Warner Bros. Discovery (WBD)

Communication Services · $76.8B market cap · SEC CIK 0001437107

Next reports on Nov 4, 2026, before the open, with analysts expecting $-0.02 in earnings per share.

The case for WBD

• Has compounded revenue at 28.4% a year over five years.
• Within 1% of its 52-week high: the trend is up.
• Up 59.3% over the past year.

The case against

• Very expensive at 105.6× earnings. Years of growth are already in the price.
• Losing money over the last year: net margin -8.8%, return on equity -9%.
• Revenue fell 6.0% year over year.
• Earnings per share down 90.8%.
• Long-term debt of $32.6B would take 8 years of operating cash flow to repay.
• Current liabilities exceed current assets (ratio 0.78).

What the score is made of

Each factor is half a curve over reported figures and half a rank among the other Communication Services companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.

• The P/E (105.6×) says it made money over the last year but its net margin (-8.8%) says it lost money, so the P/E is not counted in its favour.
• Each factor except momentum is half fixed thresholds, half rank among the 19 Communication Services companies.

Key numbers

Five years of financials, as filed

Pulled from Warner Bros. Discovery's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.

Share count is up 27.0% over 4 years. Your slice has been diluted. Counts are restated for stock splits so the years compare.

What Warner Bros. Discovery says it does

For convenience, the terms "Warner Bros. Discovery", "WBD", the "Company," "we," "us" or "our" are used in this Annual Report on Form 10-K to refer to both Warner Bros. Discovery, Inc. and collectively to Warner Bros. Discovery, Inc. and one or more of its consolidated subsidiaries, unless the context otherwise requires. 6 Industry Trends Headwinds in the industry, such as continued pressures on linear distribution and declines in linear subscribers and continued softness in the U.S. linear advertising market, have had, and are expected to continue to have, a material impact on the operations and results of the Company, including a negative impact on the results of operations attributed to declines in linear advertising revenue. The increase of digital advertising inventory available in the marketplace has also resulted in, and is expected to continue to result in, increased competition for advertising expenditures for both traditional…

Risk factors WBD lists in its 10-K

• While the PSKY Merger is pending, we will be subject to business uncertainties and certain contractual restrictions that could adversely affect our business, results of operations and financial condition
• Risks Related to Our Business and Industry
• Our businesses operate in highly competitive industries and if we are unable to compete effectively, our business, financial condition and results of operations could suffer
• Our advertising revenues have been, and may continue to be, adversely impacted by several factors, including the changing landscape of television advertising spending and advertising market conditions
• Changes in consumer behavior, as well as evolving technologies and distribution models, may negatively affect our business, financial condition or results of operations
• The success of our business depends on the acceptance of our content and brands by our U.S. and international viewers, which may be unpredictable and volatile
• If our streaming products fail to attract and retain subscribers, our business, financial condition and results of operations may be adversely impacted
• Failure to renew, renewal with less favorable terms, or termination of our content licenses and similar distribution agreements may cause a decline in our revenue
• We rely on platforms owned by our competitors for digital and linear distribution of our content
• Our businesses have been, and in the future may be, subject to labor disruption
• We have recognized, and could continue to recognize, impairment charges related to goodwill and other intangible assets
• Risks Related to Our Financial, Capital and Corporate Structure
• The terms of the Bridge Loan Facility may restrict our current and future operations, particularly our ability to respond to changes or to take certain actions
• We may be unable to obtain permanent financing to refinance the Bridge Loan Facility on favorable terms in a timely manner or at all

Filings

Other Communication Services companies