Warner Music Q4 Revenue Jumps 10.4% with EBITDA Beat, Shares Rally 6%
Warner Music Group reported Q4 2025 revenue of $1.84 billion, a 10.4% year-over-year gain, and adjusted EBITDA of $463 million, surpassing estimates. Operating margin expanded to 15.7% from 12.8%, although EPS of $0.33 fell short of forecasts.
1. Q4 Financial Results
Warner Music Group reported fourth-quarter revenue of $1.84 billion, up 10.4% year-over-year, driven by stronger streaming and licensing income. This revenue exceeded consensus estimates and marked the company’s highest quarterly top-line increase in over a year.
2. Profitability Expansion
Adjusted EBITDA for Q4 reached $463 million, topping analyst forecasts, while operating margin widened to 15.7% from 12.8% a year earlier. The margin improvement reflects cost efficiencies and higher-margin catalog and streaming revenues.
3. EPS and Forecasts
Earnings per share came in at $0.33, below the consensus target, as higher costs and share-based compensation tempered net income. Management has not revised full-year guidance but will likely address EPS pressures on the upcoming call.
4. Market Reaction
Shares jumped approximately 6% in early trading following the results, indicating investor focus on robust revenue and EBITDA beats despite the EPS miss. The move marked one of the largest single-day gains for the stock in the past year.