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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

Full-Year Highlights

Segment Performance Highlights

Recorded Music Division

Music Publishing Division

Other Financial Highlights

Shareholder Returns

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