The business in plain English
Warner Bros. Discovery makes and distributes TV shows, films, news, sports and video games. Its brands include HBO, HBO Max, CNN, Discovery Channel, TNT Sports, Food Network, TLC, TBS, DC Studios and Warner Bros. Games. It reports three segments. Streaming holds HBO Max, discovery+ and the HBO pay-TV channels. Studios makes films and TV shows, releases them in theaters, licenses them to other services, and runs games and brand licensing. Global Linear Networks holds its traditional TV channels in the U.S. and abroad. Viewers watch these on a set schedule through pay-TV providers.
Revenue was $37.3 billion in the year ended December 31, 2025. Distribution fees made up 51.6%. These come from cable, satellite and digital providers that pay to carry its channels, and from viewers who pay for streaming subscriptions. Content brought in 25.9%, from film releases, licensing, home entertainment and games. Advertising added 19.6%, and other sources, such as studio tours, added 2.9%. The U.S. supplied 66.9% of revenue. Streaming had 131.6 million subscribers as of December 31, 2025, after adding 14.7 million during the year.
In June 2025 the company announced a plan to split into two companies, Warner Bros. and Discovery Global. That plan gave way to a February 27, 2026 agreement to be acquired by PSKY for $31.00 per share in cash. An October 6, 2026 SEC filing reported a change in control and a completed acquisition.
Price history
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WBD +63.0% over the year to Oct 5, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Distribution | $19.26B | 51.6% |
| Content | $9.65B | 25.9% |
| Advertising | $7.31B | 19.6% |
| Other | $1.08B | 2.9% |
By geography
| U.S. | $24.95B | 66.9% |
| Non-U.S. | $12.35B | 33.1% |
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $8.72B, down 11.2% from a year earlier, and net income was $149.0M (-90.6%).
- For fiscal 2025, revenue was $37.30B (-5.1% year over year; +28.4% a year from FY2020 to FY2025) with a 1.9% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +28.4% good |
|---|---|
| Operating margin | 2% weak |
| Free cash flow margin | 8.3% watch |
| Return on equity (FY2025) | 2% weak |
| Return on assets (FY2025) | 0.7% weak |
| Net cash (cash minus debt) | $-28.65B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $10.67B | $1.22B | $2.34B |
| FY2021 | $12.19B | $1.01B | $2.42B |
| FY2022 | $33.82B | $-7.37B | $3.32B |
| FY2023 | $41.32B | $-3.13B | $6.16B |
| FY2024 | $39.32B | $-11.31B | $4.43B |
| FY2025 | $37.30B | $727.0M | $3.09B |
Valuation snapshot
| Market value | $77.71B |
|---|---|
| P/E ratio | 106.7 |
| Dividend yield | 0% |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| WBD price data to Oct 5, 2026 | +7.4% | +63.0% | +45.3% | — | — |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +7.4% |
| 2025 | +172.7% |
| 2024 | -7.1% |
| 2023 | +20.0% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Insider activity
Form 4 filings from 2025-10-27 to 2026-10-27 (25 read): 0 open-market purchases and 4 sales ($14.0M).
| Date | Insider | Type | Value |
|---|---|---|---|
| Sep 9, 2026 | Amy Girdwood Chief People & Culture Officer | sell | $7.3M |
| Sep 10, 2026 | Kenneth W Lowe Director | sell | $5.6M |
| Sep 14, 2026 | Lori C. Locke Chief Accounting Officer | sell | $819K |
| Sep 11, 2026 | Richard W Fisher Director | sell | $188K |
Who owns it
Large shareholders (13G filings)
| Vanguard Capital Management | 7.22% | Mar 31, 2026 |
| STATE STREET CORPORATION | 5.3% | Dec 31, 2025 |
ETFs with the most weight in WBD
| PEJ Invesco Leisure and Entertainment ETF | 4.58% |
| RSPC Invesco S&P 500 Equal Weight Communication Services ETF | 4.1% |
| XLC Communication Services Select Sector SPDR Fund | 4.08% |
| FCFY First Trust S&P 500 Diversified Free Cash Flow ETF | 4.04% |
| BNGE First Trust S-Network Streaming and Gaming ETF | 3.99% |
| DVLU First Trust Dorsey Wright Momentum & Value ETF | 3.24% |
| NUMG Nuveen ESG Mid-Cap Growth ETF | 2.5% |
| FLOW Global X U.S. Cash Flow Kings 100 ETF | 1.69% |
What could go wrong
- The PSKY deal could stall or fail. The company warned that the $31.00-per-share cash deal depended on regulatory approvals and a shareholder vote. Regulators could demand asset sales. If the deal fell through, a share price that assumed it would close could drop.
- Big fees if the deal collapses. In some cases WBD would owe PSKY a $3.0 billion fee, repay the $2.8 billion PSKY paid Netflix, and cover up to $1,528 million more. That cash would come out of WBD's own funds.
- Heavy debt and a bridge loan. Total debt was $32.0 billion against $3.4 billion of cash and investments as of June 30, 2026. A short-term bridge loan limits some actions and must be refinanced, possibly on poor terms.
- Traditional TV and advertising under pressure. Fewer households pay for cable and satellite TV, and U.S. TV advertising has been soft. Deals with TV providers to carry its channels may renew on worse terms. Advertising was 19.6% of 2025 revenue.
- Streaming must keep winning subscribers. HBO Max and discovery+ compete with many rivals, and WBD relies on platforms owned by competitors to reach viewers. Failing to attract or keep subscribers would hurt revenue and profits.
- Hit-driven content and costly sports rights. WBD spends heavily on sports rights that it may fail to renew or earn back. Its films, shows and games also depend on audience tastes, which are hard to predict in the U.S. and abroad.
Recent events
- Major agreement signed; Major agreement ended; Acquisition or sale of assets completed; New debt or financial obligation; Listing notice from the exchange; Change to shareholder rights; Change in control; Executive or board change; Bylaws or fiscal year changed; Other company announcement
- Quarterly results released; Investor presentation or announcement
- Shareholder vote results
- Major agreement signed; New debt or financial obligation
- Major agreement signed; Change to shareholder rights; Other company announcement
- Other company announcement
- Quarterly results released; Investor presentation or announcement
- Executive or board change
- Shareholder vote results
- Executive or board change
For income and retirement investors
Warner Bros. Discovery paid no dividends and bought back no shares from fiscal 2021 through 2025. Its dividend yield was 0% as of October 5, 2026. Its share count rose 3.5% from April 18, 2022 to July 23, 2026, so each share owned a slightly smaller slice of the company. Free cash flow (the cash left after running and investing in the business) was $3.1 billion in 2025. Total debt was $32.0 billion as of June 30, 2026. Any return came from price changes, not payouts.
The price history covers about 4.5 years. It misses the 2008 financial crisis, the 2020 COVID crash and the full 2022 bear market. Within that history, the deepest drop from a peak was 74.2%. The shares fell 7.12% in 2024, then rose 172.66% in 2025. Under the PSKY deal, holders would get $31.00 per share in cash, not ongoing income. Single stocks carry more risk than diversified funds.
Questions investors ask
How does Warner Bros. Discovery make money?
Mostly from fees for its channels and streaming services. In the year ended December 31, 2025, distribution revenue was 51.6% of $37.3 billion in revenue. That means fees from cable, satellite and digital providers that carry its networks, plus streaming subscriptions. Content, such as film releases, licensing of films and shows, home entertainment and games, was 25.9%. Advertising was 19.6%, and other sources such as studio tours were 2.9%. The U.S. provided 66.9% of revenue.
Does Warner Bros. Discovery pay a dividend?
No. Warner Bros. Discovery paid no dividends from fiscal 2021 through 2025, and its dividend yield was 0% as of October 5, 2026. It made no share buybacks over that period either. Free cash flow, the cash left after running and investing in the business, was $3.1 billion in 2025. Total debt stood at $32.0 billion as of June 30, 2026. Investors looking for regular income would not have received any from this stock.
Who is acquiring Warner Bros. Discovery, and for how much?
PSKY agreed on February 27, 2026, to acquire Warner Bros. Discovery for $31.00 per share in cash. If the deal closed after September 30, 2026, holders would also get a small daily add-on payment, capped at $0.25 per 90 days. Larry J. Ellison and an associated trust guaranteed $45.72 billion of the price. An October 6, 2026 SEC filing reported a change in control and a completed acquisition. The company no longer lists a stock ticker with the SEC.
What happened to the Netflix deal for Warner Bros.?
It was terminated on February 27, 2026. Under a January 2026 agreement, Netflix would have acquired the Streaming and Studios businesses, including HBO, HBO Max and the film and TV studios. That would have happened after Discovery Global, holding the TV networks, was spun off to shareholders. WBD's board then judged a PSKY offer superior, and Netflix waived its right to revise its terms. WBD ended the agreement, and PSKY paid Netflix a $2.8 billion termination fee on WBD's behalf.
Is Warner Bros. Discovery profitable?
Yes, but only thinly in its latest full year. Net income was $727 million on $37.3 billion of revenue in the year ended December 31, 2025, a net margin of 1.9%. That followed net losses of $7.4 billion in 2022, $3.1 billion in 2023 and $11.3 billion in 2024. In the quarter ended June 30, 2026, revenue fell 11.2% from a year earlier to $8.7 billion. Net income fell 90.6% to $149 million.