Warner Music Group Corp. · NASDAQ:WMG
Warner Music — Q2 2026 Earnings Presentation
19 slides from Warner Music's earnings presentation, May 7, 2026
Slide 1: Warner Music Group Corp. Reports Results for Fiscal Second Quarter Ended March 31, 2026
WARNER MUSIC GROUP CORP. REPORTS RESULTS FOR FISCAL SECOND QUARTER ENDED MARCH 31, 2026 Financial Highlights • Double-Digit Revenue Growth Underpinned by Strong Operating Performance across Recorded Music and Music Publishing • Acceleration in Recorded Music Streaming Growth Driven by Per Subscriber
Slide 2: Total WMG Summary Results
Total WMG Total WMG Summary Results (dollars in millions) For the Three For the Three For the Six For the Six Months Ended Months Ended Months Ended Months Ended March 31, 2026 March 31, 2025 % Change March 31, 2026 March 31, 2025 % Change (unaudited) (unaudited) (unaudited) (unaudited) Revenue $ 1,
Slide 3: Basic Earnings Per Share and Cash Balance
Basic earnings per share was $0.35 for both the Class A and Class B shareholders due to the net income attributable to the Company in the quarter of $181 million. Diluted earnings per share was $0.34 for both the Class A and Class B shareholders due to the net income attributable to the Company in t
Slide 4: Recorded Music Summary Results
Recorded Music Recorded Music Summary Results (dollars in millions) For the Three For the Three For the Six For the Six Months Ended Months Ended Months Ended Months Ended March 31, 2026 March 31, 2025 % Change March 31, 2026 March 31, 2025 % Change (unaudited) (unaudited) (unaudited) (unaudited) Re
Slide 5: Adjusted OIBDA Increased 28.1%
Adjusted OIBDA increased 28.1% (or 22.3% in constant currency) to $346 million from $270 million and Adjusted OIBDA margin increased 2.1 percentage points to 25.1% from 23.0% in the prior-year quarter (or increased 2.0 percentage points from 23.1% in constant currency). The increases include the $7
Slide 6: Music Publishing Summary Results
Music Publishing Music Publishing Summary Results (dollars in millions) For the Three For the Three For the Six For the Six Months Ended Months Ended Months Ended Months Ended March 31, 2026 March 31, 2025 % Change March 31, 2026 March 31, 2025 % Change (unaudited) (unaudited) (unaudited) (unaudited
Slide 7: This Afternoon, Management Will Be Hosting a Conference Call
This afternoon, management will be hosting a conference call to discuss the results at 4:30 P.M. EST. The call will be webcast on www.wmg.com. 7
Slide 8: About Warner Music Group
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 companie
Slide 9: Net Income Per Share Attributable to Common Stockholders
Net income per share attributable to common stockholders: Class A – Basic $ 0.35 $ 0.07 Class A – Diluted $ 0.34 $ 0.07 Class B – Basic $ 0.35 $ 0.07 Class B – Diluted $ 0.34 $ 0.07 For the Six Months Ended For the Six Months Ended March 31, 2026 March 31, 2025 % Change (unaudited) (unaudited) Reven
Slide 10: Condensed Consolidated Balance Sheets
Figure 2. Warner Music Group Corp. - Condensed Consolidated Balance Sheets at March 31, 2026 versus September 30, 2025 (dollars in millions) September 30, March 31, 2026 2025 % Change (unaudited) Assets Current assets: Cash and equivalents $ 741 $ 532 39% Accounts receivable, net 1,505 1,340 12% Inv
Slide 11: Supplemental Disclosures Regarding Non-GAAP Financial Measures
Figure 3. Warner Music Group Corp. - Summarized Statements of Cash Flows, Three Months Ended March 31, 2026 versus March 31, 2025 (dollars in millions) For the Three Months Ended For the Three Months Ended March 31, 2026 March 31, 2025 (unaudited) (unaudited) Net cash provided by operating activitie
Slide 12: Measures of Financial Performance Reported in Accordance With U.S. GAAP
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
Slide 13: Reconciliation of Net Income to Adjusted OIBDA
Figure 5. Warner Music Group Corp. - Reconciliation of Net Income to Adjusted OIBDA, Three Months Ended March 31, 2026 versus March 31, 2025 (dollars in millions) For the Three Months Ended For the Three Months Ended March 31, 2026 March 31, 2025 % Change (unaudited) (unaudited) Net income attributa
Slide 14: For the Six Months Ended March 31, 2026
For the Six Months Ended For the Six Months Ended March 31, 2026 March 31, 2025 % Change (unaudited) (unaudited) Net income attributable to Warner Music Group Corp. $ 359 $ 272 32% Income (loss) attributable to noncontrolling interest (3) 5 —% Net income $ 356 $ 277 29% Income tax expense 144 118 22
Slide 15: Reconciliation of Segment Operating Income to Adjusted OIBDA
Figure 6. Warner Music Group Corp. - Reconciliation of Segment Operating Income to Adjusted OIBDA, Three Months Ended March 31, 2026 versus March 31, 2025 (dollars in millions) For the Three Months Ended For the Three Months Ended March 31, 2026 March 31, 2025 % Change (unaudited) (unaudited) Total
Slide 16: Constant Currency
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 performan
Slide 17: Revenue by Segment
For the Six Months For the Six Months For the Six Months Ended March 31, Ended March 31, Ended March 31, 2026 2025 2025 % Change As reported As reported Constant Constant (unaudited) (unaudited) (unaudited) (unaudited) U.S. revenue Recorded Music $ 1,142 $ 1,029 $ 1,029 11 % Music Publishing 368 334
Slide 18: Free Cash Flow
Figure 9. Warner Music Group Corp. - Notable Items, As Reported (dollars in millions) FY 2026 FY 2025 Three Months Three Months Three Months Three Months Ended December Ended March 31, Ended December Ended March 31, 31, 2025 2026 31, 2024 2025 Revenue Recorded Music Streaming - BMG Termination (a) —
Slide 19: Media Contact
Figure 10. Warner Music Group Corp. - Calculation of Free Cash Flow, Three Months Ended March 31, 2026 versus March 31, 2025 (dollars in millions) For the Three Months Ended For the Three Months Ended March 31, 2026 March 31, 2025 (unaudited) (unaudited) Net cash provided by operating activities $ 1