# Warner Bros. Discovery Inc. (WBD) — Financial Analysis

**Exchange:** NASDAQ  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-18  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/WBD/thesis · /stocks/WBD/memo

## Financial Snapshot

---
ticker: WBD
step: 04
generated: 2026-05-13
source: quick-research
---

### Warner Bros. Discovery, Inc. (WBD) — Financial Snapshot

#### Income Statement Summary

| Metric | FY2022 | FY2023 | FY2024 | YoY |
|--------|--------|--------|--------|-----|
| Revenue | $33.83B | $41.32B | $39.32B | -4.8% |
| Adj. EBITDA | ~$9.5B | ~$10.0B | ~$9.5B | ~-5% |
| Net Income | -$7.4B | -$3.1B | -$2.7B | improving |
| EPS (diluted) | -$3.20 | -$1.30 | -$1.10 | improving |

*FY2022 revenue reflects partial year post-merger (April 2022 close). FY2025: First positive net income quarter achieved in Q2 2025 — turnaround milestone. Streaming subscribers reached 132M by early 2026.*

#### Cash Flow & Balance Sheet (FY2024)

| Metric | Value |
|--------|-------|
| Operating Cash Flow | ~$4.5B |
| Free Cash Flow | ~$3.5B |
| Capital Expenditures | ~$1.0B |
| Cash & Equivalents | ~$4.3B |
| Total Debt (net) | ~$34.6B |

*FCF is the company's strongest financial metric — WBD paid down $5.4B of debt in 2023 using FCF. Net leverage stood at ~3.9x EBITDA at end of 2023 and continues declining.*

#### Key Ratios (approximate)
- P/E: NM (ongoing GAAP losses improving) | EV/EBITDA: ~6x | FCF Yield: ~15%
- Revenue Growth: -5% (cord-cutting linear segment offset by streaming growth)

#### Growth Profile
WBD is a deep-value, high-leverage turnaround story. Despite $34.6B in net debt — 73% of market cap — the company generates $3–4B in annual FCF, giving a ~15% FCF yield. The financial story is deleveraging: every dollar of FCF reduces the debt burden, improving the equity value disproportionately given high leverage. The planned corporate split (mid-2026) is the value unlock catalyst — separating "Streaming & Studios" (high-growth, deserves premium multiple) from "Discovery Global" (cash cow, legacy). Streaming profitability milestone achieved in FY2024 ($677M DTC profit), growing to $1B+ in FY2025.

#### Forward Estimates
- Max subscribers: 132M (early 2026) → 150M target by end of 2026; international expansion key
- Streaming & Studios split (mid-2026): potential re-rating event for the higher-quality assets
- Net debt reduction: ~$1–2B/year via FCF; targeting <3x leverage ratio
- Analyst median PT: ~$29.75 (6 Buy / 13 Hold / 1 Sell) — stock trades at ~$9; massive upside priced as speculative

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/WBD/fundamental

## Navigation

- Overview: /stocks/WBD
- Financials (this page): /stocks/WBD/financials
- Thesis: /stocks/WBD/thesis
- Investment Memo: /stocks/WBD/memo
- Coverage universe: /stocks