Warner Music Group (WMG) reported a modest revenue decline in Q1 2025, with total revenue of $1.667 billion, down 4% year over year, and adjusted OIBDA down 18% to $453 million. On a GAAP basis, operating income was $214 million and net income was $236 million, translating to basic and diluted earnings per share of $0.45. The quarter was characterized by a pronounced currency headwind: roughly 58% of revenue is generated in non-dollar currencies, which management quantified as about a 200 basis point drag to adjusted OIBDA margins. Management framed the results within a three-pronged strategy to grow the pie (increase market share, expand the value of music with DSP partners, and drive efficiency) and highlighted recent strategic actions, notably the Tempo Music acquisition, designed to create a high-margin evergreen catalog and incremental long-term cash flow. The company reinforced its expectation for high-single-digit subscription streaming growth for the year (adjusted for notable items and BMG effects) but did not reaffirm near-term margin expansion targets due to FX volatility. Free cash flow was solid at $296 million, and operating cash flow was $332 million, with a strong 91% operating cash flow conversion relative to adjusted OIBDA. Looking ahead, the convergence of stronger DSP partnerships (Spotify and Amazon renewals), a robust catalog strategy, and Tempo-driven earnings accretion underpin a constructive long-term investment thesis, even as near-term FX headwinds and revenue mix effects temper margin expansion in the current year.