Operating

Warner Music Group·Cash Flow Statement·28 metrics

Breakdown

Metric	Q3 '24	Q4 '24	Q1 '25	Q2 '25	Q3 '25	Q4 '25	Q1 '26	Q2 '26
Change in deferred revenue	-$66M	—	$66M	$3M	—	$16M	-$44M	$210M
Change in accounts receivable	$27M	$15M	-$24M	-$10M	$55M	$40M	$33M	$142M
Net cash from operating activities	$188M	$304M	$332M	$69M	$46M	$231M	$440M	$126M
Depreciation and amortization	$80M	$83M	$86M	$90M	$96M	$104M	$99M	$103M
Increase (Decrease) in Prepaid Royalties	$78M	$39M	$42M	$85M	$168M	$17M	$7M	$65M
Foreign currency remeasurement (loss) gain on debt	—	-$58M	$120M	—	-$124M	—	-$3M	$44M
Other working capital changes	$4M	-$35M	-$16M	$39M	$42M	—	$3M	$31M
Deferred income taxes	$13M	-$77M	$23M	$1M	-$17M	-$97M	$25M	$14M
Employee retirement benefits	$10M	$24M	$13M	$14M	$16M	$11M	$19M	$12M
Increase Decrease In Interest Payable Net	$8M	-$14M	$24M	—	$2M	—	$8M	-$12M
Pension and postretirement benefit expense	$10M	$24M	$13M	$14M	$16M	$11M	$19M	$12M
Loss on extinguishment of debt	$0	$0	—	$0	—	—	—	-$7M
Amortization of debt issuance costs	$3M	$1M	$2M	$1M	$1M	$3M	$1M	$3M
Non-cash interest expense	$3M	$1M	$2M	$1M	$1M	$3M	$1M	$3M
Operating lease liabilities	-$1M	—	-$2M	-$3M	-$7M	—	$2M	-$3M
Impairment charges	$50M	—	$26M	$6M	$70M	—	$9M	$2M
Asset write-downs	$50M	—	$26M	$6M	$70M	—	$9M	$2M
Change in accounts payable	-$68M	$205M	-$183M	—	-$72M	—	-$34M	-$1M
Change in other assets	—	—	-$3M	—	$2M	-$4M	-$7M	-$1M
Change in inventories	-$4M	—	-$10M	$1M	$9M	$11M	-$12M	—
Change in operating lease liabilities	-$1.3M	-$1.3M	-$3.8M	-$3.8M	-$3.8M	-$3.8M	—	—
Gain (loss) on sale of assets	$1M	—	$0	$0	$0	$27M	-$5M	$0
Gain (Loss) on Disposition of Business, Rounded	$8M	$8M	$0	$0	$0	$0	—	—
Gain on sale of business and assets	$1M	$0	$0	$0	$0	$0	-$5M	$0
Gain (Loss) on Sale of Investments	—	$2M	$28M	—	—	—	-$1M	—
Operating lease liabilities	-$1.3M	-$1.3M	-$3.8M	-$3.8M	-$3.8M	-$3.8M	—	—
Increase Decrease In Royalties Payable	$181M	—	$173M	—	$163M	—	$195M	—
Non-cash impairments and restructuring	$14.3M	$14.3M	$34.8M	$34.8M	$34.8M	$34.8M	—	—

Metrics

Operating

Breakdown

Metrics

Amortization of debt issuance costs

Change in accounts payable

Change in accounts receivable

Change in deferred revenue

Change in inventories

Change in operating lease liabilities

Change in other assets

Other working capital changes

Deferred income taxes

Depreciation and amortization

Gain (loss) on sale of assets

Impairment charges

Loss on extinguishment of debt

Net cash from operating activities

Non-cash interest expense

Asset write-downs

Employee retirement benefits

Foreign currency remeasurement (loss) gain on debt

Gain (Loss) on Disposition of Business, Rounded

Gain on sale of business and assets

Gain (Loss) on Sale of Investments

Increase Decrease In Interest Payable Net

Operating lease liabilities

Operating lease liabilities

Increase (Decrease) in Prepaid Royalties

Increase Decrease In Royalties Payable

Non-cash impairments and restructuring

Pension and postretirement benefit expense