Warner Music Group has announced its fourth-quarter and full-year financial results for the periods ended September 30, 2025.
"With our artists and songwriters hotter than ever, market share gains drove our quarterly revenues to an all-time high,” said Robert Kyncl, CEO, Warner Music Group. “Our powerful momentum is underpinned by increasing the value of music – through volume and rate increases – and now with incremental revenue opportunities in AI."
Alongside the financial results, Kyncl addressed the AI opportunities in a Warner Music blog post, which affirmed that Warner will only make agreements with partners who commit to licensed models.
“AI is still in its early days,” wrote Kyncl. “Investment is surging, talent is pouring in, and a crop of new, ambitious start-ups are working with music again for the first time in more than a decade. This is the moment to shape the business models, set the guardrails, and pioneer the future for the benefit of our artists and songwriters.
“We’re approaching this new era with one priority above all else: protecting and empowering the artists and songwriters who are our reason for being. Every decision we make, every partnership we forge, every principle we establish is designed to ensure that they benefit from AI’s possibilities.”
Warner has just confirmed a new deal with AI platform Udio.
“Our approach is clear: legislate, litigate, license,” he added. “We lobby for legislation that sets clear guidelines. We deploy litigation to halt bad actors. And we use licensing as the most powerful way to shape the future. Licensing is how we can safeguard our artists and songwriters, while collaborating with tech partners, to propel new fan experiences that drive additional revenue.
“The partnerships we forge will offer a variety of specific use cases. Each of them adheres to our principles, winning important protections for artists and songwriters, while ensuring that they share in every dollar that’s earned. And as the services grow their revenue, so will the pay-outs.”
WMG total full year revenue increased by 4.3% year-on-year in constant currency (all figures quoted will be in constant currency). Adjusted for one-off items, total revenue was up 7.7%.
Operating income decreased by $129 million to $694m. The decrease in operating income was primarily due to revenue mix, an increase in restructuring and impairment charges.
Our powerful momentum is underpinned by increasing the value of music – through volume and rate increases – and now with incremental revenue opportunities in AI
Robert Kyncl
Recorded Music revenue was up 3.4% year-on-year, largely driven by growth in artist services and expanded-rights revenue of 21.4%, reflecting higher merchandising revenue, which includes the favourable impact of the company’s partnership with Oasis.
Streaming revenue increased by 1.9% year-on-year, although Warner said that was 5% when adjusted for the impact of various factors in the past year. Streaming revenue reflects growth in subscription revenue of 3.6%, partially offset by a decline in ad-supported revenue of 2.6%.
Physical revenue increased by 0.6% year-on-year. Adjusted for the $47m impact of the BMG distribution termination, physical revenue increased 10.5%. These increases were partially offset by a decrease in licensing revenue of 10.3%.
Major sellers in the year included Rosé, Bruno Mars, Linkin Park, Teddy Swims, Benson Boone and Charli XCX.
In the US, Warner Music increased market share by 0.6 percentage points over the prior-year quarter, according to Luminate.
Globally, the major's share of the Spotify Top 200 has increased by around six percentage points compared to the fiscal 2024 result. For the fiscal fourth quarter, Warner was No.2 for market share on the Spotify Top 200.
Music publishing revenue increased 8.0% year-on-year, driven by growth in performance, digital, mechanical and synchronisation revenue. Music Publishing streaming growth reflected continued catalogue growth and the impact of digital deal renewals.
The strong fiscal Q4 performance included recorded music revenue up 12.7% year-on-year, driven by growth across digital and artist services and expanded-rights revenue. Streaming revenue was up 5.8% year-on-year in the quarter.
Physical revenue decreased by 5.1% year-on-year in the quarter – but growth was flat when excluding the impact of the BMG termination.
Major sellers in the quarter included Alex Warren, Ed Sheeran, Twenty One Pilots, Teddy Swims and Sombr.
Music Publishing revenue increased 12.7% year-on-year in the quarter, driven by higher performance, digital, mechanical and synchronisation revenue.
"We have made significant progress against our priorities to accelerate top and bottom-line growth and drive efficiency,” said Armin Zerza, CFO, Warner Music Group. “The double-digit revenue jump we delivered in [fiscal] Q4, and our stronger second half performance, demonstrates that our strategy is working. We look forward to sustained profitable growth in 2026, as we continue to invest to deliver bigger opportunities for artists and songwriters and greater shareholder value."
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