Free cash flow generation has deteriorated significantly, shifting from a 32.2% margin in 2023Q4 to a negative 5.3% margin in 2026Q1, reflecting persistent working capital outflows.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 |
|---|
| Cash from Operations | 3.56B | 4.32B | 5.38B | 7.48B | 4.3B | 2.8B | 2.74B | 3.4B | 2.58B | 1.63B | 1.38B | 1.29B | 1.32B | 1.28B | 1.1B | 1.1B | 668M | 642M | 569M | 57M | 74M | 85.29M | 84.32M | 29.68M |
| Operating CF Margin % | - | 11.58% | 13.67% | 18.09% | 12.73% | 22.95% | 25.67% | 30.5% | 24.41% | 23.7% | 21.24% | 20.24% | 21.04% | 23.22% | 24.49% | 26.39% | 18.02% | 18.57% | 16.53% | 75% | 10.76% | 12.28% | 13.36% | 5.86% |
| Operating CF Growth % | -175.53% | -19.65% | -28.11% | 73.72% | 53.82% | 2.15% | -19.42% | 31.95% | 58.13% | 18.04% | 6.65% | -1.82% | 2.57% | 16.92% | -0.09% | 64.67% | 4.05% | 12.83% | 898.25% | -22.97% | -13.24% | 1.15% | 184.08% | - |
| Net Income | -2.15B | 727M | -11.48B | -3.08B | -7.3B | 1.2B | 1.35B | 2.21B | 681M | -313M | 1.22B | 1.05B | 1.14B | 1.08B | 945M | 1.13B | 669M | 564M | 445M | -68M | -46M | 33.28M | 66.11M | -52.39M |
| Depreciation & Amortization | 11.31B | 5.68B | 20.98B | 24.01B | 21.35B | 5.08B | 4.32B | 4.2B | 4.69B | 2.24B | 2.1B | 2.04B | 1.89B | 1.47B | 982M | 965M | 847M | 155M | 232M | 68M | 68M | 76.38M | 77.61M | 70.53M |
| Stock-Based Compensation | 417M | 0 | 557M | 500M | 412M | 178M | 110M | 142M | 80M | 39M | 69M | 35M | 78M | 190M | 154M | 99M | 182M | 228M | -66M | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -911M | -710M | -1.73B | -2.34B | -2.84B | -511M | -186M | -504M | -131M | -199M | -27M | 2M | -181M | 83M | -70M | 40M | 11M | -13M | 190M | 56M | 42M | 50.36M | 31.69M | 17.65M |
| Other Non-Cash Items | 5.76B | 9.92B | 9.18B | 380M | 3.66B | 88M | 244M | 321M | 180M | 1.76B | 96M | 63M | -17M | -10M | 144M | 5M | 110M | 538M | 84M | 16M | -9M | -82.25M | -80.48M | 8.01M |
| Working Capital Changes | -11.29B | -11.3B | -12.13B | -11.99B | -10.98B | -3.24B | -3.1B | -2.97B | -2.92B | -1.9B | -2.07B | -1.89B | -1.58B | -1.52B | -1.06B | -1.14B | -1.15B | -830M | -316M | -15M | 19M | 7.53M | -10.6M | -14.11M |
| Change in Receivables | -378M | -336M | 1.01B | 312M | 181M | 47M | 105M | -7M | -84M | -238M | -56M | -108M | 46M | -125M | -70M | -107M | -188M | -37M | -45M | 4M | -10M | 16.24M | -36.41M | -4.04M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -409M | 0 | -529M | -820M | 1.53B | 185M | -131M | 122M | -74M | 265M | -10M | -2M | 138M | 106M | 171M | 6M | -1M | 40M | -46M | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -1.27B | -546M | -349M | -1.26B | 3.52B | -56M | -703M | -438M | -8.59B | -633M | -256M | -301M | -568M | -1.99B | -643M | -214M | -190M | 238M | 98M | -15M | -169M | -62.75M | -102.28M | -20.23M |
| Capital Expenditures | -1.25B | -1.23B | -948M | -1.32B | -987M | -373M | -402M | -289M | -147M | -135M | -88M | -103M | -120M | -115M | -77M | -58M | -49M | -55M | -102M | -47M | -78M | -90.53M | -49.29M | -25.86M |
| CapEx % of Revenue | 3.35% | 3.3% | 2.41% | 3.18% | 2.92% | 3.06% | 3.77% | 2.59% | 1.39% | 1.96% | 1.35% | 1.61% | 1.92% | 2.08% | 1.72% | 1.39% | 1.32% | 1.59% | 2.96% | 61.84% | 11.34% | 13.03% | 7.81% | 5.11% |
| Acquisitions | -83M | 0 | -109M | -162M | 3.44B | -186M | -220M | -327M | -8.52B | -475M | 19M | -19M | -327M | -1.86B | -553M | -177M | -165M | 0 | 37M | 2M | -47M | 0 | -40.26M | 5.45M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 50M | 731M | 31M | 98M | 9M | 93M | 15M | -1M | 73M | 522M | 85M | 102M | 59M | 44M | -13M | 0 | 151M | 300M | 139M | 2M | 8M | 15.37M | -12.73M | 177K |
| Cash from Financing | -3.1B | -4.87B | -3.75B | -5.84B | -7.74B | -853M | -1.55B | -2.36B | -283M | 5.95B | -1.18B | -919M | -734M | -85M | -305M | -297M | -641M | -356M | -774M | 12M | 0 | 206.17M | 31M | -12.85M |
| Debt Issued (Net) | -2.53B | -4.56B | -3.43B | -5.37B | -7.32B | -574M | -214M | -1.4B | -216M | 6.68B | 248M | 806M | 434M | 1.2B | 970M | 619M | 77M | -371M | -411M | -1M | -7K | 122K | 0 | -403.88M |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | -969M | -633M | 0 | -603M | -1.43B | -957M | -1.38B | -1.56B | -1.38B | -997M | -605M | 0 | 0 | 13M | 279K | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | -969M | -633M | 0 | -603M | -1.43B | -957M | -1.42B | -1.3B | -1.38B | -997M | -605M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -567M | -313M | -323M | -466M | -425M | -279M | -366M | -320M | -67M | -126M | -1M | -768M | 210M | 278M | 105M | 88M | -113M | 15M | -363M | 0 | -272K | 206.04M | 31M | 391.03M |
| Net Change in Cash | -398M | -850M | 1.1B | 389M | 25M | 1.78B | 570M | 566M | -6.32B | 7.01B | -90M | 23M | -41M | -793M | 153M | 582M | -157M | 529M | -109M | 54M | -95M | 228.71M | 13.04M | -3.4M |
| Free Cash Flow | 2.31B | 3.09B | 4.43B | 6.16B | 3.32B | 2.42B | 2.34B | 3.11B | 2.43B | 1.49B | 1.29B | 1.19B | 1.2B | 1.17B | 1.02B | 1.04B | 619M | 587M | 467M | 10M | -4M | -5.24M | 35.03M | 3.82M |
| FCF Margin % | 6.21% | 8.28% | 11.26% | 14.91% | 9.81% | 19.89% | 21.9% | 27.91% | 23.02% | 21.74% | 19.89% | 18.63% | 19.12% | 21.14% | 22.78% | 25% | 16.7% | 16.98% | 13.56% | 13.16% | -0.58% | -0.75% | 5.55% | 0.75% |
| FCF Growth % | -46.76% | -30.25% | -28.14% | 85.74% | 36.78% | 3.77% | -24.86% | 28.04% | 62.58% | 15.63% | 8.48% | -0.58% | 2.39% | 14.48% | -1.92% | 68.34% | 5.45% | 25.7% | 4570% | 350% | 23.59% | -114.94% | 817.26% | - |
| FCF per Share | 0.93 | 1.22 | 1.81 | 2.53 | 1.71 | 3.63 | 3.45 | 4.34 | 3.53 | 2.59 | 2.12 | 1.82 | 1.74 | 1.62 | 1.38 | 1.29 | 0.72 | 0.69 | 0.73 | 0.02 | -0.01 | -0.01 | 0.06 | 0.01 |
| FCF Conversion (FCF/Net Income) | -1.07x | 5.94x | -0.48x | -2.39x | -0.58x | 2.78x | 2.25x | 1.64x | 4.34x | -4.83x | 1.16x | 1.25x | 1.16x | 1.20x | 1.17x | 0.97x | 1.02x | 1.17x | 1.79x | -0.84x | -1.61x | 2.56x | 1.28x | -0.57x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 315M | 299M | 244M | 205M | 365M | 245M | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 686M | 484M | 485M | 288M | 395M | 444M | 0 | 0 | 0 | 0 | 0 | 0 |
Linear revenue decay acceleration
As reported in financial statements, the relationship between net income and operating cash flow is highly erratic, with the OCF/NI ratio swinging from -8.95 in 2023Q4 to 0.06 in 2026Q1, suggesting that reported net income is a poor proxy for the company's actual cash-generating capacity.
The massive divergence between net income and operating cash flow appears driven by significant non-cash charges, likely related to content amortization and impairment cycles. Investors should monitor this disconnect, as it implies that the company's accounting profitability is frequently decoupled from the underlying cash reality of its media operations.
Based on recent SEC filings, WBD's free cash flow trajectory has turned negative, with the company reporting a -5.3% FCF margin in 2026Q1 compared to the 32.2% margin observed in 2023Q4, indicating a rapid deterioration in the ability to convert revenue into discretionary cash.
The sharp decline in FCF margins suggests that the cost of maintaining the content library and funding DTC expansion is increasingly outpacing the cash inflows from legacy segments. This trend warrants further investigation into whether the current capital allocation strategy can sustain operations without further balance sheet strain.
According to the provided quarterly data, WBD has consistently burned cash through working capital, with outflows reaching as high as $3.9 billion in 2024Q3, suggesting that the company's operational cycle is currently a significant drag on its overall liquidity position.
These recurring working capital deficits may indicate inefficiencies in content production cycles or challenges in timing the collection of licensing receivables. The persistent nature of these outflows suggests that the company is struggling to optimize its cash conversion cycle amidst a broader structural transition.
As reported in financial statements, WBD's capital expenditure as a percentage of revenue has remained relatively stable, hovering between 2.0% and 4.5% over the last ten quarters, which reflects the ongoing necessity of heavy investment in content to maintain competitive relevance.
While the capital intensity appears controlled, the absolute level of spending remains a critical factor given the company's thin operating margins. Analysts should monitor whether this level of investment is sufficient to drive future growth or if it merely represents the maintenance cost of a legacy asset base.
Quick answers to the most common questions about buying WBD stock.
Warner Bros. Discovery, Inc. (WBD) generated $4.32B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Warner Bros. Discovery, Inc. (WBD) generated $3.09B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Warner Bros. Discovery, Inc. (WBD) spent $1.23B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.