WARNER BROS. DISCOVERY REPORTS FIRST QUARTER 2026 RESULTS

Warner Bros. Discovery, Inc. (the "Company") (Nasdaq: WBD) today reported financial results for the quarter ended March 31, 2026. Please visit the "Investor Relations" section of the Company's website to view the financial results and other earnings materials, including a Shareholder Letter.

The Company will conduct a conference call today at 4:30 p.m. ET to discuss the results. A link to the live webcast of the conference call will be available in the "Investor Relations" section of the Company's website at https://ir.wbd.com/.

A replay of the audio webcast will be available in the "Investor Relations" section of the Company's website for twelve months.

Q1 2026 Highlights

• Total revenues were $8.9 billion, a 3% ex-FX decrease from the prior year quarter.
  • Distribution revenues were relatively unchanged compared to the prior year quarter, as dynamic underlying growth in global streaming subscribers was offset by continued domestic linear pay TV subscriber declines and the impact of the HBO Max domestic distribution deal renewal with a former related party, previously disclosed in the second quarter of 2025.
  • Advertising revenues decreased 8% ex-FX, as ad-lite streaming subscriber growth was more than offset by the absence of the NBA along with continued domestic linear audience declines. The absence of the NBA in the current year negatively impacted the year-over-year growth rate by 7% ex-FX.
  • Content revenues were relatively unchanged compared to the prior year quarter as higher intercompany content revenues at the Studios segment were offset by higher intercompany eliminations.
• Net loss available to Warner Bros. Discovery, Inc. was $2.9 billion, which includes $1.3 billion of pre-tax acquisition-related amortization of intangibles, content fair value step-up, and restructuring expenses. Additionally net loss available to Warner Bros. Discovery, Inc. includes the $2.8 billion termination fee paid to Netflix.
  • PSKY paid Netflix the $2.8 billion on WBD's behalf under the terms of the merger agreement. The amount is refundable to PSKY in certain circumstances, such as the termination of the PSKY merger agreement by WBD for a superior proposal or the violation of interim operating covenants, resulting in an obligation for WBD.
• Total Adjusted EBITDA of $2.2 billion was relatively unchanged ex-FX compared to the prior year quarter, as growth in the Streaming and Studios segments was offset by a decline in the Global Linear Networks segment.
• Cash provided by operating activities was $(208) million. Free cash flow was $(476) million. Free cash flow was unfavorably impacted by approximately $100 million of separation & transaction-related items.
• Ended the first quarter with $30.1 billion of net debt and 3.4x net leverage.

About Warner Bros. Discovery:

Warner Bros. Discovery is 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. Warner Bros. Discovery inspires, informs and entertains audiences worldwide through its iconic brands and products including: Discovery Channel, HBO Max, discovery+, CNN, DC, TNT Sports, Eurosport, HBO, HGTV, Food Network, OWN, Investigation Discovery, TLC, Magnolia Network, TNT, TBS, truTV, Travel Channel, 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, Hogar de HGTV and others. For more information, please visit www.wbd.com.