Warner Bros. Discovery, Inc.WBD
NasdaqGS•Communication Services•Entertainment
Warner Bros. Discovery, Inc. operates as a media and entertainment company worldwide. It operates through three segments: Streaming, Studios, and Global Linear Networks. The Streaming segment offers streaming services, such as HBO Max and discovery+, and premium pay-TV services, including HBO and certain premium sports streaming products for mobile and connected TV devices. The Studios segment is involved in the production and release of feature films for initial exhibition in theaters, production and initial licensing of television programs to third parties and its networks/streaming services. This segment also distributes films and television programs to various third-party and internal television, streaming services, and physical and digital home entertainment markets; related consumer products and themed experience licensing; and publishes, develops, licenses, and distributes content for the interactive space in platforms, including console, handheld, mobile, and PC-based gaming for both internal and third-party game titles. The Global Linear Networks segment provides general and lifestyle entertainment networks, news networks; and hosts international media networks and global sports networks. In addition, the company offers a portfolio of content and products for television, film, streaming, interactive gaming, publishing, themed experiences, and consumer products under the Discovery Channel, HBO Max, CNN, DC Studios, TNT Sports, HBO, Food Network, TLC, TBS, Warner Bros. Motion Picture Group, Warner Bros. Television Group, Warner Bros. Games, Adult Swim, Turner Classic Movies, and other brands. Warner Bros. Discovery, Inc. was incorporated in 2008 and is headquartered in New York, New York.
as of March 2026
Are revenues and earnings expanding?
$37.21B in TTM revenue declined 3.0% YoY, reaching $8.89B last quarter. TTM EBITDA of $3.67B on operating income of $-2.47B shows growth is flowing through. However, net income is negative at $1.74B — growth is not yet reaching the bottom line. Revenue is contracting — assess whether this is cyclical or structural.
Is revenue turning into profit effectively?
Op. margin of -27.8% is down 27.4% YoY — costs are rising relative to revenue. Net margin at -32.8% and gross margin of 47.8%. Negative ROE of -5.3% indicates shareholder value is being eroded.
Is the stock cheap or expensive?
P/S of 1.8x and P/B of 2.0x. A low P/S may indicate the stock is undervalued.
Is the company financially stable?
With $97.84B in assets and $32.47B in long-term debt, the D/E of 1.0 shows a conservative capital structure — the company has a strong financial cushion to weather downturns.
Is the business self-funding?
FCF of $-476.00M on $-208.00M in operating cash flow. The FCF / Net Income ratio of 0.3x indicates partial cash conversion — earnings quality needs attention. Cash reserves of $3.26B provide financial flexibility.
Competitive analysis based on 68 quarters of fundamental data
Operating margins are under pressure, averaging -15.0%. The business may lack pricing power or face rising costs.'
ROE is low or negative, suggesting limited competitive advantage or capital allocation challenges.
Data-driven red flags and warnings across 68 quarters
The company posted negative operating margins in recent quarters — core operations are unprofitable.
FCF consistently trails net income (avg -1.3x) — earnings may be inflated by non-cash items or aggressive accounting.
D/E ratio is 1.0 — conservative capital structure with low financial risk.
Revenue declined in 6 of the last 7 quarters — persistent contraction signals a fundamental problem.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Share count is stable — no significant dilution or buyback activity.
7 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
Revenue has been flat or declining over recent quarters, which may indicate eroding demand or competitive pressure.