Revenue contracted 11.2% YoY to $8.7B in 2026Q2 with gross margin at 47.0% but operating margin thin at 2.7%, reflecting content mix volatility and cost pressures.
Warner Bros. Discovery, Inc. (WBD) annual income statement — 23-year revenue, gross profit & net income history
| 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 |
|---|
| Sales/Revenue | 36.12B | 37.3B | 39.32B | 41.32B | 33.82B | 12.19B | 10.67B | 11.14B | 10.55B | 6.87B | 6.5B | 6.39B | 6.26B | 5.54B | 4.49B | 4.17B | 3.71B | 3.46B | 3.44B | 76M | 688M | 694.51M | 631.22M | 506.1M |
| Revenue Growth % | -6.05% | -5.15% | -4.84% | 22.19% | 177.39% | 14.24% | -4.24% | 5.6% | 53.54% | 5.79% | 1.61% | 2.06% | 13.19% | 23.36% | 7.65% | 12.47% | 7.17% | 0.44% | 4430.26% | -88.95% | -0.94% | 10.03% | 24.72% | - |
| Cost of Goods Sold | 20.43B | 26.79B | 22.97B | 24.53B | 20.44B | 4.62B | 3.86B | 3.82B | 3.94B | 2.66B | 2.43B | 2.34B | 2.12B | 1.69B | 1.22B | 1.18B | 1.01B | 1.04B | 1.02B | 60M | 454M | 445.84M | 380.29M | 301M |
| COGS % of Revenue | - | 71.82% | 58.42% | 59.35% | 60.45% | 37.9% | 36.17% | 34.27% | 37.29% | 38.64% | 37.43% | 36.64% | 33.9% | 30.51% | 27.15% | 28.21% | 27.33% | 30.19% | 29.74% | 78.95% | 65.99% | 64.19% | 60.25% | 59.48% |
| Gross Profit | 15.69B | 10.51B | 16.35B | 16.8B | 13.38B | 7.57B | 6.81B | 7.33B | 6.62B | 4.22B | 4.07B | 4.05B | 4.14B | 3.85B | 3.27B | 2.99B | 2.69B | 2.41B | 2.42B | 16M | 234M | 248.67M | 250.93M | 205.1M |
| Gross Margin % | 43.43% | 28.18% | 41.58% | 40.65% | 39.55% | 62.1% | 63.83% | 65.73% | 62.71% | 61.36% | 62.57% | 63.36% | 66.1% | 69.49% | 72.85% | 71.78% | 72.67% | 69.81% | 70.26% | 21.05% | 34.01% | 35.81% | 39.75% | 40.52% |
| Gross Profit Growth % | - | -35.72% | -2.64% | 25.57% | 76.66% | 11.16% | -7.02% | 10.68% | 56.94% | 3.74% | 0.35% | -2.17% | 7.67% | 17.65% | 9.26% | 11.1% | 11.56% | -0.21% | 15018.75% | -93.16% | -5.9% | -0.9% | 22.34% | - |
| Operating Expenses | 13.75B | 9.2B | 26.38B | 18.34B | 20.75B | 5.56B | 4.3B | 4.32B | 4.68B | 3.5B | 2.01B | 2.07B | 2.08B | 1.87B | 1.41B | 1.19B | 1.32B | 1.14B | 1.36B | 24M | 349M | 250.07M | 233.99M | 207.5M |
| OpEx % of Revenue | - | 24.67% | 67.1% | 44.39% | 61.34% | 45.6% | 40.26% | 38.73% | 44.39% | 50.98% | 30.89% | 32.31% | 33.2% | 33.8% | 31.42% | 28.53% | 35.51% | 32.97% | 39.56% | 31.58% | 50.73% | 36.01% | 37.07% | 41% |
| Selling, General & Admin | 9.79B | 9.42B | 9.3B | 9.7B | 9.68B | 4.02B | 2.72B | 2.79B | 2.62B | 1.77B | 1.69B | 1.67B | 1.69B | 1.6B | 1.29B | 1.17B | 1.17B | 1.19B | 1.11B | 22M | 177M | 170.04M | 153.13M | 130.34M |
| SG&A % of Revenue | - | 25.25% | 23.64% | 23.47% | 28.62% | 32.94% | 25.51% | 25.02% | 24.83% | 25.72% | 26.01% | 26.1% | 27.01% | 28.87% | 28.68% | 28.09% | 31.68% | 34.36% | 32.38% | 28.95% | 25.73% | 24.48% | 24.26% | 25.75% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | -216M | 17.09B | 8.65B | 11.07B | 1.54B | 1.57B | 1.53B | 2.06B | 1.74B | 317M | 397M | 388M | 273M | 123M | 18M | 142M | -48M | 247M | 2M | 172M | 80.03M | 80.86M | 77.17M |
| Operating Income | 1.93B | 1.31B | -10.03B | -1.55B | -7.37B | 2.01B | 2.52B | 3.01B | 1.93B | 713M | 2.06B | 1.99B | 2.06B | 1.98B | 1.86B | 1.8B | 1.38B | 1.27B | 1.06B | -8M | -115M | -1.4M | 16.93M | -2.4M |
| Operating Margin % | 5.35% | 3.51% | -25.51% | -3.75% | -21.79% | 16.5% | 23.57% | 27% | 18.33% | 10.37% | 31.68% | 31.04% | 32.9% | 35.68% | 41.43% | 43.26% | 37.16% | 36.84% | 30.7% | -10.53% | -16.72% | -0.2% | 2.68% | -0.47% |
| Operating Income Growth % | - | 113.05% | -548.06% | 79% | -466.3% | -20% | -16.42% | 55.58% | 171.25% | -65.35% | 3.68% | -3.69% | 4.35% | 6.24% | 3.11% | 30.94% | 8.08% | 20.53% | 13312.5% | 93.04% | -8102.57% | -108.28% | 804.45% | - |
| EBITDA | 9.51B | 6.99B | 10.95B | 22.46B | 13.98B | 7.09B | 6.83B | 7.21B | 6.62B | 2.95B | 4.15B | 4.02B | 3.95B | 3.44B | 2.84B | 2.77B | 2.22B | 1.43B | 1.29B | 60M | -47M | 74.97M | 94.54M | 68.12M |
| EBITDA Margin % | 26.32% | 18.75% | 27.85% | 54.36% | 41.35% | 58.2% | 64.01% | 64.69% | 62.73% | 42.97% | 63.92% | 62.93% | 63% | 62.17% | 63.32% | 66.41% | 60.01% | 41.32% | 37.44% | 78.95% | -6.83% | 10.8% | 14.98% | 13.46% |
| EBITDA Growth % | -51.95% | -36.14% | -51.24% | 60.62% | 97.1% | 3.88% | -5.26% | 8.9% | 124.18% | -28.89% | 3.21% | 1.95% | 14.7% | 21.12% | 2.64% | 24.46% | 55.63% | 10.86% | 2048.33% | 227.66% | -162.69% | -20.69% | 38.78% | - |
| D&A (Non-Cash Add-back) | 7.57B | 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 |
| EBIT | -1.52B | 3.73B | -9.37B | -1.64B | -7.18B | 2.07B | 2.38B | 2.97B | 1.75B | 338M | 2.02B | 1.89B | 2.08B | 2.04B | 1.77B | 1.77B | 1.16B | 1.29B | 1.12B | -8M | -103M | 2.71M | 16.93M | 1.07M |
| Net Interest Income | -2.19B | -1.88B | -1.81B | -2.04B | -1.71B | -615M | -682M | -655M | -714M | -454M | -353M | -330M | -328M | -306M | -248M | -208M | -203M | -248M | -256M | 0 | 0 | 0 | 0 | -47.49M |
| Interest Income | 58M | 206M | 210M | 179M | 67M | 18M | 10M | 22M | 15M | 21M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2M | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 2.25B | 2.08B | 2.02B | 2.22B | 1.78B | 633M | 692M | 677M | 729M | 475M | 353M | 330M | 328M | 306M | 248M | 208M | 203M | 248M | 258M | 0 | 0 | 0 | 0 | 47.49M |
| Other Income/Expense | -5.71B | 330M | -1.36B | -2.31B | -1.59B | -579M | -787M | -715M | -912M | -850M | -387M | -426M | -314M | -239M | -341M | -244M | -442M | -204M | -303M | -7M | 112.93M | 83.51M | 84.14M | -32.09M |
| Pretax Income | -3.77B | 1.64B | -11.39B | -3.86B | -8.96B | 1.43B | 1.73B | 2.29B | 1.02B | -137M | 1.67B | 1.56B | 1.75B | 1.74B | 1.52B | 1.56B | 935M | 1.03B | 754M | -9.23M | -2.07M | 82.11M | 101.08M | -34.49M |
| Pretax Margin % | -10.44% | 4.39% | -28.96% | -9.35% | -26.5% | 11.75% | 16.19% | 20.59% | 9.68% | -1.99% | 25.72% | 24.38% | 27.89% | 31.36% | 33.83% | 37.4% | 25.23% | 29.81% | 21.9% | -12.15% | -0.3% | 11.82% | 16.01% | -6.81% |
| Income Tax | -638M | 890M | 94M | -784M | -1.66B | 236M | 373M | 81M | 341M | 176M | 453M | 511M | 610M | 659M | 562M | 425M | 277M | 472M | 352M | 59.16M | 43.94M | 48.84M | 34.97M | 20.16M |
| Effective Tax Rate % | 16.91% | 54.3% | -0.83% | 20.3% | 18.56% | 16.47% | 21.59% | 3.53% | 33.37% | -128.47% | 27.11% | 32.78% | 34.92% | 37.96% | 37.02% | 27.26% | 29.63% | 45.78% | 46.68% | -640.57% | -2124.85% | 59.47% | 34.6% | -58.44% |
| Net Income | -3.17B | 727M | -11.31B | -3.13B | -7.37B | 1.01B | 1.22B | 2.07B | 594M | -337M | 1.19B | 1.03B | 1.14B | 1.07B | 943M | 1.13B | 653M | 549M | 317M | -68M | -46M | 33.28M | 66.11M | -52.39M |
| Net Margin % | -8.77% | 1.95% | -28.77% | -7.57% | -21.8% | 8.25% | 11.42% | 18.57% | 5.63% | -4.9% | 18.38% | 16.17% | 18.18% | 19.42% | 21.02% | 27.16% | 17.62% | 15.88% | 9.21% | -89.47% | -6.69% | 4.79% | 10.47% | -10.35% |
| Net Income Growth % | -512.37% | 106.43% | -261.84% | 57.59% | -832.7% | -17.47% | -41.08% | 248.32% | 276.26% | -128.22% | 15.47% | -9.22% | 5.95% | 14% | -16.7% | 73.35% | 18.94% | 73.19% | 566.18% | -47.83% | -238.24% | -49.66% | 226.17% | - |
| Net Income (Continuing) | -3.13B | 749M | -11.48B | -3.08B | -7.3B | 1.2B | 1.35B | 2.21B | 681M | -313M | 1.22B | 1.05B | 1.14B | 1.08B | 956M | 1.14B | 647M | 559M | 402M | 86M | -46.01M | 33.28M | 66.11M | -52.39M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 22M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 1.16B | 1.25B | 901M | 1.25B | 1.57B | 1.8B | 1.92B | 2.08B | 2.13B | 413M | 243M | 241M | 749M | 37M | 2M | 2M | 8M | 72M | 25M | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -1.23 | 0.29 | -4.62 | -1.28 | -3.82 | 1.54 | 1.81 | 2.86 | 0.86 | -0.59 | 1.96 | 1.58 | 1.66 | 1.49 | 1.27 | 1.40 | 0.78 | 0.65 | 0.49 | -0.12 | -0.08 | 0.06 | 0.12 | -0.09 |
| EPS Growth % | -516.8% | 106.28% | -260.94% | 66.49% | -348.05% | -14.92% | -36.71% | 232.56% | 245.76% | -130.1% | 24.05% | -4.82% | 11.41% | 17.32% | -9.29% | 79.49% | 20% | 32.65% | 508.33% | -50% | -233.33% | -50% | 228.34% | - |
| EPS (Basic) | - | 0.29 | -4.62 | -1.28 | -3.82 | 1.55 | 1.82 | 2.90 | 0.86 | -0.59 | 1.97 | 1.59 | 1.67 | 1.51 | 0.63 | 1.41 | 0.78 | 0.65 | 0.50 | -0.12 | -0.08 | 0.06 | 0.12 | -0.10 |
| Diluted Shares Outstanding | 2.58B | 2.53B | 2.45B | 2.44B | 1.94B | 668M | 677M | 717M | 688M | 576M | 610M | 656M | 687M | 722M | 742M | 810M | 858M | 850M | 644M | 562M | 575M | 560.41M | 560.41M | 560.41M |
| Basic Shares Outstanding | 2.51B | 2.48B | 2.45B | 2.44B | 1.94B | 507M | 510M | 535M | 688M | 384M | 401M | 432M | 454M | 330.95M | 348.93M | 529.13M | 569.44M | 564.95M | 562.45M | 561.19M | 560.41M | 560.4M | 560.41M | 560.41M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying WBD stock.
For fiscal year 2025, Warner Bros. Discovery, Inc. (WBD) reported total revenue of $37.30B. This represents a 7269.3% increase compared to $506.1M in 2003.
Warner Bros. Discovery, Inc. (WBD) is profitable, generating $727.0M in net income for the fiscal year ending 2025 with a net profit margin of 1.9%.
Warner Bros. Discovery, Inc. (WBD) reported an operating income of $1.31B, resulting in an operating profit margin of 3.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Warner Bros. Discovery, Inc. (WBD) generated $10.51B in gross profit for the year, representing a gross profit margin of 28.2%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Revenue decline and debt burden
Metrics are mathematically derived from official filings.
Revenue Slide Persists Amid Linear Decline
WBD's revenue contracted 11.2% year-over-year in 2026Q2 to $8.7B, marking the steepest drop in the reported period, according to the latest income statement data.
The revenue decline is broad-based, with every quarter in the last two years showing negative growth, ranging from -1.0% to -11.2%. This suggests structural headwinds in linear TV and theatrical, partially offset by streaming growth, but not enough to stabilize the top line. The deceleration is consistent with industry trends, but WBD's magnitude is larger than peers like Disney (3.4% growth) and Fox (5.1%), indicating a more acute transition risk.
Gross Margin Volatility Signals Content Mix Shifts
Gross margin swung from 30.2% in 2025Q4 to 49.5% in 2025Q3, with 2026Q2 at 47.0%, reflecting the lumpy nature of content amortization and mix between linear and streaming, per reported figures.
The wide quarterly swings in gross margin—ranging from 30.2% to 49.5%—indicate that content costs are not smooth, likely due to timing of major releases and sports rights. The 2025Q4 dip to 30.2% suggests a heavy content write-down or impairment, while the recovery to 47% in 2026Q2 is still below the 49.5% peak. Compared to peers, WBD's gross margin is above Disney's 37.8% but below Netflix's 48.5%, implying it has pricing power in some segments but faces pressure from declining linear economics.
Operating Leverage Elusive as Costs Outpace Revenue
Operating income turned positive at $237M in 2026Q2, but operating margin of 2.7% remains thin, with SG&A at $2.6B consuming 30% of revenue, as per the latest financials.
Despite revenue of $8.7B, operating income of $237M implies that fixed costs and content investments are not scaling down proportionally. SG&A has remained relatively stable around $2.2-2.6B, even as revenue declined, indicating limited cost flexibility. The operating margin of 2.7% is far below peers like Disney (14.6%) and Fox (19.5%), suggesting that WBD has not yet achieved the cost synergies needed to drive operating leverage. Investors should monitor whether management can reduce overhead without sacrificing content quality.
Net Income Distorted by Non-Recurring Charges
Net income swung from a $2.9B loss in 2026Q1 to a $149M profit in 2026Q2, but the 2025Q2 gain of $1.6B was likely boosted by one-time items, as per reported EPS data.
The earnings series is highly volatile, with net margins ranging from -32.8% to +16.1% over the last five quarters. The 2025Q2 net income of $1.6B on revenue of $9.8B appears anomalous, possibly due to a gain on asset sale or tax benefit, while the 2026Q1 loss of $2.9B likely includes impairment charges. Excluding these items, underlying profitability is thin, with 2026Q2 net margin of 1.7% barely positive. Stock-based compensation of $190M in 2026Q2 adds to dilution, though it is modest relative to revenue.
Content Costs and SG&A Weigh on Bottom Line
COGS averaged $5.2B per quarter over the last year, with SG&A at $2.5B, together consuming over 85% of revenue, leaving little room for profit, based on income statement data.
The cost structure is dominated by content production and marketing, with COGS representing roughly 50-60% of revenue. SG&A has been sticky, hovering around $2.2-2.6B, even as revenue declined, indicating limited cost discipline. The 2025Q4 COGS spike to $6.6B (gross margin 30.2%) suggests a major content write-down, which may recur as the company rebalances its portfolio. Management's ability to rationalize costs will be critical to improving margins, but the data so far shows little progress.
Debt and Deteriorating Fundamentals Pose Risks
Despite a positive operating income in 2026Q2, the company's revenue decline and thin margins may not generate enough cash to service its debt, as per the latest financials.
Short-sellers would highlight that WBD's revenue has declined in every quarter for two years, and operating margins are consistently below 7%, even in the best quarters. The 2024Q2 operating loss of -$10.2B, likely due to a massive impairment, underscores the risk of further write-downs. With a high debt load from the Discovery-WarnerMedia merger, the company's ability to invest in streaming while servicing debt is questionable. The negative free cash flow in some quarters, implied by net losses and high content spend, could force asset sales or equity raises, diluting shareholders.