Warner Bros. Discovery (WBD) investor relations material

Executive summary

• Streaming segment achieved over $3 billion in revenue for the first time, with subscriber-related revenue growth accelerating to 10% sequentially, excluding FX.

• 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.

• Adjusted EBITDA for streaming reached $512 million, up over 60% year-over-year, with a 17% margin.

• 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 revenue surpassed $3 billion in Q2 2026, a company record.

• Streaming adjusted EBITDA improved by more than 60% year-over-year to $512 million.

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

• Content revenues dropped 26% ex-FX, primarily from lower theatrical revenue in Studios.

• Free cash flow was $572 million, negatively impacted by $350 million in separation and transaction-related items.

Outlook and guidance

• Strong content pipeline for 2026 and 2027, including major HBO and DC releases.

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

• Confident in maintaining higher film output, ramping from 14 films in 2026 to 19 in 2027.

• Bundling strategies expected to further reduce churn and improve retention in 2026 and 2027.

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