Photo Credit: Bain Capital
Warner Music Group amends its agreement with Bain Capital, boosting the joint venture’s capital base by $100 million from each party.
This week, Warner Music Group (WMG) revealed its financial results for Q4 2025 while announcing a $200 million increase in the equity commitment to its investment JV with Bain Capital, to the tune of $100 million each. The move boosts the catalog acquisition vehicle launched last year and broadens speculation about further catalog deals.
“WMG and Bain have increased our equity commitments by $100 million each and expect to maintain the existing equity-to-debt ratio, which will increase the JV’s total capacity from $1.2 billion to approximately $1.65 billion [with additional debt alongside the equity capital],” said Armin Zerza, CFO, WMG, during the company’s earnings call. “You can expect some exciting announcements coming in the near future, as we plan to deploy a significant portion of the JV’s total capacity by the end of this fiscal year.”
From its financial report, WMG’s total revenue increased by 7.1% year-on-year to $1.84 billion, while net income was $175 million compared to $241 million in the same quarter last year. Operating income increased 26.3% year-on-year to $288 billion, while adjusted OIBDA was up 22% to $463 million.
“2026 is off to a strong start as our creative success continues to fuel consistent market share growth and financial performance,” said Robert Kyncl, CEO, WMG. “We have an exciting slate of new music ahead and are leading the charge with AI to drive a step change in value creation for artists, songwriters, and shareholders, ensuring that WMG is well-positioned for long-term success.”
Meanwhile, recorded music revenue was up 6.6%, driven by increases across digital, artist services, and expanded rights and licensing revenue. Recorded music digital revenue was 8.6% and streaming revenue was up 9.1%, while recorded music streaming revenue was up 7.6%. WMG also reported growth in subscription revenue of 10.9% and 3.9% in ad-supported revenue.
