What is Warner Music Group's recorded music — cost of revenue?

Warner Music Group (WMG) reported recorded music — cost of revenue of $707M in Q1 2026.

How has Warner Music Group's recorded music — cost of revenue changed year-over-year?

Warner Music Group's recorded music — cost of revenue increased by 18.0% year-over-year, from $599M to $707M.

What does recorded music — cost of revenue mean?

Direct costs associated with producing and distributing recorded music, including royalties paid to artists, manufacturing costs for physical media, and digital distribution fees. This is a primary driver of the segment's gross margin.

Warner Music Group WMG Recorded Music — Cost of revenue

Other segment segments

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$224M+15.5%

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RSVRRecorded Music — Cost Of Revenue

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RSVRRecorded Music — Revenue

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RSVRRecorded Music — Operating Income Loss Excluding Depreciation Depletion And Amortization

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RSVRMusic Publishing — Cost Of Revenue

$12.37M+12.3%

RSVRRecorded Music — General And Administrative Expense

$2.83M+26.9%

TUSKProducts — Cost of revenue

$10.25M+87.2%

Other financials

Income statement

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Revenue$1.7B+16.7%

Gross profit$802.0M+15.7%

Operating income$264.0M+57.1%

Net income$183.0M+408%

Balance sheet

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Cash & equivalents$741.0M+16.3%

Total debt$895.0M-79.0%

Total equity$738.0M+30.2%

Total assets$10.6B+10.9%

Cash flow

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Operating cash flow$126.0M+82.6%

CapEx$27.0M-25.0%

Free cash flow$99.0M+200%

Valuation

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Market cap$13.85B-14.4%

Enterprise value$14B-29.9%

P/E30.6×-23.8×

P/S1.9×-0.6×

Profitability

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Gross margin45.8%-1.0pp

Operating margin12.1%+0.6pp

Net margin6.3%-0.8pp

FCF margin10.2%-1.8pp

Returns & leverage

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Return on equity69.3%-21.1pp

Debt / equity1.2×-6.3×

Current ratio0.7×+0.1×

Where this comes from

Reported directly by Warner Music Group in its filing.

Tagged under the XBRL concept us-gaap:CostOfRevenue.

The official record: Warner Music Group’s 10-Q, filed May 7, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Warner Music Group's recorded music — cost of revenue?: Warner Music Group (WMG) reported recorded music — cost of revenue of $707M in Q1 2026.
How has Warner Music Group's recorded music — cost of revenue changed year-over-year?: Warner Music Group's recorded music — cost of revenue increased by 18.0% year-over-year, from $599M to $707M.
What does recorded music — cost of revenue mean?: Direct costs associated with producing and distributing recorded music, including royalties paid to artists, manufacturing costs for physical media, and digital distribution fees. This is a primary driver of the segment's gross margin.