NOTE 17. SEGMENT REPORTING

The Company’s business is organized in three operating segments, one of which does not meet the quantitative thresholds for determining reportable segments, and two reportable segments: Music Publishing and Recorded Music. The Company identified its Chief Executive Officer as its Chief Operating Decision Maker (“CODM”). The Company’s CODM evaluates financial performance of its segments based on operating income before depreciation and amortization (“OIBDA”). The CODM regularly reviews trends in OIBDA and compares OIBDA results to budgets to evaluate the profitability of the segments. During the annual budget process, the CODM also considers OIBDA to assist in the allocation of resources to the segments.

The accounting policies of the Company’s business segments are consistent with the Company’s policies for the consolidated financial statements. The Company does not have sales between segments.

The following tables present total revenue and OIBDA by segment, significant segment expenses, which are expenses that are included in OIBDA, significant to the segment considering qualitative and quantitative factors and regularly provided or easily computed from information regularly provided to the CODM, and reconciliation of OIBDA to income before income taxes for the fiscal years ended March 31, 2026 and 2025:

  ​ ​ ​

Fiscal Year Ended March 31, 2026

Music

Recorded

  ​ ​ ​

Publishing

  ​ ​ ​

Music

  ​ ​ ​

Consolidated

Reportable segment revenue

$

116,802,517

$

51,513,786

$

168,316,303

Other revenue(a)

7,348,188

Consolidated revenue

$

175,664,491

Significant segment expenses:

Cost of revenue

48,469,900

13,521,331

Administration expenses

27,444,909

11,129,071

Reportable segment OIBDA

$

40,887,708

$

26,863,384

 

67,751,092

Other profit(a)

1,262,734

Amortization and depreciation

(30,783,011)

Interest expense

(26,451,641)

Gain on foreign exchange

230,549

Loss on fair value of swaps

(350,960)

Other expense, net

(504,221)

Income before income taxes

$

11,154,542

  ​ ​ ​

Fiscal Year Ended March 31, 2025

Music

Recorded

  ​ ​ ​

Publishing

  ​ ​ ​

Music

  ​ ​ ​

Consolidated

Reportable segment revenue

$

107,412,230

$

44,250,181

$

151,662,411

Other revenue(a)

7,043,325

Consolidated revenue

$

158,705,736

Significant segment expenses:

Cost of revenue

45,161,223

12,268,782

Administration expenses

24,906,776

9,231,858

Reportable segment OIBDA

$

37,344,231

$

22,749,541

60,093,772

Other profit(a)

1,266,495

Amortization and depreciation

(26,299,233)

Interest expense

(21,883,321)

Gain on foreign exchange

578,251

Loss on fair value of swaps

(4,213,819)

Other income, net

329,976

Income before income taxes

$

9,872,121

(a)Other revenue and other profit relate to the Company’s artist management operating segment, which does not meet the quantitative thresholds for determining reportable segments in any period presented.

The Company’s CODM manages assets on a consolidated basis. Accordingly, segment assets are not reported to the Company’s CODM nor used to allocate resources or assess performance of the segments, and therefore, total segment assets have not been disclosed.

Total long-lived assets by country are as follows as of March 31, 2026 and 2025:

  ​ ​ ​

2026

  ​ ​ ​

2025

United States

$

418,409

$

273,366

United Kingdom

 

243,577

 

133,418

During the fiscal years ended March 31, 2026 and 2025, a single external customer accounted for 11% of total revenues and is included in both the Music Publishing and Recorded Music segments. No other customer accounted for more than 10% of revenue.

Historical Timeline

Fiscal YearFiled
2026May 28, 2026Showing above
2025May 28, 2025
2024May 30, 2024
2023May 31, 2023
2022Jun 21, 2022

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.