Universal Music Group generated $3.83bn in Q2, up 13.3% YoY – driven by Noah Kahan, BTS, Olivia Rodrigo, Drake, and Olivia Dean

Universal Music Group generated revenues of EUR €3.294 billion (USD $3.83bn) across all of its divisions (including recorded music, publishing, and more) in Q2 (the three months ending June 30, 2026).

That’s according to UMG‘s fresh set of quarterly results, published today (July 30).

They reveal that UMG’s overall Q2 revenue grew 13.3% YoY at constant currency, driven by the consolidation of Downtown Music Holdings, pricing benefits of Streaming 2.0 agreements, strong physical and licensing and other sales, and healthy performance revenue, contributing to growth in Recorded Music and Music Publishing.

Excluding Downtown, whose results are consolidated from its acquisition date of February 20, revenue grew 6.4% YoY at constant currency.

Adjusted EBITDA came in at €674 million ($783.8m), a margin of 20.5%, down from 22.7% in the second quarter of 2025.

One highlight from UMG’s latest results was the company’s recorded music subscription revenue, which grew 16.6% YoY at constant currency to €1.368 billion ($1.59bn) in Q2, benefiting from the consolidation of Downtown and pricing benefits of Streaming 2.0 agreements.

“Our unique combination of global reach, local expertise, artist development, vast audio and visual IP and entrepreneurial culture positions UMG to deliver long-term growth, sustained value creation, and creative and commercial success for our artists and songwriters.”

Sir Lucian Grainge

Commenting on the Q2 earnings announcement, UMG’s Chairman and CEO, Sir Lucian Grainge, said: “We’re delivering on our strategic plan, and working to further sharpen our execution, while capitalizing on the opportunities presented by new technologies and the ever-evolving music ecosystem.

“Our unique combination of global reach, local expertise, artist development, vast audio and visual IP and entrepreneurial culture positions UMG to deliver long-term growth, sustained value creation, and creative and commercial success for our artists and songwriters.”

RECORDED MUSIC

Universal’s overall Recorded Music revenue for the second quarter of 2026 was €2.516 billion ($2.93bn), up 16.2% YoY at constant currency. Excluding Downtown, Recorded Music revenue grew 8.7% YoY at constant currency.

Within the Recorded Music segment, UMG’s ‘Subscription and streaming revenues’ (including ad-supported and subscription streaming revenues) grew 15.4% YoY at constant currency to €1.757 billion ($2.04bn).

Breaking UMG’s recorded music streaming figure down further reveals that the company’s subscription streaming revenues grew 16.6% YoY at constant currency to reach €1.368 billion ($1.59bn). Excluding Downtown, subscription revenue grew 6.7% YoY at constant currency.

Universal’s ad-supported recorded music streaming revenue grew 11.5% YoY at constant currency to €389 million ($452.4m), as consumers “continue to shift consumption from better monetized video platforms to short-form platforms”, according to UMG.

Within Universal’s recorded music business, Physical revenue grew 15.9% YoY at constant currency to €342 million ($397.7m), with “particular strength in the U.S. and Europe, partially offset by declines in Japan due to the timing of releases”, UMG said.

‘License and other’ revenue increased 34.9% YoY at constant currency to €379 million ($440.7m), with “outsized contributions from audiovisual and live and related income, along with healthy licensing revenue growth”, according to UMG.

Downloads and other digital revenue fell 43.3% YoY at constant currency to €38 million ($44.2m), which UMG attributed to a previously disclosed settlement with an internet service provider in Q2 2025 and the “ongoing industry-wide format shift”.

Top sellers for the quarter included Noah Kahan, BTS, Olivia Rodrigo, Drake, and Olivia Dean.

MUSIC PUBLISHING

Universal’s overall Music Publishing revenue for the second quarter of 2026 was €616 million ($716.3m), up 9.8% YoY at constant currency. Excluding Downtown, Music Publishing revenue grew 2.7% YoY at constant currency.

Digital revenue grew 13.6% YoY at constant currency to €392 million ($455.9m), “reflecting strength in subscription, partially offset by softer ad-supported streaming”, UMG said.

Performance revenue increased 12.8% YoY at constant currency to €123 million ($143m), which UMG attributed to “continued industry growth”.

Synchronization revenue fell 9.4% YoY at constant currency to €58 million ($67.4m), “related to the timing of deals”.

Mechanical revenue grew 3.6% YoY at constant currency to €29 million ($33.7m), “driven by release schedules”.

Other revenue declined 6.7% YoY at constant currency to €14 million ($16.3m).

MERCHANDISING AND OTHER

UMG’s ‘Merchandising and Other’ revenue in the second quarter of 2026 was €167 million ($194.2m), down 10.7% YoY at constant currency.

According to UMG, the drop reflected a decline in touring income due to the timing of tours, and a decline in direct-to-consumer revenue due to the timing of product releases.

The division posted an Adjusted EBITDA loss of €5 million ($5.8m) in Q2, compared with a €1 million profit a year earlier.

DOWNTOWN

Downtown Music Holdings contributed €202 million ($234.9m) in total revenue in Q2 2026, its first full quarter under UMG ownership.

That was up from the €86 million Downtown added in Q1 2026, when it was consolidated for only around five-and-a-half weeks following the deal’s completion on February 20.

The bulk of Downtown’s Q2 contribution came from Recorded Music, at €162 million ($188.4m), with Music Publishing accounting for a further €40 million ($46.5m).

Downtown’s Adjusted EBITDA was €10 million ($11.6m), an Adjusted EBITDA margin of 5.0%.

EBITDA ETC.

In Q2 2026, UMG’s EBITDA (earnings before interest, taxes, depreciation and amortization) was €610 million ($709.4m), down 0.2% YoY but up 1.5% at constant currency.

EBITDA margin was 18.5%, compared to 20.5% in the second quarter of 2025.

Adjusted EBITDA for Q2 was €674 million ($783.8m), down 0.3% YoY but up 1.5% at constant currency.

Adjusted EBITDA margin was 20.5%, compared to 22.7% in Q2 2025, with the decline “due to the consolidation of Downtown, pressure from revenue and repertoire mix in Recorded Music, and a loss in Merchandising”, according to UMG.

Excluding Downtown, Adjusted EBITDA was flat at constant currency in Q2.

UMG’s Board of Directors declared an interim dividend for the first half of 2026 of €432 million, or €0.24 per share, in line with the 2025 interim dividend.

The dividend payment date will be on October 27, 2026.

NET DEBT

UMG’s financial net debt stood at €4.131 billion ($4.80bn) at the end of June, up 72.8% from €2.390 billion at the end of 2025.

The increase reflected €806 million of cash used for investing activities, including the Downtown acquisition, alongside €734 million of stock repurchases and €514 million of dividend payments.

That was partially offset by €379 million ($440.7m) in proceeds from the sale of Spotify shares, after UMG confirmed in April that it would monetize half of its equity stake in the streaming company.

“Our focus is on building our market leadership, while driving top and bottom-line growth, improving efficiency, and continuing to invest where we see the greatest returns.”

Matt Ellis, UMG

“This quarter demonstrated both the strong fundamentals of our business and the opportunities we see to improve,” said Matt Ellis, UMG’s CFO. “Our focus is on building our market leadership, while driving top and bottom-line growth, improving efficiency, and continuing to invest where we see the greatest returns.”

All EUR-USD conversions made at the average Q2 2026 exchange rate published by the European Central Bank.Music Business Worldwide