Company Overview

Warner Bros. Discovery Inc. (WBD) stands as a leading global media and entertainment company that creates and distributes the world's most differentiated and complete portfolio of branded content across television, film, streaming, and gaming. Trading on NASDAQ under the ticker WBD, the company commands a significant market presence. As of September 22, 2025, its market capitalization stood at $48.55 billion, reflecting a substantial increase of 170.50% over the preceding year. WBD operates through three primary divisions: Studios, Networks, and Direct-to-Consumer (DTC).

The company's extensive brand portfolio is a testament to its diverse reach, including: Discovery Channel, Max, discovery+, CNN, DC, TNT Sports, Eurosport, HBO, HGTV, Food Network, OWN, Investigation Discovery, TLC, Magnolia Network, TNT, TBS, truTV, Travel Channel, MotorTrend, Animal Planet, Science Channel, Warner Bros. Motion Picture Group, Warner Bros. Television Group, Warner Bros. Pictures Animation, Warner Bros. Games, New Line Cinema, Cartoon Network, Adult Swim, Turner Classic Movies, Discovery en Español, and Hogar de HGTV, among others.

Business Segments & Operations

Warner Bros. Discovery operates through three primary divisions:

- Studios: This segment primarily consists of the production and release of feature films for initial exhibition in theaters, as well as the production and initial licensing of television programs to its networks/DTC services and third parties.

- Networks: This division encompasses the traditional television broadcasting and cable networks under the WBD umbrella.

- Direct-to-Consumer (DTC): This segment focuses on delivering content directly to consumers through streaming platforms and premium pay-TV services.

Streaming Success & Growth Strategy

#### Subscriber Momentum

Warner Bros. Discovery has demonstrated remarkable streaming growth. By the end of 2024, the company concluded the year with 116.9 million global streaming subscribers, an increase from 110.5 million at the end of September 2024. WBD has set ambitious targets, aiming to reach at least 150 million global subscribers by the end of 2026, coupled with strong growth in DTC revenue and Adjusted EBITDA.

Recent performance highlights include adding 5.3 million subscribers in Q1 2025, bringing the total to 122.3 million. The streaming revenue grew by 8 percent to $2.7 billion, and Adjusted EBITDA reached $339 million in the same quarter.

#### Financial Performance - Direct-to-Consumer (DTC)

The streaming division has successfully transitioned from a loss-making operation to profitability. For the full-year 2024, WBD's DTC business reported a profit of $677 million, a significant improvement compared to a profit of $103 million in 2023. During the latest reported period (Q1 2025), WBD posted a quarterly profit of $409 million for its DTC unit, which includes its streaming and premium pay-TV services, compared to a $55 million loss in the year-ago period.

2024 Financial Highlights

#### Revenue & Operational Performance

For the full-year 2024, Warner Bros. Discovery reported:

- Total Revenues: $39.3 billion, a 4% decrease (excluding foreign exchange impacts) compared to the prior year.

- Total Adjusted EBITDA: $9.0 billion, an 11% decrease (excluding foreign exchange impacts) compared to the prior year.

- Cash Provided by Operating Activities: $5.4 billion.

- Free Cash Flow: $4.4 billion.

#### Debt Position

The company ended 2024 with $34.6 billion of net debt, a key financial metric for investors monitoring its leverage position.

#### Q4 2024 Performance

Fourth-quarter results showed:

- Total Adjusted EBITDA: $2.7 billion, an 11% increase (excluding foreign exchange impacts) compared to the prior year quarter, primarily driven by growth in the DTC and Studios segments.

- Cash Provided by Operating Activities: $2.7 billion.

- Free Cash Flow: $2.4 billion.

Content Strategy & IP Portfolio

Warner Bros. Discovery leverages a vast library of intellectual property and franchises across its diverse content offerings. The company's portfolio includes brands and franchises spanning television, film, streaming, and gaming, under banners such as Warner Bros. Motion Picture Group, Warner Bros. Television Group, DC, HBO, Max, Discovery Channel, discovery+, CNN, HGTV, Food Network, TNT Sports, TBS, TLC, OWN, Warner Bros. Games, Adult Swim, Turner Classic Movies, Television Group, Hanna-Barbera, Harry Potter, DC, Looney Tunes, Scooby-Doo, Game of Thrones, and Friends, among many others.

Recent content successes include the HBO series "The Penguin," which premiered last fall and was among the top-three most-watched original series debuts on Max. The second episode of the third season of "The White Lotus" also garnered significant viewership, drawing 3.4 million viewers.

Revenue Challenges & Market Dynamics

The company faces headwinds in its traditional segments. Advertising revenues decreased by 7% (excluding foreign exchange), as growth in domestic DTC ad-lite subscribers was more than offset by domestic linear audience declines and the continuing softness in the domestic linear advertising market. However, streaming advertising shows positive trends, with ad-tier sign-ups helping to drive advertising revenue up by 27% in the three months ending December 31, 2024.

Global Reach & Distribution

Available in more than 220 countries and territories and 50 languages, Warner Bros. Discovery maintains a truly global footprint. The company provides content through a variety of distribution platforms, including linear networks, free-to-air and broadcast television; authenticated GO applications; digital distribution arrangements; content licensing agreements; and direct-to-consumer subscription products.

Warner Bros. Discovery continues to position itself as a major player in the evolving media landscape, balancing its traditional entertainment assets with aggressive streaming expansion while maintaining its extensive content creation capabilities across multiple platforms and formats.