NASDAQ: WMG
Warner Music Group Corp.CIK 0001319161 · SIC 7900 · Amusement & Recreation
Warner Music Group Corp. (the “Company”) was formed on November 21, 2003. We are the direct parent of WMG Holdings Corp. (“Holdings”), which is the direct parent of WMG Acquisition Corp. (“Acquisition Corp.”). Acquisition Corp. is one of the world’s major music entertainment companies. About this business →
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Warner Music Group appoints Louis Dickler as Acting CFO, sets $1M salary and incentive terms
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Warner Music reports Q3 revenue up 10%, operating income up 80%, margin expansion to 23.2%
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WMG revenue up 10.4% to $1.86B; net income $204.0M; new restructuring plan and debt
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Warner Music reports Q3 revenue up 10%, operating income surges 80% on streaming growth
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Warner Music CFO and COO Armin Zerza steps down for personal reasons; search underway
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Latest financial statements
From 10-Q filed Aug 5, 2026 (period ending Jun 30, 2026). As printed on the EDGAR/iXBRL face — not generated by the model.
Condensed Consolidated Statements of Operations (Unaudited)
(In millions, except share amounts which are reflected in thousands, and per share data)
| Description | Three months ended June 30, 2026 | Three months ended June 30, 2025 | Nine months ended June 30, 2026 | Nine months ended June 30, 2025 |
|---|---|---|---|---|
| Revenue | 1,864 | 1,689 | 5,436 | 4,839 |
| Costs and expenses: | ||||
| Cost of revenue | (1,010) | (913) | (2,927) | (2,598) |
| Selling, general and administrative expenses (a) | (464) | (471) | (1,382) | (1,395) |
| Restructuring and impairments | (7) | (69) | (47) | (109) |
| Amortization expense | (78) | (67) | (218) | (186) |
| Total costs and expenses | (1,559) | (1,520) | (4,574) | (4,288) |
| Net loss on divestitures | — | — | (5) | — |
| Operating income | 305 | 169 | 857 | 551 |
| Loss on extinguishment of debt | — | — | (7) | — |
| Interest expense, net | (49) | (43) | (135) | (119) |
| Other income (expense) | 11 | (137) | 52 | (48) |
| Income (loss) before income taxes | 267 | (11) | 767 | 384 |
| Income tax expense | (67) | (5) | (211) | (123) |
| Net income (loss) | 200 | (16) | 556 | 261 |
| Less: (Income) loss attributable to noncontrolling interest | 4 | — | 7 | (5) |
| Net income (loss) attributable to Warner Music Group Corp. | 204 | (16) | 563 | 256 |
| Net income per share attributable to common stockholders: | ||||
| Class A Basic | 0.39 | (0.03) | 1.07 | 0.49 |
| Class A Diluted | 0.38 | (0.03) | 1.05 | 0.49 |
| Class B Basic | 0.39 | (0.03) | 1.07 | 0.49 |
| Class B Diluted | 0.39 | (0.03) | 1.06 | 0.49 |
| Weighted average common shares: | ||||
| Class A Basic | 146,297 | 145,878 | 146,542 | 144,623 |
| Class A Diluted | 149,036 | 145,878 | 149,288 | 144,623 |
| Class B Basic and Diluted | 375,380 | 375,380 | 375,380 | 375,380 |
| (a) Includes depreciation expense: | (33) | (29) | (95) | (86) |
Condensed Consolidated Balance Sheets (Unaudited)
(In millions, except share amounts which are reflected in thousands)
| Description | June 30, 2026 | September 30, 2025 |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and equivalents | 618 | 532 |
| Accounts receivable, net of allowances of $27 million and $27 million | 1,607 | 1,340 |
| Inventories | 69 | 62 |
| Royalty advances expected to be recouped within one year | 671 | 581 |
| Assets held for sale | 68 | 89 |
| Prepaid and other current assets | 227 | 166 |
| Total current assets | 3,260 | 2,770 |
| Royalty advances expected to be recouped after one year | 1,118 | 1,079 |
| Property, plant and equipment, net of accumulated depreciation of $777 million and $701 million | 416 | 441 |
| Operating lease right-of-use assets, net | 163 | 189 |
| Goodwill | 2,126 | 2,061 |
| Intangible assets subject to amortization, net | 3,098 | 2,725 |
| Intangible assets not subject to amortization | 153 | 154 |
| Deferred tax assets, net | 58 | 111 |
| Other assets | 335 | 299 |
| Total assets | 10,727 | 9,829 |
| Liabilities, Redeemable Noncontrolling Interest and Equity | ||
| Current liabilities: | ||
| Accounts payable | 354 | 257 |
| Accrued royalties | 3,030 | 2,740 |
| Accrued liabilities | 494 | 666 |
| Accrued interest | 40 | 31 |
| Operating lease liabilities, current | 44 | 43 |
| Deferred revenue | 330 | 286 |
| Liabilities held for sale | 39 | 49 |
| Other current liabilities | 112 | 129 |
| Total current liabilities | 4,443 | 4,201 |
| Acquisition Corp. long-term debt | 4,044 | 4,063 |
| Other long-term debt | 666 | 302 |
| Operating lease liabilities, noncurrent | 165 | 200 |
| Deferred tax liabilities, net | 184 | 164 |
| Other noncurrent liabilities | 139 | 142 |
| Total liabilities | 9,641 | 9,072 |
| Redeemable noncontrolling interest | 133 | — |
| Equity: | ||
| Class A common stock, $0.001 par value; 1,000,000 shares authorized, 147,729 and 146,906 shares issued and outstanding as of June 30, 2026 and September 30, 2025, respectively | — | — |
| Class B common stock, $0.001 par value; 1,000,000 shares authorized, 375,380 issued and outstanding as of June 30, 2026 and September 30, 2025, respectively | 1 | 1 |
| Additional paid-in capital | 2,141 | 2,166 |
| Accumulated deficit | (1,068) | (1,331) |
| Accumulated other comprehensive loss, net | (220) | (189) |
| Total Warner Music Group Corp. equity | 854 | 647 |
| Noncontrolling interest | 99 | 110 |
| Total equity | 953 | 757 |
| Total liabilities, redeemable noncontrolling interest and equity | 10,727 | 9,829 |
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In millions)
| Description | Nine months ended June 30, 2026 | Nine months ended June 30, 2025 |
|---|---|---|
| Cash flows from operating activities | ||
| Net income | 556 | 261 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation and amortization | 313 | 272 |
| Unrealized losses and remeasurement of foreign-denominated loans and foreign currency forward exchange contracts | (41) | 84 |
| Deferred income taxes | 70 | 7 |
| Loss on extinguishment of debt | 7 | — |
| Net loss (gain) on investments | (2) | (27) |
| Net loss on divestitures | 5 | — |
| Non-cash interest expense | 6 | 4 |
| Non-cash stock-based compensation expense | 33 | 43 |
| Non-cash impairments | 14 | 102 |
| Remeasurement of share-settled liability | 5 | — |
| Remeasurement of redeemable noncontrolling interest | 1 | — |
| Changes in operating assets and liabilities: | ||
| Accounts receivable, net | (268) | (21) |
| Inventories | 2 | — |
| Royalty advances | (129) | (295) |
| Accounts payable and accrued liabilities | (126) | (191) |
| Royalty payables | 298 | 246 |
| Accrued interest | 8 | 15 |
| Operating lease liabilities | (8) | (12) |
| Deferred revenue | 43 | 24 |
| Income taxes payable | (42) | (37) |
| Other balance sheet changes, net | (37) | (28) |
| Net cash provided by operating activities | 708 | 447 |
| Cash flows from investing activities | ||
| Acquisition of music publishing rights and music catalogs | (505) | (152) |
| Capital expenditures | (75) | (111) |
| Investments and acquisitions of businesses, net of cash received | (106) | (46) |
| Proceeds from the sale of investments | 2 | 36 |
| Proceeds from divestitures | 10 | — |
| Net cash used in investing activities | (674) | (273) |
| Cash flows from financing activities | ||
| Proceeds from Senior Term Loan A Facility | 1,295 | — |
| Repayment of Senior Term Loan B Facility | (1,295) | — |
| Proceeds from Beethoven Credit Agreement | 370 | — |
| Deferred financing costs paid | (14) | — |
| Repayment of Term Loan Mortgage | (1) | (1) |
| Distribution to noncontrolling interest holders | (9) | (8) |
| Contributions from redeemable noncontrolling interest holder | 135 | — |
| Dividends paid | (300) | (283) |
| Payment of deferred consideration | (47) | (23) |
| Taxes paid related to net share settlement of restricted stock units and common stock | (27) | (19) |
| Common stock repurchased and retired | (48) | (3) |
| Other financing activity | — | (7) |
| Net cash provided by (used in) financing activities | 59 | (344) |
| Effect of exchange rate changes on cash and equivalents | (1) | 3 |
| Effect of change in cash balances classified as assets held for sale | (6) | — |
| Net increase (decrease) in cash and equivalents | 86 | (167) |
| Cash and equivalents at beginning of period | 532 | 694 |
| Cash and equivalents at end of period | 618 | 527 |
Amounts as printed on the EDGAR/iXBRL face — (In millions, except share amounts which are reflected in thousands, and per share data); (In millions, except share amounts which are reflected in thousands); (In millions). Labels, columns, and figures are the filing face, not a GAAP stencil. Interactive statements & notes on EDGAR ↗
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About Warner Music Group Corp.
Source: Item 1 (Business) from the 10-K filed November 20, 2025. Description as filed by the company with the SEC.
ITEM 1. BUSINESS
Introduction
Warner Music Group Corp. (the “Company”) was formed on November 21, 2003. We are the direct parent of WMG Holdings Corp. (“Holdings”), which is the direct parent of WMG Acquisition Corp. (“Acquisition Corp.”). Acquisition Corp. is one of the world’s major music entertainment companies.
The Company and Holdings are holding companies that conduct substantially all of their business operations through their subsidiaries. The terms “we,” “us,” “our,” “ours” and the “Company” refer collectively to Warner Music Group Corp. and its consolidated subsidiaries, unless the context refers only to Warner Music Group Corp. as a corporate entity.
Acquisition of Warner Music Group by Access Industries
Pursuant to the Agreement and Plan of Merger, dated as of May 6, 2011 (the “Merger Agreement”), by and among the Company, AI Entertainment Holdings LLC (formerly Airplanes Music LLC), a Delaware limited liability company (“Parent”) and an affiliate of Access Industries, Inc., and Airplanes Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of Parent (“Merger Sub”), on July 20, 2011 (the “Merger Closing Date”), Merger Sub merged with and into the Company with the Company surviving as a wholly owned subsidiary of Parent (the “Merger”). In connection with the Merger, the Company delisted its common stock from the New York Stock Exchange (the “NYSE”).
Initial Public Offering
On June 5, 2020, the Company went public again and completed an initial public offering (“IPO”) of Class A common stock of the Company, par value $0.001 per share (“Class A Common Stock”). The Company listed its shares on the NASDAQ stock market under the ticker symbol “WMG.” The offering consisted entirely of secondary shares sold by Access Industries, LLC (collectively with its affiliates, “Access”) and certain related selling stockholders.
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Following the completion of the IPO, Access and its affiliates continue to hold all of the Class B common stock of the Company, par value $0.001 per share (“Class B Common Stock”), representing approximately 98% of the total combined voting power of the Company’s outstanding common stock and approximately 72% of the economic interest. As a result, the Company is a “controlled company” within the meaning of the corporate governance standards of NASDAQ. See