WBD · 8-K · 20260806PR000072

Operating Margin Drivers

Warner Bros. Discovery, Inc. · 2026-08-06 · Importance 47 · Surprise 48 · In source text

Consolidated operating income improved to $237 million from a $185 million operating loss, despite an 11% revenue decline. Costs of revenues decreased 23% to $4,621 million, while depreciation and amortization declined $288 million to $1,159 million. SG&A increased 4% to $2,564 million, including a 14% ex-FX increase in Streaming driven by HBO Max international-launch marketing and higher overhead costs. Restructuring and other charges increased to $113 million from $80 million, while Adjusted EBITDA decreased 4% reported and 6% ex-FX to $1,879 million.

Key facts

• Costs of revenues, excluding depreciation and amortization: $4,621 million for the three months ended June 30, 2026. source
• Selling, general and administrative expense: $2,564 million for the three months ended June 30, 2026. source
• Depreciation and amortization expense: $1,159 million for the three months ended June 30, 2026. source
• Corporate Adjusted EBITDA was $(298) million for the quarter and improved by $18 million year-over-year. source
• Adjusted EBITDA for Global Linear Networks: $1,446 million for the quarter. source
• Total Adjusted EBITDA was $1,879 million for the quarter, a 6% ex-FX decrease compared to the prior year quarter. source
• Inter-segment total expense eliminations: $(805) million for three months ended June 30, 2026. source
• Net income available to Warner Bros. Discovery, Inc.: $149 million for the quarter, which includes $1.1 billion of pre-tax acquisition-related amortization of intangibles, content fair value step-up, and restructuring expenses. source

Impact estimates