Warner Bros. Discovery (WBD) Q1 2026 Financial Results Summary

Warner Bros. Discovery released its financial results for the first quarter of 2026 on May 6, 2026. The following is a summary of key metrics, highlights, and performance indicators from the report.

Key Financial Metrics

• Total Revenues:
  • Q1 2026: $8,893 million
  • Q1 2025: $8,979 million
  • Change: Decrease of 1% (or 3% when adjusted for foreign exchange)
• Net Loss:
  • Q1 2026: $(2,916) million
  • Q1 2025: $(453) million
  • Change: Not Meaningful (significant increase in loss)
• Adjusted EBITDA:
  • Q1 2026: $2,203 million
  • Q1 2025: $2,105 million
  • Change: Increase of 5%
• Free Cash Flow:
  • Q1 2026: $(476) million
  • Q1 2025: $302 million
  • Change: Not Meaningful
• Cash Provided by Operations:
  • Q1 2026: $(208) million
  • Q1 2025: $553 million
  • Change: Not Meaningful
• Net Debt:
  • As of March 31, 2026: $30.1 billion
  • Net Leverage: 3.4x

Segment Performance

Streaming Segment

• Total Revenues:
  • Q1 2026: $2,887 million
  • Q1 2025: $2,656 million
  • Change: Increase of 9% (or 7% ex-FX)
• Subscriber-related Revenues:
  • Increased by 10% ex-FX to $2,817 million.
• Advertising Revenues:
  • Increased by 19% ex-FX, driven by global ad-lite subscriber growth.
• Adjusted EBITDA:
  • Increased by 29% to $438 million.

Studios Segment

• Total Revenues:
  • Q1 2026: $3,125 million
  • Q1 2025: $2,314 million
  • Change: Increase of 35% (or 31% ex-FX)
• Content Revenues:
  • Increased by 37% ex-FX.
• Adjusted EBITDA:
  • Increased by 199% to $775 million.

Global Linear Networks Segment

• Total Revenues:
  • Q1 2026: $4,377 million
  • Q1 2025: $4,774 million
  • Change: Decrease of 8% (or 9% ex-FX)
• Advertising Revenues:
  • Decreased by 12% ex-FX mainly due to the absence of the NBA and declines in domestic audience.
• Adjusted EBITDA:
  • Decreased by 9% to $1,634 million.

Corporate and Liquidity Overview

• Cash Position: Ended with $3.3 billion of cash on hand.
• Gross Debt: $33.4 billion with a weighted average maturity of 5.6 years and a weighted average cost of 6.0%.
• Debt Repayment: Repaid $123 million of Senior Notes during the quarter.

Dividend and Share Repurchase

Warner Bros. Discovery has not declared a quarterly dividend and there was no share repurchase mentioned in the report.

Outlook

Warner Bros. Discovery may provide future outlook and projections during its quarterly earnings conference call, which can be accessed through their investor relations website.

This concludes the summary of Warner Bros. Discovery’s Q1 2026 financial results. The company is navigating through challenges while showing growth in specific segments, particularly streaming and studios, despite broader losses and liquidity challenges.

Warner Bros. Discovery, Inc. Consolidated Statements of Operations

Three Months Ended March 31, Unaudited; in millions, except per share amounts

Note: All amounts are in thousands/millions.

2026	2025
Distribution	$ 4,906	$ 4,886
Advertising	1,847	1,980
Content	1,887	1,866
Other	253	247
Total revenues	8,893	8,979
Costs of revenues, excluding depreciation and amortization	4,643	5,131
Selling, general and administrative	2,475	2,194
Netflix Termination Fee	2,800	—
Depreciation and amortization	1,226	1,547
Restructuring and other charges	204	54
Impairments and loss on dispositions	14	90
Total costs and expenses	11,362	9,016
Operating loss	(2,469)	(37)
Interest expense, net	(581)	(468)
Loss on extinguishment of debt, net	(27)	(4)
Loss from equity investees, net	(5)	(7)
Other (expense) income, net	(38)	82
Loss before income taxes	(3,120)	(434)
Income tax benefit (expense)	214	(15)
Net loss	(2,906)	(449)
Net income attributable to noncontrolling interests	(10)	(8)
Net loss attributable to redeemable noncontrolling interests	—	4
Net loss available to Warner Bros. Discovery, Inc.	(2,916)	(453)
Net loss per share available to Warner Bros. Discovery, Inc. Series A common stockholders:
Basic	$(1.17)	$(0.18)
Diluted	$(1.17)	$(0.18)
Weighted average shares outstanding:
Basic	2,492	2,462
Diluted	2,492	2,462

Warner Bros. Discovery, Inc. Consolidated Balance Sheets

Unaudited; in millions, except par value

Note: All amounts are in thousands/millions.

March 31, 2026	December 31, 2025
Assets
Current assets:
Cash and cash equivalents	$ 3,264	$ 4,566
Receivables, net	5,009	5,294
Prepaid expenses and other current assets	3,468	3,346
Total current assets	11,741	13,206
Film and television content rights and games	19,312	19,114
Property and equipment, net	6,642	6,685
Goodwill	25,874	25,933
Intangible assets, net	26,803	27,764
Other noncurrent assets	7,465	7,383
Total assets	$ 97,837	$ 100,085
Liabilities and equity
Current liabilities:
Accounts payable	$ 1,110	$ 1,093
Accrued liabilities	11,920	9,626
Deferred revenues	1,592	1,642
Current portion of debt	1,493	139
Total current liabilities	16,115	12,500
Noncurrent portion of debt	30,973	32,428
Deferred income taxes	5,873	6,383
Other noncurrent liabilities	11,169	11,608
Total liabilities	64,130	62,919
Commitments and contingencies
Redeemable noncontrolling interests	—	19
Warner Bros. Discovery, Inc. stockholders’ equity:
Series A common stock: $0.01 par value; 10,800 and 10,800 shares authorized; 2,737 and 2,710 shares issued; and 2,507 and 2,480 shares outstanding	27	27
Preferred stock: $0.01 par value; 1,200 and 1,200 shares authorized, 0 shares issued and outstanding	—	Disclaimer The content on MarketsFN.com is provided for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or trading guidance. All investments carry risk and past performance does not guarantee future results. You are solely responsible for your investment decisions and should conduct independent research and consult a qualified financial advisor before acting. MarketsFN.com and its authors are not liable for any losses or damages arising from the use of this information.