WBD · 10-Q · 2026Q2

Warner Bros. Discovery, Inc.

Filed 2026-08-06 · Other · View original filing on EDGAR

Ranked Events

• Netflix Termination FeeImportance 71 · Surprise 60
  On February 27, 2026, WBD terminated the Netflix Merger Agreement after receiving a Company Superior Proposal from Paramount Skydance Corporation, and PSKY paid Netflix a $2.8 billion termination fee on WBD’s behalf.…
• Operating Cash Flow TrendsImportance 69 · Surprise 64
  Cash provided by operating activities declined to $640 million in the six months ended June 30, 2026 from $1.536 billion in the comparable 2025 period. The $896 million decrease reflected lower net income excluding…
• Income Tax Rate ChangesImportance 65 · Surprise 82
  Income tax benefit was $433 million in the second quarter and $647 million in the first six months of 2026, compared with tax expense of $866 million and $881 million in the respective 2025 periods. The improvement…
• Outstanding IndebtednessImportance 64 · Surprise 42
  As of June 30, 2026, WBD had $32.402 billion of outstanding indebtedness, consisting of $14.708 billion of term loans and $17.694 billion of senior notes. During the second quarter, the company entered into seven-year…
• Interest Rate and Refinancing ExposureImportance 64 · Surprise 42
  On June 4, 2026, WBD refinanced $15.0 billion of bridge loans with $13.0 billion of seven-year U.S. dollar term loans and €1.717 billion of Euro-denominated term loans. The dollar term loans bear interest at Term SOFR…
• Remaining Performance ObligationsImportance 64 · Surprise 42
  Warner Bros. Discovery reported $13,058 million of remaining performance obligations as of June 30, 2026. The balance included $2,657 million of distribution contracts with fixed prices or minimum guarantees through…
• Liquidity and Debt PositionImportance 64 · Surprise 42
  WBD held $3.369 billion of cash and cash equivalents at June 30, 2026, alongside $32.402 billion of outstanding indebtedness and $7.369 billion of unused capacity. During the second quarter, WBD used proceeds from…
• Segment Revenue PerformanceImportance 64 · Surprise 56
  Streaming revenue increased 10% to $3.079 billion in the second quarter and 9% to $5.966 billion year to date, while its Adjusted EBITDA increased 63% and 38%, respectively. Studios revenue declined 39% to $2.328…
• Content Licensing TrendsImportance 59 · Surprise 74
  Studios content revenue declined 41% in the second quarter and 13% in the first six months of 2026, primarily due to lower theatrical and television product revenue. The current theatrical slate underperformed the…
• Linear Subscriber DeclinesImportance 59 · Surprise 48
  Global Linear Networks distribution revenue declined 9% in the second quarter and 8% in the first six months of 2026. Domestic linear subscribers fell 10% in both periods, despite domestic affiliate-rate increases of…
• Gross Margin DriversImportance 59 · Surprise 48
  Consolidated costs of revenues decreased 23% to $4.621 billion in the second quarter and 17% to $9.264 billion in the first six months of 2026. The reductions primarily reflected lower domestic sports costs because the…
• Segment ProfitabilityImportance 59 · Surprise 48
  Segment Adjusted EBITDA totaled $2,054 million in the second quarter of 2026, down from $2,668 million in the second quarter of 2025, and totaled $4,901 million for the first six months versus $5,059 million a year…
• Revenue Performance and MixImportance 54 · Surprise 40
  Consolidated revenue declined 11% to $8.717 billion in the second quarter of 2026 and 6% to $17.610 billion in the first six months, driven by advertising declines of 22% and 15% and content declines of 26% and 14%,…
• Advertising Demand TrendsImportance 52 · Surprise 56
  U.S. linear advertising remained soft, with consolidated advertising revenue declining 22% in the second quarter and 16% in the first six months of 2026. Domestic network audience declines of 17% and 13%, respectively,…
• Capital ExpendituresImportance 50 · Surprise 24
  WBD incurred $544 million of capital expenditures during the six months ended June 30, 2026. The expenditures included amounts capitalized to support HBO Max. The company expects to continue incurring significant costs…
• Headcount / RestructuringImportance 46 · Surprise 42
  Restructuring and other charges were $113 million in the second quarter and $317 million in the first six months of 2026. The charges primarily covered organizational restructuring, employee retention, and consulting…
• Guidance / OutlookImportance 44 · Surprise 24
  WBD expects cash on hand, operating cash generation and availability under its Credit Agreement to fund cash needs for the next 12 months. The company had $3.369 billion of cash and cash equivalents and $4.0 billion of…
• Merger Antitrust ChallengesImportance 44 · Surprise 60
  A coalition of attorneys general from twelve states filed suit in the Northern District of California on July 13, 2026 to block PSKY’s proposed acquisition of WBD under Section 7 of the Clayton Act. The States allege…
• Junior Lien Exchange ObligationImportance 42 · Surprise 42
  Warner Bros. Discovery must cause subsidiaries to conduct a junior lien exchange offer for certain DGH and DCL senior notes under the PSKY Merger Agreement. The deadline to commence the offer was extended to March 4,…
• Nokia Patent LitigationImportance 40 · Surprise 42
  Nokia alleges that WBD infringes patents covering streaming-video delivery, including H.264/AVC and H.265/HEVC standard-essential patents and other multimedia patents. WBD and Dplay brought related proceedings and…

Revenue by Product (in millions)