WMG Warner Music Group Corp.

Overview and Growth

Fiscal 2025 results for Warner Music Group Corp. combined $6.71B of revenue with net income of $365.00M and an operating cash inflow of $678.00M. The $6.71B revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. Revenue was 4.4% above fiscal 2024 revenue of $6.43B, marking a year-over-year increase. Asset turnover was 0.68x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

Gross profit was $3.08B, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. Gross margin was 45.8%, so that share of each revenue unit remained after the cost of revenue reported for the period. The reported operating result was $694.00M, capturing profitability after direct costs and the operating expenses reflected in the statements. The operating result equaled 10.3% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. After all reported below-operating-line items, the company recorded net income of $365.00M for the fiscal year. The final earnings result represented 5.4% of revenue, connecting the absolute net income figure with the company’s top-line scale. The earnings statement records $490.00M of pretax income, the profit base against which the reported tax provision can be assessed. The pretax margin was 7.3%, relating income before taxes directly to revenue. The reported income-tax provision was $120.00M, the amount recognized between pretax income and the final net-income result. The effective relationship between income tax and positive pretax income was 24.5%, without assuming a statutory-rate comparison. Net income equaled 48.2% of period-end equity, showing the earnings generated on shareholders’ book capital.

Liquidity and Capital Structure

The company held $9.83B of assets against $9.07B of liabilities and $757.00M of equity, revealing how the asset base was financed. The near-term balance sheet paired $2.77B of current assets with $4.20B of current liabilities at the reporting date. Current assets covered only 0.66x of current liabilities, so current liabilities exceeded current assets at period end. Reported cash and equivalents were $532.00M, separating immediately recognizable cash resources from the rest of the current-asset base. Cash and equivalents represented 12.7% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. The company carried $4.06B of total debt at period end, which frames its leverage and debt-service burden. Debt equaled 5.37x of book equity, describing the relative scale of borrowing and shareholder capital. The debt-to-assets relationship was 41.3%, comparing borrowing with the total asset balance. The liabilities-to-assets relationship was 92.3%, placing reported obligations against the full positive asset balance. Measured against total assets, cash and equivalents represented 5.4%, a balance-sheet composition measure rather than a liquidity forecast. Compared with $9.15B in fiscal 2024, the current asset base moved 7.4% and finished higher.

Cash Flow and Earnings Quality

Cash flow from operations was $678.00M, a reported cash inflow that can be compared directly with net income and capital spending. The operating-cash-flow-to-net-income relationship was 1.86x, comparing cash generated by operations with the bottom-line earnings result. Capital spending was $139.00M, absorbing part of the cash generated from operations before free cash flow. Capital expenditures represented 20.5% of operating cash flow, leaving the remainder available as free cash flow. After capital spending, free cash flow was $539.00M, leaving cash available for debt reduction, shareholder returns, or further investment. Free cash flow represented 8.0% of revenue, linking post-investment cash generation with the company’s operating scale. Measured against total assets, free cash flow represented 5.5%, showing the cash productivity of the company’s assets.

Based on the annual report for the fiscal year ending Sep 30, 2025. Analysis generated Sep 24, 2026.