Warner Bros. Discovery (WBD) investor relations material

Executive summary

• Streaming segment achieved over $3 billion in revenue for the first time, with subscriber-related revenue growth accelerating to 10% sequentially, excluding FX.

• Adjusted EBITDA for streaming reached $512 million, up over 60% year-over-year, with a 17% margin, marking a turnaround from prior losses.

• Total revenues for Q2 2026 were $8.7 billion, down 12% ex-FX year-over-year, with declines in advertising and content revenues offsetting modest growth in distribution revenues.

• The Fifth Amendment to the Fourth Amended and Restated Receivables Purchase Agreement, effective June 30, 2026, updates the terms governing Warner Bros. Discovery Receivables Funding, LLC’s receivables securitization facility, with PNC Bank as Administrative Agent and Turner Broadcasting System as Servicer.

• Net income available was $149 million, down 91% year-over-year, impacted by $1.1 billion in pre-tax acquisition-related amortization and restructuring expenses.

Financial highlights

• Streaming revenue surpassed $3 billion in Q2 2026, with subscriber-related revenue growth up 200 basis points sequentially to 10% ex FX.

• Streaming adjusted EBITDA was $512 million, a 60%+ increase year-over-year, with a 17% margin.

• Advertising revenues fell 22% ex-FX, mainly due to the absence of NBA content and continued linear audience declines.

• Content revenues dropped 26% ex-FX, primarily from lower theatrical revenue in Studios.

• Cash provided by operating activities was $848 million, and free cash flow was $572 million, both down year-over-year.

Outlook and guidance

• Management expects continued momentum in streaming, with a strong content pipeline for 2026 and 2027, including major HBO and DC releases.

• Studio segment targets over $3 billion in adjusted EBITDA long-term, with a ramp-up in film production from 14 films in 2026 to 19 in 2027.

• Bundling strategies with partners like Disney and others are expected to further reduce churn and improve retention in 2026 and beyond.

• Forward-looking statements highlight risks related to the proposed transaction with Paramount Skydance Corporation, regulatory approvals, and market conditions.