Fundamental analysis · SEC EDGAR · TTM through 30/06/2026

Fundamental analysis of Warner Bros. Discovery, Inc.

WBD · Nasdaq · Telecom & media

Fundamental quality

DEMANDING

48

out of 100

Warner Bros. Discovery, Inc. is in full growth mode but not yet profitable: revenue is growing strongly (24.8% a year), but it doesn't translate into earnings yet. On fundamental quality it scores 48 out of 100, profiling it as a company with demanding fundamentals. Its weakest area is its profitability (net margin -8.8%). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Warner Bros. Discovery is an entertainment empire in mid-reinvention: the studio of Harry Potter and DC, the HBO of Game of Thrones, CNN and a declining bundle of cable channels. Its stock-market story is a single question: is it worth more split in two than together and indebted?

What will shape its future

  • The announced split between studios/streaming and cable channels, the catalyst dominating everything.
  • Streaming (HBO Max): growing profitable subscribers while cable melts.
  • The merger-inherited debt mountain, the burden forcing every decision.

Breakdown by area

I.Growth
89

Revenue growth: 24.8%

II.Profitability
19

Net margin: -8.8% · ROE: -9.6%

III.Financial health
37

Net debt/EBITDA: 7.93x · FCF: 6%

Source: SEC EDGAR · TTM through 30/06/2026

The score combines growth, profitability and financial strength. Here its growth weighs in its favor, while its profitability drags it down the most.

Versus its sector

Percentile against the other 12 Telecom & media companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 27%
ROEbeats 30%
Growthbeats 75%
Cash generationbeats 30%
Less debtbeats 0%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Warner Bros. Discovery, Inc. strengths

  • Revenue growing strongly (24.8% annualized).
  • Positive free cash flow year after year, a self-funding business.

Warner Bros. Discovery, Inc. risks and weaknesses

  • Very high leverage (net debt of 7.93× EBITDA): more exposed to rates and to a rough patch.
  • Shrinking margins: net margin has fallen from 11% to 2% in recent years.
  • No profits over the last twelve months (negative EPS).
  • Losses over the last twelve months (net margin of -8.8%).

Warner Bros. Discovery, Inc. historical evolution

YearRevenueNet incomeFree cash flowNet debt
202010,6711,2192,33713,313
202112,1911,0062,42510,854
202233,817-7,3713,31745,633
202341,321-3,1266,16141,669
202439,321-11,3114,42736,941
202537,2967273,08828,140

Between 2020 and 2025, revenue went from $10,671M to $37,296M (+250%) and net income went from $1,219M to $727M (-40%). Meanwhile, its margins have narrowed (from 11% to 2%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the half-year ended June 30, 2026, versus the half-year ended June 30, 2025 (SEC filings):

  • Revenue-6.3%
  • Net income-345.5%

What changed with the June 30, 2026 results

Compared with the previous close (March 31, 2026), this is what moved in its accounts:

  • Quality score4948
  • Net margin-4.7%-8.8%
  • ROE-5.3%-9.6%
  • Revenue growth26.9%24.8%
  • Net debt/EBITDA8.37×7.93×

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

This company doesn't pay a dividend: it reinvests all its earnings back into the business.

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Is Warner Bros. Discovery, Inc. cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Warner Bros. Discovery, Inc. a good company to invest in?

In terms of business quality, Warner Bros. Discovery, Inc. scores 48 out of 100 in our analysis, placing it as a company with demanding fundamentals. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Warner Bros. Discovery, Inc. a profitable company?

Over the last twelve months, no: Warner Bros. Discovery, Inc. posts a negative net margin (-8.8%).

Does Warner Bros. Discovery, Inc. have a lot of debt?

Yes, its leverage is high: net debt is 7.93 times its EBITDA, and it has been rising.

Is Warner Bros. Discovery, Inc. growing?

Its revenue has grown 24.8% annualized in recent years.

Does Warner Bros. Discovery, Inc. generate cash?

Yes. It converts about 6% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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