Warner Bros. Discovery (WBD) Q2 2026 earnings summary

Executive summary

• Streaming segment surpassed $3 billion in revenue for the first time, with subscriber-related revenue growth accelerating to 10% sequentially, ex-FX, and strong engagement trends.

• Adjusted EBITDA for streaming reached $512 million, up 63% ex-FX year-over-year, with a 17% margin, marking a turnaround from prior losses.

• Total revenues for Q2 2026 were $8.7 billion, down 12% ex-FX year-over-year, with declines in advertising and content revenues offsetting modest growth in distribution revenues.

• Net income available was $149 million, down 91% year-over-year, impacted by $1.1 billion in pre-tax acquisition-related amortization and restructuring expenses.

• The Fifth Amendment to the Fourth Amended and Restated Receivables Purchase Agreement, effective June 30, 2026, updates the terms governing Warner Bros. Discovery Receivables Funding, LLC’s receivables securitization facility.

Financial highlights

• Streaming adjusted EBITDA improved by 63% ex-FX year-over-year, reaching $512 million and a 17% margin.

• Double-digit distribution growth in streaming, with underlying growth in the low teens when excluding a related party deal.

• Advertising revenues fell 22% ex-FX, mainly due to the absence of NBA content and continued linear audience declines.

• Licensing business generated strong margins and healthy demand, including for decade-old content.

• Cash provided by operating activities was $848 million, and free cash flow was $572 million, both down year-over-year.

Outlook and guidance

• Streaming momentum expected to continue with upcoming high-profile content and a robust 2027 pipeline.

• Studio segment targets over $3 billion in adjusted EBITDA long-term, with a richer film slate and more tentpole IP in 2027.

• Management expects best-ever retention and lower churn in 2026, driven by content strength and bundling strategies.

• Forward-looking statements highlight risks related to the proposed transaction with Paramount Skydance Corporation, regulatory approvals, and market conditions.