Universal Music generated $4.19B in Q4, up 10.6% YoY – driven by Taylor Swift, KPop Demon Hunters soundtrack, Olivia Dean, and more

Universal Music Group generated revenues of €3.605 billion ($4.19bn) across all of its divisions (including recorded music, publishing, and more) in Q4 (the three months ending December 31, 2025).

That’s according to UMG’s financial results for the fourth quarter and full year ended December 31, 2025, published today (March 5).

They reveal that UMG’s overall Q4 revenue figure was up 10.6% YoY at constant currency, driven, according to UMG, by strong growth in the Recorded Music segment.

Adjusted EBITDA weighed in at €810 million ($941.9m) – a margin of 22.5%.

Among the highlights within UMG’s latest results was the company’s recorded music subscription streaming revenues, which grew 7.7% YoY at constant currency to reach €1.257 billion ($1.46bn) in Q4, driven “primarily by the growth in global subscribers,” UMG said today.

Another notable highlight came in the form of UMG’s physical revenues, which grew 21.3% YoY at constant currency to €524 million ($609.3m), driven, according to UMG, “by strong vinyl sales in the US and Europe”.

Commenting on the Q4 and full-year earnings announcement, UMG’s Chairman and CEO, Sir Lucian Grainge, said: “2025 was another standout year for UMG; creatively, commercially, and strategically.”

“We delivered real, measurable progress across our plan: advancing Streaming 2.0, scaling artist and label services, accelerating superfan initiatives, expanding in high-growth markets, and leading on responsible AI.”

Sir Lucian Grainge

He added: “We delivered real, measurable progress across our plan: advancing Streaming 2.0, scaling artist and label services, accelerating superfan initiatives, expanding in high-growth markets, and leading on responsible AI.

“The result is a stronger, more connected and growing ecosystem, creating greater opportunities for our artists and songwriters, and delivering long-term value for shareholders.”

Matt Ellis, UMG’s CFO, said: “Our strong top- and bottom-line growth in 2025 reflects disciplined execution against our strategic priorities and continued investment in our artists, songwriters, and global organization.

“We’re encouraged by the start to 2026, having completed our acquisition of Downtown Music and investment in Excel Entertainment and broadened our partnerships across established platforms and emerging innovators, as we focus on delivering sustainable returns for all our stakeholders.”

RECORDED MUSIC

Universal’s overall Recorded Music revenue for the fourth quarter of 2025 was €2.769 billion ($3.22bn), up 13.9% YoY at constant currency.

Within the Recorded Music segment, UMG’s ‘Subscription and streaming revenues’ (including ad-supported and subscription streaming revenues) grew 8.1% YoY at constant currency to €1.644 billion ($1.91bn).

Breaking UMG’s recorded music streaming figure down further reveals that the company’s subscription streaming revenues specifically grew 7.7% YoY at constant currency to reach €1.257 billion ($1.46bn), driven primarily, according to UMG, “by the growth in global subscribers”. Excluding DSP Catch-Up Income in Q4 2024 which impacts comparability, subscription revenue grew 9.6% in constant currency.

Universal’s ad-supported recorded music streaming revenue reached €387 million ($449.9m), up 9.3% YoY at constant currency.

Within Universal’s recorded music business, Physical revenue grew 21.3% YoY at constant currency to €524 million ($609.3m), driven, according to UMG, “by strong vinyl sales in the U.S. and Europe”.

‘License and other’ revenue grew 18.1% YoY at constant currency to €516 million ($600.0m), with UMG noting growth was driven by “strong live event and other related income, primarily in Japan, as well as by a compensatory payment as part of a strategic licensing agreement with an AI music platform”.

Downloads and other digital revenue reached €85 million ($98.8m), up 107.3% YoY at constant currency, due to a confidential Legal Resolution booked in Q4.

Top sellers for the quarter included Taylor Swift, the KPop Demon Hunters soundtrack, Olivia Dean, Stray Kids and Morgan Wallen, while top sellers in the prior-year quarter included Taylor Swift, Sabrina Carpenter, Billie Eilish, Chappell Roan and Wicked: The Soundtrack.

MUSIC PUBLISHING

Universal’s overall Music Publishing revenue for the fourth quarter of 2025 was €593 million ($689.5m), up 1.4% YoY at constant currency.

Digital publishing revenue reached €354 million ($411.6m), down 1.1% YoY at constant currency, though UMG noted that “underlying growth remains healthy” with results impacted by the timing of collections from certain societies in the prior-year quarter.

Performance revenue reached €116 million ($134.9m), down 5.7% YoY at constant currency.

Synchronization revenue grew 27.4% YoY at constant currency to €79 million ($91.9m), representing the key growth driver within the publishing segment for the quarter.

Mechanical revenue reached €26 million ($30.2m), up 13.0% YoY at constant currency.

Other revenue reached €18 million ($20.9m), down 5.3% YoY at constant currency.

MERCHANDISING AND OTHER

UMG’s ‘Merchandising and Other’ revenue in the fourth quarter of 2025 reached €248 million ($288.4m), flat YoY at constant currency (down 6.1% in reported euros).

According to UMG, growth in merchandising touring revenues and direct-to-consumer sales offset lower retail sales during the quarter.

EBITDA ETC.

In Q4 2025, UMG’s EBITDA (earnings before interest, taxes, and depreciation) grew 8.6% YoY at constant currency to €730 million ($848.8m).

EBITDA margin came in at 20.2%, compared to 20.5% in the fourth quarter of 2024.

Adjusted EBITDA for Q4 was €810 million ($941.9m), up 6.4% YoY at constant currency. Excluding items impacting comparability in both periods, Adjusted EBITDA grew 8.6% YoY in constant currency.

Adjusted EBITDA margin was 22.5%, compared to 23.2% in the fourth quarter of 2024.

All EUR-USD conversions made at the average Q4 2025 rate provided in UMG’s financial filing.Music Business Worldwide