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Warner Music Group (NASDAQ: WMG) lifts Q3 profit and cash flow

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Warner Music Group reported fiscal third-quarter 2026 results with revenue of $1,864 million, up 10% year-over-year, driven by both Recorded Music and Music Publishing. Net income was $200 million versus a $16 million loss, and operating income rose 80% to $305 million.

Adjusted OIBDA increased 16% to $433 million, with margin improving to 23.2%. Basic EPS was $0.39 and Adjusted EPS $0.51. Cash from operations climbed to $142 million and Free Cash Flow to $114 million. The company declared a $0.20 per-share quarterly cash dividend payable September 1, 2026 to holders of record on August 20, 2026.

Positive

  • Revenue and profitability improved meaningfully, with Q3 revenue up 10% to $1,864 million, net income at $200 million versus a prior-year loss, and Adjusted OIBDA up 16% to $433 million with margin expansion to 23.2%.
  • Cash generation and returns strengthened, as Q3 Free Cash Flow rose to $114 million from $7 million and year-to-date Free Cash Flow reached $633 million, alongside a $0.20 per-share quarterly dividend to Class A and Class B stockholders.

Negative

  • None.

Filing Explained

As of June 30, Warner Music reported $618 million cash, $4.710 billion total debt, and $4.092 billion net debt, with some subsidiary debt nonrecourse.

Form 8-K reports specified material events; this filing furnishes the earnings release and records the dividend announcement, while stating that the release is not treated as filed for Section 18 purposes.

As of June 30, 2026, the company reported $618 million of cash, $4.710 billion of total debt, and $4.092 billion of net debt. Those balances describe the company’s liquidity and debt position, not cash proceeds from this filing.

Total debt includes $303 million of subsidiary debt acquired with Tempo Music and $363 million of Beethoven JV loans; the company says both are secured only by specified music rights and are nonrecourse to the company and its subsidiaries outside those entities.

The release states that the detailed quarterly financial information will be filed in the Form 10-Q later on August 5, 2026; that filing is the identified next source for the quarter’s full interim disclosures.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 8.01 Other Events Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q3 2026 Revenue $1,864 million Total revenue for the three months ended June 30, 2026, up 10% year-over-year
Q3 2026 Net Income $200 million Net income for the three months ended June 30, 2026 versus a $16 million loss a year earlier
Q3 2026 Adjusted OIBDA $433 million Adjusted OIBDA for the three months ended June 30, 2026, up 16% from $373 million
Q3 2026 Diluted EPS Class A $0.38 Diluted earnings per share for Class A common stock in the quarter
Quarterly Dividend Per Share $0.20 Regular quarterly cash dividend on Class A and Class B common stock payable September 1, 2026
Cash and Equivalents $618 million Cash balance as of June 30, 2026
Total Debt $4.710 billion Total debt outstanding as of June 30, 2026, including subsidiary and JV borrowings
Q3 2026 Free Cash Flow $114 million Free Cash Flow for the three months ended June 30, 2026 versus $7 million in the prior-year quarter
Adjusted OIBDA financial
"Adjusted OIBDA increased 16.1% (or 14.6% in constant currency) to $433 million"
Adjusted OIBDA is a company’s core operating profit before subtracting depreciation and amortization, further cleaned up by removing one-time or unusual items so it shows recurring cash-earning power. Think of it like measuring a car’s steady fuel efficiency after ignoring a flat tire or a rare detour—investors use it to compare underlying operational performance across periods and companies without distortion from non-recurring events or accounting timing.
Free Cash Flow financial
"Free Cash Flow, as defined below, increased to $114 million from $7 million"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
constant currency financial
"Total revenue increased 10%, or 9% in constant currency"
Constant currency is a way of measuring financial results that removes the effects of changes in currency exchange rates. It allows for a clearer comparison of a company's performance over time by showing what the numbers would look like if exchange rates had stayed the same. This helps investors understand whether growth comes from actual business improvements or just currency fluctuations.
loss on extinguishment of debt financial
"Loss on extinguishment of debt | 7 | | | —"
Loss on extinguishment of debt is the accounting hit a company records when it retires or restructures a loan or bond for an amount that exceeds the debt’s recorded value—like paying more than the remaining balance to settle a loan early. It matters to investors because it reduces reported profit and can use cash, but may also cut future interest costs or signal financial stress; understanding it helps assess earnings quality and balance-sheet strength.
restructuring and impairments financial
"Restructuring and impairments | (7) | | | (69)"
Q3 2026 Revenue $1,864 million up 10% from $1,689 million in Q3 2025
Q3 2026 Net Income $200 million compared with a $16 million loss in Q3 2025
Q3 2026 Adjusted OIBDA $433 million up 16% from $373 million in Q3 2025
Q3 2026 Diluted EPS Class A $0.38 compared with $(0.03) in Q3 2025
Q3 2026 Net Cash from Operating Activities $142 million up from $46 million in Q3 2025
Guidance

Management continues to expect full-year margin expansion at the high end of its 150–200 basis point target range and reiterates a 50–60% operating cash flow conversion target for fiscal 2026.

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FAQ

What were Warner Music Group (WMG)'s Q3 2026 revenues and growth?
Warner Music Group generated Q3 2026 revenue of $1,864 million, an increase of 10% year-over-year, or 9% in constant currency. Recorded Music revenue rose 10% to $1,488 million and Music Publishing revenue grew 12% to $377 million, supported by digital and streaming strength.

How profitable was Warner Music Group (WMG) in Q3 2026?
The company reported net income of $200 million in Q3 2026, compared with a $16 million loss a year earlier. Operating income rose to $305 million, while basic EPS was $0.39 and Adjusted EPS improved to $0.51 from $0.42 in the prior-year quarter.

How did Warner Music Group (WMG)'s cash flow perform in Q3 2026?
Net cash provided by operating activities was $142 million in Q3 2026, up from $46 million a year earlier. Free Cash Flow increased to $114 million versus $7 million, helped by stronger operating performance and lower capital expenditures, which declined to $28 million from $39 million.

What were Warner Music Group (WMG)'s Recorded Music and Music Publishing results in Q3 2026?
Recorded Music revenue reached $1,488 million, up 9.9%, with digital, artist services and physical all growing. Music Publishing revenue was $377 million, up 12.2%, driven by digital, synchronization, mechanical and performance growth, including streaming revenue increases in both segments.

What dividend did Warner Music Group (WMG) declare with its Q3 2026 results?
The Board declared a regular quarterly cash dividend of $0.20 per share on Class A and Class B common stock. The dividend is payable on September 1, 2026 to stockholders of record at the close of business on August 20, 2026.

What is Warner Music Group (WMG)'s debt and cash position as of June 30, 2026?
As of June 30, 2026, Warner Music Group held $618 million in cash and equivalents and total debt of $4.710 billion. Net debt, defined as total debt minus cash and equivalents and certain adjustments, was $4.092 billion, including nonrecourse subsidiary and JV borrowings.
false000131916100013191612026-08-052026-08-05


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 5, 2026
 
Warner Music Group Corp.
(Exact name of Registrant as specified in its charter)
 
Delaware
(State or other jurisdiction
of incorporation)
001-32502
(Commission
File Number)
13-4271875
(I.R.S. Employer
Identification No.)
1633 Broadway,
New York, NY
(Address of principal executive offices)
10019
(Zip Code)
Registrant’s telephone number, including area code: (212) 275-2000
____________________________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A Common Stock, $0.001 par value per shareWMGThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On August 5, 2026, Warner Music Group Corp. (“the Company”) issued an earnings release announcing its results for the quarter ended June 30, 2026, which is furnished as Exhibit 99.1 hereto.
This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference to such filing.
ITEM 8.01. OTHER EVENTS.
On August 5, 2026, the Company also announced in the earnings release furnished as Exhibit 99.1 hereto that its Board of Directors declared a regular quarterly cash dividend of $0.20 per share on the Company’s Class A Common Stock and Class B Common Stock. The dividend is payable on September 1, 2026, to stockholders of record as of the close of business on August 20, 2026.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits.
Exhibit No.Description
99.1
Earnings release issued by Warner Music Group Corp. on August 5, 2026.
104Cover Page Interactive Data File (embedded within the Inline XBRL document)



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

WARNER MUSIC GROUP CORP.
Date: August 5, 2026By:  /s/ Louis Dickler
Louis Dickler
Acting Chief Financial Officer


wmg_logoxbluexrgb.jpg

WARNER MUSIC GROUP CORP. REPORTS RESULTS FOR FISCAL THIRD QUARTER ENDED JUNE 30, 2026
Financial Highlights
•Robust Revenue Growth Underpinned by Strong Operating Performance across Recorded Music and Music Publishing
•Double-Digit Recorded Music Subscription Streaming Growth Driven by Improved Terms with DSP Partners, Positive Industry Trends, and Resilient Global Market Share
•Margin Expansion Supported by Revenue Mix and Cost-Savings Delivery; Continue to Expect High End of 150-200 Basis Points Full-Year Margin Expansion Guidance
•$100 million Cash Balance Increase over Prior-Year Quarter Driven by Strong Operating Cash Flow Growth; Reiterate 50-60% Operating Cash Flow Conversion Target for FY2026
For the three months ended June 30, 2026
•Total revenue increased 10%, or 9% in constant currency
•Net income was $200 million compared to a loss of $16 million in the prior-year quarter
•Operating income increased 80% to $305 million versus $169 million in the prior-year quarter
•Adjusted OIBDA increased 16% to $433 million versus $373 million in the prior-year quarter, or 15% in constant currency
•Earnings per share was $0.39 compared to $(0.03) in the prior-year quarter
•Adjusted earnings per share was $0.51 compared to $0.42 in the prior-year quarter
•Cash provided by operating activities increased to $142 million versus $46 million in the prior-year quarter

NEW YORK, New York, August 5, 2026—Warner Music Group Corp. today announced its third-quarter financial results for the period ended June 30, 2026.

“For the fifth consecutive quarter, WMG has delivered or over-delivered on our targets, proving the strength of our strategy and the momentum of our business," said Robert Kyncl, CEO, Warner Music Group. "Our performance - driven by robust subscription streaming growth, market share gains, and disciplined operating leverage - highlights our ability to champion human creativity while deploying tech and AI to scale long-term profitability. We are closing the year with sharp operational focus and strong positioning to generate compounding value for our artists, songwriters, and shareholders for many years to come.”

“Our strong results were highlighted by double-digit subscription streaming growth bolstered by contractual per-subscriber minimum increases and sustained global share performance,” said Lou Dickler, Acting CFO, Warner Music Group. “We delivered healthy margin expansion and remain on track to meet the high end of our fiscal '26 margin expansion targets while remaining laser-focused on long-term value creation.”
1

Total WMG
Total WMG Summary Results
(dollars in millions)
For the Three Months Ended June 30, 2026For the Three Months Ended June 30, 2025% ChangeFor the Nine Months Ended June 30, 2026For the Nine Months Ended June 30, 2025% Change
(unaudited)(unaudited)(unaudited)(unaudited)
Revenue$1,864 $1,689 10 %$5,436 $4,839 12 %
Recorded Music revenue1,488 1,354 10 %4,348 3,874 12 %
Music Publishing revenue377 336 12 %1,092 969 13 %
Operating income305 169 80 %857 551 56 %
Adjusted OIBDA(1)
433 373 16 %1,293 1,039 24 %
Net income (loss)200 (16)— %556 261 — %
Net cash provided by operating activities142 46 — %708 447 58 %
Free Cash Flow114 7 — %633 336 88 %
(1) See "Supplemental Disclosures Regarding Non-GAAP Financial Measures" at the end of this release for details regarding this measure.

Revenue was up 10.4% (or 9.3% in constant currency). Recorded Music revenue comparisons were impacted by $16 million of digital revenue from the settlement of certain copyright infringement cases in the prior-year quarter (the “Copyright Settlement”). Consistent with prior quarters, Recorded Music revenue growth was also unfavorably impacted by the termination of the distribution agreement with BMG (the “BMG Termination”), which resulted in $10 million less Recorded Music digital revenue compared to the prior-year quarter. Excluding these items, total revenue increased 12.1% (or 11.0% in constant currency).

Digital revenue was up 10.5% (or 9.1% in constant currency) and streaming revenue was up 12.3% (or 10.8% in constant currency). Adjusted for the $16 million impact of the Copyright Settlement and the $10 million impact of the BMG Termination compared to the prior-year quarter, digital revenue increased 13.1% (or 11.6% in constant currency), and adjusted for the $10 million impact of the BMG Termination compared to the prior-year quarter, streaming revenue increased 13.3% (or 11.8% in constant currency). Recorded Music streaming revenue increased 11.8% (or 10.1% in constant currency); however, adjusted for the $10 million impact of the BMG Termination compared to the prior-year quarter, Recorded Music streaming revenue was up 13.1% (or 11.3% in constant currency). Music Publishing streaming revenue increased 14.4% (or 13.8% in constant currency). The increase in total revenue was also driven by higher Recorded Music artist services and expanded-rights and physical revenue, and growth across Music Publishing synchronization, mechanical and performance revenue.

Operating income increased 80.5% (or 75.3% in constant currency) to $305 million from $169 million in the prior-year quarter, primarily due to the factors affecting Adjusted OIBDA discussed below, as well as a decrease in restructuring and impairment charges of $62 million, partially offset by higher amortization expense of $11 million.

Adjusted OIBDA increased 16.1% (or 14.6% in constant currency) to $433 million from $373 million and Adjusted OIBDA margin increased 1.1 percentage points to 23.2% from 22.1% in the prior-year quarter (or 1.0 percentage point from 22.2% in constant currency). The increases include the $9 million impact of the Copyright Settlement and the $1 million impact of the BMG Termination compared to the prior-year quarter. Excluding these items, Adjusted OIBDA increased 19.3% (or 17.7% in constant currency) and Adjusted OIBDA margin increased 1.4 percentage points to 23.2% from 21.8% (or 1.3 percentage points from 21.9% in constant currency). The increases in Adjusted OIBDA and Adjusted OIBDA margin were primarily driven by strong operating performance, revenue mix and savings from the Company’s restructuring plans, a portion of which has been reinvested into the Company’s business, partially offset by unfavorable movements in foreign currency exchange rates of approximately $16 million.

Net income was $200 million compared to a loss of $16 million in the prior-year quarter. The change in net income was due to the impact of exchange rates on the Company’s Euro-denominated debt resulting in a $3 million gain in the quarter compared to a $70 million loss in the prior-year quarter and a currency exchange loss on intercompany loans of $1 million in the quarter compared to a $63 million loss in the prior-year quarter, partially offset by realized and unrealized losses on hedging activity of $1 million in the quarter compared to $8 million in the prior-year quarter. The change in net income was also driven by an impairment charge of $70 million for long-lived assets associated with EMP in the prior-year quarter. The
2

increase in net income was partially offset by a $62 million increase in income tax expense, primarily due to an increase in pre-tax income in the quarter and a $20 million smaller benefit from EMP impairment in the quarter.

Basic earnings per share was $0.39 for both the Class A and Class B shareholders due to the net income attributable to the Company in the quarter of $200 million. Diluted earnings per share was $0.38 for Class A shareholders and $0.39 for Class B shareholders due to the net income attributable to the Company in the quarter of $200 million.

As of June 30, 2026, the Company reported a cash balance of $618 million, total debt of $4.710 billion and net debt (defined as total debt, net of deferred financing costs, premiums and discounts, minus cash and equivalents) of $4.092 billion. Total debt includes $303 million of subsidiary debt acquired in the Company’s acquisition of Tempo Music Holdings, LLC (“Tempo Music”) and $363 million in loans outstanding under the Beethoven JV. This debt is secured only by certain music rights owned by Tempo Music and the Beethoven JV, respectively, and is nonrecourse to the Company and its subsidiaries, other than Tempo Music and the Beethoven JV, respectively.

Cash provided by operating activities increased $96 million, or 209%, to $142 million in the quarter compared to $46 million in the prior-year quarter. The increase was largely a result of strong operating performance. Free Cash Flow, as defined below, increased to $114 million from $7 million in the prior-year quarter, primarily due to the factors affecting cash provided by operating activities described above and due to a decrease in capital expenditures of $11 million, or 28%, to $28 million from $39 million in the prior-year quarter, primarily driven by lower investments in technology and costs associated with our finance transformation initiative.


3

Recorded Music
Recorded Music Summary Results
(dollars in millions)
For the Three Months Ended June 30, 2026For the Three Months Ended June 30, 2025% ChangeFor the Nine Months Ended June 30, 2026For the Nine Months Ended June 30, 2025% Change
(unaudited)(unaudited)(unaudited)(unaudited)
Revenue$1,488 $1,354 10 %$4,348 $3,874 12 %
Operating income326 201 62 %943 642 47 %
Adjusted OIBDA(1)
377 321 17 %1,126 914 23 %
(1) See "Supplemental Disclosures Regarding Non-GAAP Financial Measures" at the end of this release for details regarding this measure.

Recorded Music Revenue
(dollars in millions)
For the Three Months Ended June 30, 2026For the Three Months Ended June 30, 2025For the Three Months Ended June 30, 2025For the Nine Months Ended June 30, 2026For the Nine Months Ended June 30, 2025For the Nine Months Ended June 30, 2025
As reportedAs reportedConstantAs reportedAs reportedConstant
(unaudited)(unaudited)(unaudited)(unaudited)(unaudited)(unaudited)
Digital$1,016 $929 $943 $2,967 $2,643 $2,717 
Physical137 119 117 426 397 404 
Total Digital and Physical1,153 1,048 1,060 3,393 3,040 3,121 
Artist services and expanded-rights224 195 195 619 508 523 
Licensing111 111 112 336 326 336 
Total Recorded Music$1,488 $1,354 $1,367 $4,348 $3,874 $3,980 
Recorded Music revenue was up 9.9% (or 8.9% in constant currency) driven by increases across digital, artist services and expanded-rights and physical revenue. Licensing revenue remained constant with the prior-year quarter (or decreased 0.9% in constant currency). Excluding the $16 million impact of the Copyright Settlement and the $10 million impact of the BMG Termination compared to the prior-year quarter, Recorded Music revenue was up 12.0% (or 11.0% in constant currency). Digital revenue was up 9.4% (or 7.7% in constant currency) and streaming revenue was up 11.8% (or 10.1% in constant currency). Adjusted for the $16 million impact of the Copyright Settlement and the $10 million impact of the BMG Termination compared to the prior-year quarter, Recorded Music digital revenue was up 12.5% (or 10.8% in constant currency). Adjusted for the $10 million impact of the BMG Termination compared to the prior-year quarter, streaming revenue was up 13.1% (or 11.3% in constant currency). Streaming revenue reflects growth in subscription revenue of 12.5% (or 10.8% in constant currency) and in ad-supported revenue of 10.0% (or 8.0% in constant currency). Subscription revenue, adjusted for the $6 million impact of the BMG Termination compared to the prior-year quarter, was up 13.5% (or 11.8% in constant currency). Ad-supported revenue, adjusted for the $4 million impact of the BMG Termination compared to the prior-year quarter, was up 12.0% (or 10.0% in constant currency). The increase in subscription revenue reflects positive market share trends, subscriber growth and improved deal economics. The increase in ad-supported revenue reflects strong performance in the quarter, as well as improved deal economics. Artist services and expanded-rights revenue was up 14.9% (the same in constant currency) due to higher concert promotion revenue primarily in Japan and higher merchandising revenue. Physical revenue increased 15.1% (or 17.1% in constant currency) primarily driven by strong releases in the quarter as well as catalog and carryover success. Top sellers in the quarter included Bruno Mars, Don Toliver, sombr, Alex Warren and Madonna.

Recorded Music operating income increased 62.2% (or 58.3% in constant currency) to $326 million from $201 million in the prior-year quarter, and operating margin was up 7.1 percentage points to 21.9% versus 14.8% in the prior-year quarter (or up 6.8 percentage points from 15.1% in constant currency). The increase in operating income and operating income margin was driven by the factors affecting Adjusted OIBDA discussed below, as well as decreases in restructuring and impairment charges of $63 million and depreciation expense of $4 million primarily relating to EMP, partially offset by higher amortization expense of $10 million attributable to acquisitions.

4

Adjusted OIBDA increased 17.4% (or 15.6% in constant currency) to $377 million from $321 million and Adjusted OIBDA margin increased 1.6 percentage points to 25.3% from 23.7% in the prior-year quarter (or increased 1.5 percentage points from 23.8% in constant currency). The increases include the $9 million impact of the Copyright Settlement and the $1 million impact of the BMG Termination. Excluding these items, Adjusted OIBDA increased 21.2% (or 19.3% in constant currency) and Adjusted OIBDA margin increased 1.9 percentage points to 25.3% from 23.4% (or 1.7 percentage points from 23.6% in constant currency). The increases in Adjusted OIBDA and Adjusted OIBDA margin were primarily driven by revenue growth and strong operating performance, and savings from the Company’s restructuring plans, of which a portion has been reinvested in the Company’s business, partially offset by unfavorable movements in foreign currency exchange rates of approximately $12 million.
5

Music Publishing
Music Publishing Summary Results
(dollars in millions)
For the Three Months Ended June 30, 2026For the Three Months Ended June 30, 2025% ChangeFor the Nine Months Ended June 30, 2026For the Nine Months Ended June 30, 2025% Change
(unaudited)(unaudited)(unaudited)(unaudited)
Revenue$377 $336 12 %$1,092 $969 13 %
Operating income71 60 18 %197 167 18 %
Adjusted OIBDA(1)
109 96 14 %308 264 17 %
(1) See "Supplemental Disclosures Regarding Non-GAAP Financial Measures" at the end of this release for details regarding this measure.

Music Publishing Revenue
(dollars in millions)
For the Three Months Ended June 30, 2026For the Three Months Ended June 30, 2025For the Three Months Ended June 30, 2025For the Nine Months Ended June 30, 2026For the Nine Months Ended June 30, 2025For the Nine Months Ended June 30, 2025
As reportedAs reportedConstantAs reportedAs reportedConstant
(unaudited)(unaudited)(unaudited)(unaudited)(unaudited)(unaudited)
Performance$59 $58 $60 $181 $167 $174 
Digital235 204 204 674 599 610 
Mechanical19 16 16 54 46 47 
Synchronization60 54 56 170 142 146 
Other4 4 4 13 15 16 
Total Music Publishing$377 $336 $340 $1,092 $969 $993 
Music Publishing revenue was up 12.2% (or 10.9% in constant currency) driven by growth across digital, synchronization, mechanical and performance revenue. Digital revenue increased 15.2% (the same in constant currency) and streaming revenue increased 14.4% (or 13.8% in constant currency) driven by continued market growth and the impact of new deals and renewals. Synchronization revenue increased 11.1% (or 7.1% in constant currency) primarily due to an increase in other copyright infringement settlements and mechanical revenue increased 18.8% (the same in constant currency) driven by the timing of distributions. Performance revenue increased 1.7% (or decreased 1.7% in constant currency).

Music Publishing operating income was up 18.3% (or 16.4% in constant currency) to $71 million from $60 million in the prior-year quarter and operating margin increased 0.9 percentage points to 18.8% from 17.9% in the prior-year quarter (the same in constant currency). The increases in operating income and operating margin were driven by the same factors affecting Adjusted OIBDA discussed below.

Music Publishing Adjusted OIBDA increased 13.5% (the same in constant currency) to $109 million from $96 million in the prior-year quarter. Adjusted OIBDA margin increased 0.3 percentage points to 28.9% from 28.6% in the prior-year quarter (or 0.7 percentage points from 28.2% in constant currency). The increases in Adjusted OIBDA and Adjusted OIBDA margin were primarily driven by revenue growth and strong operating performance, partially offset by unfavorable movements in foreign currency exchange rates of approximately $5 million.

Recent Announcements
In addition, the Company also announced today that its Board of Directors declared a regular quarterly cash dividend of $0.20 per share on the Company’s Class A Common Stock and Class B Common Stock. The dividend is payable on September 1, 2026, to stockholders of record as of the close of business on August 20, 2026.

Financial details for the quarter can be found in the Company’s current Quarterly Report on Form 10-Q for the period ended June 30, 2026, which will be filed this afternoon with the Securities and Exchange Commission.

This afternoon, management will be hosting a conference call to discuss the results at 4:30 P.M. EDT. The call will be webcast on www.wmg.com.
6

About Warner Music Group
With a legacy extending back over 200 years, Warner Music Group today is home to an unparalleled family of creative artists, songwriters, and companies that are moving culture across the globe. At the core of WMG’s Recorded Music division are four of the most iconic companies in history: Atlantic, Elektra, Parlophone and Warner Records. They are joined by renowned labels such as TenThousand Projects, 300 Entertainment, Asylum, Big Beat, Canvasback, East West, Erato, FFRR, Fueled by Ramen, Nonesuch, Reprise, Rhino, Roadrunner, Sire, Spinnin’ Records, Warner Classics and Warner Records Nashville. Warner Chappell Music - which traces its origins back to the founding of Chappell & Company in 1811 - is one of the world's leading music publishers, with a catalog of more than one million copyrights spanning every musical genre from the standards of the Great American Songbook to the biggest hits of the 21st century.

"Safe Harbor" Statement under Private Securities Litigation Reform Act of 1995
This communication includes forward-looking statements that reflect the current views of Warner Music Group about future events and financial performance. Words such as "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes," "forecasts" and variations of such words or similar expressions that predict or indicate future events or trends, or that do not relate to historical matters, identify forward-looking statements. All forward-looking statements are made as of today, and we disclaim any duty to update such statements. Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for them. However, we cannot assure you that management's expectations, beliefs and projections will result or be achieved. Investors should not rely on forward-looking statements because they are subject to a variety of risks, uncertainties, and other factors that could cause actual results to differ materially from our expectations. Please refer to our Form 10-K, Form 10-Qs and our other filings with the U.S. Securities and Exchange Commission concerning factors that could cause actual results to differ materially from those described in our forward-looking statements.

We maintain an Internet site at www.wmg.com. We use our website as a channel of distribution for material company information. Financial and other material information regarding Warner Music Group is routinely posted on and accessible at http://investors.wmg.com. In addition, you may automatically receive email alerts and other information about Warner Music Group by enrolling your email address through the “email alerts” section at http://investors.wmg.com. Our website and the information posted on it or connected to it shall not be deemed to be incorporated by reference into this communication.
Figure 1. Warner Music Group Corp. - Condensed Consolidated Statements of Operations, Three Months Ended June 30, 2026 versus June 30, 2025
(dollars in millions)
For the Three Months Ended June 30, 2026For the Three Months Ended June 30, 2025% Change
(unaudited)(unaudited)
Revenue$1,864 $1,689 10 %
Cost and expenses:
Cost of revenue(1,010)(913)11 %
Selling, general and administrative expenses(464)(471)-1 %
Restructuring and impairments(7)(69)-90 %
Amortization expense(78)(67)16 %
Total costs and expenses$(1,559)$(1,520)3 %
Operating income$305 $169 80 %
Interest expense, net(49)(43)14 %
Other income (expense), net11 (137)— %
Income (loss) before income taxes$267 $(11)— %
Income tax expense(67)(5)— %
Net income (loss)$200 $(16)— %
Less: (Income) loss attributable to noncontrolling interest4 — — %
Net income (loss) attributable to Warner Music Group Corp.
$204 $(16)— %
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Net income (loss) per share attributable to common stockholders:
Class A – Basic$0.39 $(0.03)
Class A – Diluted$0.38 $(0.03)
Class B – Basic$0.39 $(0.03)
Class B – Diluted$0.39 $(0.03)
For the Nine Months Ended June 30, 2026For the Nine Months Ended June 30, 2025% Change
(unaudited)(unaudited)
Revenue$5,436 $4,839 12 %
Cost and expenses:
Cost of revenue(2,927)(2,598)13 %
Selling, general and administrative expenses(1,382)(1,395)-1 %
Restructuring and impairments(47)(109)-57 %
Amortization expense(218)(186)17 %
Total costs and expenses$(4,574)$(4,288)7 %
Net gain on divestiture(5)— — %
Operating income$857 $551 56 %
Loss on extinguishment of debt(7)— — %
Interest expense, net(135)(119)13 %
Other income (expense), net52 (48)— %
Income before income taxes$767 $384 100 %
Income tax expense(211)(123)72 %
Net income$556 $261 — %
Less: Income attributable to noncontrolling interest7 (5)— %
Net income attributable to Warner Music Group Corp.$563 $256 — %
Net income per share attributable to common stockholders:
Class A – Basic$1.07 $0.49 
Class A – Diluted$1.05 $0.49 
Class B – Basic$1.07 $0.49 
Class B – Diluted$1.06 $0.49 
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Figure 2. Warner Music Group Corp. - Condensed Consolidated Balance Sheets at June 30, 2026 versus September 30, 2025
(dollars in millions)
June 30, 2026September 30, 2025% Change
(unaudited)
Assets
Current assets:
Cash and equivalents$618 $532 16 %
Accounts receivable, net1,607 1,340 20 %
Inventories69 62 11 %
Royalty advances expected to be recouped within one year671 581 15 %
Assets held for sale
68 89 -24 %
Prepaid and other current assets227 166 37 %
Total current assets$3,260 $2,770 18 %
Royalty advances expected to be recouped after one year1,118 1,079 4 %
Property, plant and equipment, net416 441 -6 %
Operating lease right-of-use assets, net163 189 -14 %
Goodwill2,126 2,061 3 %
Intangible assets subject to amortization, net3,098 2,725 14 %
Intangible assets not subject to amortization153 154 -1 %
Deferred tax assets, net58 111 -48 %
Other assets335 299 12 %
Total assets$10,727 $9,829 9 %
Liabilities, Redeemable Noncontrolling Interest and Equity
Current liabilities:
Accounts payable$354 $257 38 %
Accrued royalties3,030 2,740 11 %
Accrued liabilities494 666 -26 %
Accrued interest40 31 29 %
Operating lease liabilities, current44 43 2 %
Deferred revenue330 286 15 %
Liabilities held for sale
39 49 -20 %
Other current liabilities112 129 -13 %
Total current liabilities$4,443 $4,201 6 %
Acquisition Corp. long-term debt4,044 4,063 — %
Other long-term debt666 302 — %
Operating lease liabilities, noncurrent165 200 -18 %
Deferred tax liabilities, net184 164 12 %
Other noncurrent liabilities139 142 -2 %
Total liabilities$9,641 $9,072 6 %
Redeemable noncontrolling interests
133 — — %
Equity:
Class A common stock$— $— — %
Class B common stock1 1 — %
Additional paid-in capital2,141 2,166 -1 %
Accumulated deficit(1,068)(1,331)-20 %
Accumulated other comprehensive loss, net(220)(189)16 %
Total Warner Music Group Corp. equity$854 $647 32 %
Noncontrolling interest99 110 -10 %
Total equity953 757 26 %
Total liabilities, redeemable noncontrolling interest and equity$10,727 $9,829 9 %
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Figure 3. Warner Music Group Corp. - Summarized Statements of Cash Flows, Three Months Ended June 30, 2026 versus June 30, 2025
(dollars in millions)
For the Three Months Ended June 30, 2026For the Three Months Ended June 30, 2025
(unaudited)(unaudited)
Net cash provided by operating activities$142 $46 
Net cash used in investing activities(151)(71)
Net cash used in financing activities(110)(96)
Effect of foreign currency exchange rates on cash and equivalents1 11 
Cash balances classified as assets held for sale(5)$— 
Net decrease in cash and equivalents$(123)$(110)
Figure 4. Warner Music Group Corp. - Digital Revenue Summary, Three Months Ended June 30, 2026 versus June 30, 2025
(dollars in millions)
For the Three Months Ended June 30, 2026For the Three Months Ended June 30, 2025% Change
(unaudited)(unaudited)
Recorded Music
Subscription$758 $674 12 %
Ad-Supported243 221 10 %
Streaming$1,001 $895 12 %
Downloads and Other Digital15 34 -56 %
Total Recorded Music Digital Revenue$1,016 $929 9 %
Music Publishing
Streaming$231 $202 14 %
Downloads and Other Digital4 2 100 %
Total Music Publishing Digital Revenue$235 $204 15 %
Consolidated
Streaming$1,232 $1,097 12 %
Downloads and Other Digital19 36 -47 %
Intersegment Eliminations— (1)— %
Total Digital Revenue$1,251 $1,132 11 %

Supplemental Disclosures Regarding Non-GAAP Financial Measures
We evaluate our operating performance based on several factors, including the following non-GAAP financial measures:

Adjusted OIBDA
We allocate resources and evaluate performance based on several factors, including Adjusted OIBDA. We define Adjusted OIBDA as operating income (loss) adjusted to exclude the following items: (i) non-cash depreciation of tangible assets, (ii) non-cash amortization of intangible assets, (iii) non-cash stock-based compensation and other related expenses, (iv) gains or losses on divestitures, (v) expenses related to restructuring and transformation initiatives, which include costs associated with the Company’s financial transformation initiative to design and implement new information technology and upgrade our finance infrastructure, and (vi) executive transition costs. Items excluded are not viewed to contribute directly to management’s evaluation of operating results. We consider Adjusted OIBDA to be an important indicator of the operational strengths and performance of our businesses. However, a limitation of the use of Adjusted OIBDA as a performance measure is that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in our businesses. Accordingly, Adjusted OIBDA should be considered in addition to, not as a substitute for, operating income (loss), net income (loss) attributable to Warner Music Group Corp. and other
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measures of financial performance reported in accordance with United States generally accepted accounting principles (“U.S. GAAP”). In addition, our definition of Adjusted OIBDA may differ from similarly titled measures used by other companies.
Adjusted Net Income and Adjusted EPS
We define Adjusted Net Income as net income (loss) attributable to Warner Music Group Corp. adjusted to exclude the following items: (i) non-cash amortization of intangible assets, (ii) expenses related to restructuring and transformation initiatives, which include costs associated with the Company’s financial transformation initiative to design and implement new information technology and upgrade our finance infrastructure, (iii) gains or losses on divestitures, (iv) non-cash stock-based compensation, (v) loss on extinguishment of debt, and (vi) other (income) expenses. These exclusions are then further adjusted to account for tax effects. Adjusted Net Income should be considered in addition to, not as a substitute for, net income (loss) attributable to Warner Music Group Corp. and other measures of financial performance reported in accordance with U.S. GAAP. We use Adjusted Net Income to calculate Adjusted Earnings (Loss) Per Share (“EPS”), which we define as Adjusted Net Income divided by the basic weighted-average shares outstanding for the period. Our definition of Adjusted Net Income and Adjusted EPS may differ from similarly titled measures used by other companies.


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Figure 5. Warner Music Group Corp. - Reconciliation of Net Income to Adjusted OIBDA, Three Months Ended June 30, 2026 versus June 30, 2025
(dollars in millions)
For the Three Months Ended June 30, 2026For the Three Months Ended June 30, 2025% Change
(unaudited)(unaudited)
Net income (loss) attributable to Warner Music Group Corp.
$204 $(16)— %
Income attributable to noncontrolling interest(4)— — %
Net income (loss)$200 $(16)— %
Income tax expense67 5 — %
Income including income taxes$267 $(11)— %
Other (income) expense, net(11)137 — %
Interest expense, net49 43 14 %
Operating income$305 $169 80 %
Amortization expense78 67 16 %
Depreciation expense33 29 14 %
Restructuring and impairments7 69 -90 %
Transformation initiative costs10 19 -47 %
Executive transition costs— 4 -100 %
Non-cash stock-based compensation and other related costs— 16 -100 %
Adjusted OIBDA$433 $373 16 %
Operating income margin16.4 %10.0 %
Adjusted OIBDA margin23.2 %22.1 %
Net income (loss) attributable to Warner Music Group Corp.
$204 $(16)— %
Less: Net income attributable to participating securities(1)— — %
Net income (loss) attributable to common shareholders$203 $(16)— %
Amortization expense78 67 16 %
Restructuring and impairments7 69 -90 %
Transformation initiative costs10 19 -47 %
Executive transition costs— 4 -100 %
Non-cash stock-based compensation and other related costs— 16 -100 %
Other (income) expense, net(11)137 — %
Tax impact (a)(21)(76)-72 %
Adjusted Net Income$266 $220 21 %
Weighted Avg Shares Outstanding - Class A - Basic146,297145,878
Weighted Avg Shares Outstanding - Class B - Basic375,380375,380
Unadjusted (GAAP) EPS - Class A - Basic$0.39 $(0.03)
Adjusted EPS - Class A - Basic$0.51 $0.42 
a) Represents the tax effect of the adjustments to reflect corporate income taxes at assumed effective tax rates of 25% and 24% for the three months ended June 30, 2026 and June 30, 2025, respectively.
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For the Nine Months Ended June 30, 2026For the Nine Months Ended June 30, 2025% Change
(unaudited)(unaudited)
Net income attributable to Warner Music Group Corp.
$563 $256 — %
Income (loss) attributable to noncontrolling interest(7)5 — %
Net income$556 $261 — %
Income tax expense211 123 72 %
Income including income taxes$767 $384 100 %
Other (income) expense, net(52)48 — %
Interest expense, net135 119 13 %
Loss on extinguishment of debt7 — — %
Operating income$857 $551 56 %
Amortization expense218 186 17 %
Depreciation expense95 86 10 %
Restructuring and impairments47 109 -57 %
Transformation initiatives and other related costs39 54 -28 %
Executive transition costs— 4 -100 %
Net loss on divestitures5 — — %
Non-cash stock-based compensation and other related costs32 49 -35 %
Adjusted OIBDA$1,293 $1,039 24 %
Operating income margin15.8 %11.4 %
Adjusted OIBDA margin23.8 %21.5 %
Net income (loss) attributable to Warner Music Group Corp.
$563 $256 120 %
Less: Net income attributable to participating securities(5)(3)67 %
Net income attributable to common shareholders$558 $253 121 %
Amortization expense218 186 17 %
Restructuring and impairments47 109 -57 %
Transformation initiative costs39 54 -28 %
Net loss on divestitures5 — — %
Executive transition costs— 4 -100 %
Non-cash stock-based compensation and other related costs32 49 -35 %
Loss on extinguishment of debt7 — — %
Other (income) expense, net(52)48 — %
Tax impact (a)(81)(110)-26 %
Adjusted Net Income$773 $593 30 %
Weighted Avg Shares Outstanding - Class A - Basic146,542144,623
Weighted Avg Shares Outstanding - Class B - Basic375,380375,380
Unadjusted (GAAP) EPS - Class A - Basic$1.07 $0.49 
Adjusted EPS - Class A - Basic$1.48 $1.14 
a) Represents the tax effect of the adjustments to reflect corporate income taxes at assumed effective tax rates of 28% and 24% for the nine months ended June 30, 2026 and June 30, 2025, respectively.



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Figure 6. Warner Music Group Corp. - Reconciliation of Segment Operating Income to Adjusted OIBDA, Three Months Ended June 30, 2026 versus June 30, 2025
(dollars in millions)
For the Three Months Ended June 30, 2026For the Three Months Ended June 30, 2025% Change
(unaudited)(unaudited)
Total WMG operating income – GAAP$305 $169 80 %
Depreciation and amortization expense111 96 16 %
Restructuring and impairments7 69 -90 %
Transformation initiative costs10 19 -47 %
Executive transition costs— 4 -100 %
Non-cash stock-based compensation and other related costs— 16 -100 %
Total WMG Adjusted OIBDA$433 $373 16 %
Total WMG Adjusted OIBDA margin23.2 %22.1 %
Recorded Music operating income – GAAP$326 $201 62 %
Depreciation and amortization expense53 47 13 %
Restructuring and impairments6 69 -91 %
Non-cash stock-based compensation and other related costs$(8)$4 — %
Recorded Music Adjusted OIBDA$377 $321 17 %
Recorded Music Adjusted OIBDA margin25.3 %23.7 %
Music Publishing operating income – GAAP$71 $60 18 %
Depreciation and amortization expense37 35 6 %
Non-cash stock-based compensation and other related costs1 1 — %
Music Publishing Adjusted OIBDA$109 $96 14 %
Music Publishing Adjusted OIBDA margin28.9 %28.6 %
For the Nine Months Ended June 30, 2026For the Nine Months Ended June 30, 2025% Change
(unaudited)(unaudited)
Total WMG operating income – GAAP$857 $551 56 %
Depreciation and amortization expense313 272 15 %
Restructuring and impairments47 109 -57 %
Transformation initiatives and other related costs39 54 -28 %
Executive transition costs— 4 -100 %
Net loss on divestitures5 — — %
Non-cash stock-based compensation and other related costs32 49 -35 %
Total WMG Adjusted OIBDA$1,293 $1,039 24 %
Total WMG Adjusted OIBDA margin23.8 %21.5 %
Recorded Music operating income – GAAP$943 $642 47 %
Depreciation and amortization expense146 138 6 %
Restructuring and impairment34 110 -69 %
Non-cash stock-based compensation and other related costs3 24 -88 %
Recorded Music Adjusted OIBDA$1,126 $914 23 %
Recorded Music Adjusted OIBDA margin25.9 %23.6 %
Music Publishing operating income – GAAP$197 $167 18 %
Depreciation and amortization expense107 93 15 %
Non-cash stock-based compensation and other related costs4 4 — %
Music Publishing Adjusted OIBDA$308 $264 17 %
Music Publishing Adjusted OIBDA margin 28.2 %27.2 %

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Constant Currency
Because exchange rates are an important factor in understanding period-to-period comparisons, we believe the presentation of revenue on a constant-currency basis in addition to reported revenue helps improve the ability to understand our operating results and evaluate our performance in comparison to prior periods. Constant-currency information compares results between periods as if exchange rates had remained constant period over period. We use results on a constant-currency basis as one measure to evaluate our performance. We calculate constant-currency results by applying current-year foreign currency exchange rates to prior-year results. However, a limitation of the use of the constant-currency results as a performance measure is that it does not reflect the impact of exchange rates on our revenue. These results should be considered in addition to, not as a substitute for, results reported in accordance with U.S. GAAP. Results on a constant-currency basis, as we present them, may not be comparable to similarly titled measures used by other companies and are not a measure of performance presented in accordance with U.S. GAAP.

Figure 7. Warner Music Group Corp. - Revenue by Geography and Segment, Three Months Ended June 30, 2026 versus June 30, 2025 As Reported and Constant Currency
(dollars in millions)
For the Three Months Ended June 30, 2026For the Three Months Ended June 30, 2025For the Three Months Ended June 30, 2025% Change
As reportedAs reportedConstantConstant
(unaudited)(unaudited)(unaudited)(unaudited)
U.S. revenue
Recorded Music$587 $536 $536 10 %
Music Publishing194 186 186 4 %
International revenue
Recorded Music$901 $818 $831 8 %
Music Publishing183 150 154 19 %
Intersegment eliminations(1)(1)(2)-50 %
Total Revenue$1,864 $1,689 $1,705 9 %
Revenue by Segment:
Recorded Music
Digital$1,016 $929 $943 8 %
Physical137 119 117 17 %
Total Digital and Physical$1,153 $1,048 $1,060 9 %
Artist services and expanded-rights224 195 195 15 %
Licensing111 111 112 -1 %
Total Recorded Music$1,488 $1,354 $1,367 9 %
Music Publishing
Performance$59 $58 $60 -2 %
Digital235 204 204 15 %
Mechanical19 16 16 19 %
Synchronization60 54 56 7 %
Other4 4 4 — %
Total Music Publishing$377 $336 $340 11 %
Intersegment eliminations(1)(1)(2)-50 %
Total Revenue$1,864 $1,689 $1,705 9 %
Total Digital Revenue$1,251 $1,132 $1,147 9 %
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For the Nine Months Ended June 30, 2026For the Nine Months Ended June 30, 2025For the Nine Months Ended June 30, 2025% Change
As reportedAs reportedConstantConstant
(unaudited)(unaudited)(unaudited)(unaudited)
U.S. revenue
Recorded Music$1,729 $1,565 $1,565 10 %
Music Publishing562 520 520 8 %
International revenue
Recorded Music$2,619 $2,309 $2,415 8 %
Music Publishing530 449 473 12 %
Intersegment eliminations(4)(4)(5)(20)%
Total Revenue$5,436 $4,839 $4,968 9 %
Revenue by Segment:
Recorded Music
Digital$2,967 $2,643 $2,717 9 %
Physical426 397 404 5 %
Total Digital and Physical$3,393 $3,040 $3,121 9 %
Artist services and expanded-rights619 508 523 18 %
Licensing336 326 336 — %
Total Recorded Music$4,348 $3,874 $3,980 9 %
Music Publishing
Performance$181 $167 $174 4 %
Digital674 599 610 10 %
Mechanical54 46 47 15 %
Synchronization170 142 146 16 %
Other13 15 16 (19)%
Total Music Publishing$1,092 $969 $993 10 %
Intersegment eliminations(4)(4)(5)(20)%
Total Revenue$5,436 $4,839 $4,968 9 %
Total Digital Revenue$3,640 $3,241 $3,326 9 %

Figure 8. Warner Music Group Corp. - Adjusted OIBDA by Segment, Three Months Ended June 30, 2026 versus June 30, 2025 As Reported and Constant Currency
(dollars in millions)
For the Three Months Ended June 30, 2026For the Three Months Ended June 30, 2025For the Three Months Ended June 30, 2025Change %
As reportedAs reportedConstantConstant
(unaudited)(unaudited)(unaudited)(unaudited)
Total WMG Adjusted OIBDA$433 $373 $378 14.6 %
Adjusted OIBDA margin23.2 %22.1 %22.2 %
Recorded Music Adjusted OIBDA$377 $321 $326 15.6 %
Recorded Music Adjusted OIBDA margin25.3 %23.7 %23.8 %
Music Publishing Adjusted OIBDA$109 $96 $96 13.5 %
Music Publishing Adjusted OIBDA margin28.9 %28.6 %28.2 %
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Figure 9. Warner Music Group Corp. - Notable Items, As Reported
(dollars in millions)FY 2026FY 2025
Three Months Ended December 31, 2025
Three Months Ended March 31, 2026
Three Months Ended June 30, 2026Three Months Ended December 31, 2024
Three Months Ended March 31, 2025
Three Months Ended June 30, 2025
Revenue
Recorded Music
Streaming - BMG Termination (a)
— — — 6 6 10 
Streaming - DSP True-up and Settlement Payments
12 — — (7)11 — 
Download and Other Digital - Copyright Settlement
— — — — — 16 
Music Publishing
Streaming - MLC Historical Matched Royalties
— — — 17 — — 
Adjusted OIBDA
Recorded Music
BMG Termination (a)
— — — — 1 1 
DSP True-up and Settlement Payments
7 — — (4)7 — 
Copyright Settlement— — — — — 9 
Music Publishing
MLC Historical Matched Royalties
— — — 4 — — 
(a) The BMG Termination impact shown in FY 2025 represents the incremental revenue and Adjusted OIBDA compared to the current fiscal year.

Free Cash Flow
Our definition of Free Cash Flow is defined as cash flow provided by operating activities less capital expenditures. We use Free Cash Flow, among other measures, to evaluate our operating performance. Management believes Free Cash Flow provides investors with an important perspective on the cash available to fund our debt service requirements, ongoing working capital requirements, capital expenditure requirements, strategic acquisitions and investments, and any dividends, prepayments of debt or repurchases or retirement of our outstanding debt or notes in open market purchases, privately negotiated purchases, any repurchases of our common stock or otherwise. As a result, Free Cash Flow is a significant measure of our ability to generate long-term value. It is useful for investors to know whether this ability is being enhanced or degraded as a result of our operating performance. We believe the presentation of Free Cash Flow is relevant and useful for investors because it allows investors to view performance in a manner similar to the method management uses.

Free Cash Flow is not a measure of performance calculated in accordance with U.S. GAAP and therefore it should not be considered in isolation of, or as a substitute for, net income (loss) as an indicator of operating performance or cash flow provided by operating activities as a measure of liquidity. Free Cash Flow, as we calculate it, may not be comparable to similarly titled measures employed by other companies. In addition, Free Cash Flow does not necessarily represent funds available for discretionary use and is not necessarily a measure of our ability to fund our cash needs. Because Free Cash Flow deducts capital expenditures from “net cash provided by operating activities” (the most directly comparable U.S. GAAP financial measure), users of this information should consider the types of events and transactions that are not reflected. We provide below a reconciliation of Free Cash Flow to the most directly comparable amount reported under U.S. GAAP, which is “net cash provided by operating activities.”

17

Figure 10. Warner Music Group Corp. - Calculation of Free Cash Flow, Three Months Ended June 30, 2026 versus June 30, 2025
(dollars in millions)
For the Three Months Ended June 30, 2026For the Three Months Ended June 30, 2025
(unaudited)(unaudited)
Net cash provided by operating activities$142 $46 
Less: Capital expenditures28 39 
Free Cash Flow$114 $7 
For the Nine Months Ended June 30, 2026For the Nine Months Ended June 30, 2025
(unaudited)(unaudited)
Net cash provided by operating activities$708 $447 
Less: Capital expenditures75 111 
Free Cash Flow$633 $336 







______________________________________


###
Media Contact:Investor Contact:
Hannah Karp
Kareem Chin
Hannah.Karp@wmg.com
Investor.Relations@wmg.com

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