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Warner Music Group cash flow, quarter by quarter

Latest: Q3 FY26 · from the cash-flow statements filed with the SEC

Free cash flow$114M in Q3 FY26 · $836M over twelve months

Operating cash flow$142M
Capital spending−$28.0M
Free cash flow+$114M
Cash / net income0.7×
Cash conversion cycle46 days

Analysis

In Q3 FY26, Warner Music Group generated $142M of operating cash flow and spent $28.0M on capital projects, leaving free cash flow of $114M. That is $107M more than in Q3 FY25 ($7.0M).

Over the twelve months to Jun 30, 2026, operating cash flow was $939M; the largest uses were other investing ($542M), dividends ($400M), acquisitions ($106M); besides operations, cash came from other financing ($411M), asset & business sales ($10.0M); the cash balance rose by $91.0M.

Operating cash flow was $142M against net income of $204M — 0.7× profit, less cash than reported earnings, worth checking against working capital. The largest differences: deferred revenue −$123M, depreciation & amortization +$111M, receivables −$93.0M.

Its cash conversion cycle was 46 days (receivables 76 + inventory 6 − payables 36).

Free cash flow

Warner Music Group: free cash flow by quarterWarner Music Group: free cash flow by quarter$271MQ4 FY24$296MQ1 FY25$33.0MQ2 FY25$7.0MQ3 FY25$203MQ4 FY25$420MQ1 FY26$99.0MQ2 FY26$114MQ3 FY26
Operating cash flow less capital spending.
Warner Music Group: operating cash flow against capital spendingWarner Music Group: operating cash flow against capital spendingOperating cash flowCapital spending$304M$33.0MQ4 FY24$332M$36.0MQ1 FY25$69.0M$36.0MQ2 FY25$46.0M$39.0MQ3 FY25$231M$28.0MQ4 FY25$440M$20.0MQ1 FY26$126M$27.0MQ2 FY26$142M$28.0MQ3 FY26
Latest (Q3 FY26): Operating cash flow $142M, Capital spending $28.0M.

Capital allocation, year by year

Warner Music Group: where the cash came from (up) and went (down), by fiscal yearWarner Music Group: where the cash came from (up) and went (down), by fiscal yearOperating cash flowAsset salesCapital spendingAcquisitionsBuybacksDividendsFY21: Operating cash flow $638MFY21: Capital spending −$93.0MFY21: Acquisitions −$64.0MFY21: Dividends −$265M$638MFY21FY22: Operating cash flow $742MFY22: Capital spending −$135MFY22: Acquisitions −$509MFY22: Dividends −$318M$742MFY22FY23: Operating cash flow $687MFY23: Asset sales $45.0MFY23: Capital spending −$127MFY23: Acquisitions −$126MFY23: Dividends −$340M$732MFY23FY24: Operating cash flow $754MFY24: Asset sales $19.0MFY24: Capital spending −$116MFY24: Acquisitions −$40.0MFY24: Dividends −$361M$773MFY24FY25: Operating cash flow $678MFY25: Capital spending −$139MFY25: Acquisitions −$46.0MFY25: Buybacks −$16.0MFY25: Dividends −$383M$678MFY25
Over these 5 years operating cash flow totalled $3.5B; the largest uses were dividends ($1.7B) and acquisitions ($785M). Cash-flow statements as filed.

Cash runway and the debt wall

Cash & investments$618M
Debt$4.7B
Net debt$4.1B

Warner Music Group funds itself: free cash flow was $836M over the last twelve months, and $618M of cash and investments stands against $4.7B of debt.

Where the cash came from and went

Warner Music Group: sources (+) and uses (−) of cash, Q3 FY26Warner Music Group: sources (+) and uses (−) of cash, Q3 FY26Operating cash flow$142MCash drawn (+) / kept (−)$123MDividends−$100MAcquisitions−$77.0MOther investing−$46.0MCapital spending−$28.0MOther financing−$8.0MNot reconciled−$5.0MTaxes on employees’ shares−$1.0MPartners−$1.0MExchange rates$1.0M
Warner Music Group: sources (+) and uses (−) of cash, TTM to Q3 FY26Warner Music Group: sources (+) and uses (−) of cash, TTM to Q3 FY26Operating cash flow$939MOther investing−$542MOther financing$411MDividends−$400MAcquisitions−$106MCapital spending−$103MCash drawn (+) / kept (−)−$91.0MBuybacks−$61.0MTaxes on employees’ shares−$28.0MPartners−$16.0MNot reconciled−$13.0MAsset & business sales$10.0M

From profit to cash

Warner Music Group: net income to operating cash flow, Q3 FY26Warner Music Group: net income to operating cash flow, Q3 FY26Net income$204MDepreciation & amortization$111MDeferred taxes$31.0MImpairments$3.0MGains on investments−$3.0MReceivables−$93.0MInventory−$3.0MPayables−$91.0MDeferred revenue−$123MIncome taxes payable−$19.0MOther operating capital−$3.0MOperating cash flow$142M
Non-cash charges are added back; money tied up in receivables or inventory is subtracted.
QuarterReceivable daysInventory daysPayable daysCash conversion cycle
Q3 FY267663646
Q2 FY267563249
Q1 FY266862152
Q4 FY256572250
Q3 FY256892948
Q2 FY2573103053
Q1 FY256892553
Q4 FY2470102654

Every quarter

QuarterOperating cash flowCapital spendingAcquisitionsBuybacksDividendsNet borrowing (+) / repaid (−)Cash drawn (+) / kept (−)Free cash flow
Q3 FY26$142M−$28.0M−$77.0M—−$100M—$123M$114M
Q2 FY26$126M−$27.0M−$17.0M−$22.0M−$100M$366M$7.0M$99.0M
Q1 FY26$440M−$20.0M−$12.0M−$26.0M−$100M$4.0M−$216M$420M
Q4 FY25$231M−$28.0M—−$13.0M−$100M—−$5.0M$203M
Q3 FY25$46.0M−$39.0M—−$1.0M−$94.0M—$110M$7.0M
Q2 FY25$69.0M−$36.0M−$6.0M—−$95.0M—$165M$33.0M
Q1 FY25$332M−$36.0M−$40.0M−$2.0M−$94.0M—−$108M$296M
Q4 FY24$304M−$33.0M−$14.0M—−$94.0M—−$87.0M$271M

Warner Music Group: income statement and cash flow

Warner Music Group, Q3 FY26: revenue $1.9B (+10% year over year), operating margin 16.4%. The chart follows the revenue to costs, profit and cash.

Warner Music Group: every quarter, Q/Q and Y/Y → Open in the app

Read automatically from the company’s XBRL cash-flow statements; quarterly figures for the fourth quarter are the year less the first three. Errors are possible. Not investment advice.