Warner Bros. Discovery, Inc.WBD
Warner Bros. Discovery, Inc. Revenue Disclosure
REVENUES
Disaggregated Revenue
The following table presents the Company’s revenues disaggregated by revenue source (in millions).
| Year Ended December 31, 2025 | |||||||||||||||||||||||||||||
| Streaming | Studios | Global Linear Networks | Corporate and Inter-segment Eliminations | Total | |||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||
| Distribution | $ | 9,444 | $ | 8 | $ | 9,819 | $ | (9) | $ | 19,262 | |||||||||||||||||||
| Advertising | 1,032 | 1 | 6,332 | (59) | 7,306 | ||||||||||||||||||||||||
| Content | 388 | 11,740 | 1,195 | (3,676) | 9,647 | ||||||||||||||||||||||||
| Other | 12 | 870 | 310 | (111) | 1,081 | ||||||||||||||||||||||||
| Totals | $ | 10,876 | $ | 12,619 | $ | 17,656 | $ | (3,855) | $ | 37,296 | |||||||||||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||||||||||||||
| Streaming | Studios | Global Linear Networks | Corporate and Inter-segment Eliminations | Total | |||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||
| Distribution | $ | 9,022 | $ | 8 | $ | 10,680 | $ | (9) | $ | 19,701 | |||||||||||||||||||
| Advertising | 855 | 5 | 7,306 | (76) | 8,090 | ||||||||||||||||||||||||
| Content | 428 | 10,717 | 1,848 | (2,696) | 10,297 | ||||||||||||||||||||||||
| Other | 8 | 877 | 341 | 7 | 1,233 | ||||||||||||||||||||||||
| Totals | $ | 10,313 | $ | 11,607 | $ | 20,175 | $ | (2,774) | $ | 39,321 | |||||||||||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||||||||||||||
| Streaming | Studios | Global Linear Networks | Corporate and Inter-segment Eliminations | Total | |||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||
| Distribution | $ | 8,703 | $ | 17 | $ | 11,521 | $ | (4) | $ | 20,237 | |||||||||||||||||||
| Advertising | 548 | 15 | 8,342 | (205) | 8,700 | ||||||||||||||||||||||||
| Content | 886 | 11,358 | 1,005 | (2,046) | 11,203 | ||||||||||||||||||||||||
| Other | 17 | 802 | 376 | (14) | 1,181 | ||||||||||||||||||||||||
| Totals | $ | 10,154 | $ | 12,192 | $ | 21,244 | $ | (2,269) | $ | 41,321 | |||||||||||||||||||
Accounts Receivable and Credit Losses
The allowance for credit losses was not material at December 31, 2025 and 2024.
Contract Assets and Liabilities
The following table presents contract liabilities on the consolidated balance sheets (in millions).
| Category | Balance Sheet Location | December 31, 2025 | December 31, 2024 | |||||||||||||||||
| Contract liabilities | Deferred revenues | $ | 1,642 | $ | 1,569 | |||||||||||||||
| Contract liabilities | Other noncurrent liabilities | 355 | 206 | |||||||||||||||||
The change in deferred revenue for the year ended December 31, 2025 primarily reflects cash payments received or contracted billings recorded for which the performance obligations were not satisfied prior to the end of the period, partially offset by $1,378 million of revenues recognized that were included in the deferred revenue balance at December 31, 2024. Revenue recognized for the year ended December 31, 2024 related to the deferred revenue balance at December 31, 2023 was $1,643 million. Contract assets were not material as of December 31, 2025 and 2024.
Transaction Price Allocated to Remaining Performance Obligations
Most of the Company’s distribution contracts are licenses of functional intellectual property where revenue is derived from royalty-based arrangements, for which revenues are recorded as a function of royalties earned to date instead of estimating incremental royalty contract revenue. However, there are certain other distribution arrangements that are fixed price or contain minimum guarantees that extend beyond one year. The Company recognizes revenue for fixed fee distribution contracts monthly based on minimum monthly fees by calculating one twelfth of annual license fees specified in its distribution contracts, or based on the pro-rata fees earned calculated on the license fees specified in the distribution contract.
The Company’s content licensing contracts and sports sublicensing deals are licenses of functional intellectual property.
The Company’s brand licensing contracts are licenses of symbolic intellectual property.
The Company’s advertising contracts are principally generated from the sale of advertising campaigns comprised of multiple commercial units. In contracts with guaranteed impressions, we have identified the overall advertising campaign as the performance obligation to be satisfied over time, and impressions delivered against the satisfaction of our guarantee as the measure of progress. Certain of these arrangements extend beyond one year.
The following table presents a summary of remaining performance obligations by contract type (in millions).
| Contract Type | December 31, 2025 | Duration | ||||||||||||
| Distribution - fixed price or minimum guarantee | $ | 2,489 | Through 2030 | |||||||||||
| Content licensing and sports sublicensing | 4,601 | Through 2032 | ||||||||||||
| Brand licensing | 4,023 | Through 2062 | ||||||||||||
| Advertising | 1,127 | Through 2032 | ||||||||||||
| Other | 138 | Through 2029 | ||||||||||||
| Total | $ | 12,378 | ||||||||||||
The value of unsatisfied performance obligations disclosed above does not include: (i) contracts involving variable consideration for which revenues are recognized in accordance with the sales or usage-based royalty exception, which typically have a similar duration as the contracts disclosed above, and (ii) contracts with an original expected length of one year or less, such as most advertising contracts; however for content licensing revenues, including revenues associated with the licensing of theatrical and television product for television and streaming services, the Company has included all contracts regardless of duration.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 22, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Mar 1, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.