Warner Music Group has announced its financial results for the fourth quarter of 2025, which represents the first quarter of its fiscal year 2026. The company reported total revenue of $1.84 billion, reflecting a 7.1% year-on-year increase in constant currency. However, net income decreased to $175 million compared to $241 million in the same quarter of the previous year. Operating income rose by 26.3% to $288 million, while adjusted OIBDA increased by 22% to $463 million.
In conjunction with these results, Warner Music Group has revealed a $200 million increase in its equity commitment to its joint venture with Bain Capital, bringing the total equity commitment to $1.65 billion. This partnership, initiated last year, is focused on acquiring music catalogs and aims to deploy up to $1.2 billion in funds. The increase in investment is anticipated to facilitate further catalog deals as the company capitalizes on its robust pipeline of opportunities.
During the fiscal first quarter, Warner’s Recorded Music segment experienced a revenue increase of 6.6%, driven primarily by growth in digital, artist services, and expanded rights and licensing, despite a decline in physical revenue of 11.1%. Digital revenue grew by 8.6%, with streaming revenue increasing by 9.1%. Subscription revenue saw a significant rise of 10.9%, while ad-supported revenue grew by 3.9%. In terms of music publishing, revenue rose by 9.4%, bolstered by substantial growth in synchronization, performance, and mechanical revenue streams.