Warner Music Group has issued its financial results for the three months ended December 31, 2025 (calendar Q4 2025 – the company’s fiscal Q1 2026).
According to WMG’s fiscal Q1 (calendar Q4) results, Warner saw its quarterly global company-wide revenues reach USD $1.84 billion (across recorded music, music publishing, and other activities).
Total revenue was up 7.1% YoY at constant currency.
WARNER’S CALENDAR Q4 2025 IN SUMMARY (% IN CONSTANT CURRENCY):
- Warner Music Group’s overall revenues were up 7.1% YoY at constant currency to $1.84 billion in calendar Q4;
- Recorded music revenues were up 6.6% YoY at constant currency to $1.48 billion.
- Within that figure, recorded music streaming revenues were up 9.1% YoY at constant currency to $960 million.
- Recorded music subscription streaming revenues were up 10.9% YoY at constant currency.
- Music publishing revenues – at Warner Chappell Music – were up 9.4% YoY at constant currency to $362 million.
WMG said today (February 5) that its “high-single-digit revenue growth reflects broad-based strength across Recorded Music and Music Publishing”.
WMG noted that a digital revenue settlement of $12 million in the quarter, combined with the ongoing impact of the termination of a distribution agreement with BMG, affected its Recorded Music revenue.
The BMG Termination resulted in $6 million less Recorded Music digital revenue compared to the prior-year quarter.
Additionally, Music Publishing revenue in the prior-year quarter included $17 million of revenue recognized in connection with historical matched royalties processed by the Mechanical Licensing Collective (the “MLC Historical Matched Royalties”).
Excluding these items, WMG reported that its total revenue was up 7.4% YoY at constant currency.
Recorded Music revenue was also impacted by a digital revenue settlement of $12 million in the quarter and a $7 million downward revenue “true-up” in the prior-year quarter.
“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.”
Robert Kyncl, Warner Music Group
He added: “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.”
RECORDED MUSIC
Warner Music Group’s recorded music revenues were up 6.6% YoY at constant currency in calendar Q4 to $1.48 billion.
According to WMG, this performance was “driven by increases across digital, artist services and expanded-rights and licensing revenue, partially offset by a decrease in physical revenue”.
Excluding the impacts of the DSP True-Up and Settlement Payments and the BMG Termination, Recorded Music revenue increased 5.7% YoY at constant currency.
Warner’s recorded music streaming revenue (including ad-supported and subscription) was up 9.1% YoY (at constant currency) to $960 million (see below).
WMG also breaks that streaming figure down in its balance sheet to highlight the performance of its subscription streaming and ad-supported streaming revenues, respectively.
The company’s revenues from recorded music subscription streaming reached $721 million in calendar Q4, up 10.9% YoY at constant currency.
WMG generated $239 million in ad-supported recorded music streaming revenues in calendar Q4, which was up 3.9% YoY at constant currency.
(Subscription revenue, adjusted by $12 million for the DSP True-Up and Settlement Payments and $5 million for the BMG Termination, increased 8.7% YoY. Ad-supported revenue, adjusted by $1 million for the BMG Termination, increased 4.4% YoY.)
The company said in its filing on Thursday that 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”.
Elsewhere in Recorded Music, WMG’s Artist services and expanded-rights revenue increased 12.7% YoY at constant currency to $231 million, driven “primarily due to higher concert promotion revenue primarily in France, and the favorable impact of foreign currency exchange rates”.
Recorded Music licensing revenue increased 7.1% YoY at constant currency to $121 million, “driven by higher licensing activity and a $2 million increase in copyright infringement settlements in the quarter”.
Physical revenue decreased 11.1% YoY at constant currency to $152 million, “primarily driven by strong releases in Japan and Korea in the prior-year quarter”.
Major sellers in the quarter included Alex Warren, sombr, Cardi B, Ed Sheeran, and Teddy Swims.
Music Publishing
Warner’s global music publishing division – Warner Chappell Music – saw its quarterly revenues increase by 9.4% YoY at constant currency to $362 million.
WMG reported that the increase was “driven by growth across digital, synchronization, performance and mechanical revenue”. Excluding the impact of the MLC Historical Matched Royalties, Music Publishing revenue was up 15.3% YoY at constant currency.
Music publishing streaming revenue increased 1.4% YoY at constant currency to $212 million; however, adjusted for the impact of the MLC Historical Matched Royalties, streaming revenue increased 10.4% YoY at constant currency, “driven by the impact of new deals and renewals”.
Performance revenue increased 10.3% YoY at constant currency to $64 million, “attributable to growth from concerts, radio and live events”.
Synchronization revenue increased 53.8% YoY at constant currency to $60 million, “driven by higher television and commercial licensing activity, a $3 million increase in copyright infringement settlements, and the $3 million impact of the Company’s acquisition of Tempo Music”.
Mechanical revenue increased 20.0% YoY at constant currency to $18 million, “driven by the timing of distributions”.
WMG: PROFITABILITY IN CALENDAR Q4 2025
- WMG’s net income stood at $175 million versus $241 million in the prior-year quarter.
- Operating income stood at $288 million versus $214 million in the prior-year quarter, up 26.3% YoY at constant currency
- The firm’s quarterly Adjusted OIBDA was $463 million versus $363 million in the prior-year quarter, up 22.2% YoY at constant currency
- Adjusted OIBDA margin increased 3.1 percentage points to 25.2% from 22.1% in the prior-year quarter.
WMG noted that the decrease in net income was “due to the impact of exchange rates on the Company’s Euro-denominated debt resulting in a $1 million loss in the quarter compared to a $61 million gain in the prior-year quarter”, as well as currency exchange movements on intercompany loans and hedging activity.
“We are delivering on our promises by combining significant transformation with accelerated growth and profitability, marking our third consecutive quarter of broad-based success.”
Armin Zerza, Warner Music Group
“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.”
All percentage changes referenced in this article are at constant currency unless otherwise stated.Music Business Worldwide
