Warner Music Q3 Revenue Beats, Loss Reported

Warner Music Group (WMG) reported an 8.7% year-over-year revenue increase to approximately $1.69 billion in its third quarter of fiscal 2025, surpassing Wall Street expectations. Despite this revenue growth, WMG posted a net loss of $16 million, compared to a $141 million profit in the same quarter last year, primarily due to restructuring, impairment charges, and losses from foreign exchange and hedging. Streaming revenues rose by 4%, while music publishing revenues increased by 10.2%, driven by new licensing deals with Spotify and Amazon and strong performances from artists such as Baekhyun, Rosé, and Bruno Mars. Operating and free cash flow margins declined, and the company’s long-term sales growth continues to lag industry standards. The stock has underperformed the S&P 500 this year, prompting investor scrutiny of future earnings projections and strategy updates. CEO Robert Kyncl highlighted market share gains and a continued focus on expanding the artist and songwriter roster.