Short answer
Warner Bros. Discovery (WBD) filed its fiscal 2025 10-K annual report with the SEC on Feb 27, 2026. It reported revenue of $37.3B (−5.1% year over year) and net income of $727M.
- Top risk flagged: PSKY Merger termination fee exposure: $3.0B Company Termination Fee plus up to $1,528M in PSKY Reimbursements if deal collapses
FY2025 key financial metrics · XBRL
- Revenue
- $37.3B
- −5.1% YoY
- Net income
- $727M
- +106.4% YoY
- Operating margin
- 2.0%
- +27.5 pp YoY
- EPS (diluted)
- $0.29
- +106.3% YoY
- ROE
- 2.0%
- +35.3 pp YoY
- Operating cash flow
- $4.3B
- −19.6% YoY
Source: XBRL data from the Warner Bros. Discovery (WBD) FY2025 10-K on SEC EDGAR. USD.
Warner Bros. Discovery FY2025 10-K analysis
AI summary of each section, grounded in the filing text
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
Generated from the filing text; verify against the original. How to read a 10-K
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