Warner Bros. Discovery, Inc. (WBD): Results of Operations and Financial Condition
Warner Bros. Discovery, Inc. (WBD) filed an SEC Form 8-K — Results of Operations and Financial Condition. Warner Bros. Discovery Reports Second-Quarter 2026 Results Three Months Ended June 30, 2026 2025 % Change $ in millions Reported Ex-FX(*) Distribution $ 4,950 $ 4,885 1 % 1 % Advertising 1,724 2,216 (22) % (22) % Content 1,828 2,471 (26) % (26) % Other 215 240 (10) % (11) % Total
How this was made
The 30-second read
Why it matters
Traders should treat this as the official delivery mechanism for WBD’s earnings materials; the actionable information is contained in Exhibit 99.1 (earnings press release) and Exhibit 99.2 (shareholder letter), which are not included in the scraped body.
Market read
This is a same-day earnings disclosure filing, which can drive immediate repricing once the market reads the actual results and any guidance or strategic commentary in the exhibits.
What to watch
Key drivers likely include ad demand, streaming subscriber/engagement trends, and cost discipline, but none are stated in the provided text, so the real trading signal is in the exhibits.
Warner Bros. Discovery reported second-quarter 2026 total revenues of $8,717 million, down 11%, while Streaming Adjusted EBITDA increased 75% to $512 million and Studios Adjusted EBITDA declined 89% to $96 million.
Streaming delivered double-digit revenue growth and materially higher Adjusted EBITDA, but consolidated revenue, Adjusted EBITDA, operating cash flow and free cash flow declined year over year as Studios and Global Linear Networks weakened.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenuesGAAP | $8,717 million | – | (11) % |
| Distribution revenueGAAP | $4,950 million | – | 1 % |
| Advertising revenueGAAP | $1,724 million | – | (22) % |
| Content revenueGAAP | $1,828 million | – | (26) % |
| Other revenueGAAP | $215 million | – | (10) % |
| Costs of revenues, excluding depreciation and amortizationGAAP | $4,621 million | – | – |
| Selling, general and administrativeGAAP | $2,564 million | – | – |
| Depreciation and amortizationGAAP | $1,159 million | – | – |
| Restructuring and other chargesGAAP | $113 million | – | – |
| Impairments and loss on dispositionsGAAP | $23 million | – | – |
| Total costs and expensesGAAP | $8,480 million | – | – |
| Operating income (loss)GAAP | $237 million | – | – |
| Interest expense, netGAAP | $(511) million | – | – |
| (Loss) gain on extinguishment of debt, netGAAP | $(75) million | – | – |
| Income from equity investees, netGAAP | $28 million | – | – |
| Other income, netGAAP | $50 million | – | – |
| (Loss) income before income taxesGAAP | $(271) million | – | – |
| Income tax benefit (expense)GAAP | $433 million | – | – |
| Net incomeGAAP | $162 million | – | – |
| Net income available to Warner Bros. Discovery, Inc.GAAP | $149 million | – | (91) % |
| Net income per share available to Warner Bros. Discovery, Inc. Series A common stockholders: BasicGAAP | $0.06 | – | – |
| Net income per share available to Warner Bros. Discovery, Inc. Series A common stockholders: DilutedGAAP | $0.06 | – | – |
| Weighted average shares outstanding: BasicGAAP | 2,511 million | – | – |
| Weighted average shares outstanding: DilutedGAAP | 2,575 million | – | – |
| Adjusted EBITDAnon-GAAP | $1,879 million | – | (4) % |
| Cash provided by operating activitiesGAAP | $848 million | – | (14) % |
| Purchases of property and equipmentGAAP | $(276) million | – | (2) % |
| Free cash flownon-GAAP | $572 million | – | (19) % |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| StreamingDistribution revenue increased 11% ex-FX from continued growth in existing markets and global expansion of HBO Max, including new distribution deals; advertising revenue increased 8% ex-FX, primarily driven by an increase in global ad-lite subscribers. | $3,079 million | – | 10 % |
| StudiosContent revenue decreased 41% ex-FX. Theatrical revenue decreased 46% ex-FX, driven by lower box office revenue primarily due to this quarter’s slate in relation to the strong performance of A Minecraft Movie, Sinners, and Final Destination Bloodlines in the prior year quarter. | $2,328 million | – | (39) % |
| Global Linear NetworksDistribution revenue decreased 9% ex-FX, primarily driven by a 10% decrease in domestic linear pay TV subscribers. Advertising revenue decreased 27% ex-FX, primarily driven by 17% domestic audience declines, largely due to the absence of the NBA in the current year quarter. | $3,991 million | – | (17) % |
What drove it
- Total revenues decreased 12% ex-FX, with distribution revenue increasing 1% ex-FX but advertising revenue decreasing 22% ex-FX and content revenue decreasing 26% ex-FX.
- Streaming subscriber-related revenues increased 10% ex-FX to $2,995 million, while Streaming Adjusted EBITDA increased 63% ex-FX to $512 million.
- Streaming costs of revenues were relatively flat, while SG&A increased 14% ex-FX due to higher marketing costs tied to HBO Max international launches and higher overhead costs.
- Studios Adjusted EBITDA decreased 89% ex-FX to $96 million as lower theatrical and TV revenue outweighed expense reductions.
- Global Linear Networks Adjusted EBITDA decreased 5% ex-FX to $1,446 million. Costs of revenues decreased 27% ex-FX, primarily driven by the absence of the NBA.
- Corporate Adjusted EBITDA improved by $18 million, primarily driven by lower overhead costs.
- Free cash flow decreased primarily due to higher net content investment, partially offset by lower tax payments and the timing of working capital.
Concerns
- Advertising revenues decreased 22% ex-FX, and the absence of the NBA in the current year negatively impacted the year-over-year growth rate by 20% ex-FX.
- Content revenues decreased 26% ex-FX, primarily due to lower theatrical revenue at the Studios segment.
- Global Linear Networks distribution revenue declined amid a 10% decrease in domestic linear pay TV subscribers and advertising revenue declined amid 17% domestic audience declines.
- Free cash flow was unfavorably impacted by approximately $350 million of separation & transaction-related items compared to an approximate $250 million impact in the prior year quarter.
- Net income available to Warner Bros. Discovery, Inc. was $149 million and included $1.1 billion of pre-tax acquisition-related amortization of intangibles, content fair value step-up, and restructuring expenses.
What to watch
- Continued growth in global streaming subscribers, HBO Max expansion and new distribution deals.
- Streaming marketing and overhead costs associated with HBO Max international launches.
- Theatrical, TV and games revenue trends at Studios following the release of LEGO Batman: Legacy of the Dark Knight.
- Domestic linear pay TV subscriber and audience trends, as well as the revenue and cost effects from the absence of the NBA.
- Free cash flow effects from net content investment and separation & transaction-related items.
- Debt refinancing execution, net leverage and revolving receivables program usage.
Balance sheet and cash flow
- Ended Q2 with $3.4 billion of cash on hand, $33.1 billion of gross debt, and 3.4x net leverage.
- Cash and cash equivalents were $3,369 million as of June 30, 2026, compared with $4,566 million as of December 31, 2025.
- As of June 30, 2026, the weighted average maturity of the Company's outstanding debt was 8.3 years with a weighted average cost of 5.2%.
- As of June 30, 2026, the Company’s $4.0 billion revolving credit facility was undrawn.
- During the second quarter, the Company repaid in full the $15 billion bridge loan facility with a $13 billion Term Loan B and a €1.7 billion Term Loan B.
- As of June 30, 2026, the Company had $3,900 million drawn on its revolving receivables program, a $50 million increase vs. Q1.
- For the six months ended June 30, 2026, cash provided by operating activities was $640 million, cash used in investing activities was $(499) million, cash used in financing activities was $(1,273) million, and net change in cash, cash equivalents, and restricted cash was $(1,197) million.
Analysis
Second-quarter results showed a sharp divergence between the operating segments. Consolidated total revenues were $8,717 million, down 11%, and Adjusted EBITDA was $1,879 million, down 4%. Distribution revenue rose 1%, but advertising revenue declined 22% and content revenue declined 26%. Net income available to Warner Bros. Discovery, Inc. fell to $149 million from $1,580 million, while operating income improved to $237 million from an operating loss of $(185) million. The prior-year period included a $2,958 million gain on extinguishment of debt, whereas the current quarter included a $(75) million loss on extinguishment of debt.
Streaming was the principal source of operating improvement. Segment revenue increased 10% to $3,079 million and subscriber-related revenues increased 11% to $2,995 million. Distribution revenue increased 12%, advertising revenue increased 9%, and segment Adjusted EBITDA increased 75% to $512 million. Costs of revenues were $1,904 million versus $1,913 million, while SG&A increased to $663 million from $587 million, reflecting marketing for HBO Max international launches and higher overhead costs. The reported segment performance indicates that subscriber-related growth and the HBO Max rollout outweighed higher selling and administrative spending.
Studios and Global Linear Networks remained the principal drags. Studios revenue fell 39% to $2,328 million and Adjusted EBITDA fell 89% to $96 million, with lower theatrical revenue, lower intercompany TV content licensing and a lower comparison against the prior-year theatrical slate. Global Linear Networks revenue declined 17% to $3,991 million and Adjusted EBITDA declined 4% to $1,446 million. Its distribution and advertising businesses were pressured by domestic linear pay TV subscriber and audience declines, while the absence of the NBA reduced advertising revenue and lowered programming costs.
Cash generation declined during the quarter. Cash provided by operating activities was $848 million, down from $983 million, and free cash flow was $572 million, down from $702 million. The company attributed the decline primarily to higher net content investment, partly offset by lower tax payments and working-capital timing. Free cash flow also absorbed approximately $350 million of separation & transaction-related items, compared with an approximate $250 million impact in the prior-year quarter. The company ended Q2 with $3.4 billion of cash on hand, $33.1 billion of gross debt and 3.4x net leverage after replacing the $15 billion bridge loan facility with a $13 billion Term Loan B and a €1.7 billion Term Loan B.
The release did not provide quantitative financial guidance. The disclosed forward-looking discussion focuses on the proposed transaction with Paramount Skydance Corporation and associated completion, regulatory, financing, operational-disruption and stakeholder-retention risks. The central reported operating variables for subsequent periods are Streaming revenue and profitability, the extent of linear audience and subscriber declines, Studios content monetization, and free-cash-flow conversion after content investment and transaction-related costs.
Not in the filing
stated, not guessed- Quantitative financial guidance was not provided.
- Previous-period outlook was not provided, so comparison with prior guidance is unavailable.
- Gross margin was not reported.
- Operating margin was not reported.
- Tax rate was not reported.
- Quarter-over-quarter comparisons for reported operating metrics were not provided.
- Capital returns, including share repurchases and dividends, were not reported.
- Streaming subscriber counts, net additions, churn and average revenue per subscriber were not reported.
- Named executive quotes were not included in the filing text.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The filing is an SEC Form 8-K (Items 2.02 and 7.01) stating WBD released earnings for the quarter ended June 30, 2026 and issued a shareholder letter alongside the press release.
Ticker impact
Warner Bros. Discovery filed an 8-K furnishing its earnings press release for the quarter ended June 30, 2026, plus a shareholder letter.
Near-term volatility is possible once traders parse the attached Exhibit 99.1 and 99.2 details, but direction cannot be inferred from the provided body.
The body confirms the earnings release and shareholder letter were issued, yet it provides no numbers, outlook, or qualitative drivers from those exhibits.
Market effects
Broadcasters and media content spend expectations may react to WBD’s reported operating trends, but the provided text lacks the underlying metrics.
Primarily impacts US-listed media sentiment; no regional spillover details are included.
Global streaming and advertising sentiment could be influenced by WBD’s quarter, but no international KPIs are provided here.
Counterpoint
Because the scraped body omits the actual earnings figures, traders should not assume the filing itself signals strength or weakness; the market reaction will hinge on the missing Exhibit 99.1/99.2 content.
Key entities
- issuerWarner Bros. Discovery, Inc.
Nasdaq-listed company (WBD) that released earnings for the quarter ended June 30, 2026 and furnished the materials via 8-K.
- documentExhibit 99.1
Earnings press release dated August 6, 2026, furnished under Item 2.02.
- documentExhibit 99.2
Shareholder letter dated August 6, 2026, furnished under Item 7.01.
