Warner Music Group Corp. announced its financial results for the third quarter ended June 30, 2025, on August 7, 2025. Total revenue increased 9% to $1,689 million, or 7.0% in constant currency, surpassing analyst estimates.
Despite the revenue growth, the company reported a net loss of $16 million, compared to a net income of $141 million in the prior-year quarter. This resulted in a GAAP EPS of $(0.03), significantly below analyst consensus estimates.
The net loss was primarily attributed to a $70 million loss from exchange rates on Euro-denominated debt and $8 million in realized and unrealized losses on hedging activity. Operating income decreased 18% to $169 million.
Adjusted OIBDA increased 18% to $373 million, or 15.8% in constant currency, with the Adjusted OIBDA margin improving by 1.8 percentage points to 22.1%. This was driven by revenue mix, acquisitions, and cost savings from the 2024 Strategic Restructuring Plan.
Recorded Music revenue increased 8% to $1,354 million, and Music Publishing revenue grew 10% to $336 million. Digital revenue was up 5.3% (4.1% in constant currency), and streaming revenue increased 4.0% (2.9% in constant currency).
Cash provided by operating activities decreased 76% to $46 million, and Free Cash Flow dropped 96% to $7 million, largely due to higher A&R spend and other working capital movements. The company's cash balance stood at $527 million, with net debt of $3.836 billion.
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