Warner Music Group Corp (NASDAQ:WMG) stock rose 4.38% (As on November 21, 11:53:03 AM UTC-4, Source: Google Finance) after the company reported record quarterly revenue that significantly exceeded analyst expectations, despite an earnings miss. Digital revenue increased 8.1% (or 6.5% in constant currency) and streaming revenue increased 7.8% (or 6.2% in constant currency). Recorded Music streaming revenue increased 7.5% (or 5.8% in constant currency); however, adjusted for the $10 million impact of the BMG Termination, Recorded Music streaming revenue was up 8.8% (or 7.0% in constant currency). Music Publishing streaming revenue increased 9.3% (or 8.2% in constant currency). Revenue increases in the quarter were also driven by growth in Recorded Music artist services and expanded-rights revenue and Music Publishing performance, mechanical and synchronization revenue, partially offset by lower Recorded Music physical and licensing revenue. Net income increased by $61 million to $109 million from $48 million in the prior-year quarter. As of September 30, 2025, the Company reported a cash balance of $532 million, total debt of $4.365 billion and net debt of $3.833 billion, compared to $3.320 billion at the end of the prior year.

Moreover, Operating income remained constant at $143 million for each of the current and prior-year quarters, primarily driven by the factors affecting Adjusted OIBDA and lower expenses related to transformation initiatives of $3 million, offset by an increase in restructuring and non-cash impairment charges of $44 million compared to the prior-year quarter. Adjusted OIBDA increased 14.7% from $353 million to $405 million (or 12.2% in constant currency) and Adjusted OIBDA margin remained constant at 21.7% (or decreased 0.1 percentage point to 21.7% from 21.8% in constant currency), which includes the $1 million impact of the BMG Termination in the prior year.

WMG in the fourth quarter of FY25 has reported the adjusted earnings per share of 21 cents, missing the analysts’ estimates for the adjusted earnings per share of 37 cents. The company had reported the adjusted revenue growth of 14.6 percent to $1.87 billion in the fourth quarter of FY25, beating the analysts’ estimates for revenue of $1.68 billion. This is driven by double-digit growth across both Recorded Music and Music Publishing segments. The termination of the distribution agreement with BMG (the “BMG Termination”) had a $17 million negative impact on Recorded Music revenue, of which $10 million was in streaming revenue and $7 million was in physical revenue.