Warner Music Group Corp.WMG
NasdaqGS•Communication Services•Entertainment
Warner Music Group Corp. operates as a music entertainment company in the United States, the United Kingdom, Germany, and internationally. It operates through Recorded Music and Music Publishing segments. The company is involved in the discovery and development of recording artists, as well as related marketing, promotion, distribution, sale, and licensing of music created by recording artists; markets its music catalog through compilations and reissuances of previously released music and video titles, as well as previously unreleased materials. It also owns and acquires rights to approximately two million musical compositions comprising pop hits, American standards, folk songs, and motion picture and theatrical compositions, as well as administers the music and soundtracks of various third-party television and film producers and studios. In addition, the company conducts its operation primarily through a collection of record labels, such as Asylum, Big Beat, Canvasback, East West, Erato, FFRR, Nonesuch, Parlophone, Reprise, Sire, Spinnin' Records, and Warner Classics and Warner Records Nashville. Further, it markets, distributes, and sells music and video products to retailers and wholesale distributors; independent labels to retail and wholesale distributors; and various distribution centers and ventures, as well as retail outlets, online physical retailers, streaming services, and download services. Its catalog includes songwriters and composers; and various genres, including pop, rock, jazz, classical, country, R&B, hip-hop, rap, reggae, Latin, folk, alternative, blues, gospel, and other Christian music. The company was founded in 1929 and is headquartered in New York, New York.
Warner Music Group Corp. (WMG) reported trailing twelve months revenue of $7.13B as of March 2026, a 12.6% increase year-over-year. Quarterly revenue reached $1.73B, reflecting continued top-line momentum.
Warner Music Group Corp. generated $452.00M in TTM net income, with quarterly EBITDA of $367.00M. The operating margin expanded from 11.3% to 15.2%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (15.2%) and net margin (10.6%) indicates tight cost control with minimal non-operating drag. Net margin has improved from 2.4% a year ago, signaling stronger bottom-line efficiency.
WMG trades at a P/E of 7.8x (below the broader market average) and a P/S of 0.5x. The price-to-book ratio of 4.8x reflects a moderate premium to book value.
The company generated $99.00M in free cash flow over the trailing twelve months, a 200.0% increase year-over-year, indicating cash generation ability. The balance sheet shows $10.61B in total assets with $4.72B in long-term debt against $738.00M in stockholders equity for a debt-to-equity ratio of 6.4, a relatively leveraged position. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are expanding at ~11.9%, suggesting durable pricing power and cost discipline.
Consistently high ROE averaging 72.6% suggests a durable competitive advantage and efficient capital allocation.
8 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
Revenue shows resilience with 5 of 7 quarters posting growth — demand is generally stable but has seen some soft patches.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~12.1% — no sign of cost or pricing stress.
FCF covers net income by 1.8x on average — earnings are well-supported by cash generation.
D/E ratio is 6.4 — dangerously high. The company is heavily leveraged and vulnerable to rising rates or cash flow dips.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares outstanding rose 3.5% — mild dilution. Compare to earnings growth to assess net per-share impact.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation