Universal Music Group N.V. (“UMG” or “the Company”) today announced its financial results for the fourth quarter and full year ended December 31, 2025.
“2025 was another standout year for UMG; creatively, commercially, and strategically,” said Sir Lucian Grainge, UMG’s Chairman and CEO. “We delivered real, measurable progress across our plan: advancing Streaming 2.0, scaling artist and label services, accelerating superfan initiatives, expanding in high-growth markets, and leading on responsible AI. The result is a stronger, more connected and growing ecosystem, creating greater opportunities for our artists and songwriters, and delivering long-term value for shareholders.”
Matt Ellis, UMG’s CFO, said, “Our strong top- and bottom-line growth in 2025 reflects disciplined execution against our strategic priorities and continued investment in our artists, songwriters, and global organization. We’re encouraged by the start to 2026, having completed our acquisition of Downtown Music and investment in Excel Entertainment and broadened our partnerships across established platforms and emerging innovators, as we focus on delivering sustainable returns for all our stakeholders.”
Summary Q4 2025 Results
- Revenue of €3,605 million increased 4.8% year-over-year, or 10.6% in constant currency, driven by strong growth in the Recorded Music segment. Excluding items impacting comparability detailed below, revenue grew 11.2% in constant currency.
- Recorded Music subscription revenue grew 2.4% year-over-year, or 7.7% in constant currency and streaming revenue grew 3.2% year-over-year, or 9.3% in constant currency. Excluding an item impacting comparability in the prior year, subscription revenue grew 9.6% in constant currency.
- Adjusted EBITDA of €810 million increased 1.4% year-over-year, or 6.4% in constant currency, while Adjusted EBITDA margin decreased 0.7pp to 22.5%. Excluding items impacting comparability, Adjusted EBITDA grew 8.6% year-over-year in constant currency, and Adjusted EBITDA margin decreased 0.4pp to 22.0%.
- Recorded Music top sellers included Taylor Swift, the KPop Demon Hunters soundtrack, Olivia Dean, Stray Kids and Morgan Wallen.
Summary FY 2025 Results
- Revenue of €12,507 million increased 5.7% year-over-year, or 8.7% in constant currency, driven by growth across the Recorded Music and Music Publishing segments.
- Recorded Music subscription revenue grew 5.6% year-over-year, or 8.6% in constant currency, and streaming revenue grew 1.5% year-over-year, or 4.7% in constant currency.
- Adjusted EBITDA of €2,810 million increased 5.6% year-over-year, or 8.6% in constant currency, and Adjusted EBITDA margin remained constant at 22.5%.
- Net cash provided by operating activities before income tax paid of €2,142 million increased €38 million compared to €2,104 million in 2024.
- Subject to shareholder approval, final dividend proposal of €514 million, or €0.28 per share, which would bring total dividend for 2025 to €954 million, or €0.52 per share.
2025 Business Highlights
- Global artist success included: 9 of the Top 10 on the IFPI Global Artist Chart for the third consecutive year; 4 of the Top 5 global artists on Spotify, with Universal Music Publishing Group (UMPG) representing 7 of the Top 10; 7 of the Top 10 most-streamed songs globally on Apple Music, with UMPG representing 8 of the Top 10; 7 of the Top 10 U.S. songs on YouTube; and all of the Top 5 albums and 7 of the Top 10 artists on Amazon Music.
- Reached “Streaming 2.0” agreements with two additional global DSP partners, Spotify and YouTube, which enhance consumer value, promote platform innovation, encourage smarter consumer segmentation and drive ARPU growth.
- Continued implementing Artist-Centric deal components which reward the value our artists bring to platforms, including provisions preventing AI slop from diluting the royalties of our artists and songwriters.
- Furthered Responsible AI partnerships, including: Agreements with AI platforms Udio and Klay Vision to evolve music experiences for superfans; Collaboration with SoundPatrol to protect artists from copyright infringement from AI music generators; Strategic alliances with Stability AI and Splice to develop next-generation professional music creation tools.
- Progressed strategy to accelerate investment in high-growth music markets and local repertoire, including: Significant minority investment in Excel Entertainment, a leading Indian film and digital content studio; Acquisition of the recorded music catalogue of the “Queen of Turkish Pop” Sezen Aksu; Launch of Deutsche Grammophon China and Blue Note Records China; Acquisition of A-Sketch, a leading Japanese music company.
Q4 2025 Results
Revenue for the fourth quarter of 2025 was €3,605 million, an increase of 4.8% year-over-year, or 10.6% in constant currency, with growth driven primarily by strength in Recorded Music, as discussed further below.
As detailed in the section “Items Impacting Comparability of Results” below, Q4 2025 revenue included the benefit of a Legal Resolution, whereas Q4 2024 revenue included the previously disclosed DSP Catch-Up Income and Legal Settlements. Excluding these items, revenue grew 11.2% year-over-year in constant currency.
EBITDA grew 3.4% year-over-year, or 8.6% in constant currency, to €730 million and EBITDA margin was 20.2% compared to 20.5% in the prior year. EBITDA and EBITDA margin were impacted by non-cash share-based compensation expenses of €63 million as well as U.S. listing preparation costs and certain M&A advisory costs of €17 million during the fourth quarter of 2025, and by non-cash share-based compensation expenses of €93 million during the fourth quarter of 2024. Excluding these amounts, Adjusted EBITDA for the quarter was €810 million, up 1.4% year-over-year, or 6.4% in constant currency, driven by revenue growth. Adjusted EBITDA margin decreased 0.7pp to 22.5% compared to 23.2% in the fourth quarter of 2024 due to the negative impact of revenue mix and repertoire mix in Recorded Music as well as cost pressures in Merchandising and Other.
As detailed below, Q4 2025 EBITDA and Adjusted EBITDA included the benefit of the Legal Resolution while Q4 2024 EBITDA and Adjusted EBITDA included the benefit of previously disclosed DSP Catch-Up Income and Legal Settlements. Excluding these items, Adjusted EBITDA grew 8.6% year-over-year in constant currency, and Adjusted EBITDA margin decreased 0.4pp year-over-year to 22.0% for the reasons described above.
FY 2025 Results
Revenue for 2025 of €12,507 million increased by 5.7% compared to 2024, or 8.7% in constant currency, driven by improvements in Recorded Music and Music Publishing, as discussed further below.
As detailed below, 2025 revenue included the benefit of the Legal Resolution and 2024 revenue included the benefit of Legal Settlements. Excluding these items, full year revenue grew 8.7% year-over-year in constant currency.
Cost of revenues, consisting of artist and product costs, increased by €450 million to €7,196 million in 2025 while Cost of revenues as a percentage of revenues increased to 57.5% in 2025 from 57.0% in 2024. The increase in Cost of revenues as a percentage of revenues related in part to higher relative artist costs that increased to 46.7% in 2025 from 46.2% in 2024, due to repertoire mix in both Recorded Music and Music Publishing. In addition, product costs as a percentage of revenues increased to 10.9% from 10.8% driven by higher manufacturing and distribution costs in Merchandising and Other.
EBITDA of €2,538 million increased 8.8% year-over-year, or 12.2% in constant currency, and EBITDA margin was 20.3%, compared to 19.7% in the prior year. EBITDA and EBITDA margin were impacted by non-cash share-based compensation expenses of €227 million as well as U.S. listing preparation costs and certain M&A advisory costs of €45 million in 2025 compared to non-cash share-based compensation expenses of €329 million in 2024. Excluding these amounts, Adjusted EBITDA was €2,810 million, up 5.6% in 2025, or 8.6% in constant currency, and Adjusted EBITDA margin remained constant year-over-year at 22.5% as the revenue growth, operating leverage and cost savings from the previously announced strategic organizational redesign were offset by the negative impact of revenue mix and repertoire mix in Recorded Music, cost pressures in Merchandising and Other and incremental overheads from business combinations.
2025 EBITDA and Adjusted EBITDA included the benefit of the Legal Resolution and 2024 EBITDA and Adjusted EBITDA included the benefit of Legal Settlements. Excluding these items, Adjusted EBITDA grew 8.8% year-over-year in constant currency, and Adjusted EBITDA margin remained constant at 22.3% for the reasons described above.
Operating profit increased by 12.6% year-over-year, or 16.6% in constant currency, to €1,998 million in 2025 due to the improved revenues and lower non-cash share-based compensation expenses, as well as a decrease in restructuring charges in relation to the strategic organizational redesign, which amounted to €95 million in 2025 compared to €169 million in 2024. This was partly offset by U.S. listing preparation costs and certain M&A advisory costs of €45 million in 2025.
Net profit attributable to equity holders of the parent decreased by 26.5% to €1,533 million in 2025 compared to €2,086 million in 2024, resulting in Basic EPS of €0.84 in 2025, down 26.3% compared to €1.14 in 2024, and Diluted EPS of €0.83 in 2025, down 26.5% compared to €1.13 in 2024. The decrease in Net profit attributable to equity holders of the parent was primarily due to the variance in revaluation of investments in listed companies (including Spotify and Tencent Music Entertainment, among others) that resulted in net income in 2025 of €283 million compared to net income in 2024 of €1,163 million. Adjusted net profit, which adjusts for the revaluation of investments in listed companies, non-cash share-based compensation expense, amortization of catalogues and other items detailed in the Appendix, amounted to €1,907 million in 2025, up 7.0% compared to €1,782 million in 2024. This resulted in Adjusted Basic EPS of €1.04 in 2025, up 6.1% compared to €0.98 in 2024 and Adjusted Diluted EPS of €1.03 in 2025, up 7.3% compared to €0.96 in 2024. The increase in Adjusted net profit was driven by the growth in Adjusted EBITDA.
Net debt, defined as total debt minus cash and cash equivalents, at the end of 2025 was €2,390 million compared to €2,098 million at the end of 2024. The net leverage ratio at year-end 2025, defined as Net debt over EBITDA, was 0.9x, consistent with 0.9x at year-end 2024.
Net cash provided by operating activities before income tax paid improved by €38 million to €2,142 million compared to €2,104 million in 2024, due to higher operating profit partly offset by higher royalty advance payments, net of recoupments, which increased to €402 million in 2025 from €186 million in 2024, due to the timing of major artist renewals and extensions. Net cash provided by operating activities was also impacted by restructuring charges and cash used to cover employee withholding taxes related to our equity plan, which lessens shareholder dilution.
Cash paid for catalogue acquisitions, net of divestments of intangible assets, increased to €280 million in 2025 compared to €266 million in 2024. Other strategic investments were meaningfully lower year-over-year and Free cash flow increased to €702 million in 2025 compared to €523 million in 2024.
In accordance with UMG’s dividend policy to pay a dividend of 50% of Net Profit (subject to agreed non-cash items and applicable law), UMG has proposed to pay a final dividend of €514 million, or €0.28 per share for the year ended December 31, 2025. If approved by shareholders, this would bring UMG’s total dividend for 2025 to €954 million, or €0.52 per share. This dividend proposal is subject to approval by shareholders at the Annual General Meeting of Shareholders.
Recorded Music
Q4 2025
Recorded Music revenue for the fourth quarter of 2025 was €2,769 million, up 7.9% compared to the fourth quarter of 2024, or 13.9% in constant currency. As detailed below, Q4 2025 Recorded Music revenue included the benefit of the Legal Resolution and Q4 2024 Recorded Music revenue included the benefit of the DSP Catch-Up Income and Legal Settlements. Excluding these items, Recorded Music revenue grew 14.4% year-over-year in constant currency.
Subscription revenue grew 2.4% year-over-year, or 7.7% in constant currency. Excluding the DSP Catch-Up Income in Q4 2024, which impacts comparability, subscription revenue grew 9.6% in constant currency driven primarily by the growth in global subscribers. Streaming revenue increased 3.2% year-over-year, or 9.3% in constant currency, with growth on several major platforms. Physical revenue grew 14.4% year-over-year, or 21.3% in constant currency, supported by strong vinyl sales in the U.S. and Europe. Downloads and other digital revenue increased 93.2% year-over-year, or 107.3% in constant currency due to the Legal Resolution detailed below. License and other revenue improved 11.7% year-over-year, or 18.1% in constant currency. Excluding the Legal Settlements in the prior year, License and other revenue grew 26.8% in constant currency driven by strong live event and other related income, primarily in Japan, as well as by a compensatory payment as part of a strategic licensing agreement with an AI music platform. Top sellers for the quarter included Taylor Swift, the KPop Demon Hunters soundtrack, Olivia Dean, Stray Kids and Morgan Wallen, while top sellers in the prior-year quarter included albums from Taylor Swift, Sabrina Carpenter, Billie Eilish, Chappell Roan and Wicked: The Soundtrack.
FY 2025
Recorded Music revenue in 2025 was €9,456 million, up 6.2% compared to 2024, or 9.3% in constant currency. As detailed below, Recorded Music revenue in 2025 included the benefit of the Legal Resolution and in 2024 included Legal Settlements. Excluding these items, Recorded Music revenue in 2025 grew 9.1% year-over-year in constant currency.
Subscription revenue grew 5.6% year-over-year, or 8.6% in constant currency, driven primarily by the growth in global subscribers. Streaming revenue improved by 1.5% year-over-year, or 4.7% in constant currency. Physical revenue increased 8.6% year-over-year, or 11.4% in constant currency. Downloads and other digital revenue grew 30.0% year-over-year, or 34.5% in constant currency due to the Legal Resolution detailed below. License and other revenue improved 7.8% year-over-year, or 11.0% in constant currency. Excluding the Legal Settlements in the prior year, License and other revenue grew 13.6% in constant currency. Top sellers for the year included Taylor Swift, the KPop Demon Hunters soundtrack, Morgan Wallen, Lady Gaga and Sabrina Carpenter. Top sellers in the prior year included multiple albums from Taylor Swift, and albums from Billie Eilish, Sabrina Carpenter, Morgan Wallen and Chappell Roan.
Recorded Music EBITDA in 2025 was €2,282 million, up 10.1% year-over-year, or 13.5% in constant currency and Recorded Music EBITDA margin increased 0.8pp to 24.1% from 23.3% in 2024. Recorded Music EBITDA and EBITDA margin were impacted by non-cash share-based compensation expenses of €135 million during 2025 and certain M&A advisory costs of €6 million, compared to €202 million non-cash share-based compensation expenses during 2024. Excluding these amounts, Recorded Music Adjusted EBITDA in 2025 was €2,423 million, up 6.5% year-over-year, or 9.6% in constant currency, driven by revenue growth. Recorded Music Adjusted EBITDA margin was constant at 25.6% as the benefit of cost savings and operating leverage offset margin headwinds from repertoire mix, outsized growth in lower-margin physical sales and incremental overheads from business combinations.
As detailed below, EBITDA and Adjusted EBITDA reflect the benefit of the Legal Resolution in 2025 and Legal Settlements in 2024. Excluding these items, Adjusted EBITDA grew 9.7% year-over-year in constant currency, and Adjusted EBITDA margin was 25.5%, up 0.2pp compared to 25.3% in 2024.
Music Publishing
Q4 2025
Music Publishing revenue in the fourth quarter of 2025 was €593 million, down 3.3% year-over-year, but up 1.4% in constant currency. As detailed below, 2024 Music Publishing revenue included the benefit of Legal Settlements. Excluding this item, revenue grew 2.8% year-over-year in constant currency, primarily driven by synchronization revenue growth. While growth was impacted by the timing of collections from certain societies and other sources, which helped results in the prior-year quarter, underlying growth remains healthy.
FY 2025
Music Publishing revenue was €2,260 million in 2025, up 6.6% year-over-year, or 9.3% in constant currency. Excluding the benefit from Legal Settlements in 2024, Music Publishing revenue grew 9.8% year-over-year in constant currency. The solid underlying growth was primarily driven by the growth in digital revenue, thanks to continued growth in subscription and streaming revenue and new business wins, as well as improvements in synchronisation, performance and mechanical revenue.
Music Publishing EBITDA in 2025 was €531 million, up 9.3% year-over-year, or 11.8% in constant currency, and Music Publishing EBITDA margin increased 0.6pp to 23.5% from 22.9% in 2024. Music Publishing EBITDA and EBITDA margin were impacted by non-cash share-based compensation expenses of €18 million during 2025, compared to €25 million during 2024. Excluding these amounts, Music Publishing Adjusted EBITDA of €549 million was up 7.4% year-over-year, or 10.0% in constant currency, driven by revenue growth and Music Publishing Adjusted EBITDA margin increased 0.2pp year-over-year to 24.3% from 24.1% in 2024. Excluding the impact of Legal Settlements in 2024, Music Publishing Adjusted EBITDA grew 10.5% year-over-year in constant currency and Music Publishing Adjusted EBITDA margin increased by 0.2pp year-over-year to 24.3%.
Merchandising and Other
Q4 2025
Merchandising and Other revenue in the fourth quarter of 2025 of €248 million was down 6.1% year-over-year and was flat in constant currency, as growth in merchandising touring revenues and direct-to-consumer sales offset lower retail sales.
FY 2025
Merchandising and Other revenue of €811 million in 2025 was down 3.7% year-over-year and was flat in constant currency. Merchandising touring revenues were up year-over-year but this was offset by lower direct-to-consumer sales which were very strong last year in connection with the timing of artist tours.
Merchandising and Other EBITDA in 2025 was €16 million, down 61.9% year-over-year, or 60.0% in constant currency, and Merchandising and Other EBITDA margin decreased 3.0pp to 2.0% from 5.0% in 2024. Merchandising and Other EBITDA and EBITDA margin were impacted by non-cash share-based compensation expense of €1 million in 2024. Excluding this amount, Merchandising and Other Adjusted EBITDA in 2025 of €16 million was down 62.8% year-over-year, or 61.0% in constant currency. Merchandising and Other Adjusted EBITDA margin declined 3.1pp to 2.0% due to higher manufacturing and distribution costs, driven both by product mix and broader cost pressures.
The post Universal Music Group Reports Financial Results for the Fourth Quarter and Full Year Ended December 31, 2025. first appeared on Rap Industry: New Hip Hop, Rap Videos, Music, News, & more..
