Track market-moving stories before they get noisy

The music publishing branches of Sony Music (6758.T) and Warner Music (WMG.O) have sued Anthropic in California federal court for allegedly misusing their copyrighted ​song compositions to train its Claude AI models.

Sony and Warner said in ‌the complaint, filed on Friday, that Anthropic pirated hundreds of song lyrics and sheet music from The Beatles, Taylor Swift, Michael Jackson and hundreds of other artists to train ​Claude to respond to human prompts.

The lawsuit is the latest in a ​wave of cases brought against tech companies by copyright owners ⁠including authors, publishers, music labels and news outlets over the use of their ​work to train AI systems. Universal Music Group (UMG.AS) sued Anthropic in 2023 over the alleged ​use of copyrighted song lyrics in AI training, in a lawsuit that is still ongoing.

Anthropic became the first AI company to settle one of the disputes last year, when it paid $1.5 ​billion to resolve a class action from a group of authors.

"Anthropic clearly ​considers that to be just the cost of doing business given that its entire business ‌model continues ⁠to be built on copyright theft," Sony and Warner said in their complaint. "And $1.5 billion is obviously not a large enough settlement to deter infringing conduct by a company that has parlayed such mass infringement into a staggering $2-trillion-dollar valuation."

Spokespeople ​for Anthropic, Sony Music ​and Warner Music ⁠did not immediately respond to requests for comment on Monday.

The complaint alleges Anthropic illegally obtained the publishers' lyrics and ​sheet music through torrent downloads to train Claude, and that ​Claude can ⁠reproduce copyrighted lyrics "verbatim" when prompted.

Sony and Warner also said Anthropic used their lyrics to teach Claude to "generate vast quantities of purportedly 'new' AI-generated song lyrics, which compete with ⁠Music ​Publishers’ legitimate copyrighted works as harmful market substitutes."

The ​labels are seeking damages of up to $150,000 for each infringed copyright and a court order barring Anthropic ​from using their works.

Warner Music Group has doubled revenue and nearly tripled EBITDA since IPO, yet its stock price remains flat due to multiple contraction. WMG's core growth is underpinned by robust streaming revenues, improved pricing strategies, and new per-subscriber minimum contracts, notably with Apple. AI presents both opportunity and execution risk; WMG is monetizing AI licensing but must balance artist interests and strategic positioning.

Warner Music Group (NASDAQ:WMG) reported fiscal third-quarter revenue growth and margin expansion, citing subscription price increases, streaming-market-share progress, cost reductions and strong cash-flow generation.

For the quarter ended June 30, total revenue rose 9%, or 11% on an adjusted constant-currency basis. Adjusted OIBDA increased 15%, producing 100 basis points of margin expansion. Operating cash flow increased 209%, lifting the company’s cash balance by roughly $100 million to $618 million.

CEO Robert Kyncl said the company had met or exceeded its targets for five consecutive quarters. He reiterated Warner Music’s long-term objectives of high-single-digit consolidated revenue growth, double-digit Adjusted OIBDA and adjusted EPS growth, and operating cash flow conversion of 50% to 60%.

Streaming, physical and publishing results Recorded-music revenue increased 9%, led by 12% adjusted growth in subscription streaming revenue. Acting CFO Lou Dickler said subscriber growth contributed roughly 6% to 7% to subscription-streaming growth, while pricing added about 3.5 percentage points and market share accounted for about 1 percentage point.

Dickler said the pricing contribution reflects contractual per-subscriber minimum, or PSM, increases negotiated with digital service providers. Kyncl said the company now has PSM increases across 88% of subscription-streaming revenue, compared with none two years ago. Warner Music’s recently renewed agreement with Apple completed alignment with its major digital service partners on contractual pricing increases, according to Kyncl.

Ad-supported streaming revenue grew 10% on an adjusted basis. Dickler attributed the performance to a healthy advertising market, improved digital-service-provider economics and elevated spending related to the FIFA World Cup. He said the company expects ad-supported streaming growth to normalize to the mid-single digits in the fourth quarter, as World Cup-related spending does not recur.

Physical revenue increased 17%, supported by new releases as well as catalog and carryover sales. Artist services and expanded-rights revenue rose 15%, driven primarily by concert-promotion revenue in Japan and higher merchandising revenue. Licensing revenue declined 1%.

Music publishing revenue increased 11%, including 14% streaming growth. Sync revenue rose 7% and mechanical revenue increased 19%, while performance revenue declined 2%. Recorded music Adjusted OIBDA rose 16% to a 25.3% margin, up 150 basis points, while music publishing Adjusted OIBDA rose 14% to a 28.9% margin, up 70 basis points.

Management transition and cost initiatives Kyncl addressed the departure of former CFO Armin Zerza, who stepped down for personal reasons. He said Zerza helped sharpen the company’s focus on capital allocation, forecasting and investor communications, and that those practices are now institutionalized. Global Controller and Chief Accounting Officer Lou Dickler is serving as acting CFO while Warner Music conducts a search.

Tom Corson, previously co-chairman and chief operating officer of Warner Records, has been named chief operating officer of Warner Music Group.

Kyncl said the company’s performance reflects a multiyear strategy that included restructurings in fiscal 2023 and 2024 totaling $300 million, alongside reinvestment in technology and artists and repertoire. Dickler said Warner Music remains on track to realize $200 million in savings during fiscal 2026 and $300 million on an annualized basis in fiscal 2027 from its 2025 restructuring plan.

The company expects to deliver fiscal 2026 margin expansion at the high end of its previously stated 150- to 200-basis-point range. Dickler said Warner Music continues to target margins in the mid-20% range in the short term and the high-20% range over the longer term.

Catalog, distribution and capital allocation Kyncl said Warner Music’s year-to-date U.S. streaming share and U.S. new-release streaming share have increased. During the question-and-answer session, he said publicly disclosed U.S. data showed streaming share up 0.3 percentage points year to date and new-release streaming share up 0.8 percentage points, while noting that the company focuses primarily on global trends and longer-term performance.

The company is using proprietary artificial-intelligence tools across a catalog of more than 1 million songs to identify marketing opportunities, optimize music for streaming services and automate workflows. Kyncl cited Chris Rainbow’s 1979 recording “Be Like a Woman,” which grew from 50,000 streams during all of 2025 to more than 140 million streams so far this year after the company used those tools.

Warner Music also expanded its distribution operation through the acquisition of Revelator, a platform providing digital distribution, rights-management, royalty-accounting and analytics tools. The company recently entered distribution arrangements with GoDigital Music and Berlin-based AIM Music.

Kyncl said Warner Music’s joint venture with Bain Capital has deployed $650 million toward catalog acquisitions, out of $1.65 billion in capacity. He said the company is targeting roughly 20% returns on investments, including investments made through the Bain venture, and is focusing on high-margin catalogs with growth potential.

AI licensing and artist protections Management said artificial intelligence represents a prospective revenue source but emphasized the need for artist and songwriter protections. Warner Music has licensing partnerships with Suno, Stability AI, KLAY and Udio, and expects AI licensing agreements to begin contributing materially to subscription-streaming revenue in fiscal 2027.

Kyncl said Suno remains on schedule to transition to a licensed model later this year. He also said operationalizing artist permissions is a complex and labor-intensive process for AI products, rather than a reflection of whether artists support the products.

On protections, Kyncl said Warner Music has agreements with distributors to take down deepfakes and has expanded arrangements requiring fully generative AI content to be identified and excluded from pro-rata revenue pools. He cited Deezer’s public data showing that more than 90,000 AI-generated tracks are uploaded daily, but said their consumption represents approximately 1% to 3% of total listening and monetization is a fraction of that level.

As of June 30, Warner Music had total debt of $4.7 billion and net debt of $4.1 billion. Management said it expects continued growth from global subscriber additions, pricing, catalog, distribution and future AI licensing revenue.

About Warner Music Group (NASDAQ:WMG) Warner Music Group is a major global music company that operates across recorded music and music publishing. Its recorded-music business comprises a portfolio of well-known labels—including Atlantic, Warner Records and Parlophone—as well as distribution and artist-services operations that support both established and emerging artists. The company’s publishing arm, Warner Chappell Music, manages songwriting catalogs and administers rights for compositions across multiple media, providing licensing for film, television, advertising and other commercial uses.

WMG’s activities span the full music value chain: signing and developing artists, producing and marketing recordings, distributing music through physical channels and streaming platforms, and monetizing rights through licensing, synchronization and neighboring-rights collection.

NEW YORK--(BUSINESS WIRE)--Warner Music Group Corp. today announced its third-quarter financial results for the period ended June 30, 2026.

“For the fifth consecutive quarter, WMG has delivered or over-delivered on our targets, proving the strength of our strategy and the momentum of our business," said Robert Kyncl, CEO, Warner Music Group. "Our performance - driven by robust subscription streaming growth, market share gains, and disciplined operating leverage - highlights our ability to champion human creativity while deploying tech and AI to scale long-term profitability. We are closing the year with sharp operational focus and strong positioning to generate compounding value for our artists, songwriters, and shareholders for many years to come.”

“Our strong results were highlighted by double-digit subscription streaming growth bolstered by contractual per-subscriber minimum increases and sustained global share performance,” said Lou Dickler, Acting CFO, Warner Music Group. “We delivered healthy margin expansion and remain on track to meet the high end of our fiscal '26 margin expansion targets while remaining laser-focused on long-term value creation.”

Total WMG

Total WMG Summary Results

(dollars in millions)

For the Three
Months Ended
June 30, 2026

For the Three
Months Ended
June 30, 2025

% Change

For the Nine
Months Ended
June 30, 2026

For the Nine
Months Ended
June 30, 2025

% Change

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Revenue

$

1,864

$

1,689

10

%

$

5,436

$

4,839

12

%

Recorded Music revenue

1,488

1,354

10

%

4,348

3,874

12

%

Music Publishing revenue

377

336

12

%

1,092

969

13

%

Operating income

305

169

80

%

857

551

56

%

Adjusted OIBDA(1)

433

373

16

%

1,293

1,039

24

%

Net income (loss)

200

(16

)

—

%

556

261

—

%

Net cash provided by operating activities

142

46

—

%

708

447

58

%

Free Cash Flow

114

7

—

%

633

336

88

%

(1) See "Supplemental Disclosures Regarding Non-GAAP Financial Measures" at the end of this release for details regarding this measure.

Revenue was up 10.4% (or 9.3% in constant currency). Recorded Music revenue comparisons were impacted by $16 million of digital revenue from the settlement of certain copyright infringement cases in the prior-year quarter (the “Copyright Settlement”). Consistent with prior quarters, Recorded Music revenue growth was also unfavorably impacted by the termination of the distribution agreement with BMG (the “BMG Termination”), which resulted in $10 million less Recorded Music digital revenue compared to the prior-year quarter. Excluding these items, total revenue increased 12.1% (or 11.0% in constant currency).

Digital revenue was up 10.5% (or 9.1% in constant currency) and streaming revenue was up 12.3% (or 10.8% in constant currency). Adjusted for the $16 million impact of the Copyright Settlement and the $10 million impact of the BMG Termination compared to the prior-year quarter, digital revenue increased 13.1% (or 11.6% in constant currency), and adjusted for the $10 million impact of the BMG Termination compared to the prior-year quarter, streaming revenue increased 13.3% (or 11.8% in constant currency). Recorded Music streaming revenue increased 11.8% (or 10.1% in constant currency); however, adjusted for the $10 million impact of the BMG Termination compared to the prior-year quarter, Recorded Music streaming revenue was up 13.1% (or 11.3% in constant currency). Music Publishing streaming revenue increased 14.4% (or 13.8% in constant currency). The increase in total revenue was also driven by higher Recorded Music artist services and expanded-rights and physical revenue, and growth across Music Publishing synchronization, mechanical and performance revenue.

Operating income increased 80.5% (or 75.3% in constant currency) to $305 million from $169 million in the prior-year quarter, primarily due to the factors affecting Adjusted OIBDA discussed below, as well as a decrease in restructuring and impairment charges of $62 million, partially offset by higher amortization expense of $11 million.

Adjusted OIBDA increased 16.1% (or 14.6% in constant currency) to $433 million from $373 million and Adjusted OIBDA margin increased 1.1 percentage points to 23.2% from 22.1% in the prior-year quarter (or 1.0 percentage point from 22.2% in constant currency). The increases include the $9 million impact of the Copyright Settlement and the $1 million impact of the BMG Termination compared to the prior-year quarter. Excluding these items, Adjusted OIBDA increased 19.3% (or 17.7% in constant currency) and Adjusted OIBDA margin increased 1.4 percentage points to 23.2% from 21.8% (or 1.3 percentage points from 21.9% in constant currency). The increases in Adjusted OIBDA and Adjusted OIBDA margin were primarily driven by strong operating performance, revenue mix and savings from the Company’s restructuring plans, a portion of which has been reinvested into the Company’s business, partially offset by unfavorable movements in foreign currency exchange rates of approximately $16 million.

Net income was $200 million compared to a loss of $16 million in the prior-year quarter. The change in net income was due to the impact of exchange rates on the Company’s Euro-denominated debt resulting in a $3 million gain in the quarter compared to a $70 million loss in the prior-year quarter and a currency exchange loss on intercompany loans of $1 million in the quarter compared to a $63 million loss in the prior-year quarter, partially offset by realized and unrealized losses on hedging activity of $1 million in the quarter compared to $8 million in the prior-year quarter. The change in net income was also driven by an impairment charge of $70 million for long-lived assets associated with EMP in the prior-year quarter. The increase in net income was partially offset by a $62 million increase in income tax expense, primarily due to an increase in pre-tax income in the quarter and a $20 million smaller benefit from EMP impairment in the quarter.

Basic earnings per share was $0.39 for both the Class A and Class B shareholders due to the net income attributable to the Company in the quarter of $200 million. Diluted earnings per share was $0.38 for Class A shareholders and $0.39 for Class B shareholders due to the net income attributable to the Company in the quarter of $200 million.

As of June 30, 2026, the Company reported a cash balance of $618 million, total debt of $4.710 billion and net debt (defined as total debt, net of deferred financing costs, premiums and discounts, minus cash and equivalents) of $4.092 billion. Total debt includes $303 million of subsidiary debt acquired in the Company’s acquisition of Tempo Music Holdings, LLC (“Tempo Music”) and $363 million in loans outstanding under the Beethoven JV. This debt is secured only by certain music rights owned by Tempo Music and the Beethoven JV, respectively, and is nonrecourse to the Company and its subsidiaries, other than Tempo Music and the Beethoven JV, respectively.

Cash provided by operating activities increased $96 million, or 209%, to $142 million in the quarter compared to $46 million in the prior-year quarter. The increase was largely a result of strong operating performance. Free Cash Flow, as defined below, increased to $114 million from $7 million in the prior-year quarter, primarily due to the factors affecting cash provided by operating activities described above and due to a decrease in capital expenditures of $11 million, or 28%, to $28 million from $39 million in the prior-year quarter, primarily driven by lower investments in technology and costs associated with our finance transformation initiative.

Recorded Music

Recorded Music Summary Results

(dollars in millions)

For the Three
Months Ended
June 30, 2026

For the Three
Months Ended
June 30, 2025

% Change

For the Nine
Months Ended
June 30, 2026

For the Nine
Months Ended
June 30, 2025

% Change

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Revenue

$

1,488

$

1,354

10

%

$

4,348

$

3,874

12

%

Operating income

326

201

62

%

943

642

47

%

Adjusted OIBDA(1)

377

321

17

%

1,126

914

23

%

(1) See "Supplemental Disclosures Regarding Non-GAAP Financial Measures" at the end of this release for details regarding this measure.

Recorded Music Revenue

(dollars in millions)

For the Three
Months Ended
June 30, 2026

For the Three
Months Ended
June 30, 2025

For the Three
Months Ended
June 30, 2025

For the Nine
Months Ended
June 30, 2026

For the Nine
Months Ended
June 30, 2025

For the Nine
Months Ended
June 30, 2025

As reported

As reported

Constant

As reported

As reported

Constant

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Digital

$

1,016

$

929

$

943

$

2,967

$

2,643

$

2,717

Physical

137

119

117

426

397

404

Total Digital and Physical

1,153

1,048

1,060

3,393

3,040

3,121

Artist services and expanded-rights

224

195

195

619

508

523

Licensing

111

111

112

336

326

336

Total Recorded Music

$

1,488

$

1,354

$

1,367

$

4,348

$

3,874

$

3,980

Recorded Music revenue was up 9.9% (or 8.9% in constant currency) driven by increases across digital, artist services and expanded-rights and physical revenue. Licensing revenue remained constant with the prior-year quarter (or decreased 0.9% in constant currency). Excluding the $16 million impact of the Copyright Settlement and the $10 million impact of the BMG Termination compared to the prior-year quarter, Recorded Music revenue was up 12.0% (or 11.0% in constant currency). Digital revenue was up 9.4% (or 7.7% in constant currency) and streaming revenue was up 11.8% (or 10.1% in constant currency). Adjusted for the $16 million impact of the Copyright Settlement and the $10 million impact of the BMG Termination compared to the prior-year quarter, Recorded Music digital revenue was up 12.5% (or 10.8% in constant currency). Adjusted for the $10 million impact of the BMG Termination compared to the prior-year quarter, streaming revenue was up 13.1% (or 11.3% in constant currency). Streaming revenue reflects growth in subscription revenue of 12.5% (or 10.8% in constant currency) and in ad-supported revenue of 10.0% (or 8.0% in constant currency). Subscription revenue, adjusted for the $6 million impact of the BMG Termination compared to the prior-year quarter, was up 13.5% (or 11.8% in constant currency). Ad-supported revenue, adjusted for the $4 million impact of the BMG Termination compared to the prior-year quarter, was up 12.0% (or 10.0% in constant currency). The increase in subscription revenue reflects positive market share trends, subscriber growth and improved deal economics. The increase in ad-supported revenue reflects strong performance in the quarter, as well as improved deal economics. Artist services and expanded-rights revenue was up 14.9% (the same in constant currency) due to higher concert promotion revenue primarily in Japan and higher merchandising revenue. Physical revenue increased 15.1% (or 17.1% in constant currency) primarily driven by strong releases in the quarter as well as catalog and carryover success. Top sellers in the quarter included Bruno Mars, Don Toliver, sombr, Alex Warren and Madonna.

Recorded Music operating income increased 62.2% (or 58.3% in constant currency) to $326 million from $201 million in the prior-year quarter, and operating margin was up 7.1 percentage points to 21.9% versus 14.8% in the prior-year quarter (or up 6.8 percentage points from 15.1% in constant currency). The increase in operating income and operating income margin was driven by the factors affecting Adjusted OIBDA discussed below, as well as decreases in restructuring and impairment charges of $63 million and depreciation expense of $4 million primarily relating to EMP, partially offset by higher amortization expense of $10 million attributable to acquisitions.

Adjusted OIBDA increased 17.4% (or 15.6% in constant currency) to $377 million from $321 million and Adjusted OIBDA margin increased 1.6 percentage points to 25.3% from 23.7% in the prior-year quarter (or increased 1.5 percentage points from 23.8% in constant currency). The increases include the $9 million impact of the Copyright Settlement and the $1 million impact of the BMG Termination. Excluding these items, Adjusted OIBDA increased 21.2% (or 19.3% in constant currency) and Adjusted OIBDA margin increased 1.9 percentage points to 25.3% from 23.4% (or 1.7 percentage points from 23.6% in constant currency). The increases in Adjusted OIBDA and Adjusted OIBDA margin were primarily driven by revenue growth and strong operating performance, and savings from the Company’s restructuring plans, of which a portion has been reinvested in the Company’s business, partially offset by unfavorable movements in foreign currency exchange rates of approximately $12 million.

Music Publishing

Music Publishing Summary Results

(dollars in millions)

For the Three
Months Ended
June 30, 2026

For the Three
Months Ended
June 30, 2025

% Change

For the Nine
Months Ended
June 30, 2026

For the Nine
Months Ended
June 30, 2025

% Change

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Revenue

$

377

$

336

12

%

$

1,092

$

969

13

%

Operating income

71

60

18

%

197

167

18

%

Adjusted OIBDA(1)

109

96

14

%

308

264

17

%

(1) See "Supplemental Disclosures Regarding Non-GAAP Financial Measures" at the end of this release for details regarding this measure.

Music Publishing Revenue

(dollars in millions)

For the Three
Months Ended
June 30, 2026

For the Three
Months Ended
June 30, 2025

For the Three
Months Ended
June 30, 2025

For the Nine
Months Ended
June 30, 2026

For the Nine
Months Ended
June 30, 2025

For the Nine
Months Ended
June 30, 2025

As reported

As reported

Constant

As reported

As reported

Constant

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Performance

$

59

$

58

$

60

$

181

$

167

$

174

Digital

235

204

204

674

599

610

Mechanical

19

16

16

54

46

47

Synchronization

60

54

56

170

142

146

Other

4

4

4

13

15

16

Total Music Publishing

$

377

$

336

$

340

$

1,092

$

969

$

993

Music Publishing revenue was up 12.2% (or 10.9% in constant currency) driven by growth across digital, synchronization, mechanical and performance revenue. Digital revenue increased 15.2% (the same in constant currency) and streaming revenue increased 14.4% (or 13.8% in constant currency) driven by continued market growth and the impact of new deals and renewals. Synchronization revenue increased 11.1% (or 7.1% in constant currency) primarily due to an increase in other copyright infringement settlements and mechanical revenue increased 18.8% (the same in constant currency) driven by the timing of distributions. Performance revenue increased 1.7% (or decreased 1.7% in constant currency).

Music Publishing operating income was up 18.3% (or 16.4% in constant currency) to $71 million from $60 million in the prior-year quarter and operating margin increased 0.9 percentage points to 18.8% from 17.9% in the prior-year quarter (the same in constant currency). The increases in operating income and operating margin were driven by the same factors affecting Adjusted OIBDA discussed below.

Music Publishing Adjusted OIBDA increased 13.5% (the same in constant currency) to $109 million from $96 million in the prior-year quarter. Adjusted OIBDA margin increased 0.3 percentage points to 28.9% from 28.6% in the prior-year quarter (or 0.7 percentage points from 28.2% in constant currency). The increases in Adjusted OIBDA and Adjusted OIBDA margin were primarily driven by revenue growth and strong operating performance, partially offset by unfavorable movements in foreign currency exchange rates of approximately $5 million.

Recent Announcements

In addition, the Company also announced today that its Board of Directors declared a regular quarterly cash dividend of $0.20 per share on the Company’s Class A Common Stock and Class B Common Stock. The dividend is payable on September 1, 2026, to stockholders of record as of the close of business on August 20, 2026.

Financial details for the quarter can be found in the Company’s current Quarterly Report on Form 10-Q for the period ended June 30, 2026, which will be filed this afternoon with the Securities and Exchange Commission.

This afternoon, management will be hosting a conference call to discuss the results at 4:30 P.M. EDT. The call will be webcast on www.wmg.com.

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 companies in history: Atlantic, Elektra, Parlophone and Warner Records. They are joined by renowned labels such as TenThousand Projects, 300 Entertainment, Asylum, Big Beat, Canvasback, East West, Erato, FFRR, Fueled by Ramen, Nonesuch, Reprise, Rhino, Roadrunner, Sire, Spinnin’ Records, Warner Classics and Warner Records Nashville. Warner Chappell Music - which traces its origins back to the founding of Chappell & Company in 1811 - is one of the world's leading music publishers, with a catalog of more than one million copyrights spanning every musical genre from the standards of the Great American Songbook to the biggest hits of the 21st century.

"Safe Harbor" Statement under Private Securities Litigation Reform Act of 1995

This communication includes forward-looking statements that reflect the current views of Warner Music Group about future events and financial performance. Words such as "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes," "forecasts" and variations of such words or similar expressions that predict or indicate future events or trends, or that do not relate to historical matters, identify forward-looking statements. All forward-looking statements are made as of today, and we disclaim any duty to update such statements. Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for them. However, we cannot assure you that management's expectations, beliefs and projections will result or be achieved. Investors should not rely on forward-looking statements because they are subject to a variety of risks, uncertainties, and other factors that could cause actual results to differ materially from our expectations. Please refer to our Form 10-K, Form 10-Qs and our other filings with the U.S. Securities and Exchange Commission concerning factors that could cause actual results to differ materially from those described in our forward-looking statements.

We maintain an Internet site at www.wmg.com. We use our website as a channel of distribution for material company information. Financial and other material information regarding Warner Music Group is routinely posted on and accessible at http://investors.wmg.com. In addition, you may automatically receive email alerts and other information about Warner Music Group by enrolling your email address through the “email alerts” section at http://investors.wmg.com. Our website and the information posted on it or connected to it shall not be deemed to be incorporated by reference into this communication.

Figure 1. Warner Music Group Corp. - Condensed Consolidated Statements of Operations, Three Months Ended June 30, 2026 versus June 30, 2025

(dollars in millions)

For the Three Months Ended
June 30, 2026

For the Three Months Ended
June 30, 2025

% Change

(unaudited)

(unaudited)

Revenue

$

1,864

$

1,689

10

%

Cost and expenses:

Cost of revenue

(1,010

)

(913

)

11

%

Selling, general and administrative expenses

(464

)

(471

)

-1

%

Restructuring and impairments

(7

)

(69

)

-90

%

Amortization expense

(78

)

(67

)

16

%

Total costs and expenses

$

(1,559

)

$

(1,520

)

3

%

Operating income

$

305

$

169

80

%

Interest expense, net

(49

)

(43

)

14

%

Other income (expense), net

11

(137

)

—

%

Income (loss) before income taxes

$

267

$

(11

)

—

%

Income tax expense

(67

)

(5

)

—

%

Net income (loss)

$

200

$

(16

)

—

%

Less: (Income) loss attributable to noncontrolling interest

4

—

—

%

Net income (loss) attributable to Warner Music Group Corp.

$

204

$

(16

)

—

%

Net income (loss) per share attributable to common stockholders:

Class A – Basic

$

0.39

$

(0.03

)

Class A – Diluted

$

0.38

$

(0.03

)

Class B – Basic

$

0.39

$

(0.03

)

Class B – Diluted

$

0.39

$

(0.03

)

For the Nine Months Ended
June 30, 2026

For the Nine Months Ended
June 30, 2025

% Change

(unaudited)

(unaudited)

Revenue

$

5,436

$

4,839

12

%

Cost and expenses:

Cost of revenue

(2,927

)

(2,598

)

13

%

Selling, general and administrative expenses

(1,382

)

(1,395

)

-1

%

Restructuring and impairments

(47

)

(109

)

-57

%

Amortization expense

(218

)

(186

)

17

%

Total costs and expenses

$

(4,574

)

$

(4,288

)

7

%

Net gain on divestiture

(5

)

—

—

%

Operating income

$

857

$

551

56

%

Loss on extinguishment of debt

(7

)

—

—

%

Interest expense, net

(135

)

(119

)

13

%

Other income (expense), net

52

(48

)

—

%

Income before income taxes

$

767

$

384

100

%

Income tax expense

(211

)

(123

)

72

%

Net income

$

556

$

261

—

%

Less: Income attributable to noncontrolling interest

7

(5

)

—

%

Net income attributable to Warner Music Group Corp.

$

563

$

256

—

%

Net income per share attributable to common stockholders:

Class A – Basic

$

1.07

$

0.49

Class A – Diluted

$

1.05

$

0.49

Class B – Basic

$

1.07

$

0.49

Class B – Diluted

$

1.06

$

0.49

Figure 2. Warner Music Group Corp. - Condensed Consolidated Balance Sheets at June 30, 2026 versus September 30, 2025

(dollars in millions)

June 30, 2026

September 30, 2025

% Change

(unaudited)

Assets

Current assets:

Cash and equivalents

$

618

$

532

16

%

Accounts receivable, net

1,607

1,340

20

%

Inventories

69

62

11

%

Royalty advances expected to be recouped within one year

671

581

15

%

Assets held for sale

68

89

-24

%

Prepaid and other current assets

227

166

37

%

Total current assets

$

3,260

$

2,770

18

%

Royalty advances expected to be recouped after one year

1,118

1,079

4

%

Property, plant and equipment, net

416

441

-6

%

Operating lease right-of-use assets, net

163

189

-14

%

Goodwill

2,126

2,061

3

%

Intangible assets subject to amortization, net

3,098

2,725

14

%

Intangible assets not subject to amortization

153

154

-1

%

Deferred tax assets, net

58

111

-48

%

Other assets

335

299

12

%

Total assets

$

10,727

$

9,829

9

%

Liabilities, Redeemable Noncontrolling Interest and Equity

Current liabilities:

Accounts payable

$

354

$

257

38

%

Accrued royalties

3,030

2,740

11

%

Accrued liabilities

494

666

-26

%

Accrued interest

40

31

29

%

Operating lease liabilities, current

44

43

2

%

Deferred revenue

330

286

15

%

Liabilities held for sale

39

49

-20

%

Other current liabilities

112

129

-13

%

Total current liabilities

$

4,443

$

4,201

6

%

Acquisition Corp. long-term debt

4,044

4,063

—

%

Other long-term debt

666

302

—

%

Operating lease liabilities, noncurrent

165

200

-18

%

Deferred tax liabilities, net

184

164

12

%

Other noncurrent liabilities

139

142

-2

%

Total liabilities

$

9,641

$

9,072

6

%

Redeemable noncontrolling interests

133

—

—

%

Equity:

Class A common stock

$

—

$

—

—

%

Class B common stock

1

1

—

%

Additional paid-in capital

2,141

2,166

-1

%

Accumulated deficit

(1,068

)

(1,331

)

-20

%

Accumulated other comprehensive loss, net

(220

)

(189

)

16

%

Total Warner Music Group Corp. equity

$

854

$

647

32

%

Noncontrolling interest

99

110

-10

%

Total equity

953

757

26

%

Total liabilities, redeemable noncontrolling interest and equity

$

10,727

$

9,829

9

%

Figure 3. Warner Music Group Corp. - Summarized Statements of Cash Flows, Three Months Ended June 30, 2026 versus June 30, 2025

(dollars in millions)

For the Three Months Ended
June 30, 2026

For the Three Months Ended
June 30, 2025

(unaudited)

(unaudited)

Net cash provided by operating activities

$

142

$

46

Net cash used in investing activities

(151

)

(71

)

Net cash used in financing activities

(110

)

(96

)

Effect of foreign currency exchange rates on cash and equivalents

1

11

Cash balances classified as assets held for sale

(5

)

$

—

Net decrease in cash and equivalents

$

(123

)

$

(110

)

Figure 4. Warner Music Group Corp. - Digital Revenue Summary, Three Months Ended June 30, 2026 versus June 30, 2025

(dollars in millions)

For the Three Months Ended
June 30, 2026

For the Three Months Ended
June 30, 2025

% Change

(unaudited)

(unaudited)

Recorded Music

Subscription

$

758

$

674

12

%

Ad-Supported

243

221

10

%

Streaming

$

1,001

$

895

12

%

Downloads and Other Digital

15

34

-56

%

Total Recorded Music Digital Revenue

$

1,016

$

929

9

%

Music Publishing

Streaming

$

231

$

202

14

%

Downloads and Other Digital

4

2

100

%

Total Music Publishing Digital Revenue

$

235

$

204

15

%

Consolidated

Streaming

$

1,232

$

1,097

12

%

Downloads and Other Digital

19

36

-47

%

Intersegment Eliminations

—

(1

)

—

%

Total Digital Revenue

$

1,251

$

1,132

11

%

Supplemental Disclosures Regarding Non-GAAP Financial Measures

We evaluate our operating performance based on several factors, including the following non-GAAP financial measures:

Adjusted OIBDA

We allocate resources and evaluate performance based on several factors, including Adjusted OIBDA. We define Adjusted OIBDA as operating income (loss) adjusted to exclude the following items: (i) non-cash depreciation of tangible assets, (ii) non-cash amortization of intangible assets, (iii) non-cash stock-based compensation and other related expenses, (iv) gains or losses on divestitures, (v) expenses related to restructuring and transformation initiatives, which include costs associated with the Company’s financial transformation initiative to design and implement new information technology and upgrade our finance infrastructure, and (vi) executive transition costs. Items excluded are not viewed to contribute directly to management’s evaluation of operating results. We consider Adjusted OIBDA to be an important indicator of the operational strengths and performance of our businesses. However, a limitation of the use of Adjusted OIBDA as a performance measure is that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in our businesses. Accordingly, Adjusted OIBDA should be considered in addition to, not as a substitute for, operating income (loss), net income (loss) attributable to Warner Music Group Corp. and other 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 Net Income as net income (loss) attributable to Warner Music Group Corp. adjusted to exclude the following items: (i) non-cash amortization of intangible assets, (ii) expenses related to restructuring and transformation initiatives, which include costs associated with the Company’s financial transformation initiative to design and implement new information technology and upgrade our finance infrastructure, (iii) gains or losses on divestitures, (iv) non-cash stock-based compensation, (v) loss on extinguishment of debt, and (vi) other (income) expenses. These exclusions are then further adjusted to account for tax effects. Adjusted Net Income should be considered in addition to, not as a substitute for, net income (loss) attributable to Warner Music Group Corp. and other measures of financial performance reported in accordance with U.S. GAAP. We use Adjusted Net Income to calculate Adjusted Earnings (Loss) Per Share (“EPS”), which we define as Adjusted Net Income divided by the basic weighted-average shares outstanding for the period. Our definition of Adjusted Net Income and Adjusted EPS may differ from similarly titled measures used by other companies.

Figure 5. Warner Music Group Corp. - Reconciliation of Net Income to Adjusted OIBDA, Three Months Ended June 30, 2026 versus June 30, 2025

(dollars in millions)

For the Three Months Ended
June 30, 2026

For the Three Months Ended
June 30, 2025

% Change

(unaudited)

(unaudited)

Net income (loss) attributable to Warner Music Group Corp.

$

204

$

(16

)

—

%

Income attributable to noncontrolling interest

(4

)

—

—

%

Net income (loss)

$

200

$

(16

)

—

%

Income tax expense

67

5

—

%

Income including income taxes

$

267

$

(11

)

—

%

Other (income) expense, net

(11

)

137

—

%

Interest expense, net

49

43

14

%

Operating income

$

305

$

169

80

%

Amortization expense

78

67

16

%

Depreciation expense

33

29

14

%

Restructuring and impairments

7

69

-90

%

Transformation initiative costs

10

19

-47

%

Executive transition costs

—

4

-100

%

Non-cash stock-based compensation and other related costs

—

16

-100

%

Adjusted OIBDA

$

433

$

373

16

%

Operating income margin

16.4

%

10.0

%

Adjusted OIBDA margin

23.2

%

22.1

%

Net income (loss) attributable to Warner Music Group Corp.

$

204

$

(16

)

—

%

Less: Net income attributable to participating securities

(1

)

—

—

%

Net income (loss) attributable to common shareholders

$

203

$

(16

)

—

%

Amortization expense

78

67

16

%

Restructuring and impairments

7

69

-90

%

Transformation initiative costs

10

19

-47

%

Executive transition costs

—

4

-100

%

Non-cash stock-based compensation and other related costs

—

16

-100

%

Other (income) expense, net

(11

)

137

—

%

Tax impact (a)

(21

)

(76

)

-72

%

Adjusted Net Income

$

266

$

220

21

%

Weighted Avg Shares Outstanding - Class A - Basic

146,297

145,878

Weighted Avg Shares Outstanding - Class B - Basic

375,380

375,380

Unadjusted (GAAP) EPS - Class A - Basic

$

0.39

$

(0.03

)

Adjusted EPS - Class A - Basic

$

0.51

$

0.42

a) Represents the tax effect of the adjustments to reflect corporate income taxes at assumed effective tax rates of 25% and 24% for the three months ended June 30, 2026 and June 30, 2025, respectively.

For the Nine Months Ended
June 30, 2026

For the Nine Months Ended
June 30, 2025

% Change

(unaudited)

(unaudited)

Net income attributable to Warner Music Group Corp.

$

563

$

256

—

%

Income (loss) attributable to noncontrolling interest

(7

)

5

—

%

Net income

$

556

$

261

—

%

Income tax expense

211

123

72

%

Income including income taxes

$

767

$

384

100

%

Other (income) expense, net

(52

)

48

—

%

Interest expense, net

135

119

13

%

Loss on extinguishment of debt

7

—

—

%

Operating income

$

857

$

551

56

%

Amortization expense

218

186

17

%

Depreciation expense

95

86

10

%

Restructuring and impairments

47

109

-57

%

Transformation initiatives and other related costs

39

54

-28

%

Executive transition costs

—

4

-100

%

Net loss on divestitures

5

—

—

%

Non-cash stock-based compensation and other related costs

32

49

-35

%

Adjusted OIBDA

$

1,293

$

1,039

24

%

Operating income margin

15.8

%

11.4

%

Adjusted OIBDA margin

23.8

%

21.5

%

Net income (loss) attributable to Warner Music Group Corp.

$

563

$

256

120

%

Less: Net income attributable to participating securities

(5

)

(3

)

67

%

Net income attributable to common shareholders

$

558

$

253

121

%

Amortization expense

218

186

17

%

Restructuring and impairments

47

109

-57

%

Transformation initiative costs

39

54

-28

%

Net loss on divestitures

5

—

—

%

Executive transition costs

—

4

-100

%

Non-cash stock-based compensation and other related costs

32

49

-35

%

Loss on extinguishment of debt

7

—

—

%

Other (income) expense, net

(52

)

48

—

%

Tax impact (a)

(81

)

(110

)

-26

%

Adjusted Net Income

$

773

$

593

30

%

Weighted Avg Shares Outstanding - Class A - Basic

146,542

144,623

Weighted Avg Shares Outstanding - Class B - Basic

375,380

375,380

Unadjusted (GAAP) EPS - Class A - Basic

$

1.07

$

0.49

Adjusted EPS - Class A - Basic

$

1.48

$

1.14

a) Represents the tax effect of the adjustments to reflect corporate income taxes at assumed effective tax rates of 28% and 24% for the nine months ended June 30, 2026 and June 30, 2025, respectively.

Figure 6. Warner Music Group Corp. - Reconciliation of Segment Operating Income to Adjusted OIBDA, Three Months Ended June 30, 2026 versus June 30, 2025

(dollars in millions)

For the Three Months Ended
June 30, 2026

For the Three Months Ended
June 30, 2025

% Change

(unaudited)

(unaudited)

Total WMG operating income – GAAP

$

305

$

169

80

%

Depreciation and amortization expense

111

96

16

%

Restructuring and impairments

7

69

-90

%

Transformation initiative costs

10

19

-47

%

Executive transition costs

—

4

-100

%

Non-cash stock-based compensation and other related costs

—

16

-100

%

Total WMG Adjusted OIBDA

$

433

$

373

16

%

Total WMG Adjusted OIBDA margin

23.2

%

22.1

%

Recorded Music operating income – GAAP

$

326

$

201

62

%

Depreciation and amortization expense

53

47

13

%

Restructuring and impairments

6

69

-91

%

Non-cash stock-based compensation and other related costs

$

(8

)

$

4

—

%

Recorded Music Adjusted OIBDA

$

377

$

321

17

%

Recorded Music Adjusted OIBDA margin

25.3

%

23.7

%

Music Publishing operating income – GAAP

$

71

$

60

18

%

Depreciation and amortization expense

37

35

6

%

Non-cash stock-based compensation and other related costs

1

1

—

%

Music Publishing Adjusted OIBDA

$

109

$

96

14

%

Music Publishing Adjusted OIBDA margin

28.9

%

28.6

%

For the Nine Months Ended
June 30, 2026

For the Nine Months Ended
June 30, 2025

% Change

(unaudited)

(unaudited)

Total WMG operating income – GAAP

$

857

$

551

56

%

Depreciation and amortization expense

313

272

15

%

Restructuring and impairments

47

109

-57

%

Transformation initiatives and other related costs

39

54

-28

%

Executive transition costs

—

4

-100

%

Net loss on divestitures

5

—

—

%

Non-cash stock-based compensation and other related costs

32

49

-35

%

Total WMG Adjusted OIBDA

$

1,293

$

1,039

24

%

Total WMG Adjusted OIBDA margin

23.8

%

21.5

%

Recorded Music operating income – GAAP

$

943

$

642

47

%

Depreciation and amortization expense

146

138

6

%

Restructuring and impairment

34

110

-69

%

Non-cash stock-based compensation and other related costs

3

24

-88

%

Recorded Music Adjusted OIBDA

$

1,126

$

914

23

%

Recorded Music Adjusted OIBDA margin

25.9

%

23.6

%

Music Publishing operating income – GAAP

$

197

$

167

18

%

Depreciation and amortization expense

107

93

15

%

Non-cash stock-based compensation and other related costs

4

4

—

%

Music Publishing Adjusted OIBDA

$

308

$

264

17

%

Music Publishing Adjusted OIBDA margin

28.2

%

27.2

%

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 performance in comparison to prior periods. Constant-currency information compares results between periods as if exchange rates had remained constant period over period. We use results on a constant-currency basis as one measure to evaluate our performance. We calculate constant-currency results by applying current-year foreign currency exchange rates to prior-year results. However, a limitation of the use of the constant-currency results as a performance measure is that it does not reflect the impact of exchange rates on our revenue. These results should be considered in addition to, not as a substitute for, results reported in accordance with U.S. GAAP. Results on a constant-currency basis, as we present them, may not be comparable to similarly titled measures used by other companies and are not a measure of performance presented in accordance with U.S. GAAP.

Figure 7. Warner Music Group Corp. - Revenue by Geography and Segment, Three Months Ended June 30, 2026 versus June 30, 2025 As Reported and Constant Currency

(dollars in millions)

For the Three
Months Ended
June 30, 2026

For the Three
Months Ended
June 30, 2025

For the Three
Months Ended
June 30, 2025

% Change

As reported

As reported

Constant

Constant

(unaudited)

(unaudited)

(unaudited)

(unaudited)

U.S. revenue

Recorded Music

$

587

$

536

$

536

10

%

Music Publishing

194

186

186

4

%

International revenue

Recorded Music

$

901

$

818

$

831

8

%

Music Publishing

183

150

154

19

%

Intersegment eliminations

(1

)

(1

)

(2

)

-50

%

Total Revenue

$

1,864

$

1,689

$

1,705

9

%

Revenue by Segment:

Recorded Music

Digital

$

1,016

$

929

$

943

8

%

Physical

137

119

117

17

%

Total Digital and Physical

$

1,153

$

1,048

$

1,060

9

%

Artist services and expanded-rights

224

195

195

15

%

Licensing

111

111

112

-1

%

Total Recorded Music

$

1,488

$

1,354

$

1,367

9

%

Music Publishing

Performance

$

59

$

58

$

60

-2

%

Digital

235

204

204

15

%

Mechanical

19

16

16

19

%

Synchronization

60

54

56

7

%

Other

4

4

4

—

%

Total Music Publishing

$

377

$

336

$

340

11

%

Intersegment eliminations

(1

)

(1

)

(2

)

-50

%

Total Revenue

$

1,864

$

1,689

$

1,705

9

%

Total Digital Revenue

$

1,251

$

1,132

$

1,147

9

%

For the Nine
Months Ended
June 30, 2026

For the Nine
Months Ended
June 30, 2025

For the Nine
Months Ended
June 30, 2025

% Change

As reported

As reported

Constant

Constant

(unaudited)

(unaudited)

(unaudited)

(unaudited)

U.S. revenue

Recorded Music

$

1,729

$

1,565

$

1,565

10

%

Music Publishing

562

520

520

8

%

International revenue

Recorded Music

$

2,619

$

2,309

$

2,415

8

%

Music Publishing

530

449

473

12

%

Intersegment eliminations

(4

)

(4

)

(5

)

(20

)%

Total Revenue

$

5,436

$

4,839

$

4,968

9

%

Revenue by Segment:

Recorded Music

Digital

$

2,967

$

2,643

$

2,717

9

%

Physical

426

397

404

5

%

Total Digital and Physical

$

3,393

$

3,040

$

3,121

9

%

Artist services and expanded-rights

619

508

523

18

%

Licensing

336

326

336

—

%

Total Recorded Music

$

4,348

$

3,874

$

3,980

9

%

Music Publishing

Performance

$

181

$

167

$

174

4

%

Digital

674

599

610

10

%

Mechanical

54

46

47

15

%

Synchronization

170

142

146

16

%

Other

13

15

16

(19

)%

Total Music Publishing

$

1,092

$

969

$

993

10

%

Intersegment eliminations

(4

)

(4

)

(5

)

(20

)%

Total Revenue

$

5,436

$

4,839

$

4,968

9

%

Total Digital Revenue

$

3,640

$

3,241

$

3,326

9

%

Figure 8. Warner Music Group Corp. - Adjusted OIBDA by Segment, Three Months Ended June 30, 2026 versus June 30, 2025 As Reported and Constant Currency

(dollars in millions)

For the Three
Months Ended
June 30, 2026

For the Three
Months Ended
June 30, 2025

For the Three
Months Ended
June 30, 2025

Change %

As reported

As reported

Constant

Constant

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Total WMG Adjusted OIBDA

$

433

$

373

$

378

14.6

%

Adjusted OIBDA margin

23.2

%

22.1

%

22.2

%

Recorded Music Adjusted OIBDA

$

377

$

321

$

326

15.6

%

Recorded Music Adjusted OIBDA margin

25.3

%

23.7

%

23.8

%

Music Publishing Adjusted OIBDA

$

109

$

96

$

96

13.5

%

Music Publishing Adjusted OIBDA margin

28.9

%

28.6

%

28.2

%

Figure 9. Warner Music Group Corp. - Notable Items, As Reported

(dollars in millions)

FY 2026

FY 2025

Three Months Ended
December 31, 2025

Three Months Ended
March 31, 2026

Three Months Ended
June 30, 2026

Three Months Ended
December 31, 2024

Three Months Ended
March 31, 2025

Three Months Ended
June 30, 2025

Revenue

Recorded Music

Streaming - BMG Termination (a)

—

—

—

6

6

10

Streaming - DSP True-up and Settlement Payments

12

—

—

(7

)

11

—

Download and Other Digital - Copyright Settlement

—

—

—

—

—

16

Music Publishing

Streaming - MLC Historical Matched Royalties

—

—

—

17

—

—

Adjusted OIBDA

Recorded Music

BMG Termination (a)

—

—

—

—

1

1

DSP True-up and Settlement Payments

7

—

—

(4

)

7

—

Copyright Settlement

—

—

—

—

—

9

Music Publishing

MLC Historical Matched Royalties

—

—

—

4

—

—

(a) The BMG Termination impact shown in FY 2025 represents the incremental revenue and Adjusted OIBDA compared to the current fiscal year.

Free Cash Flow

Our definition of Free Cash Flow is defined as cash flow provided by operating activities less capital expenditures. We use Free Cash Flow, among other measures, to evaluate our operating performance. Management believes Free Cash Flow provides investors with an important perspective on the cash available to fund our debt service requirements, ongoing working capital requirements, capital expenditure requirements, strategic acquisitions and investments, and any dividends, prepayments of debt or repurchases or retirement of our outstanding debt or notes in open market purchases, privately negotiated purchases, any repurchases of our common stock or otherwise. As a result, Free Cash Flow is a significant measure of our ability to generate long-term value. It is useful for investors to know whether this ability is being enhanced or degraded as a result of our operating performance. We believe the presentation of Free Cash Flow is relevant and useful for investors because it allows investors to view performance in a manner similar to the method management uses.

Free Cash Flow is not a measure of performance calculated in accordance with U.S. GAAP and therefore it should not be considered in isolation of, or as a substitute for, net income (loss) as an indicator of operating performance or cash flow provided by operating activities as a measure of liquidity. Free Cash Flow, as we calculate it, may not be comparable to similarly titled measures employed by other companies. In addition, Free Cash Flow does not necessarily represent funds available for discretionary use and is not necessarily a measure of our ability to fund our cash needs. Because Free Cash Flow deducts capital expenditures from “net cash provided by operating activities” (the most directly comparable U.S. GAAP financial measure), users of this information should consider the types of events and transactions that are not reflected. We provide below a reconciliation of Free Cash Flow to the most directly comparable amount reported under U.S. GAAP, which is “net cash provided by operating activities.”

Figure 10. Warner Music Group Corp. - Calculation of Free Cash Flow, Three Months Ended June 30, 2026 versus June 30, 2025

(dollars in millions)

For the Three
Months Ended
June 30, 2026

For the Three
Months Ended
June 30, 2025

(unaudited)

(unaudited)

Net cash provided by operating activities

$

142

$

46

Less: Capital expenditures

28

39

Free Cash Flow

$

114

$

7

For the Nine
Months Ended
June 30, 2026

For the Nine
Months Ended
June 30, 2025

(unaudited)

(unaudited)

Net cash provided by operating activities

$

708

$

447

Less: Capital expenditures

75

111

Free Cash Flow

$

633

$

336

NEW YORK--(BUSINESS WIRE)--Warner Music Group Corp. will release its financial results on Wednesday, August 5, 2026, for the third quarter ended June 30, 2026, instead of the previously announced reporting date of August 6, 2026. The company will hold an earnings conference call that afternoon at 4:30 p.m. ET. To access the conference call, please register here. Once registered, you will receive an email with unique dial in details with a PIN to join the call. We suggest you call in 10 minutes.

On July 30, 2026, Warner Music Group Corp (WMG) shares fell 5.6% to a current price of $27.56. The stock is trading within a 52-week range of $23.34 to $35.42,

Posted by Defense World Staff on Jul 27th, 2026

Entropy Technologies LP grew its holdings in Warner Music Group Corp. (NASDAQ:WMG – Free Report) by 267.9% in the first quarter, according to its most recent disclosure with the SEC. The fund owned 78,534 shares of the company’s stock after buying an additional 57,188 shares during the period. Entropy Technologies LP’s holdings in Warner Music Group were worth $2,006,000 at the end of the most recent reporting period.

Other hedge funds have also made changes to their positions in the company. Renaissance Technologies LLC lifted its stake in shares of Warner Music Group by 88.3% in the 1st quarter. Renaissance Technologies LLC now owns 1,521,800 shares of the company’s stock worth $38,867,000 after acquiring an additional 713,578 shares during the period. Gabelli Funds LLC raised its stake in shares of Warner Music Group by 4.3% during the 1st quarter. Gabelli Funds LLC now owns 24,000 shares of the company’s stock worth $613,000 after buying an additional 1,000 shares in the last quarter. Inceptionr LLC purchased a new position in shares of Warner Music Group during the 1st quarter worth approximately $1,350,000. Sei Investments Co. lifted its holdings in shares of Warner Music Group by 3.6% in the 1st quarter. Sei Investments Co. now owns 631,224 shares of the company’s stock valued at $16,121,000 after buying an additional 21,994 shares during the period. Finally, Cetera Investment Advisers acquired a new stake in shares of Warner Music Group in the 1st quarter valued at approximately $442,000. Institutional investors and hedge funds own 96.88% of the company’s stock.

Analyst Ratings Changes A number of analysts recently weighed in on WMG shares. Sanford C. Bernstein restated an “outperform” rating on shares of Warner Music Group in a research note on Friday, May 8th. Zacks Research cut Warner Music Group from a “strong-buy” rating to a “hold” rating in a research report on Monday, June 22nd. Weiss Ratings restated a “hold (c)” rating on shares of Warner Music Group in a research report on Wednesday, June 24th. Morgan Stanley set a $39.00 price target on shares of Warner Music Group in a research note on Friday, May 8th. Finally, Guggenheim upped their price target on shares of Warner Music Group from $34.00 to $36.00 and gave the stock a “buy” rating in a research note on Friday, May 8th. Fourteen research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, Warner Music Group has an average rating of “Moderate Buy” and an average target price of $38.43.

Read Our Latest Report on WMG

Warner Music Group Price Performance Shares of NASDAQ WMG opened at $26.55 on Monday. The firm’s 50-day moving average is $29.42 and its two-hundred day moving average is $28.95. The company has a market capitalization of $13.85 billion, a PE ratio of 31.24, a price-to-earnings-growth ratio of 0.39 and a beta of 1.30. Warner Music Group Corp. has a 12-month low of $23.34 and a 12-month high of $35.42. The company has a debt-to-equity ratio of 5.62, a current ratio of 0.73 and a quick ratio of 0.71.

Warner Music Group (NASDAQ:WMG – Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The company reported $0.44 earnings per share for the quarter, topping analysts’ consensus estimates of $0.30 by $0.14. Warner Music Group had a net margin of 6.34% and a return on equity of 62.01%. The business had revenue of $1.73 billion during the quarter, compared to analysts’ expectations of $1.61 billion. During the same period last year, the company posted $0.07 EPS. The company’s revenue was up 16.7% on a year-over-year basis. Equities analysts anticipate that Warner Music Group Corp. will post 1.52 EPS for the current fiscal year.

Warner Music Group Announces Dividend The business also recently announced a quarterly dividend, which was paid on Tuesday, June 2nd. Shareholders of record on Tuesday, May 26th were issued a dividend of $0.19 per share. This represents a $0.76 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date was Tuesday, May 26th. Warner Music Group’s dividend payout ratio is 89.41%.

Warner Music Group Company Profile (Free Report)

Warner Music Group is a major global music company that operates across recorded music and music publishing. Its recorded-music business comprises a portfolio of well-known labels—including Atlantic, Warner Records and Parlophone—as well as distribution and artist-services operations that support both established and emerging artists. The company’s publishing arm, Warner Chappell Music, manages songwriting catalogs and administers rights for compositions across multiple media, providing licensing for film, television, advertising and other commercial uses.

WMG’s activities span the full music value chain: signing and developing artists, producing and marketing recordings, distributing music through physical channels and streaming platforms, and monetizing rights through licensing, synchronization and neighboring-rights collection.

Featured Articles Five stocks we like better than Warner Music Group RTX and Lockheed Earnings: Can Strong Guidance Reset the Defense Trade? These 4 Earnings Reports Expose the Market’s Growing Economic Divide Broadcom May Be the Biggest Winner From Alphabet’s Earnings Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit Want to see what other hedge funds are holding WMG? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Warner Music Group Corp. (NASDAQ:WMG – Free Report).

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Warner Music Group Corp. will release its financial results on Thursday, August 6, 2026, for the third quarter ended June 30, 2026, and will hold an earnings c

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Netflix (NFLX 3.19%) isn't Wall Street's favorite stock these days. As of June 29, it's down 44% over the last year, trading at a modest 24 times trailing earnings. Are people selling Netflix stock for good reason, or is it a fantastic buy at these low prices?

The efficiency king nobody's talking about Netflix doesn't just make money; it makes money efficiently.

Return on assets? 23.7%, more than triple the next-best entertainment stock, Fox Corp. (FOX +2.47%). Return on invested capital? 28.8%, again about triple Fox's runner-up reading. Return on equity? 48.5%. You guessed it -- roughly three times Fox's returns on shareholder equity. Sure, Warner Music Group (WMG +1.80%) runs ahead at 68.5%, but that's not necessarily a good thing. It's the math you get from Warner's low equity and a heavy debt load. These aren't just profit percentages that look good on a spreadsheet. They're evidence that Netflix squeezes more profit out of every dollar than its sector rivals can dream of.

Image source: Getty Images.

It's still growing at scale Here's the thing about large companies: They're supposed to slow down over time. Netflix didn't get the memo.

For a company generating over $47 billion in annual revenue, Netflix continues to expand at an impressive clip. Revenue rose 16% year over year in the first quarter, and analysts expect roughly 12% annual growth over the next three years. That's like watching a weight lifter win a cross-country footrace.

The valuation reset From 2023 to 2025, Netflix largely traded at 50-plus times earnings. Investors gladly paid up, and the stock soared to a record market cap of $569 billion last summer.

Things have changed. Netflix's stock plunged amid the Warner Bros. Discovery (WBD 1.81%) bidding drama and Q2 revenue and earnings guidance just below the Street's consensus estimates. I already mentioned the 24x P/E ratio and 44% price drop. Netflix isn't on clearance, but the "overpriced" argument has lost its teeth.

Today's Change

(

-3.19

%) $

-2.35

Current Price

$

71.43

Netflix combines best-in-class operational efficiency with double-digit revenue growth and a valuation that no longer demands perfection. The stock isn't broken; it's just unfashionable. That's a great setup for long-term investors.

Anders Bylund has positions in Netflix. The Motley Fool has positions in and recommends Netflix and Warner Bros. Discovery. The Motley Fool has a disclosure policy.

Warner Music Group Corp. (WMG) Q2 2026 Earnings Call Transcript

2 hours ago

MSA Safety Incorporporated (NYSE:MSA) CFO Acquires $71,093.12 in StockMarketBeat

MSA Safety Incorporporated (NYSE:MSA - Get Free Report) CFO Julie Beck bought 448 shares of the stock in a transaction dated Thursday, June 11th. The stock was acquired at an average price of $158.69 per share, with a total value of $71,093.12. Following the completion of the purchase, the chief financial officer owned 3,825 shares of the company's stock, valued at $606,989.25. This represents a 13.27% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this link.

NYSE:MSA

Read MSA Safety Incorporporated (NYSE:MSA) CFO Acquires $71,093.12 in Stock

2 hours ago

Insider Selling: NBT Bancorp (NASDAQ:NBTB) Director Sells 2,100 Shares of StockMarketBeat

NBT Bancorp Inc. (NASDAQ:NBTB - Get Free Report) Director Heidi Hoeller sold 2,100 shares of the business's stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $48.03, for a total transaction of $100,863.00. Following the transaction, the director owned 11,560 shares of the company's stock, valued at approximately $555,226.80. This represents a 15.37% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink.

NASDAQ:NBTB

Read Insider Selling: NBT Bancorp (NASDAQ:NBTB) Director Sells 2,100 Shares of Stock

2 hours ago

Douglas Milne Sells 1,600 Shares of IGM Financial (TSE:IGM) StockMarketBeat

IGM Financial Inc. (TSE:IGM - Get Free Report) Director Douglas Milne sold 1,600 shares of the business's stock in a transaction that occurred on Tuesday, June 9th. The stock was sold at an average price of C$80.61, for a total value of C$128,976.00. Following the sale, the director directly owned 800 shares in the company, valued at C$64,488. The trade was a 66.67% decrease in their ownership of the stock.

TSE:IGM

Read Douglas Milne Sells 1,600 Shares of IGM Financial (TSE:IGM) Stock

2 hours ago

GlobalFoundries (NASDAQ:GFS) Insider Michael James Hogan Sells 2,800 SharesMarketBeat

GlobalFoundries Inc. (NASDAQ:GFS - Get Free Report) insider Michael James Hogan sold 2,800 shares of GlobalFoundries stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $75.17, for a total value of $210,476.00. Following the transaction, the insider owned 6,695 shares in the company, valued at $503,263.15. This trade represents a 29.49% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

NASDAQ:GFS

Read GlobalFoundries (NASDAQ:GFS) Insider Michael James Hogan Sells 2,800 Shares

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NEW YORK--(BUSINESS WIRE)--Warner Music Group Corp. announced today that Armin Zerza, Chief Operating Officer and Chief Financial Officer, will participate in a question and answer session during the J.P. Morgan Global Technology, Media and Communications Conference on Wednesday, May 20th, at 10:40am ET, instead of the previously announced time of 11:20am ET.

A live webcast of the session will be available to the general public through a link on the Investor Relations page of Warner Music Group’s website. A replay of the audio webcast will be available in the Past Events section of Warner Music Group’s Investor Relations homepage.

About Warner Music Group
Warner Music Group (WMG) brings together artists, songwriters, entrepreneurs, and technology that are moving entertainment culture across the globe. WMG’s Recorded Music division includes renowned labels such as 10K Projects, 300 Entertainment, Asylum, Atlantic, Big Beat, EastWest, Elektra, Erato, Fueled By Ramen, Nonesuch, Parlophone, Reprise, Rhino, Roadrunner, Sire, Spinnin’, Warner Records, Warner Classics, and Warner Records Nashville. WMG’s music publishing arm, Warner Chappell Music, has a catalog of over one million copyrights spanning every musical genre, from the standards of the Great American Songbook to the biggest hits of the 21st century. Warner Music Group is also home to ADA, which supports the independent community, as well as artist services division WMX. Follow WMG on Instagram, X, TikTok, LinkedIn, and Facebook.

On May 18, 2026, Warner Music Group Corp WMG shares rose 3.4% to a current price of $34.56. The stock has shown strong performance with a 52-week range of $23.34 to $34.63.

GF Value™ verdict: Current price is equal to GF Value™ of $34.56, indicating fairly valued with 0% upside/downside.GF Score™ of 82/100 suggests a strong overall ranking, indicating potential for higher long-term returns.No insider transactions have been reported in the last 3 months, suggesting a neutral sentiment among insiders. Is WMG Overvalued or Undervalued? Warner Music Group Corp's current price of $34.56 aligns perfectly with its GF Value™ estimate of $34.56, indicating that the stock is fairly valued. This means there is no margin of safety for investors looking to enter at this price point. The GF Valuation label suggests that the stock is trading at its intrinsic value, reflecting the current market sentiment and performance expectations.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given the current valuation context, investors should be cautious as there is limited room for error, and any unforeseen adverse developments could lead to a decline in stock price.

How Does WMG's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 40.7x 39.0x Forward P/E 24.9x N/A Currently, WMG's P/E (TTM) of 40.7x is 4% above its 5-year median P/E of 39.0x, indicating that the stock is trading slightly above its historical valuation. This analysis aligns with the GF Value™ verdict that suggests the stock is fairly valued, as the forward P/E also indicates a more optimistic outlook moving forward.

What Does WMG's GF Score™ Tell Us? Metric Rating GF Score™ 82 Financial Strength 4/10 Profitability 7/10 Growth 7/10 Valuation 9/10 Momentum 7/10 The GF Score™ of 82/100 reflects a strong position for WMG, signifying potential for higher long-term returns. The valuation rank of 9/10 stands out as the strongest aspect of the score, indicating that the stock is attractively valued relative to its potential. However, the financial strength score of 4/10 suggests some vulnerability, indicating that the company may not be as stable as desired. This mixed picture implies that while there is promise in profitability and growth, financial strength remains a concern.

What Are Insiders Doing with WMG Stock? In the past three months, there have been no reported insider transactions for Warner Music Group Corp. This absence of insider trading activity typically indicates neutrality among insiders regarding the company's future prospects. Such patterns can suggest that insiders do not perceive immediate opportunities or risks that warrant buying or selling shares.

What This Means for Investors Based on the GF Value™ analysis, Warner Music Group Corp WMG is currently fairly valued at $34.56. With a strong GF Score™ of 82/100, the stock does exhibit solid fundamentals, although the financial strength aspect raises some caution. Investors may consider these factors when evaluating their positions.

For the complete analysis, visit the Warner Music Group Corp WMG stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is WMG's GF Score™?

WMG's GF Score™ is 82/100, indicating a strong overall ranking that suggests potential for higher long-term returns based on historical performance.

Is WMG overvalued or undervalued?

WMG is fairly valued according to the GF Value™ estimate, aligning with its current market price of $34.56.

What is WMG's P/E ratio?

WMG's P/E (TTM) is 40.7x, which is slightly above its 5-year median P/E of 39.0x, indicating that the stock is trading at a premium compared to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Warner Music Group Corp. (WMG - Free Report) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.

Analysts' growing optimism on the earnings prospects of this company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

For Warner Music Group Corp., there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:

12 Month EPS

Current-Quarter Estimate RevisionsThe earnings estimate of $0.38 per share for the current quarter represents a change of +1,366.7% from the number reported a year ago.

The Zacks Consensus Estimate for Warner Music Group has increased 6.59% over the last 30 days, as two estimates have gone higher while one has gone lower.

Current-Year Estimate RevisionsFor the full year, the earnings estimate of $1.52 per share represents a change of +120.3% from the year-ago number.

The revisions trend for the current year also appears quite promising for Warner Music Group, with four estimates moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 7.74%.

Favorable Zacks RankThe promising estimate revisions have helped Warner Music Group earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom LineWarner Music Group shares have added 19.3% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects.

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When music executive Anjula Acharia began launching superstar actress Priyanka Chopra Jonas into Hollywood in the early 2000s, her label partner Jimmy Iovine — the name behind pop sensations such as Eminem and Lady Gaga — told her she was 20 years too early to bring South Asian talent to the U.S.

Now, Acharia is the founder and CEO of 5 Junction, a joint label with Warner Music Group focused specifically on investing in South Asian artists in the U.S.

"That sounded crazy, to think we were 20 years too early, but now, 20 years later, with the explosion of people like Diljit Dosanjh and Karan Aujla ... there's all these South Asian acts that are coming here and really selling out, particularly in the live arena," Acharia told CNBC.

The South Asian music market in the U.S. has remained largely untapped, but as music becomes more globalized, as with the success of K-pop and Latin acts, South Asian talent is making a case to investors as the next big business opportunity, Acharia said.

Global music revenues are reaching all-time highs, surpassing $30 billion in 2025, according to the International Federation of the Phonographic Industry. Spotify said last year that streams of Indian artists in international markets grew more than 2,000% between 2019 and 2023, and nearly 50% of royalties from Indian artists on the platform in 2024 were from listeners outside India.

With South Asia's growing population and diaspora, it's set to be one of the fastest-growing segments within global music, according to Acharia.

"We're in a different time, and I think digitally things travel just so much faster," she said. "A lot of big hits were made with samples from Indian music, so it's been in the zeitgeist for a long time — it's just not been given a face."

As more labels look to the subcontinent, Acharia said the business is currently in a stage of experimentation, figuring out what works and how the fan bases will evolve. Warner Music Group is the third-largest music label in the U.S., holding roughly 17% market share by distribution ownership as of the first quarter of 2026, according to Billboard.

"I think the business proposition is this global Indian fandom," she said. "How do we galvanize this audience and this fandom, and how do we serve it?"

5 Junction represents top artists such as singer and songwriter Rhea Raj, who told CNBC she's seeing South Asian music become more mainstream in the U.S.

"We're seeing more artists at bigger festivals and at award shows, and I think the best of it's yet to come," Raj said.

Raj and her sister, Lara Raj, of the girl group Katseye, are two of many South Asian artists in the U.S. building out fan bases that span backgrounds and ethnicities.

Rhea Raj, who got her start on "American Idol" nearly a decade ago, said she believes now is the time that South Asian music is going to "explode" in the U.S., especially as 5 Junction continues to bring more artists to the main stages.

"South Asian music, it is so diverse, and within that, there are so many countries and regions and styles and things to break down and explore, and I just hope that as time goes on and we have more artists in the mainstream pop world, we'll get to see more and more pieces of that," she said.

'Building worlds'The streaming era has helped Warner Records to narrow its focus on the South Asian music business because it lowers the barriers to entry, said Karen Kwak, the company's executive vice president and head of artists and repertoire.

Kwak told CNBC that when she got into the music business, there were practically no other executives or artists who looked like her. Now, that picture has changed dramatically.

Kwak said the younger generations, especially in South Asia, are driving current music trends.

"That is what is so great about the music world we live in today, is that everybody is embracing who they are, and I think youth all over the world, they want to see stars that look like them," Kwak said. "It's a rabid fandom in India ... and it's exactly where we want to be."

The record company is also focused on encouraging collaborations between South Asian musicians and popular American artists to help them break into the music scene, she added.

"It's really about building worlds, and yes, of course, we're going to continue investing [in South Asian talent]," she said. "It is what music is. We're changing and impacting and creating the new music culture."

It's also important to Warner to be "genre-bending and genre-blending," Kwak said, adding that the company is investing in South Asian talent that spans multiple types of music, languages and audiences.

Nora Fatehi is one of those artists. The Moroccan Canadian singer and actress, who has more than 45 million followers on Instagram, saw the potential in the South Asian market and broke in — targeting that audience even though she doesn't have a connection to South Asia — and became one of the biggest names in the business.

"Right now, what 5 Junction and Warner are trying to do is tap into the different talent that's coming out of that country, give it a platform, and also allow people around the world to consume the music and to consume the artistry like never before," she told CNBC.

Fatehi, who will be performing at the World Cup opening ceremony in Toronto in a few weeks, said that even though the American market is hard to crack as an outsider, she's seeing the results take hold as more talent from South Asia crosses into the West.

"I think the audience is ready for different stuff," Fatehi said. "Now, with YouTube and Spotify and with social media, I don't think borders exist any longer. ... I think labels and managements and platforms realize that people are ready to consume different types of music."

— CNBC's Ryan Baker contributed to this report.

Here are three stocks with buy rank and strong income characteristics for investors to consider today, June 10:

ARKO Petroleum Corp. (APC - Free Report) : This fuel distribution company witnessed the Zacks Consensus Estimate for its current year earnings increasing 7% the last 60 days.

This Zacks Rank #1 company has a dividend yield of 5.3%, compared with the industry average of 2.1%.

Warner Music Group Corp. (WMG - Free Report) : This music entertainment company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.6% the last 60 days.

This Zacks Rank #1 company has a dividend yield of 2.5%, compared with the industry average of 0.7%.

Columbus McKinnon Corporation (CMCO - Free Report) : This material handling equipment company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 5% in the last 60 days.

This Zacks Rank #1 company has a dividend yield of 2.3%, compared with the industry average of 0.1%.

See the full list of top ranked stocks here.

Find more top income stocks with some of our great premium screens.

theWarner Music Music (WMG) announced on Wednesday that it’s acquiring AI attribution startup Sureel AI. Sureel’s patented technology creates “AI DNA” for songs and breaks them down into component parts to trace how AI models use those elements.

Through the acquisition, WMG aims to better track when its artists’ and songwriters’ work is used in AI-generated content or for training AI models.

“Bringing Sureel into WMG strengthens our capability for protection, control and monetization and ensures that the creative community remains in control of its intellectual property, name, image, likeness, and voice,” said WMG chief executive Robert Kyncl in the press release.

The financial terms of the deal were not disclosed.

Founded in 2022, Sureel also offers intellectual property provenance, audit and compliance reporting, model optimization, and AI business intelligence. The startup also has a name, image, and likeness (NIL) attribution suite to track how artist voices, likenesses, and performance identities are used in AI training and generation. This includes voice clones, AI-generated avatars, and style replication. 

The startup will continue to operate as a stand-alone platform serving the broader music and AI ecosystem, WMG says.

“Rightsholders deserve to know how AI interacts with their work, and to share fairly in the value it creates,” Sureel founder and chief executive Tamay Aykut said in remarks. “Sureel was built to make that possible, and with WMG’s backing, we can deliver on our mission at scale, building a more transparent and fair future and driving value growth for the whole music and entertainment ecosystem.”

WMG has embraced AI after initially opposing it, as the company originally sued music-generation startup Suno in 2024 and later signed a licensing deal with the company last year. WMG said at the time that artists and songwriters would have full control over whether and how their names, images, likenesses, voices, and compositions are used in new AI-generated music.

It’s worth noting that Sony Music Entertainment and Universal Music Group are still pursuing massive copyright infringement claims against the AI music startup.

WMG last year also settled its lawsuit against AI music startup Udio and reached a licensing deal with the company.

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Aisha is a consumer news reporter at TechCrunch. Prior to joining the publication in 2021, she was a telecom reporter at MobileSyrup. Aisha holds an honours bachelor’s degree from University of Toronto and a master’s degree in journalism from Western University.

You can contact or verify outreach from Aisha by emailing [email protected] or via encrypted message at aisha_malik.01 on Signal.