Warner Bros. Discovery, Inc. filed its Form 10-Q for the quarterly period ended June 30, 2026 with the U.S. Securities and Exchange Commission, reporting second-quarter net income of $149 million available to the company alongside a six-month net loss of $2.767 billion, heavily influenced by a $2.8 billion Netflix Termination Fee charge recorded in the first half.

Key Highlights

  • Q2 2026 total revenues: $8.717 billion, compared with $9.812 billion in Q2 2025, according to the filing.
  • Q2 2026 net income available to Warner Bros. Discovery, Inc.: $149 million, or $0.06 per basic share, versus $1.580 billion, or $0.64 per basic share, in Q2 2025.
  • Six-month net loss: $2.767 billion, or $(1.11) per basic share, for the first half of 2026, compared with net income of $1.127 billion for the same period of 2025.
  • Netflix Termination Fee: The filing records a $2.800 billion charge labeled "Netflix Termination Fee" in the six months ended June 30, 2026, with no comparable charge in 2025.
  • Total assets: $97.248 billion as of June 30, 2026, down from $100.085 billion as of December 31, 2025.
  • Cash and cash equivalents: $3.369 billion at June 30, 2026, compared with $4.566 billion at December 31, 2025.
  • Shares outstanding: 2,510,703,314 shares of Series A Common Stock as of July 23, 2026, per the filing's cover page.

Warner Bros. Discovery Q2 2026: Revenue Decline and $2.8 Billion Termination Fee Shape First-Half Results

According to the filing, Warner Bros. Discovery (Nasdaq: WBD) reported total revenues of $8.717 billion for the three months ended June 30, 2026, a decrease from $9.812 billion in the prior-year quarter. Distribution revenues were $4.950 billion, advertising revenues were $1.724 billion, and content revenues were $1.828 billion for Q2 2026. Each of those categories was lower than the corresponding Q2 2025 figures of $4.885 billion, $2.216 billion, and $2.471 billion, respectively, as reported in the filing.

The company reported Q2 2026 operating income of $237 million, compared with an operating loss of $185 million in Q2 2025. For the six months ended June 30, 2026, the filing discloses an operating loss of $2.232 billion, driven in part by a $2.800 billion "Netflix Termination Fee" recorded in the period with no prior-year equivalent. Net interest expense was $1.092 billion for the first half of 2026, and the company recorded a loss on extinguishment of debt of $102 million for the same period, compared with a gain of $2.954 billion in the six months ended June 30, 2025. Cash provided by operating activities was $640 million for the first half of 2026, down from $1.536 billion a year earlier, the filing states.

On the balance sheet, total debt (current and noncurrent combined) stood at $32.023 billion as of June 30, 2026, compared with $32.567 billion at December 31, 2025. The accumulated deficit widened to $14.279 billion from $11.512 billion over the same period, the filing discloses. Total Warner Bros. Discovery, Inc. stockholders' equity was $32.838 billion at June 30, 2026, versus $35.919 billion at year-end 2025.

What Was Disclosed

Warner Bros. Discovery filed its unaudited quarterly report covering the period ended June 30, 2026, disclosing second-quarter revenues of $8.717 billion, a Q2 net income of $149 million available to the company, a first-half net loss of $2.767 billion, and a $2.800 billion Netflix Termination Fee charge recorded in the six-month period.