Quarterly ResultMay 6, 2026, 04:09 PM
Warner Bros. Discovery Q1 Revenue $8.89B; Net Loss $(2.92)B
AI Summary
Warner Bros. Discovery reported Q1 2026 total revenues of $8.9 billion, a 3% ex-FX decrease year-over-year, and a net loss of $(2.9) billion, significantly impacted by a $2.8 billion Netflix termination fee. Despite the revenue decline and net loss, Adjusted EBITDA increased 5% to $2.2 billion. The company saw strong growth in its Streaming and Studios segments, while the Global Linear Networks segment continued to face declines. HBO Max's global rollout is largely complete, exceeding 140 million global streaming subscribers.
Key Highlights
- Total revenues decreased 3% ex-FX to $8.9 billion in Q1 2026 compared to the prior year quarter.
- Net loss available to Warner Bros. Discovery, Inc. was $(2.9) billion, including a $2.8 billion Netflix termination fee.
- Adjusted EBITDA increased 5% to $2.2 billion, remaining relatively unchanged ex-FX.
- Streaming revenues grew 7% ex-FX to $2.9 billion, with Adjusted EBITDA up 17% ex-FX to $438 million.
- Studios revenues increased 31% ex-FX to $3.1 billion, with Adjusted EBITDA surging 156% ex-FX to $775 million.
- Global Linear Networks revenues decreased 9% ex-FX to $4.4 billion, with Adjusted EBITDA down 10% ex-FX.
- Cash used in operating activities was $(208) million, and free cash flow was $(476) million.
- Ended the quarter with $30.1 billion of net debt and 3.4x net leverage.