Warner Music Group Corp. financial statements

Income statement, balance sheet and cash flow statement for the last 10 fiscal years, taken from the XBRL data Warner Music Group Corp. files with the SEC in its annual reports.

In USD millions, except per-share amounts. Outflows in the cash flow statement are negative.

Income statement

	FY2016	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Revenue	3,246	3,576	4,005	4,475	4,463	5,301	5,919	6,037	6,426	6,707
Cost of revenue	1,707	1,931	2,171	2,401	2,333	2,742	3,080	3,177	3,355	3,632
Gross profit	1,539	1,645	1,834	2,074	2,130	2,559	2,839	2,860	3,071	3,075
Selling, general and administrative	1,082	1,222	1,411	1,510	2,169	1,721	1,862	1,826	1,879	1,889
Selling and marketing								710	685	642
General and administrative								991	1,089	1,135
Operating income	214	222	217	356	-229	609	714	790	823	694
Interest expense						119	125	157	182	177
Other non-operating income	18	-40	394	60	-57	-9	151	-36	-61	-42
Pre-tax income	41	-2	442	267	-447	456	740	609	601	490
Income tax	11	-151	130	9	23	149	185	170	123	120
Net income to minority interests	5	6	5	2	5	3	4	9	43	5
Net income	25	143	307	256	-475	304	551	430	435	365
EBITDA	507	473	478	625	32	915	1,053	1,122	1,150	1,070
Dividend per share						0.51	0.61	0.65	0.69	0.73

Balance sheet

	FY2016	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Cash and equivalents	359	647	514	619	553	499	584	641	694	532
Receivables	329	404	447	775	771	839	984	1,120	1,255	1,340
Inventory	41	39	42	74	79	99	108	126	99	62
Other current assets	51	44	50	53	55	86	91	102	125	166
Total current assets	908	1,275	1,176	1,691	1,678	1,896	2,139	2,402	2,643	2,770
Property, plant and equipment	203	213	229	300	331	364	415	458	481	441
Lease right-of-use assets				0	273	268	226	245	225	189
Goodwill	1,627	1,685	1,692	1,761	1,831	1,830	1,920	1,993	2,021	2,061
Intangible assets	2,317	2,207	2,005	1,874	1,807	2,171	2,384	2,502	2,511	2,879
Other non-current assets	82	69	78	145	153	194	212	225	348	299
Total assets	5,335	5,718	5,344	6,017	6,410	7,211	7,828	8,545	9,155	9,829
Accounts payable	204	208	281	260	264	302	268	300	289	257
Accrued liabilities	297	365	423	492	382	461	457	533	641	666
Deferred revenue	178	197	208	180	297	348	423	371	246	286
Total current liabilities	1,842	2,100	2,373	2,819	2,720	3,150	3,368	3,539	3,897	4,201
Long-term debt	2,778	2,811	2,819	2,974	3,104	3,346	3,732	3,964	4,014	4,063
Lease liabilities				0	299	287	241	255	228	200
Other non-current liabilities	236	309	307	321	169	175	99	141	146	142
Total liabilities	5,125	5,410	5,664	6,286	6,455	7,165	7,660	8,115	8,480	9,072
Total debt	2,778	2,811	2,819	2,974	3,104	3,346	3,732	3,964	4,014	4,365
Paid-in capital	1,128	1,128	1,128	1,127	1,907	1,942	1,975	2,015	2,077	2,166
Retained earnings	-715	-654	-1,272	-1,177	-1,749	-1,710	-1,477	-1,387	-1,313	-1,331
Other comprehensive income	-218	-181	-190	-240	-222	-202	-347	-322	-247	-189
Shareholders' equity	195	293	-334	-289	-63	31	152	307	518	647
Minority interests	15	15	14	20	18	15	16	123	157	110
Total equity	210	308	-320	-269	-45	46	168	430	675	757
Total liabilities and equity	5,335	5,718	5,344	6,017	6,410	7,211	7,828	8,545	9,155	9,829
Shares outstanding	0	0	0	0

Cash flow statement

	FY2016	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Net income	25	143	307	256	-475	304	551	430	435	365
Depreciation and amortization	293	251	261	269	261	306	339	332	327	376
Stock-based compensation	23	70	62	50	608	45	39	49	52	54
Deferred income tax	-26	-192	66	-68	-57	27	13	-13	-48	-90
Change in receivables	17	-60	-43	-90	18	-58	-195	-113	-110	-61
Change in inventory		1	-3	3	-2	-19	-22	-12	30	-11
Change in payables	23	48	82	3	-32	91	-21	77	86	-28
Cash from operations	342	535	425	400	463	638	742	687	754	678
Capital expenditures	-42	-44	-74	-104	-85	-93	-135	-127	-116	-139
Acquisitions	-28	-139	-23	-231	-94	-64	-509	-126	-40	-46
Cash from investing	-8	-126	405	-376	-219	-638	-824	-300	-311	-340
Debt issued		22	320
Debt repaid	-309		-635	0	0
Share buybacks								0	0	-16
Dividends paid		-84	-925	-94	-344	-265	-318	-340	-361	-383
Cash from financing	-216	-128	-955	88	-316	-61	188	-325	-396	-497
Exchange rate effect	-5	7	-8	-7	6	7	-21	-5	6	0
Net change in cash	113	288	-133	105	-66	-54	85	57	53	-162
Free cash flow	300	491	351	296	378	545	607	560	638	539
Interest paid	181	138	148	138	128	137	122	157	183	167
Income taxes paid	41	40	49	63	81	124	141	219	135	181

Key metrics

Worked out from the statements above. Latest values use the trailing twelve months to June 30, 2026; growth uses fiscal years. Valuation uses the share price of $27.14 on September 25, 2026.

Profitability

Metric	Value	How it is calculated
Gross margin	45.8%	Gross profit / revenue.
Operating margin	13.7%	Operating income / revenue.
EBITDA margin	17.3%	EBITDA (operating income + depreciation and amortization) / revenue.
Pre-tax margin	12.0%	Pre-tax income / revenue.
Net margin	9.2%	Net income / revenue.
FCF margin	11.4%	Free cash flow (cash from operations - capital expenditures) / revenue.
Operating cash flow margin	12.9%	Cash from operations / revenue.
Effective tax rate	23.8%	Income tax / pre-tax income, when pre-tax income is positive.
Return on equity (ROE)	78.7%	Net income / average shareholders' equity (opening and closing). Not shown when equity is negative.
Return on assets (ROA)	6.3%	Net income / average total assets.
Return on invested capital (ROIC)	15.4%	Approximation: operating income x (1 - tax rate) / average (total debt + equity - cash). Tax rate is the effective rate when between 0% and 50%, else 21%.
SG&A / revenue	25.7%	Selling, general and administrative expense / revenue.
Capex / revenue	1.4%	Capital expenditures / revenue.
D&A / revenue	3.7%	Depreciation and amortization / revenue.

Growth

Metric	Value	How it is calculated
Revenue growth, 1y	4.4%	Revenue vs the same period a year earlier. Only from a positive base.
Revenue CAGR, 3y	4.3%	Compound annual growth of revenue over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Revenue CAGR, 5y	8.5%	Compound annual growth of revenue over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Gross profit growth, 1y	0.1%	Gross profit vs the same period a year earlier. Only from a positive base.
Gross profit CAGR, 3y	2.7%	Compound annual growth of gross profit over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Gross profit CAGR, 5y	7.6%	Compound annual growth of gross profit over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Operating income growth, 1y	-15.7%	Operating income vs the same period a year earlier. Only from a positive base.
Operating income CAGR, 3y	-0.9%	Compound annual growth of operating income over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
EBITDA growth, 1y	-7.0%	EBITDA vs the same period a year earlier. Only from a positive base.
EBITDA CAGR, 3y	0.5%	Compound annual growth of ebitda over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
EBITDA CAGR, 5y	101.8%	Compound annual growth of ebitda over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Net income growth, 1y	-16.1%	Net income vs the same period a year earlier. Only from a positive base.
Net income CAGR, 3y	-12.8%	Compound annual growth of net income over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Operating cash flow growth, 1y	-10.1%	Operating cash flow vs the same period a year earlier. Only from a positive base.
Operating cash flow CAGR, 3y	-3.0%	Compound annual growth of operating cash flow over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Operating cash flow CAGR, 5y	7.9%	Compound annual growth of operating cash flow over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Free cash flow growth, 1y	-15.5%	Free cash flow vs the same period a year earlier. Only from a positive base.
Free cash flow CAGR, 3y	-3.9%	Compound annual growth of free cash flow over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Free cash flow CAGR, 5y	7.4%	Compound annual growth of free cash flow over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Dividend per share growth, 1y	5.8%	Dividend per share vs the same period a year earlier. Only from a positive base.
Dividend per share CAGR, 3y	6.2%	Compound annual growth of dividend per share over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Book value growth, 1y	24.9%	Book value vs the same period a year earlier. Only from a positive base.
Book value CAGR, 3y	62.1%	Compound annual growth of book value over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Total assets growth, 1y	7.4%	Total assets vs the same period a year earlier. Only from a positive base.
Total assets CAGR, 3y	7.9%	Compound annual growth of total assets over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Total assets CAGR, 5y	8.9%	Compound annual growth of total assets over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.

Balance sheet health

Metric	Value	How it is calculated
Current ratio	0.73x	Current assets / current liabilities.
Quick ratio	0.50x	(Cash + short-term investments + receivables) / current liabilities.
Cash ratio	0.14x	(Cash + short-term investments) / current liabilities.
Debt / equity	5.52x	Total debt / shareholders' equity. Not shown when equity is negative.
Debt / assets	43.9%	Total debt / total assets.
Liabilities / assets	89.9%	Total liabilities / total assets.
Net debt	$4.09B	Total debt - cash - short-term investments. Negative means more cash than debt.
Net debt / EBITDA	3.23x	Net debt / EBITDA (twelve months), when EBITDA is positive.
Interest coverage	5.52x	Operating income / interest expense.
Working capital	-$1.18B	Current assets - current liabilities.
Goodwill and intangibles / assets	50.1%	(Goodwill + intangible assets) / total assets.
Tangible book value	-$4.52B	Shareholders' equity - goodwill - intangible assets.

Efficiency

Metric	Value	How it is calculated
Asset turnover	0.68x	Revenue / average total assets.
Fixed asset turnover	17.6x	Revenue / average property, plant and equipment.
Inventory turnover	57.4x	Cost of revenue / average inventory.
Days inventory	6 days	365 x average inventory / cost of revenue.
Receivables turnover	4.55x	Revenue / average receivables.
Days sales outstanding	80 days	365 x average receivables / revenue.
Days payables	33 days	365 x average accounts payable / cost of revenue.
Cash conversion cycle	54 days	Days inventory + days sales outstanding - days payables.
FCF conversion	124.4%	Free cash flow / net income, when net income is positive.
Capex / operating cash flow	11.0%	Capital expenditures / cash from operations, when that is positive.

Per share

Metric	Value	How it is calculated
Payout ratio	59.5%	Dividends paid / net income, when net income is positive.
Dividends / FCF	47.8%	Dividends paid / free cash flow, when free cash flow is positive.
Buybacks / FCF	7.3%	Share buybacks / free cash flow, when free cash flow is positive.

Valuation

Metric	Value	How it is calculated
Market cap	$14.20B	Share price x shares outstanding.
Enterprise value	$18.29B	Market cap + total debt - cash - short-term investments.
P/E	21.1x	Market cap / net income. Only when net income is positive.
P/S	1.94x	Market cap / revenue.
P/B	16.6x	Market cap / shareholders' equity. Only when equity is positive.
P/FCF	17.0x	Market cap / free cash flow. Only when free cash flow is positive.
P/OCF	15.1x	Market cap / cash from operations, when positive.
EV/Sales	2.50x	Enterprise value / revenue.
EV/EBIT	18.3x	Enterprise value / operating income, when both are positive.
EV/EBITDA	14.4x	Enterprise value / EBITDA, when both are positive.
EV/FCF	21.9x	Enterprise value / free cash flow, when both are positive.
FCF yield	5.9%	Free cash flow / market cap.
Earnings yield	4.7%	Net income / market cap (the inverse of P/E).
Dividend yield	2.8%	Dividends paid over the period / market cap.
Shareholder yield	3.2%	(Dividends paid + share buybacks) / market cap.

What was Warner Music Group Corp.'s revenue in fiscal 2025?

Warner Music Group Corp. reported revenue of $6.71B for fiscal 2025, 4.4% higher than the year before.

Was Warner Music Group Corp. profitable in fiscal 2025?

Yes. Net income was $365.0M, a net margin of 5.4%.

How much free cash flow did Warner Music Group Corp. generate in fiscal 2025?

Cash from operations of $678.0M minus capital expenditures of $139.0M left free cash flow of $539.0M.

Source: SEC EDGAR XBRL company facts. Where a company tags only year-to-date figures, quarters are worked out as differences. Where a line is not tagged it is left empty, never estimated.

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