Universal Music Group Reports Financial Results for the Third Quarter.

Q3 2026 Results Highlights

Subscription growth accelerated, core margins expanded, and Downtown broadened UMG’s artist and label services capabilities

• Revenue growth flowing from core momentum plus Downtown contribution: Revenue of €3,394 million grew 12.3% year-over-year, or 11.7% in constant currency. Excluding Downtown, revenue grew 5.3% in constant currency. The company is successfully integrating Downtown’s broad capabilities across the broader group.
• Subscription growth accelerated: Recorded Music subscription revenue grew 19.2% in constant currency, or 9.5% excluding Downtown, supported by wholesale price increases and continued healthy subscriber growth. Ad-supported streaming revenue grew 4.7% excluding Downtown, and physical revenue increased 17.4%.
• Disciplined execution resulted in margin progression: The company further progressed on various efficiency initiatives, which contributed to total UMG Adjusted EBITDA growing 9.0% in constant currency, and Adjusted EBITDA excluding Downtown growing 7.0%, with margin expanding 0.4 percentage points to 22.4%.
• Creative performance was broad across genres, geographies, and generations: Top sellers included Mrs. Green Apple, Olivia Rodrigo, Stray Kids, Ariana Grande and The Beatles. Physical growth was broad-based across North America, Japan and Europe, and across both frontline and catalog. 

Universal Music Group N.V. (“UMG” or “the Company”) today announced its financial results for the third quarter and nine months ended September 30, 2026.

“Our results show the enduring value of backing extraordinary artists, bold ideas, and the teams and technology that help bring their work to the world,” said Sir Lucian Grainge, Chairman and CEO of Universal Music Group. “The industry is healthy and growing, and we will keep evolving from a position of strength. We are investing in human artistry, improving the economics of streaming, and expanding what’s possible for artists and fans. To support that strategy, we are making UMG faster and more focused so we can operate more efficiently and drive sustained growth and long-term value.”

“This quarter showed clear progress: subscription revenue growth accelerated, and Adjusted EBITDA margin excluding Downtown expanded by 40 basis points, led by stronger margins in Recorded Music,” said Matt Ellis, UMG’s CFO. “We are focused on sustaining that progress, capturing the strategic and financial benefits of Downtown, and improving efficiency across the whole company.”

 

Q3 2026 Results

Revenue for the third quarter of 2026 grew 11.7% in constant currency, which included the consolidation of Downtown. Excluding Downtown, revenue grew 5.3% in constant currency with growth in Recorded Music and Music Publishing primarily driven by:

• subscription revenue growth, including pricing benefits from Streaming 2.0 agreements;
• strong physical sales;
• higher ad-supported streaming revenue; and
• increased Music Publishing digital revenue.

Adjusted EBITDA improved 9.0% in constant currency. Excluding Downtown, Adjusted EBITDA grew 7.0% in constant currency and Adjusted EBITDA margin increased by 0.4pp to 22.4% reflecting:

• margin expansion in Recorded Music; partially offset by
• lower profitability in Music Publishing and Merchandising.

YTD 2026 Results

In the nine months ended September 30, 2026, UMG’s revenue grew 11.1% in constant currency, or 5.5% excluding Downtown, with growth in Recorded Music and Music Publishing, partially offset by a decline in Merchandising, as discussed further below.

Adjusted EBITDA grew 4.8% in constant currency. Excluding Downtown, Adjusted EBITDA grew 3.5% in constant currency and Adjusted EBITDA margin declined 0.4pp year-over-year due to:

• higher contribution from artist and label services revenue within Recorded Music;
• an increase in corporate overhead, partially due to higher professional fees; and
• a loss in Merchandising.

Recorded Music

Q3 2026
Recorded Music revenue grew 14.7% in constant currency, or 7.4% excluding Downtown:

• Subscription revenue grew 19.2% in constant currency, or 9.5% excluding Downtown. Wholesale price increases and continued healthy subscriber growth contributed to the performance, while market share headwinds moderated compared to the first half of 2026.
• Streaming revenue grew 13.5% in constant currency, or 4.7% excluding Downtown, with growth across several key video and digital partners, partially driven by better per-play rates.
• Downloads and other digital revenue declined 15.4% in constant currency, or 30.8% excluding Downtown, reflecting the ongoing industry-wide format shift.
• Physical revenue increased 17.4% in constant currency, both including and excluding Downtown, with broad-based strength in North America, Japan and Europe, and across frontline and catalog.
• License and other revenue was largely flat in constant currency, and declined 2.8% excluding Downtown, as growth in synchronization and audiovisual revenue was more than offset by lower live and related income.

Recorded Music Adjusted EBITDA grew 14.9% in constant currency, or 12.7% excluding Downtown. Recorded Music Adjusted EBITDA margin excluding Downtown expanded 1.2pp to 26.2% in Q3 2026, reflecting:

• lower relative A&R expense; and
• improved cost discipline across marketing and overhead; partially offset by
• pressure from revenue and repertoire mix.

Music Publishing

Q3 2026
Music Publishing revenue grew 7.5% in constant currency, and grew 1.5% excluding Downtown.

• Digital revenue grew 11.8% in constant currency, and grew 3.9% excluding Downtown, reflecting subscription growth, partially offset by softer ad-supported streaming revenue;
• Performance revenue grew 1.7% in constant currency, and was flat excluding Downtown.
• Synchronization revenue was flat in constant currency, and declined 4.7% excluding Downtown, reflecting lower film and television activity, partially offset by improved advertising synchs.
• Mechanical revenue was flat in constant currency, both including and excluding Downtown.

Music Publishing Adjusted EBITDA declined 3.5% in constant currency, or 4.3% excluding Downtown. Music Publishing Adjusted EBITDA margin excluding Downtown declined 1.5pp to 24.2% in Q3 2026, reflecting a timing benefit to expenses in the prior year period.

Merchandising and Other

Q3 2026
Merchandising and Other revenue declined 4.6% in constant currency, primarily driven by:

• lower touring income compared to a prior-year quarter that included a greater number of high-profile tours; partially offset by
• growth in direct-to-consumer revenue, as we broadened the roll-out of our ship-to-home program for merchandise on certain tours.

Merchandising and Other Adjusted EBITDA of €11 million declined by €2 million due to lower revenue while Adjusted EBITDA margin declined 0.6pp to 4.4%.