Warner Music Group Corp. (WMG) FY2026 Q3 Statement of Cash Flows

Income StatementCash FlowBalance Sheet

Statement of Cash Flows

2026-04-01 to 2026-06-30

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Warner Music Group Corp. cash flow reconciliation, Apr 1, 2026 through Jun 30, 2026One connected Sankey reconciles operating, investing and financing net cash flows through a shared cash pool, from beginning cash to ending cash. Ribbons flow left to right on one dollar scale. Activity totals are dark gray; beginning and ending cash are blue. Cash basis for beginning and ending balances and net cash change: Cash, cash equivalents, and restricted cash. Intermediate calculation bars are lighter gray. Calculated remaining financing cash flows are purple; remaining operating and investing bundles are gray. Their underlying inflows and outflows are not separately identified. Net income is green for profit and red for loss. Identified asset purchases, sales and maturities are blue in either cash direction. Orange marks positive customer-advance and deferred-revenue changes that add to operating cash in the reconciliation. These are net changes, not gross customer receipts. Negative changes are neutral reconciliation adjustments; they do not by themselves identify cash payments. Purple identifies capital transactions such as borrowing, repayments, share issuance and dividends. Free cash flow is a separate comparison, not an added cash flow. Read chart description and values below for full signed amounts, including zero items.Net income → Net cash from operating activities: $142,000,000.00Net income → Operating adjustments reconciliation: $58,000,000.00Royalty payables → Operating adjustments reconciliation: $186,000,000.00Depreciation and amortization → Operating adjustments reconciliation: $111,000,000.00Deferred income taxes → Operating adjustments reconciliation: $31,000,000.00Accrued interest → Operating adjustments reconciliation: $12,000,000.00Non-cash impairments → Operating adjustments reconciliation: $3,000,000.00Non-cash interest expense → Operating adjustments reconciliation: $2,000,000.00Non-cash stock-based compensation expense → Operating adjustments reconciliation: $2,000,000.00Remeasurement of share-settled liability → Operating adjustments reconciliation: $1,000,000.00Operating adjustments reconciliation → Deferred revenue: $123,000,000.00Operating adjustments reconciliation → Accounts receivable, net: $93,000,000.00Operating adjustments reconciliation → Accounts payable and accrued liabilities: $91,000,000.00Operating adjustments reconciliation → Royalty advances: $57,000,000.00Operating adjustments reconciliation → Income taxes payable: $19,000,000.00Operating adjustments reconciliation → Operating lease liabilities: $7,000,000.00Operating adjustments reconciliation → Remaining operating cash flows, net (calculated): $7,000,000.00Operating adjustments reconciliation → Net loss (gain) on investments: $3,000,000.00Operating adjustments reconciliation → Inventories: $3,000,000.00Operating adjustments reconciliation → Other balance sheet changes, net: $3,000,000.00Proceeds from the sale of investments → investing reconciliation: $2,000,000.00investing reconciliation → Investments and acquisitions of businesses, net of cash received: $77,000,000.00investing reconciliation → Acquisition of music publishing rights and music catalogs: $48,000,000.00investing reconciliation → Capital expenditures: $28,000,000.00Net cash used in financing activities → financing reconciliation: $110,000,000.00Contributions from redeemable noncontrolling interest holder → financing reconciliation: $1,000,000.00financing reconciliation → Dividends paid: $100,000,000.00financing reconciliation → Payment of deferred consideration: $5,000,000.00financing reconciliation → Deferred financing costs paid: $2,000,000.00financing reconciliation → Distribution to noncontrolling interest holders: $2,000,000.00financing reconciliation → Taxes paid related to net share settlement of restricted stock units and common stock: $1,000,000.00financing reconciliation → Repayments of secured debt: $1,000,000.00Net cash used in investing activities → investing reconciliation: $151,000,000.00Exchange-rate effect → Cash sources and uses: $1,000,000.00Beginning cash: Cash, cash equivalents, and restricted cash → Cash sources and uses: $741,000,000.00Net cash from operating activities → Cash sources and uses: $142,000,000.00Cash sources and uses → Effect of change in cash balances classified as assets held for sale: $5,000,000.00Cash sources and uses → Ending cash: Cash, cash equivalents, and restricted cash: $618,000,000.00Cash sources and uses → Net cash used in investing activities: $151,000,000.00Cash sources and uses → Net cash used in financing activities: $110,000,000.00Net income: $200,000,000.00Continuing ops income (loss)+$200.00 MDepreciation and amortization: $111,000,000.00Depreciation & amortization+$111.00 MUnrealized losses and remeasurement of foreign-denominated loans and foreign currency forward exchange contracts: -$0.00Deferred income taxes: $31,000,000.00Deferred income taxes+$31.00 MLoss on extinguishment of debt: -$0.00Net loss (gain) on investments: -$3,000,000.00Investment sale gain & loss−$3.00 MNet loss on divestitures: -$0.00Non-cash interest expense: $2,000,000.00Debt cost amortization+$2.00 MNon-cash stock-based compensation expense: $2,000,000.00Noncash employee benefits+$2.00 MNon-cash impairments: $3,000,000.00Asset impairments+$3.00 MRemeasurement of share-settled liability: $1,000,000.00Share-settled remeasurement+$1.00 MAccounts receivable, net: -$93,000,000.00Accounts receivable−$93.00 MInventories: -$3,000,000.00Inventories−$3.00 MRoyalty advances: -$57,000,000.00Royalty advances−$57.00 MAccounts payable and accrued liabilities: -$91,000,000.00Payables & accrued liabilities−$91.00 MRoyalty payables: $186,000,000.00Royalty payables+$186.00 MAccrued interest: $12,000,000.00Accrued interest+$12.00 MOperating lease liabilities: -$7,000,000.00Operating lease liabilities−$7.00 MDeferred revenue: -$123,000,000.00Deferred revenue−$123.00 MIncome taxes payable: -$19,000,000.00Accrued taxes−$19.00 MOther balance sheet changes, net: -$3,000,000.00Other working capital, net−$3.00 MRemaining operating cash flows, net (calculated): -$7,000,000.00Remaining operating (calculated)−$7.00 MNet cash from operating activities: $142,000,000.00Operating cash+$142.00 MOperating adjustments reconciliation: $406,000,000.00Proceeds from Beethoven Credit Agreement: $0.00Deferred financing costs paid: -$2,000,000.00Debt issuance costs−$2.00 MDistribution to noncontrolling interest holders: -$2,000,000.00Paid to noncontrolling interests−$2.00 MContributions from redeemable noncontrolling interest holder: $1,000,000.00From noncontrolling interests+$1.00 MDividends paid: -$100,000,000.00Dividends paid−$100.00 MPayment of deferred consideration: -$5,000,000.00Contingent consideration paid−$5.00 MTaxes paid related to net share settlement of restricted stock units and common stock: -$1,000,000.00Stock-award tax withholding−$1.00 MCommon stock repurchased and retired: $0.00Other financing activity: $0.00Proceeds from Senior Term Loan A Facility: $0.00Repayments of secured debt: -$1,000,000.00Secured debt repaid−$1.00 MNet cash used in financing activities: -$110,000,000.00. Cash required to fund net payments.Financing cash−$110.00 Mfinancing reconciliation: $111,000,000.00Proceeds from the sale of investments: $2,000,000.00Equity-method investment sales+$2.00 MAcquisition of music publishing rights and music catalogs: -$48,000,000.00Intangible asset purchases−$48.00 MCapital expenditures: -$28,000,000.00PP&E purchases−$28.00 MInvestments and acquisitions of businesses, net of cash received: -$77,000,000.00Acquisitions, net of cash−$77.00 MProceeds from divestitures: $0.00Net cash used in investing activities: -$151,000,000.00. Cash required to fund net payments.Investing cash−$151.00 Minvesting reconciliation: $153,000,000.00Cash sources and uses: $884,000,000.00Beginning cash: Cash, cash equivalents, and restricted cash: $741,000,000.00Beginning cash$741.00 MEnding cash: Cash, cash equivalents, and restricted cash: $618,000,000.00Ending cash$618.00 MExchange-rate effect: $1,000,000.00FX effect+$1.00 MEffect of change in cash balances classified as assets held for sale: -$5,000,000.00Effect of change in cashbalances classified asassets held for sale−$5.00 MCASH RECONCILIATIONOperatingflowsInvestingflowsFinancingflowsFree cash flow$114.00 MOperating cash − cash spent on PP&ECash flow / Net incomeUnavailableOperating cash flow ÷ net incomeNet cash change−$123.00 MEnding cash − beginning cash
Chart details

Warner Music Group Corp. cash flow reconciliation, Apr 1, 2026 through Jun 30, 2026

Cash flows for Apr 1, 2026 through Jun 30, 2026. Cash basis: Cash, cash equivalents, and restricted cash. Beginning cash: Mar 31, 2026. Ending cash: Jun 30, 2026. Beginning and ending cash are dated balances. Positive cash flows add cash; negative cash flows reduce it.

Beginning cash on Mar 31, 2026
741,000,000 US dollars. Beginning cash: Cash, cash equivalents, and restricted cash
Operating activities
142,000,000 US dollars. Net cash provided. The remaining amount is calculated by subtracting the other displayed items from the operating total. This quarter is the year to date less the prior quarter's year to date. The prior quarter reported part of this section under different lines (Other noncurrent assets), so Remeasurement of redeemable noncontrolling interest cannot be separated for this quarter. It may combine inflows and outflows.
Net income
200,000,000 US dollars
Depreciation and amortization
111,000,000 US dollars
Unrealized losses and remeasurement of foreign-denominated loans and foreign currency forward exchange contracts
0 US dollars
Deferred income taxes
31,000,000 US dollars
Loss on extinguishment of debt
0 US dollars
Net loss (gain) on investments
negative 3,000,000 US dollars
Net loss on divestitures
0 US dollars
Non-cash interest expense
2,000,000 US dollars
Non-cash stock-based compensation expense
2,000,000 US dollars
Non-cash impairments
3,000,000 US dollars
Remeasurement of share-settled liability
1,000,000 US dollars
Accounts receivable, net
negative 93,000,000 US dollars
Inventories
negative 3,000,000 US dollars
Royalty advances
negative 57,000,000 US dollars
Accounts payable and accrued liabilities
negative 91,000,000 US dollars
Royalty payables
186,000,000 US dollars
Accrued interest
12,000,000 US dollars
Operating lease liabilities
negative 7,000,000 US dollars
Deferred revenue
negative 123,000,000 US dollars
Income taxes payable
negative 19,000,000 US dollars
Other balance sheet changes, net
negative 3,000,000 US dollars
Remaining operating cash flows, net (calculated)
negative 7,000,000 US dollars
Investing activities
negative 151,000,000 US dollars. Net cash used.
Proceeds from the sale of investments
2,000,000 US dollars
Acquisition of music publishing rights and music catalogs
negative 48,000,000 US dollars
Capital expenditures
negative 28,000,000 US dollars
Investments and acquisitions of businesses, net of cash received
negative 77,000,000 US dollars
Proceeds from divestitures
0 US dollars
Financing activities
negative 110,000,000 US dollars. Net cash used.
Proceeds from Beethoven Credit Agreement
0 US dollars
Deferred financing costs paid
negative 2,000,000 US dollars
Distribution to noncontrolling interest holders
negative 2,000,000 US dollars
Contributions from redeemable noncontrolling interest holder
1,000,000 US dollars
Dividends paid
negative 100,000,000 US dollars
Payment of deferred consideration
negative 5,000,000 US dollars
Taxes paid related to net share settlement of restricted stock units and common stock
negative 1,000,000 US dollars
Common stock repurchased and retired
0 US dollars
Other financing activity
0 US dollars
Proceeds from Senior Term Loan A Facility
0 US dollars
Repayments of secured debt
negative 1,000,000 US dollars
Operating adjustment reconciliation
406,000,000 US dollars. Intermediate calculation joining the displayed items and the calculated net remainder. It does not establish gross cash receipts or payments and is not an additional cash flow.
financing gross reconciliation
111,000,000 US dollars. Gross amount at the activity's junction before offsetting its receipts and deductions. It is not an additional cash source or use.
investing gross reconciliation
153,000,000 US dollars. Gross amount at the activity's junction before offsetting its receipts and deductions. It is not an additional cash source or use.
Exchange-rate effect
1,000,000 US dollars
Effect of change in cash balances classified as assets held for sale
negative 5,000,000 US dollars. Out of cash; drawn as the small gray flow above ending cash.
Ending cash on Jun 30, 2026
618,000,000 US dollars. Ending cash: Cash, cash equivalents, and restricted cash
Cash sources and uses
884,000,000 US dollars. Opening cash plus net sources, equal to net uses plus ending cash.
Net cash change
negative 123,000,000 US dollars. Ending cash minus beginning cash.
Cash flow / Net income
Unavailable. Operating cash flow and reconciliation net income for the same period are required.
Operating cash flow
142,000,000 US dollars. Operating cash flow used in the free cash flow calculation.
Cash purchases of property, plant and equipment
28,000,000 US dollars. These cash purchases are already included in investing activities above.
Free cash flow
114,000,000 US dollars. A supplemental measure; finance-lease payments are excluded from this definition.

Chart connections

  • Beginning cash plus operating, investing and financing cash flows plus the exchange-rate effect equals ending cash. Negative amounts reduce cash.
  • Financing contributions meet at a reconciliation junction before connecting to the net cash total.
  • Investing contributions meet at a reconciliation junction before connecting to the net cash total.
  • Operating reconciliation adjustments are not all independent cash receipts.
  • Net income exceeds operating cash. The diagram allocates $142.00M of net income directly to operating cash and $58.00M to the adjustment junction, where it combines with other additions to reconcile deductions. This is an accounting presentation, not a tracing of cash receipts.
  • Each activity has one net cash bar connected to the shared cash pool. Positive activity totals enter the pool; negative activity totals leave the pool to fund that activity's net payments. The central pool does not assign a particular funding source to a particular payment.
  • The intermediate calculation bars include both sides of the displayed activity breakdowns; they are not additional cash flows.
  • Operating cash flow minus cash purchases of property, plant and equipment equals free cash flow: 142,000,000 US dollars minus 28,000,000 US dollars equals 114,000,000 US dollars.
Warner Music Group Corp. (WMG) FY2026 Q3 Statement of Cash Flows Sankey chart
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