Warner Bros. Discovery

WBD · Communication Services · Financials, fiscal 2016 to 2025

WBD · Last close · October 5, 2026

$30.95

Warner Bros. Discovery's revenue fell 5.2% to $37.3 billion in fiscal 2025. Its operating margin was 2.0%, up from −25.5% a year earlier. Free cash flow was $3.1 billion, down 30.2%. The diluted share count rose 3.3%.

Warner Bros. Discovery, Inc. Latest fiscal year ended December 31, 2025 10-K filed February 27, 2026 · 0001437107-26-000020 Updated October 26, 2026

Revenue

$37.3B

5.2%

Operating margin

2.0%

27.5 pts

Net income

$727M

Free cash flow

$3.1B

30.2%

Return on capital

0.6%

10.7 pts

Market cap

$79.7B

Oct 5 close

P/E

—

Loss: no P/E

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

What Warner Bros. Discovery does

Warner Bros. Discovery makes and distributes films, TV shows, games and news. Its brands include HBO, the HBO Max and discovery+ streaming services, Warner Bros. film and TV studios, DC Studios, CNN, TNT Sports, Discovery Channel, Food Network, TLC and TBS. It sells to viewers directly through subscriptions, to cable and satellite companies that carry its channels, to advertisers, and to theaters and other outlets that license its films and shows.

It reports three segments. Streaming runs HBO Max, discovery+ and HBO, and had 131.6 million subscribers at the end of 2025. Studios makes and licenses films and TV shows, and also earns money from games, studio tours and products based on characters such as Harry Potter and DC heroes. Global Linear Networks runs its traditional TV channels in the U.S. and abroad, which earn money mainly from fees paid by distributors and from advertising. It says it competes with other networks, streaming services and studios for viewers, advertisers and creative talent.

Warner Bros. Discovery had about 35,500 employees at the end of 2025. In February 2026 it ended an agreement to sell its studios and streaming businesses to Netflix, and agreed instead to be acquired in full by Paramount Skydance. Paramount Skydance paid Netflix the $2.8 billion termination fee on the company's behalf. The deal still needs regulatory and shareholder approval.

Its biggest risks, as it describes them

The Paramount Skydance merger may not be completed, or may be delayed, and failure could cost it a large termination fee.
A continuing fall in advertising revenue as viewers leave traditional TV.
Its streaming services may fail to attract and keep subscribers.
Losing or renewing on worse terms the agreements with cable, satellite and digital companies that carry its channels.
Its large debt and the need to refinance its bridge loan, which could limit how it runs the business.

From Warner Bros. Discovery's annual report on Form 10-K, filed February 27, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new 10-K.

Charts show fiscal years, from the 10-K filings.

Revenue and margins

Revenue

US$ billions, fiscal years

Margins

Percent of revenue

GrossOperatingNetFree cash flow

Net income and earnings per share

From fiscal 2020 to 2025, earnings per share fell 30.7% a year and net income 9.8% a year, as new shares raised the share count by 276% and diluted each share's earnings.

Net income

US$ billions, fiscal years; loss years in red.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red. Where the filings' structured data doesn't give a year's earnings per share, the column is blank.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Cash flow

Free cash flow

US$ billions. Cash from operations minus capital expenditure; negative years in red.

Payouts and share count

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, billions

Valuation

Two ways to value Warner Bros. Discovery yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.

Discounted cash flow (DCF)

A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Warner Bros. Discovery's 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.

Value per share on three example scenarios, from Warner Bros. Discovery's fiscal 2025 free cash flow of $3.1B, net cash of −$28.7B at December 31, 2025 and 2,530 million diluted shares, from its filings. The scenarios are fitted to Warner Bros. Discovery: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, 3.3% a year; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 10%: 9% for a business of moderate risk (Broadcasting), plus 1 point for unsteady results (a loss in fiscal 2024); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

From the filings

Starting free cash flow, US$ millions

Cash from operations minus capital spending in fiscal 2025.

Net cash, US$ millions

Cash and short-term investments minus debt and finance leases at December 31, 2025. Negative means net debt.

Diluted shares, millions

Weighted-average diluted shares in fiscal 2025.

Your assumptions

Start from

Fitted to Warner Bros. Discovery's own revenue growth, as above. Cautious: growth of 1.5% then 2% a year, 2% after year 10, a 11% discount rate. Base: growth of 3.5% then 3% a year, 2.5% after year 10, a 10% discount rate. Optimistic: growth of 5.5% then 4% a year, 3% after year 10, a 9% discount rate.

Free cash flow growth, years 1 to 5 (% a year)

Free cash flow growth, years 6 to 10 (% a year)

Growth after year 10 (% a year)Long-run growth forever after year 10. Usually close to inflation, and always below the discount rate.

Discount rate (% a year)The yearly return an investor wants for the risk. A higher rate gives a lower value.

Value per share on these assumptions

—

Last close, October 5, 2026: $30.95
Value on these assumptions, against the last close: —

Cash flows in years 1 to 10, valued today: —
Everything after year 10, valued today: —
Plus net cash: —
Share of value from after year 10: —

Projected free cash flow

US$ billions. Each column is one year's projected free cash flow, split into what it is worth today and the part removed by discounting.

Value todayRemoved by discounting

How the value changes with two assumptions

Value per share in US$, with the growth rates above. The highlighted cell matches the current assumptions.

How the model works. Free cash flow grows at the first rate for five years and the second rate for five more, and each year is discounted at the discount rate. Everything after year 10 is valued as year-10 cash flow × (1 + growth after year 10) ÷ (discount rate − growth after year 10), discounted back ten years. Net cash is added and the total is divided by diluted shares. The result depends entirely on the assumptions. It is not a forecast, a price target or a recommendation. The last close is the consolidated US closing price, from Databento.

Price-to-earnings (P/E) method

Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.

The P/E method needs positive earnings, and Warner Bros. Discovery's latest diluted earnings per share were negative or zero.

Balance sheet

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	3.9	3.7	3.8	5.3	4.6
Debt incl. finance leases	15.0	49.3	43.9	40.0	33.2
Net debt (negative means net cash)	11.1	45.5	40.2	34.7	28.7
Net debt to EBITDA	3.1x	—	6.2x	—	4.5x
Debt to equity	1.3x	1.1x	1.0x	1.2x	0.9x
Interest coverage	3.2x	−4.2x	−0.7x	−5.0x	0.3x
Current ratio	2.1x	0.9x	0.9x	0.9x	1.1x
Quick ratio	2.1x	0.9x	0.9x	0.9x	1.1x

US$ billions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Insider trades

Over the 12 months between October 27, 2025 and October 26, 2026, no insider bought Warner Bros. Discovery shares on the open market, and 13 insiders sold $406.7 million, $100.0 million of it under trading plans set up in advance.

Date	Insider	Trade	Shares	Price	Value	Filing
Sep 14, 2026	Lori C. LockeChief Accounting Officer	Sold	29,115	$28.13	$819,005	Form 4
Sep 11, 2026	Richard W FisherDirector	Sold	6,700	$28.06	$188,002	Form 4
Sep 10, 2026	Kenneth W LoweDirector	Sold	200,000	$28.23	$5.6 million	Form 4
Sep 9, 2026	Amy GirdwoodChief People & Culture Officer	Sold	262,285	$27.98	$7.3 million	Form 4
Sep 3, 2026	Anton J LevyDirector	Sold	340,000	$28.39	$9.7 million	Form 4
Sep 3, 2026	Kenneth W LoweDirector	Sold	200,000	$28.35	$5.7 million	Form 4
Aug 27, 2026	Jean-Briac PerrettePres.&CEO, Global Streaming	Sold	126,707	$28.96	$3.7 million	Form 4
Aug 14, 2026	David ZaslavChief Executive Officer & Pres, Director	Sold plan	194,999	$28.02	$5.5 million	Form 4
Aug 13, 2026	David ZaslavChief Executive Officer & Pres, Director	Sold plan	773,173	$28.01	$21.7 million	Form 4
Aug 13, 2026	Fazal F MerchantDirector	Sold	71,539	$27.75	$2.0 million	Form 4
Aug 12, 2026	Richard W FisherDirector	Sold	20,000	$27.46	$549,200	Form 4
Aug 11, 2026	Kenneth W LoweDirector	Sold	120,000	$26.97	$3.2 million	Form 4

The latest 12 of 39 trades. Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Piotroski F-score

The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.

Test	FY23	FY24	FY25
Net income is positive	Fail	Fail	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Pass	Fail	Pass
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	Pass	Fail	Pass
Current ratio rose	Fail	Fail	Pass
Share count didn't rise	Fail	Fail	Fail
Gross margin rose	—	—	—
Revenue rose relative to assets	Fail	Pass	Pass
F-score	4 of 8	3 of 8	7 of 8
Accruals ratio	−8.3%	−14.7%	−3.5%

The accruals ratio is net income minus cash from operations, over average total assets.

Compare

Put Warner Bros. Discovery side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Warner Bros. Discovery	FY25	−5.2%	2.0%	8.3%	0.6%	4.5x	7
Fox	FY26	5.1%	—	8.6%	14.8%	0.8x	6	Compare
SiriusXM	FY25	−1.6%	17.2%	14.6%	5.3%	5.1x	6	Compare
Nexstar Media Group	FY25	−8.5%	17.1%	15.0%	5.6%	4.6x	5	Compare
Netflix	FY25	15.8%	29.5%	20.9%	36.7%	0.4x	7	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score above.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	6.5	6.9	10.6	11.1	10.7	12.2	33.8	41.3	39.3	37.3
Revenue growth	1.6%	5.8%	53.5%	5.6%	−4.2%	14.2%	177.4%	22.2%	−4.8%	−5.2%
Gross profit	4.1	4.2	6.6	—	—	—	—	—	—	—
Research and development	—	—	—	—	—	—	—	—	—	—
Operating income	2.1	0.7	1.9	3.0	2.5	2.0	−7.4	−1.5	−10.0	0.7
Net income	1.2	−0.3	0.6	2.1	1.2	1.0	−7.4	−3.1	−11.3	0.7
Diluted EPS (US$)	—	—	—	—	1.81	1.54	−3.82	−1.28	−4.62	0.29
Diluted shares (millions)	—	—	—	—	672	664	1,940	2,436	2,450	2,530
Cash flow
Cash from operations	1.4	1.6	2.6	3.4	2.7	2.8	4.3	7.5	5.4	4.3
Capital expenditure	0.1	0.1	0.1	0.3	0.4	0.4	1.0	1.3	0.9	1.2
Free cash flow	1.3	1.5	2.4	3.1	2.3	2.4	3.3	6.2	4.4	3.1
Dividends paid	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Share buybacks	1.4	0.6	0.0	0.6	1.0	0.0	0.0	0.0	0.0	0.0
Acquisitions	0.0	0.1	8.6	0.1	0.0	0.0	3.6	0.1	0.0	0.0
Stock-based compensation	0.1	0.0	0.1	0.1	0.1	0.2	0.4	0.5	0.6	0.8
Balance sheet at fiscal year end
Cash and short-term investments	0.3	7.3	1.0	1.6	2.1	3.9	3.7	3.8	5.3	4.6
Debt incl. finance leases	8.0	14.8	16.8	15.7	15.6	15.0	49.3	43.9	40.0	33.2
Total assets	15.7	22.6	32.5	33.7	34.1	34.4	134.0	122.8	104.6	100.1
Total liabilities	10.3	17.5	22.0	21.8	21.7	21.0	85.3	76.3	69.6	62.9
Shareholders' equity	5.2	4.6	8.4	9.9	10.5	11.6	47.1	45.2	34.0	35.9
Margins and ratios
Gross margin	62.6%	61.4%	62.7%	—	—	—	—	—	—	—
Operating margin	31.7%	10.4%	18.3%	27.0%	23.6%	16.5%	−21.8%	−3.8%	−25.5%	2.0%
Net margin	18.4%	−4.9%	5.6%	18.6%	11.4%	8.2%	−21.8%	−7.6%	−28.8%	1.9%
Free cash flow margin	19.9%	21.7%	23.0%	27.9%	21.9%	19.9%	9.8%	14.9%	11.3%	8.3%
Return on capital	11.7%	4.5%	6.8%	11.3%	7.7%	6.8%	−9.9%	−1.4%	−10.2%	0.6%
Return on equity	22.5%	−6.9%	9.1%	22.6%	12.0%	9.1%	−25.1%	−6.8%	−28.5%	2.1%
Return on assets	7.6%	−1.8%	2.2%	6.2%	3.6%	2.9%	−8.8%	−2.4%	−9.9%	0.7%
Net debt to EBITDA	3.2x	7.2x	4.7x	3.2x	3.5x	3.1x	—	6.2x	—	4.5x

US$ billions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Warner Bros. Discovery's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Warner Bros. Discovery.