Warner Music Group . Stock Earnings Reports

Warner Music Group reported a third consecutive quarter of profitable growth with total revenue up 7% (constant currency) and adjusted OIBDA up 22%, driving a 310-basis-point margin expansion. Recorded-music subscription streaming showed strong growth (11% reported, 9% adjusted), and WMG reported roughly +1 percentage point U.S. streaming market-share gain year-over-year and Spotify Top 200 share up ~3 points YTD. Management highlighted continued success across releases (notably Bruno Mars and Zach Bryan) and catalog monetization driven by syncs (e.g., Stranger Things placements boosting streams and establishing higher baselines for legacy tracks). Publishing delivered double-digit growth when adjusted for a prior notable item, and Warner Chappell songwriters contributed to half of the top 10 most streamed U.S. songs in 2025.

Strategically, WMG emphasized three priorities: grow market share, grow the value of music, and drive efficiency. AI is positioned as a central accelerator across all three—used for discovery, scalable marketing, cost-efficient catalog asset creation (motion art, videos, remixes), artist tools, and internal productivity. Management reaffirmed non-negotiable AI principles: licensed models, economics that reflect music’s value, and artists/songwriters’ choice to opt into use of name/image/voice. WMG has signed deals with AI firms including Suno and expects AI partnerships to be material to growth (management expects a material contribution starting fiscal 2027).

On capital allocation and M&A, WMG increased the equity capacity of its Bain JV by $100M each (raising JV capacity from $1.2B to ~ $1.65–1.7B) to pursue high-quality catalog acquisitions, and said a significant portion of JV capacity will be deployed by the end of the fiscal year. Cash increased to $751M (up >$200M QoQ) and operating cash flow conversion was strong (nearly 100% of adjusted OIBDA in Q1). Management reiterated targets for the business model baseline: high single-digit total revenue growth, double-digit adjusted OIBDA growth, and operating cash-flow conversion of 50–60% (with a short-term margin target of mid-20s% and a longer-term goal in the high 20s%). Cost-savings actions and AI-driven efficiencies are expected to contribute further margin expansion.