Shares of Reservoir Media Inc. (NASDAQ: RSVR) plummeted 6.28% in early trading on Wednesday following the release of the company's fourth-quarter and full-year financial results for fiscal 2025. The significant drop came as the music rights and publishing company's earnings fell short of analyst expectations, overshadowing its revenue growth.

Reservoir Media reported quarterly earnings of $0.04 per share, which missed the analyst consensus estimate of $0.16 by 75%. This disappointing figure remained unchanged from the same period last year. However, the company's quarterly sales reached $41.42 million, beating the analyst consensus estimate of $40.94 million by 1.17% and representing a 5.80% increase from $39.15 million in the same quarter last year.

Despite the mixed quarterly results, Reservoir Media's full fiscal year 2025 showed overall growth. The company achieved total revenue of $158.7 million, marking a 10% increase including acquisitions. Music Publishing Revenue grew by 12% year-over-year, while Recorded Music Revenue saw a 4% increase. Adjusted EBITDA for the fiscal year rose by 18% to $65.7 million. However, investors seemed more focused on the quarterly earnings miss and the slight decline in Q4 net income, which dropped to $2.7 million from $2.9 million in the same quarter of the previous year. Looking ahead, Reservoir Media provided guidance for fiscal year 2026, expecting a 5% growth in Revenue and a 6% increase in Adjusted EBITDA at the midpoint of its guidance range, which may not have met market expectations, contributing to the stock's decline.