Universal Music Group Q3 Revenue Hits $3.5 Billion on Subscription, Publishing Gains

On the strength of top sellers from the KPop Demon Hunters soundtrack, Sabrina Carpenter and Morgan Wallen, Universal Music Group’s revenue grew 5.3% to 3.02 billion euros ($3.53 billion at the quarter’s average euro-to-dollar exchange rate) in the third quarter of 2025, the company announced Thursday (Oct. 30). In constant currency, which removes the impact of considerable foreign exchange fluctuations since the beginning of the year, UMG’s revenue rose 10.2% in the quarter. 

With all three of UMG’s business units posting gains, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), a common measure of profitability, increased 6.9% (11.6% in constant currency) to 594 million euros ($694 million). Adjusted EBITDA margin — EBITDA as a percentage of revenue — improved to 22.0% from 21.6%.  

CEO Lucian Grainge emphasized the company’s long-term value creation and strategic efforts that don’t show up in the financial results. “Importantly, we continued to drive progress on our strategic plans, including our artists’ and songwriters’ creative and commercial success, our global expansion, the industry’s embrace of our responsible AI initiatives and the continued implementation of Streaming 2.0.,” he said in a statement. A day earlier, UMG announced a settlement and licensing agreement with AI music generator Udio. Just hours before earnings were released, UMG trumpeted a partnership with Stability AI to create tools for artists and producers that are powered by “responsibly” trained generative AI. 

In the recorded music division, revenue rose 3.6% (8.3% in constant currency) from the prior-year period to 2.22 billion euros ($2.60 billion). Recorded music subscription revenue improved 3.6% (8.7% in constant currency) to 1.52 billion euros ($1.78 billion), in line with the company’s projections of 8% to 10% annual growth. The company said subscription growth came primarily from an increase in the number of global subscribers. 

Other streaming revenue, which included ad-supported streaming, fell 4.8% (flat in constant currency) to 337 million euros ($394 million). The company attributed the decline to a shift in streaming activity to poorly monetized short-form videos from more effectively monetized video platforms. 

Physical sales jumped 18.4% (23.1% in constant currency) to 341 million euros ($399 million) due to initial shipments of Taylor Swift’s The Life of a Showgirl, which had a street date after the end of the third quarter. Licensing and other revenue improved 0.9% (4.1% in constant currency) to 328 million euros ($383 million). Digital downloads were down 7.1% (unchanged in constant currency) to 39 million euros ($46 million). 

Music publishing revenue improved 8.6% (13.6% in constant currency) to 543 million euros ($635 million). Publishing’s digital revenue grew 10.8% (16.8% in constant currency) to 327 million euros ($382 million) due to streaming growth and subscription revenue gains. Performance revenue rose 13.9% (17.3% in constant currency) to 115 million euros ($134 million). Synch revenue fell 1.6% (rose 3.3% in constant currency) to 63 million euros ($74 million). Mechanical royalties were down 7.1% (3.7% in constant currency) to 26 million euros ($30 million). 

Merchandising and other revenue grew 9.3% (15.6% in constant currency) to 259 million euros ($303 million). Lower direct-to-consumer sales were more than offset by growth in touring merchandise sales.