Warner Bros. Discovery (WBD) Financials

Warner Bros. Discovery (NASDAQ: DISCK) has demonstrated mixed financial performance over the past few years, with some notable improvements in recent quarters but ongoing challenges in profitability and debt management. Here’s a summary of key trends and data points from the last four years through Q2 2025:

• Improved profitability in recent quarters: Warner Bros. Discovery reported a consolidated net income of $1.59 billion in Q2 2025, a significant turnaround from consistent net losses in prior years, e.g., net losses of nearly $10 billion in Q2 2024 and smaller but negative net incomes in other periods.
• Revenue growth in 2025: Operating revenue increased from $9.7-10.0 billion in 2024 quarters to $9.8 billion in Q2 2025, suggesting some growth momentum.
• Positive net cash from operating activities in 2025: Net cash from continuing operating activities was positive at $983 million in Q2 2025 and $553 million in Q1 2025, indicating solid cash generation from core business operations.
• Stable cash position: Cash and equivalents have increased recently, reaching $4.89 billion in Q2 2025, up from $3.87 billion in Q4 2024, improving liquidity.
• Debt issuance and repayment balanced in Q2 2025: The company issued $19.66 billion of debt and repaid $19.63 billion, keeping net financing cash flow positive but modest (+$9 million), signaling active debt management.
• High levels of goodwill and intangible assets remain: Warner Bros. Discovery carries significant goodwill ($25.9 billion) and intangible assets ($29.9 billion) as of Q2 2025, reflecting past acquisitions but also potential impairment risk.
• Operating expenses remain high: Operating expenses, including selling, general & administrative expenses ($2.48 billion) and depreciation ($1.45 billion), continue to be substantial and pressure margins.
• Past substantial losses and impairments: Prior years saw large losses, e.g., -$10 billion pre-tax loss in Q2 2024, and significant impairment charges (e.g., $9.4 billion impairment in Q2 2024), which weighed heavily on the company’s financial health.
• High and sustained debt levels: Total liabilities remain elevated at $64.38 billion in Q2 2025, with long-term debt around $34.4 billion, although stable compared to prior periods, indicating significant leverage risk.
• Negative retained earnings persist: Retained earnings remain negative (-$11.11 billion in Q2 2025), a legacy of cumulative losses.

Summary: Warner Bros. Discovery is showing signs of financial recovery in 2025, with profitable quarters, positive operating cash flow, and increased cash balances. However, the company still carries high debt and intangible asset load with a history of significant losses and impairment charges. Investors should watch for continued operational improvements, margin control, and debt reduction efforts for sustained turnaround momentum.