however, remain optimistic, and so far as getting to an agreement and having a positive impact of the share of income for songwriters and publishers.

是的，目前沒有任何重大更新，仍大致處於討論階段。我想我們仍然保持樂觀，但這份樂觀並未納入我們自己的預測之中。不過，我們確實仍抱持樂觀，期待能達成協議，並對詞曲作者與出版商的收入分配比例帶來正面影響。

(Operator Instructions) Richard Baldry, Roth Capital.

（接線員指示）Richard Baldry，Roth Capital。

I want to see if you dig a little deeper into the gross margins. On a blended basis, they set a record high. So I'm sort of curious -- are they trending behind that sustainable? Or do you view it sort of as an outlier and understanding that there is some headwind from the Viral Wave acquisition. Just curious about the underlying trends to that.

我想更深入談談毛利率。在綜合口徑下，你們創下歷史新高。所以我想了解——這樣的趨勢是否可持續？還是你們認為這比較像是一次性的高點？也理解 Viral Wave 收購會帶來一些逆風。想請教背後的基本趨勢是什麼。

Yes. Certainly, I think the gross margin ticking up a little bit this year, it's a result of some of the acquisitions that we did to the extent that we are acquiring assets where we may retain 100% of the revenue. That's obviously going to have a positive impact on our overall gross margin. And I think you saw a couple of deals this past year that had that type of impact for us. So we don't expect that our gross margin is going to change significantly on a percentage basis, but we may have opportunities for that to tick up slightly, depending on the types of acquisitions that we do.

是的。毛利率今年小幅上升，主要是因為我們做的一些收購——在某些收購中，我們取得的資產使我們可能保留 100% 的收入。這顯然會對整體毛利率帶來正面影響。你也看到我們去年有幾筆交易對我們產生了這類影響。因此，我們不預期毛利率在百分比上會有顯著變動，但依收購類型不同，仍可能有小幅上升的機會。

But certainly, as you noted, with respect to the go the forward, forecast, we will have the impact of lower-margin deals such as Viral Wave impacting the gross margins as we move to fiscal '27.

但如你所指出的，就未來的預測而言，像 Viral Wave 這類較低毛利的交易，會在我們邁向 2027 會計年度時對毛利率造成影響。

And on an overall sort of adjusted EBITDA basis, is international a headwind at this point because it has yet to get sort of the scale of the rest of the business? Or is it sort of curious that impact and where that heads to?

那在整體調整後 EBITDA 的角度，國際業務目前是否因為尚未達到其他業務的規模而成為逆風？我想了解它的影響以及未來走向。

Yes. I think if you were to isolate just our kind of international operations, certainly, it would be a lower EBITDA margin than our core business. But again, even though we are excited about these regions, and we see a lot of growth opportunity there. It's a very small part of our overall business. So just keep that in mind as you think about it.

是的。我認為如果你單獨把我們的國際營運拆出來看，EBITDA 利潤率確實會低於核心業務。不過，雖然我們對這些地區感到興奮，也看到很多成長機會，但它在整體業務中仍占非常小的比重，所以在思考時請把這點納入考量。

Got it. And maybe last for me. You look at the revenue and earnings for fiscal '27. If you talk about seasonality, the business is sort of changing and evolving over time. So curious how seasonal you expect the top and the bottom lines to be next year?

了解。最後一題。你看 2027 會計年度的營收與獲利，若談到季節性，這個業務也在隨時間改變與演進。想請教你們預期明年營收端與獲利端的季節性會有多大？

And whether that's similar to prior years or is sort of changing?

以及這是否與過去幾年類似，或正在改變？

Well, I'd like to think that it's pretty flat quarter-to-quarter. We do sometimes have -- have things that impact and cost spikes in our revenue. It's less about seasonality, though, more about it could be -- in the prior year, we had the royalty recovery wasn't anything to do with seasonality. I just happened to be when we resolve that issue.

我希望它在各季之間相當平穩。我們有時確實會有——會有一些因素影響，讓營收出現跳升或成本出現尖峰。但那比較不是季節性，而是可能——例如前一年我們有權利金追溯回收，那與季節性無關，只是剛好在我們解決該問題時發生。

So we'll continue to have some things that cause our revenue to spike from time to time. But on a baseline view, I expect us to be pretty consistent quarter-to-quarter.

因此我們仍會不時出現一些讓營收短期跳升的因素。但以基礎情境來看，我預期我們各季表現會相當一致。

Maybe last for maybe when you look out to the fiscal '27 guide, how much of that do you think is sort of assuming a steady organic growth or any tailwinds from streaming pricing versus acquisitions you know or acquisitions you expect to do?

也許最後一題：當你們展望 2027 會計年度指引時，你認為其中有多少是假設穩定的有機成長，或來自串流定價的順風；相較之下，有多少是來自你們已完成的收購，或預期將進行的收購？

Yes. I think that from an organic growth standpoint, we expect things to be pretty steady, kind of mid-single digits. We are always though looking at our catalog at a pretty granular level. So to the extent that we have frontline successes in one year, we don't necessarily project those frontline successes going into the next year. We will project the decay that's expected on those new or young copyrights.

是的。就有機成長而言，我們預期會相當穩定，大約是中個位數成長。不過，我們一向以相當細緻的層級檢視曲庫。因此，若某一年我們在前線（frontline）業務有成功作品，我們不一定會把這些前線成功延伸假設到下一年；我們會把那些新的或較年輕的著作權預期的衰減納入預測。

So you have that impacting our overall view of revenue that's baked into our guidance. Having said that, we have a pretty good track record of having new frontline successes every year. So as we move through the year, we will continue to evaluate where we are.

因此這些因素會影響我們對營收的整體看法，並已反映在我們的指引中。話雖如此，我們在每一年都能有新的前線成功作品，過往紀錄相當不錯。所以在年度進行中，我們會持續評估目前的狀況。

We have reached the end of the question-and-answer session. I'd now like to turn the call back over to Golnar Khosrowshahi, for the closing comments.

問答環節到此結束。接下來我想把電話交回給 Golnar Khosrowshahi，請她做結語。

Thank you, operator. The strength of our portfolio and our proven ability to attract award-winning and legendary talent across genres and geographies continues to distinguish our business. We are excited about fiscal year 2027 and look forward to updating you on our progress in a few months. Thank you.

謝謝，接線員。我們投資組合的實力，以及我們經驗證、能夠在不同曲風與不同地理市場吸引得獎與傳奇人才的能力，持續讓我們的業務脫穎而出。我們對 2027 會計年度感到振奮，並期待在幾個月後向各位更新我們的進展。謝謝。

This concludes today's conference. You may disconnect your lines at this time. And we thank you for your participation.

今天的電話會議到此結束。您現在可以掛斷電話。感謝各位的參與。