How does Warner Bros. Discovery (WBD) make money?

Warner Bros. Discovery (WBD) generates revenue primarily from Distribution Revenue, which accounted for 52.2% of total revenue in TTM through Q1 2026. The company reported $37.2B in revenue and converted -4.7% of it into net profit, equivalent to roughly -$1.74B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Warner Bros. Discovery (WBD)?

Warner Bros. Discovery (WBD) reported a gross profit margin of 41.5% in TTM through Q1 2026, equivalent to $15.4B in gross profit on $37.2B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Warner Bros. Discovery (WBD)?

Warner Bros. Discovery (WBD) reported an operating profit margin of 4.1% in TTM through Q1 2026, equivalent to $1.51B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Warner Bros. Discovery (WBD)?

Warner Bros. Discovery (WBD) reported a net profit margin of -4.7% in TTM through Q1 2026, equivalent to -$1.74B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Warner Bros. Discovery (WBD) profitable?

Warner Bros. Discovery (WBD) reported a net loss of $1.74B for TTM through Q1 2026, a net profit margin of -4.7%. Combined operating expenses, interest, and income taxes exceeded revenue, so the period closed in the red on a reported basis.

How much does Warner Bros. Discovery (WBD) spend on capital expenditures?

Warner Bros. Discovery (WBD) spent $1.25B on capital expenditures (CapEx) during TTM through Q1 2026, roughly 3.4% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Warner Bros. Discovery (WBD) generate?

Warner Bros. Discovery (WBD) generated $2.31B in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 6.2%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What are the main business segments of Warner Bros. Discovery (WBD)?

Warner Bros. Discovery (WBD) reports revenue across 4 reportable product segments, led by Distribution Revenue at 52.2% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How Warner Bros. Discovery Makes Money: 2026 Visual Revenue Map

Warner Bros. Discovery (WBD) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported May 6, 2026).

Warner Bros. Discovery discloses geographic revenue only in annual filings. to view the full breakdown.

Warner Bros. Discovery (WBD) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Warner Bros. Discovery (WBD), TTM through Q1 2026.
Segment	Revenue (USD)	% of total
Distribution Revenue	$19.4B	52.2%
Content Licensing Contracts	$9.4B	25.3%
Advertising	$7.33B	19.7%
Service, Other	$1.05B	2.8%
Total	$37.2B	100%

Distribution Revenue$19.4B
Content Licensing Contracts$9.4B
Advertising$7.33B
Service, Other$1.05B
Total$37.2B

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, Warner Bros. Discovery (WBD) reports revenue across 4 reportable product segments; the largest segment was Distribution Revenue at 52.2%, followed by Content Licensing Contracts (25.3%) and Advertising (19.7%).

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