Warner Bros. Discovery (WBD) FY2025 10-K Annual Report
Warner Bros. Discovery (WBD) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 27, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
Warner Bros. Discovery FY2025 10-K Analysis
Business Overview
- • Global media company monetizing content across streaming (131.6M subscribers), Studios, and declining linear TV networks
- • PSKY merger announced Feb 2026 at $31.00/share cash, with Larry Ellison guaranteeing $45.72B; terminated prior Netflix deal requiring $2.8B breakup fee
- • Company announced June 2025 plan to split into two public companies (Warner Bros. + Discovery Global), then pivoted to full-company sale via PSKY agreement
- • Warner Bros. Games refocused on four core franchises only: Harry Potter, Game of Thrones, DC, and Mortal Kombat; CNN launched All Access streaming product Oct 2025
- • Added 14.7M streaming subscribers in 2025; first Hollywood studio to open seven consecutive films above $40M domestic box office
Management Discussion & Analysis
- • Total revenue $37.3B in 2025, down 5% YoY from $39.3B; advertising worst-performing revenue line, down 11% to $7.3B
- • Consolidated Adjusted EBITDA $8.74B vs $9.03B; operating income swung to $738M from $(10.0B) loss, aided by absence of $9.1B 2024 goodwill impairment
- • Best segment: Studios Adjusted EBITDA $2.55B, up 52% YoY; worst: Global Linear Networks Adjusted EBITDA $6.4B, down 21%, driven by 25% domestic audience decline and 9% linear subscriber loss
- • Operating cash flow $4.32B vs $5.38B; capex $1.23B; $23.5B senior notes repurchased/repaid; $2.96B gain on debt extinguishment recorded; no share buybacks or dividends
- • Key risks: $15B Bridge Loan Facility requires refinancing, credit ratings downgraded by S&P/Moody's/Fitch; linear subscriber declines expected to continue; tariff uncertainty and streaming ARPU pressure from wholesale deals flagged
Risk Factors
- • PSKY Merger termination fee exposure: $3.0B Company Termination Fee plus up to $1,528M in PSKY Reimbursements if deal collapses
- • Consolidated debt $32,567M as of Dec 31, 2025; $17B Bridge Loan Facility due June 2027 at variable rate; S&P, Moody's, Fitch all downgraded WBD in 2025
- • Global Linear Networks goodwill impairment $9.1B pre-tax non-cash charge in 2024, with further write-downs possible as linear ad revenue and viewership decline
- • AI adoption by competitors threatens advertising revenue; rival streaming services with larger subscriber bases already offering ad-supported tiers eroding WBD's ad pricing power
- • OECD 15% global minimum corporate tax framework being adopted across operating jurisdictions; EU state aid scrutiny threatens material production incentives WBD currently receives
Warner Bros. Discovery FY2025 Key Financial MetricsXBRL
Revenue
$37.3B
▼ -5.1% YoY
Net Income
$727M
▲ +106.4% YoY
Operating Margin
2.0%
▲ +2749bp YoY
Net Margin
1.9%
▲ +3072bp YoY
ROE
2.0%
▲ +3526bp YoY
Total Assets
$100.1B
▼ -4.3% YoY
EPS (Diluted)
$0.29
▲ +106.3% YoY
Operating Cash Flow
$4.3B
▼ -19.6% YoY
Source: XBRL data from Warner Bros. Discovery FY2025 10-K filing on SEC EDGAR. All figures in USD.
Other Warner Bros. Discovery Annual Reports
Get deeper insights on Warner Bros. Discovery
Access full AI analysis, insider trading data, fund holdings, and cross-signal detection on SignalX.