Warner Music Group (NASDAQ:WMG) stock gained on Thursday after reporting fiscal fourth-quarter 2025 results.

GAAP EPS of 21 cents missed the analyst consensus estimate of 31 cents. Revenue increased 15% year-on-year to $1.868 billion, topping the analyst consensus estimate of $1.682 billion.

Recorded Music revenue increased by 15% Y/Y to $1.53 billion in the quarter.

Also Read: Warner Music Rallies As Q3 Sales Top Estimates — But What’s Behind the Net Loss?

Music Publishing revenue grew by 14% Y/Y to $337 million. Digital revenue rose 8% Y/Y to $951 million.

Net income was $109 million compared to $48 million in the prior-year quarter, primarily due to the impact of exchange rates on its Euro-denominated debt, gain on intercompany loans, and a tax benefit.

Adjusted OIBDA increased by 15% compared to the previous year, reaching $405 million; margin remained constant at 21.7% primarily driven by revenue mix and cost savings from the company’s restructuring plans.

Warner Music held $532 million in cash and equivalents as of September 30. It generated $231 million in operating cash flow, down from $304 million in the prior-year quarter, driven by timing differences in working capital.

Warner Music Group CEO Robert Kyncl said the company's artists and songwriters continue to gain momentum, with market share gains pushing quarterly revenues to an all-time high. He emphasized that volume and rate increases are boosting the value of music, while emerging AI revenue streams are creating additional growth opportunities.

Price Action: WMG stock is up 2.39% to $31.23 in premarket trading at last check on Thursday.

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