0001319161-26-000022
SEC filingRevenue grew 16.7% to $1.7B, with operating income up 57.1% to $264M, driven by restructuring savings and streaming growth.
Revenue increased 16.7% to $1.7 billion for the second quarter of fiscal 2026, compared to $1.5 billion in the prior-year quarter. The growth was broad-based, led by Recorded Music streaming and artist services. The increase in distribution expense was primarily due to revenue mix from higher merchandising and physical revenues, while selling and marketing expense rose due to higher variable marketing spend for key releases.
Net income rose to $183.0 million from $36.0 million in the prior-year quarter, reflecting the strong operating performance and a favorable swing in other income. The Company allocated a majority of the cost savings to increase investment in its core Recorded Music and Music Publishing businesses, new skill sets, and tech capabilities.
Net cash provided by operating activities was $566.0 million, up from $401.0 million in the prior-year quarter, largely due to strong operating performance. Capital expenditures decreased to $47.0 million from $72.0 million, resulting in free cash flow of $519.0 million. Management believes that funds generated from operations and available borrowings will be sufficient to fund debt service, working capital, and capital expenditure requirements for the foreseeable future.