Warner Music Group Corp
wmg.comWhat Do They Do?
Finds and develops recording artists, then markets, distributes and licenses their recordings to music services and retailers; also licenses songwriters’ compositions for use in media.
10-K for FY2025, filed Nov 20, 2025Our Recorded Music business primarily consists of the discovery and development of recording artists and the related marketing, promotion…View ↗
In connection with the digital distribution of our music, we currently partner with a broad range of digital music services, such as…View ↗
While Recorded Music is focused on marketing, promoting, distributing and licensing a particular recording of a musical composition, Music…View ↗
How Do They Make Money?
Digital services pay Recorded Music monthly royalties based on usage; distributors and retailers buy physical releases, with sales counted when shipped, and artist-services revenue is earned as work is provided. Music Publishing earns royalties as compositions are used and synchronization fees when licenses are granted.
10-K for FY2025, filed Nov 20, 2025Digital revenues are generated from the expanded universe of digital partners, including digital streaming services and download services.…View ↗
Physical revenues are generated from the sale of physical products such as vinyl, CDs and DVDs. Revenues from the sale of physical Recorded…View ↗
Artist services and expanded-rights revenues are generated from artist services businesses and participation in expanded-rights associated…View ↗
Music Publishing revenues are earned from the receipt of royalties relating to the licensing of rights in musical compositions and the sale…View ↗
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10-K for FY2025, filed Nov 20, 2025
FY2025 revenue by reportable segment ↗
$6.7B
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10-K for FY2025, filed Nov 20, 2025
$6.7B ↗
| Segment | Share | Revenue | How money arrives |
|---|---|---|---|
|
Recorded Music
Usage-based
10-K for FY2025, filed Nov 20, 2025 |
81%
FY2022: 84%
|
Recorded Music, FY2025
$5.4B Sources
|
Usage-based |
|
Music Publishing
Usage-based
10-K for FY2025, filed Nov 20, 2025 |
19%
FY2022: 16%
|
Music Publishing, FY2025
$1.3B Sources
|
Usage-based |
Who Are Their Customers?
Digital music services license recordings directly; physical releases are sold mainly through wholesale distributors and retailers, including stores and online sellers.
10-K for FY2025, filed Nov 20, 2025In connection with the digital distribution of our music, we currently partner with a broad range of digital music services, such as…View ↗
Most of our physical sales represent purchases by a wholesale distributor or retailer. Our sale and return policies are in accordance with…View ↗
We enter into agreements with digital music services to make our music available for access in digital formats (e.g., streaming and…View ↗
10-K for FY2025, filed Nov 20, 2025
In the fiscal year ended September 30, 2025, the Company had three customers, Spotify, YouTube and Apple, that individually represented 10%…View ↗
Do Revenues Turn Into Profits?
Yes. It kept 5 cents of every revenue dollar as net income in FY2025 and turned 8 cents into free cash flow.
10-K for FY2025, filed Nov 20, 2025
$694MView ↗
10-K for FY2025, filed Nov 20, 2025
$365MView ↗
10-K for FY2025, filed Nov 20, 2025
$539MView ↗
How Are They Changing?
- Net income
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Sources
10-Q for Q3 FY2026, filed Aug 5, 2026
$204MView ↗
- ▲ Now profitable
- vs −$16M in Q3 FY2025
10-Q for Q3 FY2026, filed Aug 5, 2026
Open tableView ↗
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Aug 5, 2026
Reports quarterly results and reiterates full-year margin guidance
Reiterated its target for margin expansion at the high end of 150-200 basis points.
Sources
8-K, filed Aug 5, 2026
Robust Revenue Growth Underpinned by Strong Operating Performance across Recorded Music and Music Publishing Double-Digit Recorded Music…View ↗
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Jul 31, 2026
CFO Armin Zerza steps down; Louis Dickler named acting CFO
The company began a search for a new CFO.
Sources
8-K, filed Jul 31, 2026
On July 31, 2026, Armin Zerza stepped down for personal reasons as Chief Financial Officer and Chief Operating Officer of Warner Music…View ↗
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