Warner Bros Discovery Inc.
05/06/2026 | Press release | Distributed by Public on 05/06/2026 14:53
First Quarter 2026 Trending Schedule and Non-GAAP Reconciliations (Excel)
Cover
| Q1 | |||
| Trending Schedule & Non-GAAP Reconciliations |
Consolidated Income Statement
| Consolidated Statement of Operations (GAAP Income Statement) | ||||||||||||||||||||
| Unaudited; in millions | ||||||||||||||||||||
| 3 Months Ending | 12 Months Ending | 3 Months Ending | 12 Months Ending | 3 Months Ending | ||||||||||||||||
| 3/31/24 | 6/30/24 | 9/30/24 | 12/31/24 | 12/31/24 | 3/31/25 | 6/30/25 | 9/30/25 | 12/31/25 | 12/31/25 | 3/31/26 | ||||||||||
| Revenues: | ||||||||||||||||||||
| Distribution | $ 4,985 | $ 4,879 | $ 4,920 | $ 4,917 | $ 19,701 | $ 4,886 | $ 4,885 | $ 4,702 | $ 4,789 | $ 19,262 | $ 4,906 | |||||||||
| Advertising | 2,148 | 2,430 | 1,682 | 1,830 | 8,090 | 1,980 | 2,216 | 1,407 | 1,703 | 7,306 | 1,847 | |||||||||
| Content | 2,558 | 2,109 | 2,721 | 2,909 | 10,297 | 1,866 | 2,471 | 2,649 | 2,661 | 9,647 | 1,887 | |||||||||
| Other | 267 | 295 | 300 | 371 | 1,233 | 247 | 240 | 287 | 307 | 1,081 | 253 | |||||||||
| Total revenues | 9,958 | 9,713 | 9,623 | 10,027 | 39,321 | 8,979 | 9,812 | 9,045 | 9,460 | 37,296 | 8,893 | |||||||||
| Costs and expenses: | ||||||||||||||||||||
| Costs of revenues, excluding depreciation and amortization | 6,058 | 6,204 | 5,181 | 5,527 | 22,970 | 5,131 | 5,967 | 4,564 | 5,223 | 20,885 | 4,643 | |||||||||
| Selling, general and administrative | 2,232 | 2,461 | 2,385 | 2,218 | 9,296 | 2,194 | 2,477 | 2,361 | 2,386 | 9,418 | 2,475 | |||||||||
| Netflix Termination Fee | - | - | - | - | - | - | - | - | - | - | 2,800 | |||||||||
| Depreciation and amortization | 1,888 | 1,744 | 1,762 | 1,643 | 7,037 | 1,547 | 1,447 | 1,375 | 1,315 | 5,684 | 1,226 | |||||||||
| Restructuring and other charges | 35 | 117 | 9 | 286 | 447 | 54 | 80 | 88 | 177 | 399 | 204 | |||||||||
| Impairments and loss on dispositions | 12 | 9,395 | 5 | 191 | 9,603 | 90 | 26 | 46 | 10 | 172 | 14 | |||||||||
| Total costs and expenses | 10,225 | 19,921 | 9,342 | 9,865 | 49,353 | 9,016 | 9,997 | 8,434 | 9,111 | 36,558 | 11,362 | |||||||||
| Operating income (loss) | (267) | (10,208) | 281 | 162 | (10,032) | (37) | (185) | 611 | 349 | 738 | (2,469) | |||||||||
| Interest expense, net | (515) | (518) | (494) | (490) | (2,017) | (468) | (463) | (570) | (584) | (2,085) | (581) | |||||||||
| Other income (expense), net | (14) | 172 | 30 | (38) | 150 | 82 | 139 | (30) | (126) | 65 | (38) | |||||||||
| Income (loss) from equity investments, net | (48) | (23) | (18) | (32) | (121) | (7) | 5 | 17 | (39) | (24) | (5) | |||||||||
| (Loss) gain on extinguishment of debt | 25 | 542 | 23 | 42 | 632 | (4) | 2,958 | (1) | (8) | 2,945 | (27) | |||||||||
| Income (loss) before income taxes | (819) | (10,035) | (178) | (356) | (11,388) | (434) | 2,454 | 27 | (408) | 1,639 | (3,120) | |||||||||
| Income tax (expense) benefit | (136) | 7 | 319 | (284) | (94) | (15) | (866) | (170) | 161 | (890) | 214 | |||||||||
| Net income (loss) | (955) | (10,028) | 141 | (640) | (11,482) | (449) | 1,588 | (143) | (247) | 749 | (2,906) | |||||||||
| Net (income) loss attributable to noncontrolling interests | (11) | 42 | (6) | 146 | 171 | (4) | (8) | (5) | (5) | (22) | (10) | |||||||||
| Net income (loss) available to Warner Bros. Discovery, Inc. | $ (966) | $ (9,986) | $ 135 | $ (494) | $ (11,311) | $ (453) | $ 1,580 | $ (148) | $ (252) | $ 727 | $ (2,916) | |||||||||
| Page 1 |
Actual Reconciliation of Net In
| Reconciliation of Net Income to Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (non-GAAP) | ||||||||||||||||||||
| Unaudited; in millions | ||||||||||||||||||||
| 3 Months Ending | 12 Months Ending | 3 Months Ending | 12 Months Ending | 3 Months Ending | ||||||||||||||||
| 3/31/24 | 6/30/24 | 9/30/24 | 12/31/24 | 12/31/24 | 3/31/25 | 6/30/25 | 9/30/25 | 12/31/25 | 12/31/25 | 3/31/26 | ||||||||||
| Net income (loss) available to Warner Bros. Discovery, Inc. | $ (966) | $ (9,986) | $ 135 | $ (494) | $ (11,311) | $ (453) | $ 1,580 | $ (148) | $ (252) | $ 727 | $ (2,916) | |||||||||
| Net income (loss) attributable to noncontrolling interests | 11 | (42) | 6 | (146) | (171) | 4 | 8 | 5 | 5 | 22 | 10 | |||||||||
| Net income | (955) | (10,028) | 141 | (640) | (11,482) | (449) | 1,588 | (143) | (247) | 749 | (2,906) | |||||||||
| Income tax expense (benefit) | 136 | (7) | (319) | 284 | 94 | 15 | 866 | 170 | (161) | 890 | (214) | |||||||||
| Loss (gain) on extinguishment of debt | (25) | (542) | (23) | (42) | (632) | 4 | (2,958) | 1 | 8 | (2,945) | 27 | |||||||||
| Loss (gain) from equity investments, net | 48 | 23 | 18 | 32 | 121 | 7 | (5) | (17) | 39 | 24 | 5 | |||||||||
| Other (income) expense, net | 14 | (172) | (30) | 38 | (150) | (82) | (139) | 30 | 126 | (65) | 38 | |||||||||
| Interest expense, net | 515 | 518 | 494 | 490 | 2,017 | 468 | 463 | 570 | 584 | 2,085 | 581 | |||||||||
| Operating income (loss) | (267) | (10,208) | 281 | 162 | (10,032) | (37) | (185) | 611 | 349 | 738 | (2,469) | |||||||||
| Depreciation and amortization | 1,888 | 1,744 | 1,762 | 1,643 | 7,037 | 1,547 | 1,447 | 1,375 | 1,315 | 5,684 | 1,226 | |||||||||
| Impairment and amortization of fair value step-up for content | 235 | 522 | 156 | 226 | 1,139 | 240 | 388 | 79 | 77 | 784 | 102 | |||||||||
| Restructuring and other charges | 35 | 117 | 9 | 286 | 447 | 54 | 80 | 88 | 177 | 399 | 204 | |||||||||
| Employee share-based compensation | 99 | 156 | 157 | 134 | 546 | 120 | 173 | 240 | 218 | 751 | 150 | |||||||||
| Netflix Termination Fee | - | - | - | - | - | - | - | - | - | - | 2,800 | |||||||||
| Transaction and integration costs | 81 | 51 | 33 | 77 | 242 | 80 | 17 | 11 | 58 | 166 | 173 | |||||||||
| Impairments and loss on dispositions | 12 | 9,395 | 5 | 191 | 9,603 | 90 | 26 | 46 | 10 | 172 | 14 | |||||||||
| Amortization of capitalized interest for content | 17 | 13 | 8 | 8 | 46 | 6 | 3 | 19 | 12 | 40 | 3 | |||||||||
| Facility consolidation costs | 2 | 5 | 2 | (5) | 4 | 5 | 4 | 1 | - | 10 | - | |||||||||
| Adjusted EBITDA(1)(*) | $ 2,102 | $ 1,795 | $ 2,413 | $ 2,722 | $ 9,032 | $ 2,105 | $ 1,953 | $ 2,470 | $ 2,216 | $ 8,744 | $ 2,203 | |||||||||
| (*) A non-GAAP financial measure; see the Notes and Definitions section for additional details. | Page 2 |
Streaming Segment Results
| Streaming Segment | ||||||||||||||||||||
| Unaudited; in millions | ||||||||||||||||||||
| 3 Months Ending | 12 Months Ending | 3 Months Ending | 12 Months Ending | 3 Months Ending | ||||||||||||||||
| 3/31/24 | 6/30/24 | 9/30/24 | 12/31/24 | 12/31/24 | 3/31/25 | 6/30/25 | 9/30/25 | 12/31/25 | 12/31/25 | 3/31/26 | ||||||||||
| Revenues: | ||||||||||||||||||||
| Distribution | $ 2,185 | $ 2,202 | $ 2,320 | $ 2,315 | $ 9,022 | $ 2,329 | $ 2,410 | $ 2,317 | $ 2,388 | $ 9,444 | $ 2,533 | |||||||||
| Advertising | 175 | 240 | 205 | 235 | 855 | 237 | 282 | 235 | 278 | 1,032 | 284 | |||||||||
| Subscriber-related revenues(2)(*) | 2,360 | 2,442 | 2,525 | 2,550 | 9,877 | 2,566 | 2,692 | 2,552 | 2,666 | 10,476 | 2,817 | |||||||||
| Content | 99 | 123 | 107 | 99 | 428 | 88 | 102 | 79 | 119 | 388 | 68 | |||||||||
| Other | 1 | 3 | 2 | 2 | 8 | 2 | (1) | 2 | 9 | 12 | 2 | |||||||||
| Total revenues | 2,460 | 2,568 | 2,634 | 2,651 | 10,313 | 2,656 | 2,793 | 2,633 | 2,794 | 10,876 | 2,887 | |||||||||
| Costs of revenues, excluding depreciation and amortization | 1,895 | 2,028 | 1,776 | 1,760 | 7,459 | 1,824 | 1,913 | 1,789 | 1,875 | 7,401 | 1,864 | |||||||||
| Selling, general and administrative | 479 | 647 | 569 | 482 | 2,177 | 493 | 587 | 499 | 526 | 2,105 | 585 | |||||||||
| Adjusted EBITDA(1) | $ 86 | $ (107) | $ 289 | $ 409 | $ 677 | $ 339 | $ 293 | $ 345 | $ 393 | $ 1,370 | $ 438 | |||||||||
| Year-Over-Year Growth Rates - Reported | ||||||||||||||||||||
| Revenues: | ||||||||||||||||||||
| Distribution | 1 % | 0 % | 6 % | 7 % | 4 % | 7 % | 9 % | -0 % | 3 % | 5 % | 9 % | |||||||||
| Advertising | 70 % | 98 % | 49 % | 26 % | 56 % | 35 % | 18 % | 15 % | 18 % | 21 % | 20 % | |||||||||
| Subscriber-related revenues | 4 % | 6 % | 9 % | 8 % | 7 % | 9 % | 10 % | 1 % | 5 % | 6 % | 10 % | |||||||||
| Content | (46)% | (70)% | (11)% | (42)% | (52)% | (11)% | (17)% | (26)% | 20 % | (9)% | (23)% | |||||||||
| Other | (50)% | (67)% | 100 % | (60)% | (53)% | 100 % | (133)% | 0 % | 350 % | 50 % | 0 % | |||||||||
| Total revenues | 0 % | (6)% | 8 % | 5 % | 2 % | 8 % | 9 % | -0 % | 5 % | 5 % | 9 % | |||||||||
| Costs of revenues, excluding depreciation and amortization | 4 % | 4 % | (5)% | (11)% | (2)% | (4)% | (6)% | 1 % | 7 % | (1)% | 2 % | |||||||||
| Selling, general and administrative | (19)% | (17)% | 26 % | (20)% | (10)% | 3 % | (9)% | (12)% | 9 % | (3)% | 19 % | |||||||||
| Adjusted EBITDA | 72 % | N/A | 160 % | N/A | 557 % | 294 % | N/A | 19 % | (4)% | 102 % | 29 % | |||||||||
| Year-Over-Year Growth Rates - Ex-FX(3)(*) | ||||||||||||||||||||
| Revenues: | ||||||||||||||||||||
| Distribution | 1 % | 1 % | 8 % | 8 % | 5 % | 8 % | 9 % | 1 % | 2 % | 5 % | 7 % | |||||||||
| Advertising | 70 % | 99 % | 51 % | 27 % | 57 % | 35 % | 17 % | 14 % | 17 % | 20 % | 19 % | |||||||||
| Subscriber-related revenues | 4 % | 6 % | 10 % | 10 % | 8 % | 10 % | 10 % | 1 % | 4 % | 6 % | 8 % | |||||||||
| Content | (46)% | (70)% | (11)% | (40)% | (51)% | (7)% | (21)% | (27)% | 18 % | (10)% | (27)% | |||||||||
| Other | (50)% | (67)% | 100 % | (50)% | (50)% | 100 % | (133)% | 0 % | 350 % | 50 % | 0 % | |||||||||
| Total revenues | 0 % | (5)% | 9 % | 6 % | 2 % | 9 % | 8 % | 1 % | 4 % | 5 % | 7 % | |||||||||
| Costs of revenues, excluding depreciation and amortization | 5 % | 5 % | (5)% | (11)% | (2)% | (4)% | (6)% | 0 % | 7 % | (1)% | 2 % | |||||||||
| Selling, general and administrative | (19)% | (17)% | 27 % | (18)% | (9)% | 4 % | (10)% | (13)% | 7 % | (4)% | 17 % | |||||||||
| Adjusted EBITDA | 59 % | N/A | 176 % | N/A | 525 % | 387 % | N/A | 24 % | (7)% | 115 % | 17 % | |||||||||
| Supplemental Expense Detail | ||||||||||||||||||||
| Expenses: | ||||||||||||||||||||
| Content(4) | 1,567 | 1,699 | 1,470 | 1,447 | 6,183 | 1,504 | 1,600 | 1,497 | 1,544 | 6,145 | 1,531 | |||||||||
| Personnel(5) | 192 | 201 | 194 | 186 | 773 | 186 | 191 | 175 | 208 | 760 | 186 | |||||||||
| Marketing | 289 | 353 | 263 | 242 | 1,147 | 220 | 294 | 210 | 276 | 1,000 | 285 | |||||||||
| Other(6) | 326 | 422 | 418 | 367 | 1,533 | 407 | 415 | 406 | 373 | 1,601 | 447 | |||||||||
| Total operating expenses | $ 2,374 | $ 2,675 | $ 2,345 | $ 2,242 | $ 9,636 | $ 2,317 | $ 2,500 | $ 2,288 | $ 2,401 | $ 9,506 | $ 2,449 | |||||||||
| (*) A non-GAAP financial measure; see the Notes and Definitions section for additional details. | Page 3 |
Studios Segment Results
| Studios Segment | ||||||||||||||||||||
| Unaudited; in millions | ||||||||||||||||||||
| 3 Months Ending | 12 Months Ending | 3 Months Ending | 12 Months Ending | 3 Months Ending | ||||||||||||||||
| 3/31/24 | 6/30/24 | 9/30/24 | 12/31/24 | 12/31/24 | 3/31/25 | 6/30/25 | 9/30/25 | 12/31/25 | 12/31/25 | 3/31/26 | ||||||||||
| Revenues: | ||||||||||||||||||||
| Distribution | $ 5 | $ 3 | $ 6 | $ (6) | $ 8 | $ 1 | $ 1 | $ 2 | $ 4 | $ 8 | $ 1 | |||||||||
| Advertising | 4 | - | 1 | - | 5 | 1 | - | - | - | 1 | - | |||||||||
| Content | 2,623 | 2,237 | 2,463 | 3,394 | 10,717 | 2,139 | 3,591 | 3,111 | 2,899 | 11,740 | 2,934 | |||||||||
| Other | 189 | 209 | 210 | 269 | 877 | 173 | 209 | 208 | 280 | 870 | 190 | |||||||||
| Total revenues | 2,821 | 2,449 | 2,680 | 3,657 | 11,607 | 2,314 | 3,801 | 3,321 | 3,183 | 12,619 | 3,125 | |||||||||
| Costs of revenues, excluding depreciation and amortization | 2,019 | 1,601 | 1,736 | 2,174 | 7,530 | 1,413 | 2,215 | 1,897 | 1,872 | 7,397 | 1,679 | |||||||||
| Selling, general and administrative | 618 | 638 | 636 | 533 | 2,425 | 642 | 723 | 729 | 583 | 2,677 | 671 | |||||||||
| Adjusted EBITDA(1) | $ 184 | $ 210 | $ 308 | $ 950 | $ 1,652 | $ 259 | $ 863 | $ 695 | $ 728 | $ 2,545 | $ 775 | |||||||||
| Year-Over-Year Growth Rates - Reported | ||||||||||||||||||||
| Revenues: | ||||||||||||||||||||
| Distribution | 67 % | 0 % | (54)% | N/A | (53)% | (80)% | (67)% | (67)% | N/A | 0 % | 0 % | |||||||||
| Advertising | 33 % | (100)% | (75)% | (100)% | (67)% | (75)% | N/A | (100)% | 0 % | (80)% | (100)% | |||||||||
| Content | (13)% | (7)% | (18)% | 16 % | (6)% | (18)% | 61 % | 26 % | (15)% | 10 % | 37 % | |||||||||
| Other | 6 % | 19 % | 0 % | 13 % | 9 % | (8)% | 0 % | (1)% | 4 % | (1)% | 10 % | |||||||||
| Total revenues | (12)% | (5)% | (17)% | 15 % | (5)% | (18)% | 55 % | 24 % | (13)% | 9 % | 35 % | |||||||||
| Costs of revenues, excluding depreciation and amortization | 3 % | (3)% | (3)% | 15 % | 3 % | (30)% | 38 % | 9 % | (14)% | (2)% | 19 % | |||||||||
| Selling, general and administrative | (4)% | 1 % | (10)% | (27)% | (11)% | 4 % | 13 % | 15 % | 9 % | 10 % | 5 % | |||||||||
| Adjusted EBITDA | (70)% | (31)% | (58)% | 75 % | (24)% | 41 % | 311 % | 126 % | (23)% | 54 % | 199 % | |||||||||
| Year-Over-Year Growth Rates - Ex-FX(3)(*) | ||||||||||||||||||||
| Revenues: | ||||||||||||||||||||
| Distribution | 67 % | 0 % | (54)% | N/A | (53)% | (80)% | (67)% | (67)% | N/A | 0 % | 0 % | |||||||||
| Advertising | 33 % | (100)% | (75)% | (100)% | (67)% | (75)% | NA | (100)% | 0 % | (80)% | (100)% | |||||||||
| Content | (14)% | (6)% | (18)% | 16 % | (5)% | (17)% | 59 % | 26 % | (16)% | 9 % | 33 % | |||||||||
| Other | 4 % | 20 % | 0 % | 12 % | 9 % | (7)% | (5)% | (4)% | 0 % | (3)% | 4 % | |||||||||
| Total revenues | (13)% | (4)% | (17)% | 16 % | (5)% | (16)% | 54 % | 23 % | (14)% | 8 % | 31 % | |||||||||
| Costs of revenues, excluding depreciation and amortization | 3 % | (3)% | (3)% | 14 % | 3 % | (29)% | 38 % | 9 % | (14)% | (2)% | 17 % | |||||||||
| Selling, general and administrative | (5)% | 2 % | (10)% | (27)% | (11)% | 5 % | 12 % | 14 % | 8 % | 10 % | 3 % | |||||||||
| Adjusted EBITDA | (70)% | (24)% | (58)% | 78 % | (23)% | 63 % | 301 % | 124 % | (27)% | 52 % | 156 % | |||||||||
| Supplemental Expense Detail | ||||||||||||||||||||
| Expenses: | ||||||||||||||||||||
| Content(4) | 1,950 | 1,532 | 1,675 | 2,103 | 7,260 | 1,339 | 2,135 | 1,843 | 1,791 | 7,108 | 1,603 | |||||||||
| Personnel(5) | 240 | 231 | 229 | 243 | 943 | 230 | 232 | 240 | 261 | 963 | 251 | |||||||||
| Marketing | 289 | 268 | 309 | 198 | 1,064 | 252 | 363 | 331 | 120 | 1,066 | 275 | |||||||||
| Other(6) | 158 | 208 | 159 | 163 | 688 | 234 | 208 | 212 | 283 | 937 | 221 | |||||||||
| Total operating expenses | $ 2,637 | $ 2,239 | $ 2,372 | $ 2,707 | $ 9,955 | $ 2,055 | $ 2,938 | $ 2,626 | $ 2,455 | $ 10,074 | $ 2,350 | |||||||||
| (*) A non-GAAP financial measure; see the Notes and Definitions section for additional details. | Page 4 |
Global Linear Networks Segment
| Global Linear Networks Segment | ||||||||||||||||||||
| Unaudited; in millions | ||||||||||||||||||||
| 3 Months Ending | 12 Months Ending | 3 Months Ending | 12 Months Ending | 3 Months Ending | ||||||||||||||||
| 3/31/24 | 6/30/24 | 9/30/24 | 12/31/24 | 12/31/24 | 3/31/25 | 6/30/25 | 9/30/25 | 12/31/25 | 12/31/25 | 3/31/26 | ||||||||||
| Revenues: | ||||||||||||||||||||
| Distribution | $ 2,797 | $ 2,675 | $ 2,598 | $ 2,610 | $ 10,680 | $ 2,558 | $ 2,477 | $ 2,387 | $ 2,397 | $ 9,819 | $ 2,373 | |||||||||
| Advertising | 1,987 | 2,214 | 1,490 | 1,615 | 7,306 | 1,758 | 1,953 | 1,186 | 1,435 | 6,332 | 1,570 | |||||||||
| Content | 264 | 299 | 833 | 452 | 1,848 | 380 | 287 | 217 | 311 | 1,195 | 346 | |||||||||
| Other | 77 | 84 | 89 | 91 | 341 | 78 | 86 | 93 | 53 | 310 | 88 | |||||||||
| Total revenues | 5,125 | 5,272 | 5,010 | 4,768 | 20,175 | 4,774 | 4,803 | 3,883 | 4,196 | 17,656 | 4,377 | |||||||||
| Costs of revenues, excluding depreciation and amortization | 2,372 | 2,531 | 2,185 | 2,150 | 9,238 | 2,327 | 2,592 | 1,520 | 2,040 | 8,479 | 2,084 | |||||||||
| Selling, general and administrative | 634 | 743 | 710 | 701 | 2,788 | 654 | 699 | 661 | 751 | 2,765 | 659 | |||||||||
| Adjusted EBITDA(1) | $ 2,119 | $ 1,998 | $ 2,115 | $ 1,917 | $ 8,149 | $ 1,793 | $ 1,512 | $ 1,702 | $ 1,405 | $ 6,412 | $ 1,634 | |||||||||
| Year-Over-Year Growth Rates - Reported | ||||||||||||||||||||
| Revenues: | ||||||||||||||||||||
| Distribution | (7)% | (9)% | (8)% | (5)% | (7)% | (9)% | (7)% | (8)% | (8)% | (8)% | (7)% | |||||||||
| Advertising | (11)% | (10)% | (13)% | (17)% | (12)% | (12)% | (12)% | (20)% | (11)% | (13)% | (11)% | |||||||||
| Content | 8 % | 5 % | 287 % | 73 % | 84 % | 44 % | (4)% | (74)% | (31)% | (35)% | (9)% | |||||||||
| Other | (26)% | (1)% | (20)% | 20 % | (9)% | 1 % | 2 % | 4 % | (42)% | (9)% | 13 % | |||||||||
| Total revenues | (8)% | (8)% | 3 % | (5)% | (5)% | (7)% | (9)% | (22)% | (12)% | (12)% | (8)% | |||||||||
| Costs of revenues, excluding depreciation and amortization | (9)% | (11)% | 21 % | 2 % | (1)% | (2)% | 2 % | (30)% | (5)% | (8)% | (10)% | |||||||||
| Selling, general and administrative | (9)% | 0 % | 6 % | (4)% | (2)% | 3 % | (6)% | (7)% | 7 % | (1)% | 1 % | |||||||||
| Adjusted EBITDA | (8)% | (8)% | (12)% | (13)% | (10)% | (15)% | (24)% | (20)% | (27)% | (21)% | (9)% | |||||||||
| Year-Over-Year Growth Rates - Ex-FX(3)(*) | ||||||||||||||||||||
| Revenues: | ||||||||||||||||||||
| Distribution | (6)% | (8)% | (7)% | (4)% | (6)% | (8)% | (7)% | (8)% | (8)% | (8)% | (8)% | |||||||||
| Advertising | (11)% | (9)% | (13)% | (16)% | (12)% | (11)% | (13)% | (21)% | (14)% | (14)% | (12)% | |||||||||
| Content | 8 % | 5 % | 284 % | 74 % | 83 % | 44 % | (2)% | (74)% | (32)% | (35)% | (9)% | |||||||||
| Other | (29)% | 1 % | (21)% | 20 % | (10)% | 1 % | (1)% | 3 % | (45)% | (11)% | 13 % | |||||||||
| Total revenues | (8)% | (8)% | 3 % | (4)% | (4)% | (6)% | (9)% | (23)% | (13)% | (13)% | (9)% | |||||||||
| Costs of revenues, excluding depreciation and amortization | (8)% | (10)% | 22 % | 5 % | 0 % | (2)% | 2 % | (30)% | (6)% | (8)% | (11)% | |||||||||
| Selling, general and administrative | (8)% | 1 % | 6 % | (1)% | (1)% | 3 % | (6)% | (7)% | 5 % | (2)% | (1)% | |||||||||
| Adjusted EBITDA | (8)% | (7)% | (11)% | (13)% | (10)% | (14)% | (25)% | (20)% | (27)% | (21)% | (10)% | |||||||||
| Supplemental Expense Detail | ||||||||||||||||||||
| Expenses: | ||||||||||||||||||||
| Content(4) | 1,843 | 1,965 | 1,679 | 1,648 | 7,135 | 1,832 | 2,105 | 1,055 | 1,530 | 6,522 | 1,592 | |||||||||
| Personnel(5) | 548 | 566 | 524 | 515 | 2,153 | 496 | 505 | 479 | 529 | 2,009 | 529 | |||||||||
| Marketing | 88 | 115 | 125 | 126 | 454 | 104 | 115 | 128 | 182 | 529 | 129 | |||||||||
| Other(6) | 527 | 628 | 567 | 562 | 2,284 | 549 | 566 | 519 | 550 | 2,184 | 493 | |||||||||
| Total operating expenses | $ 3,006 | $ 3,274 | $ 2,895 | $ 2,851 | $ 12,026 | $ 2,981 | $ 3,291 | $ 2,181 | $ 2,791 | $ 11,244 | $ 2,743 | |||||||||
| (*) A non-GAAP financial measure; see the Notes and Definitions section for additional details. | Page 5 |
Corporate Inter-segment Elimina
| Corporate, and Inter-segment Eliminations | ||||||||||||||||||||
| Unaudited; in millions | ||||||||||||||||||||
| 3 Months Ending | 12 Months Ending | 3 Months Ending | 12 Months Ending | 3 Months Ending | ||||||||||||||||
| Corporate Segment | 3/31/24 | 6/30/24 | 9/30/24 | 12/31/24 | 12/31/24 | 3/31/25 | 6/30/25 | 9/30/25 | 12/31/25 | 12/31/25 | 3/31/26 | |||||||||
| Adjusted EBITDA(1) | $ (346) | $ (285) | $ (296) | $ (333) | $ (1,260) | $ (233) | $ (316) | $ (258) | $ (289) | $ (1,096) | $ (269) | |||||||||
| 3 Months Ending | 12 Months Ending | 3 Months Ending | 12 Months Ending | 3 Months Ending | ||||||||||||||||
| Inter-segment Eliminations | 3/31/24 | 6/30/24 | 9/30/24 | 12/31/24 | 12/31/24 | 3/31/25 | 6/30/25 | 9/30/25 | 12/31/25 | 12/31/25 | 3/31/26 | |||||||||
| Inter-segment revenue eliminations | $ (449) | $ (577) | $ (705) | $ (1,051) | $ (2,782) | $ (765) | $ (1,586) | $ (793) | $ (713) | $ (3,857) | $ (1,497) | |||||||||
| Inter-segment expense eliminations | (508) | (556) | (702) | (830) | (2,596) | (712) | (1,187) | (779) | (692) | (3,370) | (1,122) | |||||||||
| Adjusted EBITDA(1) | $ 59 | $ (21) | $ (3) | $ (221) | $ (186) | $ (53) | $ (399) | $ (14) | $ (21) | $ (487) | $ (375) | |||||||||
| Page 6 |
Free Cash Flow & Debt
| Free Cash Flow (non-GAAP); Net debt (non-GAAP) | ||||||||||||||||||||
| Reported unless where otherwise noted; unaudited; in millions | ||||||||||||||||||||
| 3 Months Ending | 12 Months Ending | 3 Months Ending | 12 Months Ending | 3 Months Ending | ||||||||||||||||
| 3/31/24 | 6/30/24 | 9/30/24 | 12/31/24 | 12/31/24 | 3/31/25 | 6/30/25 | 9/30/25 | 12/31/25 | 12/31/25 | 3/31/26 | ||||||||||
| Reported Free Cash Flow: | ||||||||||||||||||||
| Cash provided by (used for) operating activities | $ 585 | $ 1,228 | $ 847 | $ 2,715 | $ 5,375 | $ 553 | $ 983 | $ 979 | $ 1,804 | $ 4,319 | $ (208) | |||||||||
| Less: Purchases of property and equipment | (195) | (252) | (215) | (286) | (948) | (251) | (281) | (278) | (421) | (1,231) | (268) | |||||||||
| Reported Free Cash Flow(7)(*) | $ 390 | $ 976 | $ 632 | $ 2,429 | $ 4,427 | $ 302 | $ 702 | $ 701 | $ 1,383 | $ 3,088 | $ (476) | |||||||||
| Reported Gross to Net Debt: | ||||||||||||||||||||
| Current portion of debt | $ 3,430 | $ 3,669 | $ 3,043 | $ 2,748 | $ 2,748 | $ 2,779 | $ 221 | $ 139 | $ 139 | $ 139 | $ 1,493 | |||||||||
| Plus: Noncurrent portion of debt | 39,415 | 37,332 | 37,189 | 36,779 | 36,779 | 34,667 | 34,779 | 33,705 | 32,706 | 32,706 | 31,208 | |||||||||
| Plus: Finance leases | 325 | 429 | 452 | 463 | 463 | 535 | 584 | 682 | 683 | 683 | 654 | |||||||||
| Reported Gross Debt(8)(*) | $ 43,170 | $ 41,430 | $ 40,684 | $ 39,990 | $ 39,990 | $ 37,981 | $ 35,584 | $ 34,526 | $ 33,528 | $ 33,528 | $ 33,355 | |||||||||
| Less: Cash and cash equivalents | 3,386 | 3,617 | 3,490 | 5,416 | 5,416 | 3,974 | 4,891 | 4,298 | 4,570 | 4,570 | 3,268 | |||||||||
| Reported Net Debt(9)(*) | $ 39,784 | $ 37,813 | $ 37,194 | $ 34,574 | $ 34,574 | $ 34,007 | $ 30,693 | $ 30,228 | $ 28,958 | $ 28,958 | $ 30,087 | |||||||||
| LTM EBITDA(10)(*) | 9,691 | 9,337 | 8,781 | 9,032 | 9,032 | 9,035 | 9,193 | 9,250 | 8,744 | 8,744 | 8,842 | |||||||||
| LTM Gross Leverage Ratio(11)(*) | 4.5x | 4.4x | 4.6x | 4.4x | 4.4x | 4.2x | 3.9x | 3.7x | 3.8x | 3.8x | 3.8x | |||||||||
| LTM Net Leverage Ratio(12)(*) | 4.1x | 4.0x | 4.2x | 3.8x | 3.8x | 3.8x | 3.3x | 3.3x | 3.3x | 3.3x | 3.4x | |||||||||
| (*) A non-GAAP financial measure; see the Notes and Definitions section for additional details. | Page 7 |
Disclosures
| Purpose of Trending Schedules | ||||||||||||||||||||||
| The trending schedules summarize unaudited financial information to facilitate your review and understanding of Warner Bros. Discovery, Inc.'s ("Warner Bros. Discovery", "WBD", the Company", "we", "us", or "our") operating results. The trending schedules set forth important financial measures utilized by the Company defined by U.S. generally accepted accounting principles ("GAAP"). The Company uses non-GAAP financial measures, among other measures, to evaluate the operating performance of our business. These non-GAAP financial measures are in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. | ||||||||||||||||||||||
| Reporting Segments | ||||||||||||||||||||||
| In the first quarter of 2025, we renamed our Direct-to-Consumer reportable segment to Streaming and our Networks reportable segment to Global Linear Networks. There were no changes to our reportable segments or the composition of our reportable segments as a result of these changes. As of March 31, 2025, we classified our operations in three reportable segments: | ||||||||||||||||||||||
| Streaming - Our Streaming segment primarily consists of our premium pay-TV and streaming services. | ||||||||||||||||||||||
| Studios - Our Studios segment primarily consists of the production and release of feature films for initial exhibition in theaters, production and initial licensing of television programs to third parties and our global linear networks/streaming services, distribution of our films and television programs to various third party and internal television and streaming services, distribution through the home entertainment market (physical and digital), related consumer products and themed experience licensing, and interactive gaming. | ||||||||||||||||||||||
| Global Linear Networks - Our Global Linear Networks segment primarily consists of our domestic and international television networks. | ||||||||||||||||||||||
| Non-GAAP Financial Measures | ||||||||||||||||||||||
| In addition to financial measures prepared in accordance with U.S. GAAP, this communication may also contain certain non-GAAP financial measures, identified with an "(*)". Reconciliations between the non-GAAP financial measures and the closest GAAP financial measures are available in the trending schedules and in the "Quarterly Results" section of the Warner Bros. Discovery, Inc. investor relations website at: https://ir.wbd.com. | ||||||||||||||||||||||
| Rounding | ||||||||||||||||||||||
| Numbers presented in the following materials are on a rounded basis using actual amounts. Minor differences in totals and percentages may exist due to rounding. | ||||||||||||||||||||||
| Page 8 |
Notes & Definitions
| Notes and Definitions | ||||||||||||||||||||||
| 1). Adjusted EBITDA - The Company evaluates the operating performance of its operating segments based on financial measures such as revenues and Adjusted EBITDA. Adjusted EBITDA is defined as operating income excluding: (i) employee share-based compensation, (ii) depreciation and amortization, (iii) restructuring and facility consolidation, (iv) certain impairment charges, (v) gains and losses on business and asset dispositions, (vi) third-party transaction and integration costs, (vii) amortization of purchase accounting fair value step-up for content, (viii) amortization of capitalized interest for content, and (ix) other items impacting comparability. The Company uses this measure to assess the operating results and performance of the segments, perform analytical comparisons, identify strategies to improve performance, and allocate resources to each segment. The Company believes Adjusted EBITDA is relevant to investors because it allows them to analyze the operating performance of each segment using the same metric management uses. The Company excludes employee share-based compensation, restructuring, certain impairment charges, gains and losses on business and asset dispositions, and transaction and integration costs from the calculation of Adjusted EBITDA due to their impact on comparability between periods. Integration costs include transformative system implementations and integrations, such as Enterprise Resource Planning systems, and may take several years to complete. The Company also excludes the depreciation of fixed assets and amortization of intangible assets, amortization of purchase accounting fair value step-up for content (which is included in consolidated costs of revenues), and amortization of capitalized interest for content, as these amounts do not represent cash payments in the current reporting period. We prospectively updated certain corporate allocations at the beginning of 2025. The impact to prior periods was immaterial. | ||||||||||||||||||||||
| 2). Subscriber-related revenues - The Company defines subscriber-related revenues as the sum of distribution and advertising revenues in the Streaming segment. The Company uses subscriber-related revenues to monitor and evaluate the Company's streaming revenue performance. The Company believes this measure is relevant to investors as it highlights the revenue generation tied to the Company's streaming products. | ||||||||||||||||||||||
| 3). Foreign Exchange Impacting Comparability - The impact of exchange rates on our business is an important factor in understanding period-to-period comparisons of our results. For example, our international revenues are favorably impacted as the U.S. dollar weakens relative to other foreign currencies, and unfavorably impacted as the U.S. dollar strengthens relative to other foreign currencies. We believe the presentation of results on a constant currency basis ("ex-FX"), in addition to results reported in accordance with U.S. GAAP provides useful information about our operating performance because the presentation ex-FX excludes the effects of foreign currency volatility and highlights our core operating results. The presentation of results on a constant currency basis should be considered in addition to, but not a substitute for, measures of financial performance reported in accordance with U.S. GAAP. The ex-FX change represents the percentage change on a period-over-period basis adjusted for foreign currency impacts. For the 2024 period, the ex-FX change is calculated as the difference between the fiscal year 2024 amounts translated at a baseline rate, which is a spot rate for each of our currencies determined early in the 2024 fiscal year as part of our forecasting process (the "2024 Baseline Rate"), and the prior year amounts translated at the same 2024 Baseline Rate. For the 2025 period, the ex-FX change is calculated as the difference between the current year amounts translated at a baseline rate, which is a spot rate for each of our currencies determined early in the fiscal year as part of our forecasting process (the "2025 Baseline Rate"), and the prior year amounts translated at the same 2025 Baseline Rate. For the 2026 period, the ex-FX change is calculated as the difference between the fiscal year 2026 amounts translated at a baseline rate, which is a spot rate for each of our currencies determined early in the 2026 fiscal year as part of our forecasting process (the "2026 Baseline Rate"), and the prior year amounts translated at the same 2026 Baseline Rate. In addition, consistent with the assumption of a constant currency environment, our ex-FX results exclude the impact of our foreign currency hedging activities, as well as realized and unrealized foreign currency transaction gains and losses. Results on a constant currency basis, as we present them, may not be comparable to similarly titled measures used by other companies. | ||||||||||||||||||||||
| 4). Content expense - Content expense includes amortization, impairments, participations, residuals, development expense, and production costs, including talent costs, and is a component of costs of revenues. Content expense excludes content impairment and other development costs recorded in restructuring and other charges, amortization of purchase accounting fair value step-up for content, and amortization of capitalized interest for content as these items are excluded from the calculation of Adjusted EBITDA. | ||||||||||||||||||||||
| 5). Personnel expense - Personnel expense is a component of costs of revenues and selling, general and administrative expense. Personnel expense includes marketing personnel compensation and excludes commissions (included in other segment expenses) and talent costs (included in content expense). | ||||||||||||||||||||||
| 6). Other expenses - Other segment expenses include distribution costs, other direct costs, software and hardware costs, IT services, professional and consulting fees, commissions, and certain other overhead costs. Other segment expenses exclude depreciation and amortization, amortization of purchase accounting fair value step-up for content, amortization of capitalized interest for content, employee share-based compensation, third-party transaction and integration costs, and other items impacting comparability as these items are excluded from the calculation of Adjusted EBITDA. | ||||||||||||||||||||||
| 7). Free Cash Flow - The Company defines free cash flow as cash flow from operations less acquisitions of property and equipment. The Company believes free cash flow is an important indicator for management and investors of the Company's liquidity, including its ability to reduce debt, make strategic investments, and return capital to stockholders. | ||||||||||||||||||||||
| 8). Gross Debt - The Company defines gross debt as total debt plus finance leases. The Company uses gross debt to monitor and evaluate the Company's overall liquidity, financial flexibility and leverage. The Company believes this measure is relevant to investors as it is a financial measure frequently used in evaluating a company's financial condition. | ||||||||||||||||||||||
| 9). Net Debt - The Company defines net debt as total debt plus finance leases less cash and cash equivalents, and restricted cash. The Company uses net debt to monitor and evaluate the Company's overall liquidity, financial flexibility and leverage. The Company believes this measure is relevant to investors as it is a financial measure frequently used in evaluating a company's financial condition. | ||||||||||||||||||||||
| 10). LTM EBITDA - LTM EBITDA is calculated by summing the most recent four quarters of Adjusted EBITDA. LTM EBITDA is calculated using a four period sum of actual Adjusted EBITDA. Actual Adjusted EBITDA and reconciliations between the non-GAAP financial measures and the closest GAAP financial measures are available in the trending schedules and in the "Quarterly Results" section of the Warner Bros. Discovery, Inc. investor relations website at: https://ir.wbd.com. | ||||||||||||||||||||||
| 11). LTM Gross Leverage Ratio - The Company defines LTM Gross Leverage ratio as dividing gross debt by LTM EBITDA. The Company uses LTM gross leverage ratio to monitor and evaluate the Company's overall liquidity, financial flexibility and leverage. The Company believes this measure is relevant to investors as it is a financial measure frequently used in evaluating a company's financial condition. | ||||||||||||||||||||||
| 12). LTM Net Leverage Ratio - The Company defines LTM Net Leverage ratio as dividing net debt by LTM EBITDA. The Company uses LTM net leverage ratio to monitor and evaluate the Company's overall liquidity, financial flexibility and leverage. The Company believes this measure is relevant to investors as it is a financial measure frequently used in evaluating a company's financial condition. | ||||||||||||||||||||||
| Page 9 |
Warner Bros Discovery Inc. published this content on May 06, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 06, 2026 at 20:53 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]