Warner Bros. Discovery, Inc.WBD
Warner Bros. Discovery, Inc. Segments Disclosure
REPORTABLE SEGMENTS
The Company’s operating segments are determined based on: (i) financial information reviewed by its CODM, the CEO, (ii) internal management and related reporting structure, and (iii) the basis upon which the CEO makes resource allocation decisions.
The accounting policies of the reportable segments are the same as the Company’s, except that certain inter-segment transactions that are eliminated for consolidation are not eliminated at the segment level. Inter-segment transactions primarily include advertising and content licenses. The Company generally records inter-segment transactions of content licenses at market value. The Company does not report assets by segment because it is not used by the CODM to allocate resources or evaluate segment performance.
The Company evaluates the operating performance of its segments based on financial measures such as revenues and Adjusted EBITDA. Adjusted EBITDA is defined as operating income excluding:
•employee share-based compensation;
•depreciation and amortization;
•restructuring and facility consolidation;
•certain impairment charges;
•gains and losses on business and asset dispositions;
•third-party transaction and integration costs;
•amortization of purchase accounting fair value step-up for content;
•amortization of capitalized interest for content; and
•other items impacting comparability.
The CODM uses this measure to assess the operating results and performance of the segments, perform analytical comparisons, identify strategies to improve performance, and allocate resources to each segment. The Company believes Adjusted EBITDA is relevant to investors because it allows them to analyze the operating performance of each segment using the same metric management uses. The Company excludes employee share-based compensation, restructuring, certain impairment charges, gains and losses on business and asset dispositions, and transaction and integration costs from the calculation of Adjusted EBITDA due to their impact on comparability between periods. Integration costs include transformative system implementations and integrations, such as Enterprise Resource Planning systems, and may take several years to complete. The Company also excludes the depreciation of fixed assets and amortization of intangible assets, amortization of purchase accounting fair value step-up for content (which is included in consolidated costs of revenues), and amortization of capitalized interest for content, as these amounts do not represent cash payments in the current reporting period. We prospectively updated certain corporate allocations at the beginning of 2025. The impact to prior periods was immaterial.
The tables below present summarized financial information for each of the Company’s reportable segments, corporate, and inter-segment eliminations (in millions).
Revenues
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Streaming | $ | 10,876 | $ | 10,313 | $ | 10,154 | ||||||||||||||
| Studios | 12,619 | 11,607 | 12,192 | |||||||||||||||||
| Global Linear Networks | 17,656 | 20,175 | 21,244 | |||||||||||||||||
| Corporate | 2 | 8 | — | |||||||||||||||||
| Inter-segment eliminations | (3,857) | (2,782) | (2,269) | |||||||||||||||||
| Total revenues | $ | 37,296 | $ | 39,321 | $ | 41,321 | ||||||||||||||
Reconciliation of Revenues to Segment Adjusted EBITDA
| Year Ended December 31, 2025 | ||||||||||||||||||||
| Streaming | Studios | Global Linear Networks | ||||||||||||||||||
| Revenues | $ | 10,876 | $ | 12,619 | $ | 17,656 | ||||||||||||||
| Less: | ||||||||||||||||||||
Content expense (a) | 6,145 | 7,108 | 6,522 | |||||||||||||||||
Personnel expense (b) | 760 | 963 | 2,009 | |||||||||||||||||
| Marketing expense | 1,000 | 1,066 | 529 | |||||||||||||||||
Other segment expenses (c) | 1,601 | 937 | 2,184 | |||||||||||||||||
| Segment Adjusted EBITDA | $ | 1,370 | $ | 2,545 | $ | 6,412 | ||||||||||||||
| Year Ended December 31, 2024 | ||||||||||||||||||||
| Streaming | Studios | Global Linear Networks | ||||||||||||||||||
| Revenues | $ | 10,313 | $ | 11,607 | $ | 20,175 | ||||||||||||||
| Less: | ||||||||||||||||||||
Content expense (a) | 6,183 | 7,260 | 7,135 | |||||||||||||||||
Personnel expense (b) | 773 | 943 | 2,153 | |||||||||||||||||
| Marketing expense | 1,147 | 1,064 | 454 | |||||||||||||||||
Other segment expenses (c) | 1,533 | 688 | 2,284 | |||||||||||||||||
| Segment Adjusted EBITDA | $ | 677 | $ | 1,652 | $ | 8,149 | ||||||||||||||
| Year Ended December 31, 2023 | ||||||||||||||||||||
| Streaming | Studios | Global Linear Networks | ||||||||||||||||||
| Revenues | $ | 10,154 | $ | 12,192 | $ | 21,244 | ||||||||||||||
| Less: | ||||||||||||||||||||
Content expense (a) | 6,454 | 7,112 | 7,140 | |||||||||||||||||
Personnel expense (b) | 844 | 927 | 2,173 | |||||||||||||||||
| Marketing expense | 1,313 | 1,268 | 439 | |||||||||||||||||
Other segment expenses (c) | 1,440 | 702 | 2,429 | |||||||||||||||||
| Segment Adjusted EBITDA | $ | 103 | $ | 2,183 | $ | 9,063 | ||||||||||||||
(a) Content expense includes amortization, impairments, participations, residuals, development expense, and production costs, including talent costs, and is a component of costs of revenues. Content expense excludes content impairments and other development costs recorded in restructuring and other charges, amortization of purchase accounting fair value step-up for content, and amortization of capitalized interest for content as these items are excluded from the calculation of Adjusted EBITDA.
(b) Personnel expense is a component of costs of revenues and selling, general and administrative expense. Personnel expense includes marketing personnel compensation and excludes commissions (included in other segment expenses) and talent costs (included in content expense).
(c) Other segment expenses include distribution costs, other direct costs, software and hardware costs, IT services, professional and consulting fees, commissions, and certain other overhead costs. Other segment expenses exclude depreciation and amortization, amortization of purchase accounting fair value step-up for content, amortization of capitalized interest for content, employee share-based compensation, third-party transaction and integration costs, and other items impacting comparability as these items are excluded from the calculation of Adjusted EBITDA.
Reconciliation of Segment Adjusted EBITDA to loss before income taxes
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Streaming | $ | 1,370 | $ | 677 | $ | 103 | ||||||||||||||
| Studios | 2,545 | 1,652 | 2,183 | |||||||||||||||||
| Global Linear Networks | 6,412 | 8,149 | 9,063 | |||||||||||||||||
| Segment Adjusted EBITDA | $ | 10,327 | $ | 10,478 | $ | 11,349 | ||||||||||||||
| Depreciation and amortization | 5,684 | 7,037 | 7,985 | |||||||||||||||||
| Employee share-based compensation | 751 | 546 | 488 | |||||||||||||||||
| Restructuring and other charges | 399 | 447 | 585 | |||||||||||||||||
| Transaction and integration costs | 166 | 242 | 162 | |||||||||||||||||
| Facility consolidation costs | 10 | 4 | 32 | |||||||||||||||||
| Impairment and amortization of fair value step-up for content | 784 | 1,139 | 2,373 | |||||||||||||||||
| Amortization of capitalized interest for content | 40 | 46 | 46 | |||||||||||||||||
| Impairments and loss on dispositions | 172 | 9,603 | 77 | |||||||||||||||||
| Corporate | 1,096 | 1,260 | 1,242 | |||||||||||||||||
| Inter-segment eliminations | 487 | 186 | (93) | |||||||||||||||||
| Other (income) expense, net | (65) | (150) | 29 | |||||||||||||||||
| Loss from equity investees, net | 24 | 121 | 82 | |||||||||||||||||
| Gain on extinguishment of debt | (2,945) | (632) | (17) | |||||||||||||||||
| Interest expense, net | 2,085 | 2,017 | 2,221 | |||||||||||||||||
| Income (loss) before income taxes | $ | 1,639 | $ | (11,388) | $ | (3,863) | ||||||||||||||
Content Amortization and Impairment Expense
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Streaming | $ | 5,464 | $ | 6,416 | $ | 6,138 | ||||||||||||||
| Studios | 3,106 | 5,692 | 5,074 | |||||||||||||||||
| Global Linear Networks | 6,093 | 4,250 | 6,630 | |||||||||||||||||
| Corporate | 1 | 3 | (6) | |||||||||||||||||
| Inter-segment eliminations | (2,809) | (2,250) | (1,697) | |||||||||||||||||
| Total content amortization and impairment expense | $ | 11,855 | $ | 14,111 | $ | 16,139 | ||||||||||||||
Content expense is generally a component of costs of revenue on the consolidated statements of operations. (See Note 9.)
Revenues by Geography
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| U.S. | $ | 24,946 | $ | 26,434 | $ | 28,004 | ||||||||||||||
| Non-U.S. | 12,350 | 12,887 | 13,317 | |||||||||||||||||
| Total revenues | $ | 37,296 | $ | 39,321 | $ | 41,321 | ||||||||||||||
Revenues are attributed to each country based on the customer or viewer location.
Property and Equipment by Geography
| December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| U.S. | $ | 4,494 | $ | 4,430 | ||||||||||
| U.K. | 1,386 | 991 | ||||||||||||
| Other non-U.S. | 805 | 666 | ||||||||||||
| Total property and equipment, net | $ | 6,685 | $ | 6,087 | ||||||||||
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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 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Feb 14, 2017 | |
| 2015 | Feb 18, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.