Warner Music Group (WMG) Company Report

Warner Music Group (WMG) has settled its copyright infringement lawsuit against AI music generator Suno, marking the first major record label to officially partner with an AI music platform.
The agreement allows Suno to use licensed portions of WMG's catalog to train AI models, which will replace current versions in 2026, and introduces paid user tiers with download limits.
This partnership includes an opt-in framework that gives artists control over the use of their name, likeness, voice, and compositions in AI-generated music, opening new revenue streams and fan engagement opportunities.
WMG transferred its concert-discovery platform Songkick to Suno, enhancing the integration between live music and AI-generated content.
This collaboration is viewed as a landmark shift from conflict to cooperation between traditional music rights holders and AI startups, aiming to balance AI innovation with artist rights and legitimize Suno's operations.

7 days ago

Bloomberg

Warner Music Group and Suno Announce AI Music Partnership

WMG

New Projects/Investments

Legal Proceedings

M&A

Warner Music Group (WMG) and Suno announced a partnership on November 25, 2025, to develop next-generation licensed AI music aimed at empowering the creative community and opening new revenue opportunities for artists and songwriters.
The agreement also settles previous litigation between the companies.
In 2026, Suno will launch new, more advanced and licensed models, requiring a paid account for audio downloads, with free tier songs becoming non-downloadable.
Suno acquired Songkick, a live music and concert-discovery platform, from WMG.
Artists and songwriters will maintain full control over whether and how their names, images, likenesses, voices, and compositions are used in new AI-generated music.

7 days ago

Press Release

Warner Music Group Reports Strong Q4 2025 Revenue Amid Profitability Concerns

WMG

Earnings

Revenue Acceleration/Inflection

Profit Warning

Warner Music Group reported Q4 2025 revenue of $1.87 billion, marking a 14.6% year-over-year increase driven by market share gains and its popular artist roster.
Despite strong revenue growth, earnings per share for Q4 2025 missed estimates at $0.21, resulting in a -40% earnings surprise.
The company faces profitability and leverage concerns, with its operating margin declining to 7.7% in Q4 2025 from 8.8% in the prior year, and a high debt-to-equity ratio of 7.84.
WMG's 2025 10-K report indicates that 81% of total revenues originated from Recorded Music and 19% from Music Publishing, with over half of recorded music revenues generated outside the United States.
Strategic initiatives include a restructuring plan aiming for $300 million in annualized pre-tax cost savings by the end of fiscal 2027 and exploring new revenue streams such as artificial intelligence.

Nov 20, 2025, 6:23 PM

Morningstar

Warner Music Group Reports Strong Q4 2025 Results and Outlines 2026 Growth Strategy

WMG

Earnings

Guidance Update

M&A

Warner Music Group reported record-high quarterly revenue in Q4 2025, achieving its highest year-over-year growth in nearly two years with total revenue increasing by 13% and adjusted OIBDA rising by 12%. For the full fiscal year 2025, the company delivered 8% growth in both total revenue and adjusted OIBDA.
The company has secured wholesale price increases with four of the largest Digital Service Providers (DSPs), which are set to begin impacting results in calendar year 2026.
WMG is implementing a reorganization and cost savings program projected to deliver $200 million in annualized savings in 2026, increasing to $300 million in 2027.
A robust M&A pipeline, particularly focused on the catalog business, is expected to materialize starting in calendar year 2026, supported by a joint venture with Bain Capital providing over $1 billion in funding.
For 2026, the company anticipates strong top-line growth and 150-200 basis points of adjusted OIBDA margin improvement, driven by cost savings and organic growth.

Nov 20, 2025, 1:30 PM

Transcript

Warner Music Group Reports Strong Q4 2025 Results and Outlines Future Growth Strategy

WMG

Earnings

Guidance Update

Revenue Acceleration/Inflection

Warner Music Group reported a 13% increase in total revenue and 8.4% growth in adjusted recorded music subscription streaming for Q4 2025, alongside a 12% rise in adjusted OIBDA. The company also achieved global market share gains, including a 0.6 percentage point increase in the U.S. and a 6 percentage point jump in its Spotify Top 200 share compared to fiscal 2024.
The company anticipates future growth from wholesale price increases from new DSP deals starting in calendar year 2026 , accelerated growth in its distribution business from 2026 , and accretive M&A, supported by a joint venture with Bain Capital providing over $1 billion in funding. WMG expects to achieve $200 million in annualized cost savings in 2026, increasing to $300 million in 2027, contributing to an expected 150-200 basis points of adjusted OIBDA margin improvement in 2026 and targeting mid to high 20s margins long-term.
WMG is actively engaging with AI platforms, having signed deals with partners like Udio, Stability AI, and Clay, based on principles of licensed models, fair economic terms, and artist/songwriter opt-in for use of their likeness. The company views AI as a significant incremental opportunity for revenue growth.

Nov 20, 2025, 1:30 PM

Transcript

Warner Music Group announces strong Q4 2025 financial results and AI partnerships

WMG

Earnings

Revenue Acceleration/Inflection

New Projects/Investments

Warner Music Group reported a 13% increase in total revenue to $931 million and a 12% increase in Adjusted OIBDA to $405 million for Q4 2025, marking an all-time high for quarterly revenue.
The company engaged in innovative deals and partnerships related to artificial intelligence, including collaborations with Udio and Stability AI for music creation services and an AI licensing deal with KLAY.
As of September 30, 2025, Warner Music Group's debt maturity schedule indicates a significant amount of $2,617 million due in 2030.
Organizational changes were implemented to strengthen transatlantic partnerships, evolve the structure in Italy, expand the Central Europe business, and unify Australasia and Southeast Asia businesses.

Nov 20, 2025, 1:30 PM

Presentation

WMG Reports Strong Q4 2025 Results and Outlines Strategic Growth Initiatives

WMG

Earnings

Guidance Update

M&A

Warner Music Group delivered strong financial performance in Q4 2025, with total revenue growing 13% and adjusted OIBDA rising 12%. For the full fiscal year 2025, total revenue and adjusted OIBDA both grew 8% on an adjusted basis.
The company achieved significant market share gains, including a 0.6 percentage point increase in the U.S. over the prior year quarter and a 6 percentage point jump in its Spotify top 200 share versus fiscal 2024.
WMG is implementing a reorganization and cost savings program, targeting $200 million in annualized savings in 2026, increasing to $300 million in 2027. This is expected to contribute to an adjusted OIBDA margin improvement of 150-200 basis points in 2026.
Strategic initiatives include new DSP agreements with wholesale price increases impacting 2026, a focus on accretive M&A supported by over $1 billion in funding from a joint venture with Bain Capital, and leveraging AI licensing deals as a new incremental growth area.

Nov 20, 2025, 1:30 PM

Transcript

Warner Music Group Corp. Reports Record Q4 2025 Results and Positive 2026 Outlook

WMG

Earnings

Guidance Update

Revenue Acceleration/Inflection

Warner Music Group Corp. achieved record quarterly revenue for the fiscal fourth quarter ended September 30, 2025, with total revenue increasing 15% to $1,868 million compared to the prior-year quarter. This growth was underpinned by double-digit increases across Recorded Music and Music Publishing.
For the fourth quarter, net income rose significantly to $109 million from $48 million in the prior-year quarter, and Adjusted OIBDA increased 15% to $405 million. Basic and Diluted earnings per share for Class A and Class B shareholders were $0.21.
For the full fiscal year ended September 30, 2025, total revenue increased 4% to $6,707 million, and Adjusted OIBDA grew 1% to $1,443 million.
The company anticipates sustained profitable growth in 2026, supported by healthy music industry trends and a strategy to accelerate growth, with cost savings expected to contribute 150 to 200 basis points of margin improvement.

Nov 20, 2025, 12:32 PM

8-K

Warner Music Group's Competitor, Universal Music Group, Settles AI Copyright Lawsuit

WMG

Legal Proceedings

New Projects/Investments

Product Launch

Warner Records, a part of Warner Music Group, was among the major labels that initiated a copyright infringement lawsuit in 2024 against AI music startups Udio and Suno.
Universal Music Group (UMG), a competitor, has since settled its lawsuit with Udio, forming a strategic partnership to launch a subscription-based AI music platform in 2026.
This UMG-Udio collaboration establishes a licensed framework for AI training and ensures artist compensation for both training use and subscriber-generated content, setting a precedent for new revenue models in the music industry.
Udio’s competitor, Suno, continues to face ongoing infringement lawsuits from major labels, which would include those initiated by Warner Records.

Oct 30, 2025, 7:51 AM

Bloomberg

Warner Music Group Reports Q3 Revenue Growth Amid Net Loss

WMG

Earnings

CFO Change

Profit Warning

Warner Music Group reported an 8.7% year-over-year revenue increase to approximately $1.69 billion in its third quarter of fiscal 2025, driven by growth in streaming revenues, music publishing, artist services, licensing, and expanded rights.
Despite the revenue growth, the company swung to a net loss of $16 million, compared to a net income of $141 million in the prior-year quarter.
The net loss was primarily due to factors including $68 million in restructuring and impairment charges, a $70 million loss from unfavorable foreign exchange impacts, $9 million in CFO departure expenses, and $8 million in unrealized hedging losses.
Operating income declined 18.4% year-over-year to $169 million, with both operating margin and free cash flow margin also decreasing.

Aug 7, 2025, 12:27 PM

Morningstar

Earnings Transcripts

Quarterly earnings call transcripts for Warner Music Group.