Here’s the thing: even as inflation fears and stock market volatility rattled global markets in late 2025, music companies delivered a surprisingly resilient set of year-end earnings. From streaming giants to labels and live entertainment venues, consumer demand for music and experiences whether through a playlist or a sold-out stage held up in the final quarter. This snapshot of 2025 earnings reveals where the industry is thriving and where pressures are still mounting.
Streaming Leaders: Spotify’s Strong Close and Strategic Shifts
Spotify closed out 2025 with a bang. The streaming juggernaut reported roughly €4.5 billion in revenue for the fourth quarter, marking around 13% year-over-year growth and delivering its highest net additions of monthly active users (MAUs) ever. The platform now boasts 751 million MAUs and 290 million paid subscribers, up significantly from a year earlier. Gross margins improved and operating income hit roughly €701 million a sign that Spotify’s efforts to balance profitability with growth are paying off.
This performance was enough to lift the company’s stock and give investors something to cheer about after several quarters of mixed results. Spotify also highlighted that it paid out more than $11 billion in royalties to artists and rights holders in 2025, the largest annual payout in its history a key point for creators and industry stakeholders alike.
Spotify co-CEO Alex Norström summed it up: “It’s incredible to think that we now serve over three quarters of a billion people around the world.”
Sony Music: Double-Digit Growth and Future Lineups
For Sony Music Group, the end of 2025 brought strong results and a glass-half-full outlook. The company reported double-digit revenue growth in streaming and recorded music, driven by high-profile releases from artists such as Rosalía and Peso Pluma. Revenues for the quarter were north of $3 billion, hitting a major milestone for the label.
Sony’s leadership pointed to upcoming releases from major names like Harry Styles, Luke Combs and A$AP Rocky as reasons for optimism, and the parent company even revised its overall growth forecast upward. The momentum in recorded music, boosted by digital consumption worldwide, helped offset broader market weakness.
Warner Music Group: Steady Growth, Profitability Focus
Warner Music Group posted about $1.84 billion in revenue for the quarter ending December 31, 2025, with streaming and recorded music remaining key drivers. Revenues were up more than 7% year-over-year, and the company’s operating income climbed as well.
CFO Armin Zerza framed the results as both growth-oriented and efficient: “We are delivering on our promises … marked by transformation with accelerated growth and profitability.”
Still, net income lagged prior levels due to currency impacts on debt, underlining that macroeconomic headwinds are still present even in solid performance.
SiriusXM: Niche Challenges and New Opportunities
Unlike other music media players, SiriusXM saw a modest 2% revenue decline in 2025 as subscriber numbers ticked down. The satellite radio provider is leaning more into podcasting and in-vehicle offerings like family subscription plans to counterbalance weaker traditional revenue streams. Podcast ad revenue grew sharply up about 41%, but overall ad revenue remained flat. SiriusXM executives are hoping these new formats can help stabilize the business moving forward.
Reservoir Media: Small But Strategic Gains
Independent publisher and rights manager Reservoir Media posted steady growth for the quarter ended December 31, 2025, with revenue up about 8% and adjusted EBITDA increasing double digits. The company also broadened its portfolio through a joint venture with Jamaican music publisher Abood Music and catalog acquisitions including works by Bertie Higgins.
Live Entertainment: Madison Square Garden Entertainment Soars
At the intersection of music, sport and live experiences, Madison Square Garden Entertainment (MSGE) delivered one of the quarter’s standout results. For the period just after Christmas, revenues climbed about 13% to nearly $460 million, driven by a record run of The Rockettes’ Christmas Spectacular.
Food, beverage and merchandise sales were also up, buoyed by additional Knicks and Rangers games. This performance underscores the enduring appeal of live events even when stock markets wobble and broader consumer confidence fades.
What It All Means
Here’s the takeaway: in an economic environment marked by uncertainty, the music industry proved its resilience in late 2025. Consumers continued to stream, flock to live venues and support artists through merch and ticket sales. The big streaming platforms are growing users and revenue, labels are capitalizing on blockbuster releases, and live entertainment is finding its footing with demand that outpaces many other leisure sectors.
Yet that doesn’t mean the industry is without challenges. Macro trends such as interest rate concerns, forex volatility and shifting consumer habits are still significant. For investors and creators alike, understanding these earnings in context means focusing not just on topline gains but on profitability, efficiency and the ability to innovate in how music reaches audiences.
If 2025 is any indication, the core business of connecting artists with fans whether through a headset at home or a seat in a concert hall remains as compelling as ever.
