Warner Music Group reports record quarterly revenue in fiscal Q4 2025

The company said the performance marked an “all-time high” for quarterly revenues, driven by double-digit growth in both recorded music and music publishing. WMG noted that the termination of a distribution agreement with BMG reduced recorded music revenue by $17 million, comprising $10 million in streaming and $7 million in physical revenue. Excluding this impact, total revenue grew 13.8% year-on-year at constant currency.

“With our artists and songwriters hotter than ever, market share gains drove our quarterly revenues to an all-time high,” Warner Music Group CEO Robert Kyncl said. “Our powerful momentum is underpinned by increasing the value of music – through volume and rate increases – and now with incremental revenue opportunities in AI.”

The company announced the results a day after confirming three agreements with AI music platforms KLAY, Stability AI and Udio, the latter including a copyright lawsuit settlement. In a blog post, Kyncl said WMG’s approach to generative AI would prioritise licensed models, economic value for music, and artist control over the use of their name, image, likeness and voice.

Recorded music

Recorded music revenue grew 12.7% year-on-year at constant currency to $1.534 billion. WMG attributed the rise to higher digital, artist services and expanded-rights income, partially offset by declines in physical and licensing revenue. Adjusted for the BMG termination, recorded music revenue increased 14.1% year-on-year at constant currency.

Total recorded music streaming revenue increased 5.8% year-on-year at constant currency to USD 931 million. Subscription streaming revenue rose 7% to $700 million, while ad-supported streaming revenue increased 2.2% to $231 million. Adjusted for the BMG termination, subscription streaming revenue rose 8.4% and ad-supported streaming revenue grew 3.1%.

The company said subscription growth reflected improved market share and chart performance, while ad-supported revenue benefited from strong performance and the timing of certain payments.

Artist services and expanded-rights revenue grew 64.3% year-on-year at constant currency to $327 million, supported by increased merchandising revenue through WMG’s partnership with Oasis and higher concert promotion revenue.

Recorded music licensing revenue fell 3.1% year-on-year at constant currency to $126 million due to the timing of licensing deals. Physical revenue declined 5.1% year-on-year at constant currency to $130 million, reflecting the impact of the BMG termination. Excluding this, physical revenue remained stable, supported by strong releases in the United States. Notable sellers in the quarter included Alex Warren, Ed Sheeran, twenty one pilots, Teddy Swims and Sombr.

Music publishing

Warner Chappell Music recorded revenue of $337 million, up 12.7% year-on-year at constant currency. Growth was driven by higher performance, digital, mechanical and synchronisation income.

Music publishing streaming revenue rose 8.2% to $199 million. Performance revenue increased 35.6% to $61 million, which WMG attributed to more concerts, radio activity and live events, as well as payment timing from collection societies.

Synchronisation revenue grew 19.6% year-on-year to $55 million, driven by copyright infringement settlements in the United States and the impact of acquisitions, including USD 3 million from Tempo Music. Mechanical revenue rose 13.3% to USD 17 million.

Profitability

WMG’s net income for the quarter reached $109 million, compared with USD 48 million a year earlier. Operating income remained unchanged at $143 million. Adjusted OIBDA rose to $405 million from $353 million, an increase of 12.2% year-on-year at constant currency.

“We have made significant progress against our priorities to accelerate top and bottom-line growth and drive efficiency,” WMG CFO Armin Zerza said. “The double-digit revenue jump we delivered in 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.”