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Sep 30, 2025
WMG Q4 2025 Earnings Report
Warner Music Group reported strong Q4 results with record revenue growth led by streaming and artist services.
Key Takeaways
Warner Music Group posted record-high Q4 revenue of $1.868 billion, driven by strength in Recorded Music and Music Publishing, with net income more than doubling year-over-year.
Quarterly revenue reached an all-time high of $1.87B, driven by growth across all segments.
Net income more than doubled year-over-year to $109M.
Recorded Music adjusted OIBDA rose to $355M, fueled by artist services and streaming.
Music Publishing saw strong growth in performance and synchronization revenue.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
WMG expects continued profitable growth in FY26 supported by favorable music industry trends, strategic investments, and restructuring-related cost savings.
Positive Outlook
- Cost savings expected to contribute 150–200 bps of margin improvement.
- Strong momentum in Recorded Music and Publishing expected to continue.
- Streaming subscription growth remains a key revenue driver.
- Incremental revenue opportunities anticipated from AI-related initiatives.
- Strategy execution proving effective based on H2 results.
Challenges Ahead
- Cash flow declined due to timing of working capital and restructuring payments.
- Free cash flow fell 25% YoY to $203M.
- Physical and licensing revenues experienced slight declines.
- Operating income remained flat despite revenue growth due to restructuring charges.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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