Warner Music(WMG) - 2025 Q3 - Quarterly Results

Executive Summary & Financial Highlights Warner Music Group reported strong Q3 FY2025 results driven by revenue growth in recorded music and music publishing, despite a net loss, with strategic investments and efficiency initiatives supporting adjusted OIBDA expansion Q3 FY2025 Performance Overview Warner Music Group's CEO and CFO highlighted strong Q3 FY2025 performance, driven by hit songs, market share growth, and strategic investments in artists, songwriters, and technology, while focusing on efficiency and profit expansion - CEO Robert Kyncl emphasized strong revenue growth and market share gains, attributing success to strategic focus on artists, songwriters, and global impact[3] - CFO Armin Zerza noted robust performance reflects commitment to investing in music, enhancing efficiency, and accelerating core business growth while expanding margins[3] Key Financial Highlights The company reported accelerated revenue growth in recorded music and music publishing, supporting double-digit adjusted OIBDA growth and margin expansion, despite a net loss this quarter - Revenue re-accelerated in recorded music and music publishing, driving double-digit adjusted OIBDA growth and margin expansion[4] - Recorded music streaming performance benefited from strong US market share growth and chart success across geographies and genres[4] - Recent restructuring and catalog acquisition joint venture are expected to provide additional capital for reinvestment[4] Q3 FY2025 Key Financial Highlights | Metric | Q3 2025 ($M) | Q3 2024 ($M) | Percentage Change | | :--------------------------------- | :------ | :------ | :------- | | Total Revenue | $1,689 | $1,554 | 9% | | Net (Loss) Income | $(16) | $141 | —% (Loss) | | Operating Income | $169 | $207 | -18% | | Adjusted OIBDA | $373 | $316 | 18% | | Cash Flow from Operations | $46 | $188 | -76% | Consolidated Financial Performance Warner Music Group's Q3 FY2025 results show overall revenue growth driven by segment performance, but operating income and net income were impacted by increased expenses and foreign exchange effects Total WMG Summary Results Warner Music Group's total revenue grew 9% to $1.689 billion in Q3 FY2025, driven by recorded music and music publishing, though operating income declined 18% and a $16 million net loss was recorded due to restructuring and foreign exchange impacts, while adjusted OIBDA increased 18% reflecting operational efficiencies Total WMG Summary Results (Three Months Ended June 30) | Metric | June 30, 2025 ($M) | June 30, 2024 ($M) | Percentage Change | | :--------------------------------- | :------------ | :------------ | :------- | | Revenue | $1,689 | $1,554 | 9 % | | Recorded Music Revenue | $1,354 | $1,251 | 8 % | | Music Publishing Revenue | $336 | $305 | 10 % | | Operating Income | $169 | $207 | -18 % | | Adjusted OIBDA | $373 | $316 | 18 % | | Net (Loss) Income | $(16) | $141 | — % | | Cash Flow from Operations | $46 | $188 | -76 % | | Free Cash Flow | $7 | $160 | -96 % | - Total revenue increased 8.7% (7.0% at constant currency), with digital revenue growing 5.3% (4.1% at constant currency) primarily driven by 4.0% streaming revenue growth (2.9% at constant currency); excluding specific items, total revenue grew 10.2% (8.5% at constant currency)[6] - Operating income decreased 18.4% to $169 million, primarily due to a $68 million increase in restructuring and impairment charges, $12 million higher amortization expense, and increased non-cash equity-based compensation and executive transition costs[7] - Adjusted OIBDA increased 18.0% to $373 million, with adjusted OIBDA margin expanding 1.8 percentage points to 22.1%, driven by revenue mix, acquisition impact, and cost savings from the 2024 strategic restructuring plan, partially offset by reinvestment in technology[8] Net Loss and EPS The company reported a $16 million net loss in Q3 FY2025, a significant decline from $141 million net income in the prior year, primarily due to negative foreign exchange impacts on Euro-denominated debt and hedging losses, partially offset by reduced income tax expense Net (Loss) Income and EPS (Three Months Ended June 30) | Metric | June 30, 2025 ($M) | June 30, 2024 ($M) | Percentage Change | | :--------------------------------- | :------------ | :------------ | :------- | | Net (Loss) Income | $(16) | $141 | — % | | Basic and Diluted EPS for Class A and B Common Stock | $(0.03) | $0.27 | — % | - Net loss primarily resulted from a $70 million loss on foreign exchange rates for Euro-denominated debt (compared to a $7 million gain in the prior year) and $8 million in realized and unrealized losses from hedging activities (compared to a $1 million gain in the prior year)[9] - Net loss was partially offset by a $25 million decrease in income tax expense, mainly due to a pre-tax loss this quarter[9] Liquidity and Cash Flow Warner Music Group's cash flow from operations significantly decreased 76% to $46 million, and free cash flow dropped 96% to $7 million, primarily due to increased A&R spending, working capital changes, and higher capital expenditures for technology investments, with a cash balance of $527 million and total debt of $4.363 billion as of June 30, 2025 Cash and Debt Position (As of June 30, 2025) | Metric | Amount ($M) | | :--------------------------------- | :---------------- | | Cash Balance | $527 | | Total Debt | $4,363 | | Net Debt | $3,836 | Cash Flow Summary (Three Months Ended June 30) | Metric | June 30, 2025 ($M) | June 30, 2024 ($M) | Percentage Change | | :--------------------------------- | :------------ | :------------ | :------- | | Cash Flow from Operations | $46 | $188 | -76 % | | Free Cash Flow | $7 | $160 | -96 % | | Capital Expenditures | $39 | $28 | 39 % | - Cash flow from operations decreased primarily due to increased A&R spending and other changes in working capital[12] - Free cash flow decline also attributed to a 39% increase in capital expenditures to $39 million, mainly for technology investments[12] Segment Performance The company's segment performance highlights revenue growth in both recorded music and music publishing, with adjusted OIBDA expansion, despite varying impacts on operating income due to restructuring and amortization Recorded Music Recorded Music revenue grew 8% to $1.354 billion, driven by digital, artist services, expanded rights, and licensing income, despite a slight decline in physical revenue, while adjusted OIBDA increased 14% to $321 million with margin expansion due to cost savings and revenue mix, though operating income decreased due to higher restructuring and impairment charges Recorded Music Revenue Recorded Music revenue increased, primarily driven by digital, artist services, and licensing, with strong streaming performance and chart success, partially offset by a slight decline in physical revenue Recorded Music Revenue (Three Months Ended June 30) | Revenue Type | June 30, 2025 ($M) | June 30, 2024 ($M) | Percentage Change | | :--------------------------------- | :------------ | :------------ | :------- | | Total Recorded Music Revenue | $1,354 | $1,251 | 8 % | | Digital | $929 | $882 | 5 % | | Physical | $119 | $120 | -0.8 % | | Artist Services and Expanded Rights | $195 | $159 | 22.6 % | | Licensing | $111 | $90 | 23.3 % | - Digital revenue grew 5.3% (4.1% at constant currency), with streaming revenue up 3.7% (2.6% at constant currency), and subscription revenue increasing 5.3% (4.2% at constant currency) due to positive market share trends and chart performance[15] - Licensing revenue increased 23.3% (19.4% at constant currency) driven by UK and China licensing deals and the timing of other copyright infringement settlements[15] - Artist services and expanded rights revenue grew 22.6% (19.6% at constant currency) primarily due to increased concert promotion revenue in France and Spain[15] - Physical revenue decreased 0.8% (4.0% at constant currency), with growth from strong releases in Korea and Japan offset by a $10 million impact from the BMG termination agreement; excluding this, physical revenue grew 8.2% (4.4% at constant currency)[15] - Top-selling artists this quarter included BAEKHYUN, ROSÉ, Bruno Mars, Grateful Dead, and Teddy Swims[15] Recorded Music Operating Income & Adjusted OIBDA Recorded Music operating income declined due to increased restructuring and amortization, while adjusted OIBDA grew with margin expansion, driven by strategic cost savings and revenue mix Recorded Music Operating Income and Adjusted OIBDA (Three Months Ended June 30) | Metric | June 30, 2025 ($M) | June 30, 2024 ($M) | Percentage Change | | :--------------------------------- | :------------ | :------------ | :------- | | Operating Income | $201 | $230 | -13 % | | Operating Margin | 14.8 % | 18.4 % | -3.6 ppts | | Adjusted OIBDA | $321 | $281 | 14 % | | Adjusted OIBDA Margin | 23.7 % | 22.5 % | +1.2 ppts | - Operating income decreased 12.6%, primarily due to a $67 million increase in restructuring and impairment charges (including long-lived asset impairment related to non-core e-commerce business) and a $3 million increase in amortization expense from music-related asset acquisitions[16][17] - Adjusted OIBDA increased 14.2% (12.2% at constant currency), with adjusted OIBDA margin improving 1.2 percentage points, driven by savings from the 2024 strategic restructuring plan, partially offset by reinvestment in the business and revenue mix[18] Music Publishing Music Publishing revenue grew 10% to $336 million, driven by digital, performance, synchronization, and mechanical revenue streams, with operating income increasing 13% to $60 million and adjusted OIBDA growing 22% to $96 million, expanding margins primarily due to revenue mix and acquisition impacts Music Publishing Revenue Music Publishing revenue increased across all streams, notably digital, performance, and synchronization, benefiting from digital deal renewals, European live events, and copyright settlements Music Publishing Revenue (Three Months Ended June 30) | Revenue Type | June 30, 2025 ($M) | June 30, 2024 ($M) | Percentage Change | | :--------------------------------- | :------------ | :------------ | :------- | | Total Music Publishing Revenue | $336 | $305 | 10 % | | Performance | $58 | $52 | 11.5 % | | Digital | $204 | $194 | 5.2 % | | Mechanical | $16 | $13 | 23.1 % | | Synchronization | $54 | $42 | 28.6 % | - Digital revenue grew 5.2% (4.6% at constant currency), with streaming revenue up 5.2% (4.1% at constant currency), primarily influenced by digital deal renewals, mainly in the US[21] - Performance revenue increased 11.5% (9.4% at constant currency) due to growth in concerts, radio, and live events across European territories[21] - Synchronization revenue grew 28.6%, primarily due to the timing of other copyright infringement settlements, increased TV and commercial licensing activity, and a $3 million impact from the Tempo acquisition[21] Music Publishing Operating Income & Adjusted OIBDA Music Publishing operating income increased despite higher amortization, while adjusted OIBDA saw significant growth and margin expansion, driven by favorable revenue mix and acquisition impacts Music Publishing Operating Income and Adjusted OIBDA (Three Months Ended June 30) | Metric | June 30, 2025 ($M) | June 30, 2024 ($M) | Percentage Change | | :--------------------------------- | :------------ | :------------ | :------- | | Operating Income | $60 | $53 | 13 % | | Operating Margin | 17.9 % | 17.4 % | +0.5 ppts | | Adjusted OIBDA | $96 | $79 | 22 % | | Adjusted OIBDA Margin | 28.6 % | 25.9 % | +2.7 ppts | - Operating income increased 13.2%, partially offset by a $9 million increase in amortization expense due to acquisition impacts[22] - Music Publishing adjusted OIBDA grew 21.5% (20.0% at constant currency), with adjusted OIBDA margin improving 2.7 percentage points, driven by revenue mix and acquisition impacts[23] Recent Developments & Company Information This section covers Warner Music Group's recent dividend announcement, an overview of its global music entertainment business, and important disclosures regarding forward-looking statements and investor resources Dividend Announcement Warner Music Group's Board of Directors declared a regular quarterly cash dividend of $0.19 per share for Class A and Class B common stock, payable on September 3, 2025 - The Board of Directors declared a regular quarterly cash dividend of $0.19 per share on the company's Class A and Class B common stock[24] - The dividend is payable on September 3, 2025, to stockholders of record as of the close of business on August 20, 2025[24] About Warner Music Group Warner Music Group is a global music entertainment company with over 200 years of history, encompassing iconic recorded music labels and Warner Chappell Music, a leading music publisher with a catalog of over one million copyrighted works - Warner Music Group, with over 200 years of history, is a global home to creative artists, songwriters, and companies driving culture worldwide[27] - WMG's Recorded Music division is anchored by four iconic companies: Atlantic, Elektra, Parlophone, and Warner Records, complemented by renowned labels such as TenThousand Projects, 300 Entertainment, and Asylum[27] - Warner Chappell Music, originating from Chappell & Company founded in 1811, is one of the world's leading music publishers, boasting a catalog of over one million copyrighted works across various musical genres[27] Forward-Looking Statements & Investor Information This report contains forward-looking statements reflecting Warner Music Group's current views on future events and financial performance, subject to various risks and uncertainties, with investors advised to consult SEC filings for detailed risk factors and company websites for investor information and email alerts - This communication contains forward-looking statements, identified by words like "estimate," "expect," "anticipate," "plan," "intend," "believe," "forecast," or similar expressions, reflecting Warner Music Group's current views on future events and financial performance[28] - Forward-looking statements are subject to various risks, uncertainties, and other factors that could cause actual results to differ materially from expectations, with investors advised to refer to the company's Form 10-K, Form 10-Q, and other SEC filings for factors that could cause actual results to differ significantly[28] - The company maintains an investor website (www.wmg.com) as a channel for important corporate information, regularly posting financial and other material information at http://investors.wmg.com, where investors can sign up for email alerts[29] Supplemental Financial Information This section provides definitions and reconciliations for non-GAAP financial measures, along with detailed consolidated financial statements, segment-level performance data, and notable items impacting results Non-GAAP Financial Measures This section defines and explains Warner Music Group's key non-GAAP financial measures, including Adjusted OIBDA, Free Cash Flow, and Constant Currency, used to assess operating performance and liquidity as supplements to US GAAP metrics Adjusted OIBDA Definition Adjusted OIBDA is defined as operating income (loss) before non-cash depreciation and amortization, adjusted for non-cash equity-based compensation and other items affecting comparability - Adjusted OIBDA is defined as operating income (loss) before non-cash depreciation of tangible assets and non-cash amortization of intangible assets, further adjusted to exclude non-cash equity-based compensation and related expenses, and certain items impacting comparability, such as gains/losses on asset disposals and restructuring transformation costs[34] - The company considers Adjusted OIBDA an important indicator of the strength and performance of its business operations, but it should not be considered an alternative to operating income (loss) or net income (loss) reported under US GAAP[34] Free Cash Flow Definition Free Cash Flow is defined as cash flow from operating activities less capital expenditures, used to assess operational performance and available cash for various financial obligations and investments - Free Cash Flow is defined as cash flow provided by operating activities less capital expenditures[42] - The company uses Free Cash Flow to assess operating performance and cash available for debt repayment, working capital needs, capital expenditures, strategic acquisitions and investments, dividend payments, or debt repurchases[42] - Free Cash Flow is not a performance measure calculated in accordance with US GAAP and should not be considered in isolation or as a substitute for net income (loss) or cash flow from operating activities[43] Constant Currency Explanation Constant currency information compares revenue and adjusted OIBDA by assuming consistent exchange rates across periods, aiding in understanding operational results and performance evaluation - Constant currency information compares revenue and Adjusted OIBDA by assuming exchange rates remain consistent across periods, aiding in understanding operational results and evaluating performance against prior periods[38] - Constant currency is calculated by applying the current year's foreign exchange rates to the prior year's revenue and Adjusted OIBDA[38] - Revenue and Adjusted OIBDA at constant currency are supplemental non-GAAP measures and should not be considered alternatives to revenue and Adjusted OIBDA reported under US GAAP[38] Detailed Financial Statements and Reconciliations This section provides comprehensive financial tables, including condensed consolidated statements of operations, balance sheets, cash flows, digital revenue breakdown, detailed reconciliations for non-GAAP measures like Adjusted OIBDA and Free Cash Flow, and revenue and OIBDA by geography and segment, along with notable items impacting performance Condensed Consolidated Statements of Operations This table presents the condensed consolidated statements of operations, detailing revenue, costs, operating income, and net income (loss) for the three months ended June 30, 2025 and 2024 Condensed Consolidated Statements of Operations (Three Months Ended June 30) | Metric | June 30, 2025 ($M) | June 30, 2024 ($M) | Percentage Change | | :--------------------------------- | :------------ | :------------ | :------- | | Revenue | $1,689 | $1,554 | 9 % | | Total Costs and Expenses | $(1,520) | $(1,348) | 13 % | | Operating Income | $169 | $207 | -18 % | | Net (Loss) Income | $(16) | $141 | — % | | Net (Loss) Income Attributable to Warner Music Group Corp | $(16) | $139 | — % | | Class A – Basic and Diluted EPS | $(0.03) | $0.27 | | | Class B – Basic and Diluted EPS | $(0.03) | $0.27 | | Condensed Consolidated Balance Sheets This table provides the condensed consolidated balance sheets, outlining assets, liabilities, and equity as of June 30, 2025, compared to September 30, 2024 Condensed Consolidated Balance Sheets (As of June 30, 2025 vs. September 30, 2024) | Metric | June 30, 2025 ($M) | September 30, 2024 ($M) | Percentage Change | | :--------------------------------- | :------------ | :------------ | :------- | | Cash and Equivalents | $527 | $694 | -24 % | | Total Current Assets | $2,678 | $2,643 | 1 % | | Total Assets | $9,777 | $9,155 | 7 % | | Total Current Liabilities | $4,050 | $3,897 | 4 % | | Total Liabilities | $8,965 | $8,480 | 6 % | | Total Equity | $812 | $675 | 20 % | | Total Liabilities and Equity | $9,777 | $9,155 | 7 % | Summarized Statements of Cash Flows This table summarizes cash flows from operating, investing, and financing activities, showing the net change in cash and equivalents for the three months ended June 30, 2025 and 2024 Summarized Statements of Cash Flows (Three Months Ended June 30) | Metric | June 30, 2025 ($M) | June 30, 2024 ($M) | | :--------------------------------- | :------------ | :------------ | | Cash Flow from Operations | $46 | $188 | | Cash Flow Used in Investing Activities | $(71) | $(76) | | Cash Flow Used in Financing Activities | $(96) | $(90) | | Net (Decrease) Increase in Cash and Equivalents | $(110) | $20 | Digital Revenue Summary This table provides a summary of digital revenue by segment and type, including streaming, downloads, and other digital income, for the three months ended June 30, 2025 and 2024 Digital Revenue Summary (Three Months Ended June 30) | Segment/Type | June 30, 2025 ($M) | June 30, 2024 ($M) | Percentage Change | | :--------------------------------- | :------------ | :------------ | :------- | | Recorded Music Streaming | $895 | $863 | 4 % | | Recorded Music Downloads and Other Digital | $34 | $19 | 79 % | | Total Recorded Music Digital Revenue | $929 | $882 | 5 % | | Music Publishing Streaming | $202 | $192 | 5 % | | Total Music Publishing Digital Revenue | $204 | $194 | 5 % | | Consolidated Streaming | $1,097 | $1,055 | 4 % | | Total Digital Revenue | $1,132 | $1,075 | 5 % | Reconciliation of Net Income to Adjusted OIBDA This table reconciles net income (loss) to adjusted OIBDA, detailing adjustments for amortization, depreciation, restructuring, impairment, and non-cash equity-based compensation for the three months ended June 30, 2025 and 2024 Reconciliation of Net Income to Adjusted OIBDA (Three Months Ended June 30) | Metric | June 30, 2025 ($M) | June 30, 2024 ($M) | Percentage Change | | :--------------------------------- | :------------ | :------------ | :------- | | Net (Loss) Income | $(16) | $141 | — % | | Operating Income | $169 | $207 | -18 % | | Amortization Expense | $67 | $55 | 22 % | | Depreciation Expense | $29 | $25 | 16 % | | Restructuring and Impairment | $69 | $1 | — % | | Non-Cash Equity-Based Compensation and Other Related Costs | $16 | $11 | 45 % | | Adjusted OIBDA | $373 | $316 | 18 % | Reconciliation of Segment Operating Income to Adjusted OIBDA This section provides detailed reconciliations of operating income to adjusted OIBDA for WMG total, Recorded Music, and Music Publishing segments, including adjustments for depreciation, amortization, restructuring, and non-cash equity compensation Total WMG Adjusted OIBDA Reconciliation (Three Months Ended June 30) | Metric | June 30, 2025 ($M) | June 30, 2024 ($M) | Percentage Change | | :--------------------------------- | :------------ | :------------ | :------- | | Total WMG Operating Income – GAAP | $169 | $207 | -18 % | | Depreciation and Amortization Expense | $96 | $80 | 20 % | | Restructuring and Impairment | $69 | $1 | — % | | Non-Cash Equity-Based Compensation and Other Related Costs | $16 | $11 | 45 % | | Total WMG Adjusted OIBDA | $373 | $316 | 18 % | Recorded Music Adjusted OIBDA Reconciliation (Three Months Ended June 30) | Metric | June 30, 2025 ($M) | June 30, 2024 ($M) | Percentage Change | | :--------------------------------- | :------------ | :------------ | :------- | | Recorded Music Operating Income – GAAP | $201 | $230 | -13 % | | Depreciation and Amortization Expense | $47 | $43 | 9 % | | Restructuring and Impairment | $69 | $0 | — % | | Non-Cash Equity-Based Compensation and Other Related Costs | $4 | $6 | -33 % | | Recorded Music Adjusted OIBDA | $321 | $281 | 14 % | Music Publishing Adjusted OIBDA Reconciliation (Three Months Ended June 30) | Metric | June 30, 2025 ($M) | June 30, 2024 ($M) | Percentage Change | | :--------------------------------- | :------------ | :------------ | :------- | | Music Publishing Operating Income – GAAP | $60 | $53 | 13 % | | Depreciation and Amortization Expense | $35 | $25 | 40 % | | Non-Cash Equity-Based Compensation and Other Related Costs | $1 | $1 | — % | | Music Publishing Adjusted OIBDA | $96 | $79 | 22 % | Revenue by Geography and Segment This section presents revenue breakdowns by geographic region (US and International) and by business segment (Recorded Music and Music Publishing), both at constant currency, for the three months ended June 30, 2025 and 2024 Revenue by Geography (Three Months Ended June 30, Constant Currency) | Geographic Region | June 30, 2025 ($M) | June 30, 2024 (Constant Currency, $M) | Percentage Change (Constant Currency) | | :--------------------------------- | :------------ | :-------------------- | :------------------ | | US Recorded Music | $536 | $517 | 4 % | | US Music Publishing | $186 | $161 | 16 % | | International Recorded Music | $818 | $755 | 8 % | | International Music Publishing | $150 | $146 | 3 % | | Total Revenue | $1,689 | $1,578 | 7 % | Revenue by Segment (Three Months Ended June 30, Constant Currency) | Segment | June 30, 2025 ($M) | June 30, 2024 (Constant Currency, $M) | Percentage Change (Constant Currency) | | :--------------------------------- | :------------ | :-------------------- | :------------------ | | Recorded Music | $1,354 | $1,272 | 6 % | | Music Publishing | $336 | $307 | 9 % | | Total Revenue | $1,689 | $1,578 | 7 % | Adjusted OIBDA by Segment This table presents adjusted OIBDA by segment for WMG total, Recorded Music, and Music Publishing, at constant currency, for the three months ended June 30, 2025 and 2024 Adjusted OIBDA by Segment (Three Months Ended June 30, Constant Currency) | Segment | June 30, 2025 ($M) | June 30, 2024 (Constant Currency, $M) | Percentage Change (Constant Currency) | | :--------------------------------- | :------------ | :-------------------- | :------------------ | | Total WMG Adjusted OIBDA | $373 | $322 | 15.8 % | | Recorded Music Adjusted OIBDA | $321 | $286 | 12.2 % | | Music Publishing Adjusted OIBDA | $96 | $80 | 20.0 % | Notable Items This section highlights specific items that significantly impacted revenue and adjusted OIBDA for Recorded Music in Q3 FY2025, including copyright settlements and the BMG termination agreement Notable Items Impacting Revenue (Q3 FY2025) | Item | Impact on Recorded Music Revenue (Q3 2025, $M) | | :--------------------------------- | :--------------------------------- | | Downloads and Other Digital - Copyright Settlement | $16 | Notable Items Impacting Adjusted OIBDA (Q3 FY2025) | Item | Impact on Recorded Music Adjusted OIBDA (Q3 2025, $M) | | :--------------------------------- | :--------------------------------- | | Copyright Settlement | $9 | - The BMG termination agreement negatively impacted Recorded Music revenue by $14 million compared to the prior year (comprising $10 million in physical revenue and $4 million in streaming revenue)[6][15] - The prior year included $22 million in incremental Recorded Music streaming revenue from digital service providers (DSP make-whole payments), affecting year-over-year comparison[6][15] Calculation of Free Cash Flow This table details the calculation of free cash flow by subtracting capital expenditures from cash flow from operating activities for the three months ended June 30, 2025 and 2024 Calculation of Free Cash Flow (Three Months Ended June 30) | Metric | June 30, 2025 ($M) | June 30, 2024 ($M) | | :--------------------------------- | :------------ | :------------ | | Cash Flow from Operations | $46 | $188 | | Less: Capital Expenditures | $39 | $28 | | Free Cash Flow | $7 | $160 |