Warner Music Group Corp. (WMG) Q4 2025 Financial Results Summary
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Warner Music Group Corp. (WMG) Q4 2025 Financial Results Summary
On November 20, 2025, Warner Music Group Corp. announced its financial results for the fourth quarter and the full year ended September 30, 2025. Below is a summary of their performance highlights.
Financial Highlights
- Quarterly Revenue reached an all-time high:
- Increased 15% from $1,630 million in Q4 2024 to $1,868 million in Q4 2025.
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Digital revenue grew 8% to $951 million from $881 million last year.
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Net Income:
-
Increased to $109 million from $48 million, a growth of 126%.
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Adjusted OIBDA:
- Rose to $405 million, up 15% from $353 million in Q4 2024.
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Margin stayed constant at 21.7%.
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Cash provided by operating activities decreased 24%, down to $231 million from $304 million.
Full-Year Highlights
- Total Revenue for the fiscal year ending September 30, 2025, increased 4% to $6,707 million, from $6,426 million in the previous year.
- Digital Revenue increased 3% to $3,594 million compared to $3,519 million in FY 2024.
- Net Income dropped 23% to $370 million from $478 million.
- Adjusted OIBDA increased 1% to $1,443 million from $1,432 million.
Segment Performance Highlights
Recorded Music Division
- Quarterly Revenue:
- Increased 15% to $1,534 million from $1,338 million in Q4 2024.
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Digital revenue climbed 8% to $951 million.
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Yearly Revenue:
- Increased 4% to $5,408 million from $5,223 million.
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Streaming revenue growth was reported at 1.8% for the fiscal year.
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Operating Income:
- Held steady at $208 million for Q4.
- Yearly operating income decreased 7% to $850 million.
Music Publishing Division
- Quarterly Revenue:
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Increased 14% to $337 million from $295 million in Q4 2024.
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Yearly Revenue:
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Increased 8% to $1,306 million from $1,210 million.
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Adjusted OIBDA:
- Rose 17% to $97 million from $83 million in Q4 2024.
Other Financial Highlights
- The Operating Income margin remained intact for the quarter at 7.7%, while the overall margin for the fiscal year decreased to 10.3%, down from 12.8%.
- Cash Balance: As of September 30, 2025, the company reported a cash balance of $532 million.
- Debt Levels: Total debt stood at $4.365 billion, up from last year’s $4.014 billion.
- Free Cash Flow decreased 25% to $203 million for Q4 and 16% to $539 million for the full year.
Shareholder Returns
- The company did not announce any share repurchase plans or declare a quarterly dividend in the report.
Outlook
The 2026 outlook remains optimistic, supported by healthy music industry trends and planned cost savings expected to contribute 150 to 200 basis points of margin improvement. The company aims to capitalize on increasing value in music along with investments in enhancing artist revenue opportunities amid robust digital trends.
Conclusion
Warner Music Group Corp. demonstrated impressive revenue growth in Q4 2025, particularly in digital and music publishing segments, despite facing challenges in net income and cash flow for the full year. The company appears poised for continued growth in the coming fiscal year, leveraging industry trends and strategic initiatives. For further details, refer to their official investor relations page.
| For the Three Months Ended September 30, 2025 | For the Three Months Ended September 30, 2024 | % Change | |
|---|---|---|---|
| -unaudited | -unaudited | ||
| Revenue | $1,868 | $1,630 | 15% |
| Costs and expenses: | |||
| Cost of revenue | -1,034 | -854 | 21% |
| Selling, general and | |||
| administrative expenses | -494 | -495 | —% |
| Restructuring and impairments | -125 | -81 | 54% |
| Amortization expense | -72 | -57 | 26% |
| Total costs and expenses | $-1,725 | $-1,487 | 16% |
| Operating income | $143 | $143 | —% |
| Interest expense, net | -43 | -40 | 8% |
| Other income (expense), net | 6 | -52 | —% |
| Income before income taxes | $106 | $51 | —% |
| Income tax benefit (expense) | 3 | -3 | —% |
| Net income | $109 | $48 | —% |
| Less: Income attributable to | |||
| noncontrolling interest | — | -7 | -100% |
| Net income attributable to Warner Music Group Corp. | $109 | $41 | —% |
| Net income per share attributable to | |||
| common stockholders: | |||
| Class A – Basic and Diluted | $0.21 | $0.08 | — |
| Class B – Basic and Diluted | $0.21 | $0.08 | — |
| For the Twelve Months Ended September 30, 2025 | $6,707 | $6,426 | 4% |
| -unaudited | -audited | ||
| Revenue | $6,707 | $6,426 | 4% |
| Costs and expenses: | |||
| Cost of revenue | -3,632 | -3,355 | 8% |
| Selling, general and | |||
| administrative expenses | -1,889 | -1,879 | 1% |
| Restructuring and impairments | -234 | -177 | 32% |
| Amortization expense | -258 | -224 | 15% |
| Total costs and expenses | $-6,013 | $-5,635 | 7% |
| Net gain on divestitures | — | 32 | -100% |
| Operating income | $694 | $823 | -16% |
| Loss on extinguishment of debt | — | — | — |
| Interest expense, net | -162 | -161 | 1% |
| Other expense, net | -42 | -61 | -31% |
| Income before income taxes | $490 | $601 | -18% |
| Income tax expense | -120 | -123 | -2% |
| Net income | $370 | $478 | -23% |
| Less: Income attributable to | -5 | -43 | -88% |
| noncontrolling interest | |||
| Net income attributable to Warner Music Group Corp. | $365 | $435 | -16% |
| Net income per share attributable to | |||
| common stockholders: | |||
| Class A – Basic and Diluted | $0.69 | $0.83 | — |
| Class B – Basic and Diluted | $0.69 | $0.83 | — |
—
| September 30, 2025 | September 30, 2024 | % Change | |
|---|---|---|---|
| -unaudited | |||
| Assets | |||
| Current assets: | |||
| Cash and equivalents | $532 | $694 | -23% |
| Accounts receivable, net | 1,340 | 1,255 | 7% |
| Inventories | 62 | 99 | -37% |
| Royalty advances expected to be recouped | 581 | 470 | 24% |
| within one year | |||
| Assets Held For Sale | 89 | — | — |
| Prepaid and other current assets | 166 | 125 | 33% |
| Total current assets | $2,770 | $2,643 | 5% |
| Royalty advances expected to be recouped after one year | 1,079 | 874 | 23% |
| Property, plant and equipment, net | 441 | 481 | -8% |
| Operating lease right-of-use assets, net | 189 | 225 | -16% |
| Goodwill | 2,061 | 2,021 | 2% |
| Intangible assets subject to amortization, net | 2,725 | 2,359 | 16% |
| Intangible assets not subject to amortization | 154 | 152 | 1% |
| Deferred tax assets, net | 111 | 52 | — |
| Other assets | 299 | 348 | -14% |
| Total assets | $9,829 | $9,155 | 7% |
| Liabilities and Equity | |||
| Current liabilities: | |||
| Accounts payable | $257 | $289 | -11% |
| Accrued royalties | 2,740 | 2,549 | 7% |
| Accrued liabilities | 666 | 641 | 4% |
| Accrued interest | 31 | 17 | 82% |
| Operating lease liabilities, current | 43 | 45 | -4% |
| Deferred revenue | 286 |