The headline miss is revenue, not EBITDA. Published Q2 revenue estimates clustered around $9.2–$9.3 billion, versus reported revenue of $8.717 billion, while the roughly $1.87 billion adjusted EBITDA consensus was essentially met at $1.879 billion.
| Metric | Q2 2026 | Q2 2025 / expectation | Read |
|---|---|---|---|
| Revenue | $8,717 million (Financial Highlights) | $9,812 million prior year; roughly $9.2–$9.3 billion published consensus | Miss |
| Adjusted EBITDA | $1,879 million (Financial Highlights) | $1,953 million prior year; ~$1,870 million consensus | Roughly in line |
| Net income available to WBD | $149 million (Income Statement) | $1,580 million prior year | Down sharply |
| Free cash flow | $572 million (Free Cash Flow) | $702 million prior year | Down 19% |
| Net debt / leverage | $29.7 billion / 3.4x (Leverage and Liquidity) | — | Still heavily levered |
Streaming is the clear operational bright spot. Streaming revenue rose 10% ex-FX to $3.079 billion and adjusted EBITDA jumped 63% ex-FX to $512 million, with subscriber-related revenue up 10% ex-FX. That is the strongest part of the filing and shows the HBO Max expansion is translating into better monetization, although higher marketing and launch costs lifted SG&A 14% ex-FX. (Streaming Segment)
The legacy businesses absorbed that progress. Studios revenue fell 39% ex-FX and adjusted EBITDA collapsed 89% to $96 million, while Global Linear Networks revenue declined 17% and adjusted EBITDA fell 5% ex-FX to $1.446 billion. The NBA comparison explains much of the advertising weakness, but the underlying 10% domestic pay-TV subscriber decline and 17% domestic audience decline show the linear deterioration is not just a sports-calendar issue. (Segment results — Studios; Segment results — Global Linear Networks)
Cash generation and balance-sheet flexibility remain the constraint. Free cash flow fell to $572 million, despite the company attributing roughly $350 million of the decline-related burden to separation and transaction costs; the company also had $3.9 billion drawn on its revolving receivables program. Repaying the $15 billion bridge facility with term loans reduces near-term refinancing pressure, but it does not materially change the $29.7 billion net-debt burden or 3.4x leverage. (Free Cash Flow; Leverage and Liquidity)
Net read: mixed, with a better mix but a weaker consolidated quarter. Streaming materially outperformed the declining businesses, yet that improvement was not enough to offset the revenue shortfall, studio collapse, lower cash generation, and continued linear erosion. The release provides no new numeric 2026 outlook, so the main incremental signal is operational rather than a raised forecast: the streaming transition is working, but the broader earnings base remains under pressure. (2026 Outlook)
Read the original 8-K on SEC EDGAR ↗