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Warner Bros. Discovery, Inc.
S&P 500 Nasdaq 100
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$70.7B
Market Cap
99.4
P/E
78.78
PEG
0.5%
ROCE
2.1%
ROE
0.87
D/E
2.0%
OPM
-4.1%
% from 52W High
92
α RS
🔍 WBD is showing a high-conviction setup because it matches 3 of 37 tracked screener presets, Sector RRG has Communication Services in the Leading quadrant with the trail still strengthening, and RS Rating is 92 (top decile vs market). Net: Broad signal stack, not a recommendation. ? Conviction RRG RS Rating
Sources
Conviction 3/37 · Communication Services in Leading quadrant · RS Rating 92
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🌏 Global Investor Returns
Currency-adjusted total returns for WBD including FX impact
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📈 Price History
Ratio Health
Excellent
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Average
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By Category
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About

Warner Bros. Discovery, Inc. operates as a media and entertainment company worldwide.

Key Ratios Snapshot
📈 Growth Pattern
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⭐ Superinvestors Holding WBD
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Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 3.85M $105.6M 0.17% Mar 2026
Steve Cohen Point72 Asset Management 485.8K $13.3M 0.02% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Mixed quarter Investor Presentation One-Pager? Q2 2026
Revenue
$8,717M
-11% YoY (-12% ex-FX)
Adjusted EBITDA
$1,879M
-4% YoY (-6% ex-FX)
Net Income
$149M
-91% YoY
Streaming Adjusted EBITDA
$512M
+75% YoY (+63% ex-FX)
What Went Right
  • Streaming segment delivered record $3.08B revenue, up 10% ex-FX, with adjusted EBITDA up 63% ex-FX to $512M.
  • HBO Max led the industry with 122 Emmy nominations, and flagship series averaged 25M+ global viewers per episode.
  • Sports and news were strong: highest-rated NBA national championship game ever on TNT, MLB viewership +20%, NHL playoffs +50%, CNN linear +24%.
  • Games revenue grew 45% ex-FX on the LEGO Batman release.
What to Watch
  • Studios revenue fell 39% ex-FX and adjusted EBITDA dropped 89% to $96M, dragged by weak theatrical and TV licensing.
  • Advertising revenue fell 22% ex-FX; the absence of the NBA alone cut 20 points from YoY growth.
  • International linear advertising weakened from Q1 to Q2, with management citing cautious consumers and World Cup crowding.
  • Free cash flow fell 19% to $572M, including roughly $350M of separation and transaction-related costs.
Management Guidance
  • No numeric Q3 2026 revenue or profit guidance was provided.
  • Management said streaming will be 'even stronger' next quarter and expects 2027 to be its best HBO/Max content year yet.
  • Studio slate: 14 films in 2026, ramping to 19 in 2027; long-term studio adjusted EBITDA target remains above $3B.
  • Harry Potter series was greenlit for 10 consecutive years and is slated to debut on Christmas Day.
Investor Lens
The streaming story is firmer after this quarter: revenue crossed $3B, EBITDA jumped 63% ex-FX, and bundle-driven retention is improving. The studio segment is the key offsetting weakness, with EBITDA down 89% and a light 2026 film slate, though management expects a stronger 19-film 2027 slate. Net debt of $29.7B and 3.4x leverage remain manageable after refinancing the bridge loan, but the pending Paramount Skydance sale limits strategic questions. Overall, the thesis is mixed: streaming momentum and sports/news strength are real, but total revenue and profit are still declining year over year.
From investor presentation · AI-generated analysis · Not investment advice
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📊 MIXED Streaming record $3.08B offsets studio slump and 11% revenue decline
Revenue
Total Q2 revenue was $8,717M, down 11% reported and 12% ex-FX. Streaming grew 10% ex-FX to a record $3,079M, while Studios fell 39% ex-FX to $2,328M. Distribution rose 1% ex-FX, but advertising fell 22% ex-FX and content fell 26% ex-FX.
Profitability
Net income available to WBD was $149M versus $1,580M in Q2 2025, down 91%. Adjusted EBITDA was $1,879M, down 4% reported and 6% ex-FX. Streaming adjusted EBITDA climbed 63% ex-FX to $512M.
Margins
Management highlighted a nearly 17% adjusted EBITDA margin for the streaming segment, a substantial improvement from the prior-year quarter. Studios margins compressed sharply, as segment adjusted EBITDA fell 89% to $96M on revenue of $2,328M.
Balance Sheet
Net debt was $29.7B with net leverage of 3.4x. WBD repaid in full the $15B bridge loan with a $13B Term Loan B and a €1.7B Term Loan B. Free cash flow was $572M versus $702M in Q2 2025, including roughly $350M of separation and transaction-related costs.
Key Risks
Management flagged continued domestic linear pay TV subscriber declines and the NBA's 20-point drag on ad growth. The studio's path back to $3B EBITDA was questioned by analysts, with management acknowledging the 2026 film slate is lighter. International linear ad markets weakened in Q2, and Q3 visibility is low with mixed trends across markets.
Outlook
No formal guidance was provided. Management expects Q3 streaming results to be even stronger, sees 2027 as the best content year, and plans to increase studio output from 14 films in 2026 to 19 in 2027.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-06
Streaming revenue and EBITDA hit record highs, driven by global HBO content and improved margins. Studio diversification and a ramp-up in film production support long-term EBITDA targets, while strong demand for content licensing and successful bundling strategies are reducing churn.
Q1 2026 Q1 2026 2026-05-06
Q1 2026 saw strong streaming growth, with HBO Max surpassing 140 million subscribers and robust content engagement. Paramount Skydance's $31/share acquisition was approved, while all segments showed operational momentum and improved profitability.
Q4 2025 Q4 2025 2026-02-26
Historic box office and streaming growth drove record results, with strong international expansion and a planned separation of Warner Bros. and Discovery Global boosting shareholder value. Streaming profits are forecasted to triple by 2030, supported by content, subscriber growth, and operational efficiencies.
Q3 2025 Q3 2025 2025-11-06
Industry leadership achieved in motion pictures and streaming, with over $4B in box office revenue and 30M new streaming subscribers. Studios expect to exceed $2.4B in EBITDA, and debt reduction continues, while a robust content slate and international expansion drive future growth.
Q2 2025 Q2 2025 2025-08-07
Strong Q2 momentum with record box office, Emmy-leading TV, and 3.4M HBO Max subscriber adds. Studio and streaming EBITDA targets raised for 2025, net leverage reduced to 3.3x, and major franchise and international expansion underway.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
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Information Sources:
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