Warner Music Group (WMG) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $1.48B, down 1% year-over-year (up 1% in constant currency), with net income of $36M, a 63% decrease, mainly due to lower revenues, higher expenses, and FX losses.

• Adjusted OIBDA for Q2 was $303M, down 3% year-over-year; margin declined to 20.4%.

• Operating income rose 41% to $168M, driven by lower restructuring and impairment charges.

• Leadership transition with Armin Zerza joining as CFO, and launch of WMG Pulse app for real-time artist and songwriter insights.

• Strategic focus on cost savings, reinvestment in music and technology, and growing market share through innovation and partnerships.

Financial highlights

• Total revenue: $1.48B (-1% year-over-year; +1% constant currency); net income: $36M (-63%); Adjusted OIBDA: $303M (-3%); margin: 20.4%.

• Recorded Music revenue: $1.18B (-1%); streaming revenue: $825M (flat); digital revenue: $841M (-1%).

• Music Publishing revenue: $310M (+1%); Adjusted OIBDA: $85M (+4%); margin: 27.4%.

• Cash from operations: $69M (vs. -$31M prior year); free cash flow: $33M (vs. -$57M prior year); cash balance: $637M; total debt: $4.29B.

• Operating income margin: 11.3% (up from 8.0% prior year); EPS: $0.07 (both Class A & B).

Outlook and guidance

• Management expects continued cost savings from restructuring, with most severance and termination costs paid by end of FY26.

• Revenue growth expected to be modest, with ongoing FX headwinds and BMG distribution roll-off by year-end.

• Strategic initiatives and reinvestment of cost savings to support long-term growth and value creation for artists and shareholders.