Warner Music Group has issued its financial results for the Q4 period of 2025 (the major’s fiscal Q1).
Total revenue increased by 7.1% year-on-year in constant currency (all figures will be stated in constant currency) to $1.84 billion. Net income was $175 million compared to $241m in the prior-year quarter
Operating income increased 26.3% year-on-year to $288m year-on-year, while adjusted OIBDA was up 22% to $463m.
“2026 is off to a strong start as our creative success continues to fuel consistent market share growth and financial performance,” said Robert Kyncl, CEO, Warner Music Group. “We have an exciting slate of new music ahead and are leading the charge with AI to drive a step change in value creation for artists, songwriters, and shareholders, ensuring that WMG is well-positioned for long-term success.”
“We are delivering on our promises by combining significant transformation with accelerated growth and profitability, marking our third consecutive quarter of broad-based success,” said Armin Zerza, CFO, Warner Music Group. “By fortifying our core through strategic investments and pioneering ethical AI partnerships, we have established a solid foundation to drive sustainable, long-term value for our artists and shareholders alike. This is just the beginning of our momentum, and we are well-positioned to accelerate our growth even further in 2026."
In addition to its financial results, Warner Music Group has announced a $200m increase in the equity commitment to its investment JV with Bain Capital ($100m each). The catalogue acquisition vehicle was launched last year with plans to deploy up to $1.2bn in funds. With the additional investment, there is now speculation about further catalogue deals.
2026 is off to a strong start as our creative success continues to fuel consistent market share growth and financial performance
Robert Kyncl
Speaking on the earnings call, Armin Zerza said: “As we have said in the past, we are using M&A as an accelerant with a focus on high-quality, accretive catalogue acquisitions. We have a robust and growing pipeline of opportunities, which has led us to increase the capacity of our joint venture with Bain, as detailed in the 8-K we filed earlier today.
“WMG and Bain have increased our equity commitments by $100 million each and expect to maintain the existing equity-to-debt ratio, which will increase the JV’s total capacity from $1.2 billion to approximately $1.65 billion [with additional debt alongside the equity capital]. You can expect some exciting announcements coming in the near future, as we plan to deploy a significant portion of the JV’s total capacity by the end of this fiscal year.”
During the major’s fiscal Q1, Recorded Music revenue was up 6.6%, driven by increases across digital, artist services and expanded-rights and licensing revenue (partially offset by a decrease in physical revenue of 11.1%).
Recorded Music digital revenue was 8.6% and streaming revenue was up 9.1%. Adjusted for the impacts of one-off factors, Recorded Music streaming revenue was up 7.6%.
WMG reported growth in subscription revenue of 10.9% and 3.9% in ad-supported revenue.
“The increase in subscription revenue reflects positive market share trends and chart performance, while the increase in ad-supported revenue reflects strong performance in the quarter,” said WMG’s statement.
Top sellers in the quarter included Alex Warren, Sombr (pictured), Cardi B, Ed Sheeran and Teddy Swims.
Music publishing revenue was up 9.4% driven by growth across digital, synchronisation, performance and mechanical revenue.
Sync revenue increased 53.8% due to higher television and commercial licensing activity, a $3m increase in copyright infringement settlements, and the $3m impact of the company’s acquisition of Tempo Music.
Performance revenue increased 10.3% – attributable to growth from concerts, radio and live events. Mechanical revenue increased 20.0% driven by the timing of distributions.
PHOTO: Sombr (Credit Bryce Glenn)
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