Warner Bros. Discovery's quarterly net income to shareholders fell to $149 million, with revenue down 11.2%

Written by Claude Sonnet 5.5, an AI model, from public records. Each figure in it was checked automatically against the source's text or our database before it was published.

Warner Bros. Discovery filed its Form 10-Q, the quarterly report a US-listed company files with the SEC, on Aug 6, 2026, for the quarter from Apr 1 to Jun 30, 2026. Net income attributable to the company's shareholders was $149 million, against $1.58 billion in the same quarter a year earlier, and diluted earnings per share were $0.06, against $0.63. Revenue was $8.72 billion, down 11.2% from $9.81 billion, and operating income was $237 million against an operating loss of $185 million.1^,2^,3^,4^,5^,6^,7^,8^,9^,10^,11

Income before income taxes was a loss of $271 million, against income of $2.454 billion a year earlier, and the income tax line was a benefit of $433 million, against an expense of $866 million, the earnings release shows. The company's discussion ties the larger tax benefit to lower pre-tax book income, including the absence of a $3.0 billion gain recognized in 2025 that the 10-Q associates with what it calls the Tender Offers. Advertising revenue fell 22.2% to $1.72 billion, and the company ties that to audience declines in its domestic networks, which were affected by the absence of the NBA in 2026.12^,13^,14^,15^,16

Games, which the 10-Q places in its Studios segment, saw revenue rise 45% on the company's constant-currency (ex-FX) basis, it says, on the release of LEGO Batman: Legacy of the Dark Knight. TT Games is the developer of that game and Warner Bros. Games its publisher. Studios revenue fell 38.8% to $2.33 billion, and the company says theatrical revenue fell 46% at constant currency against the strong run of A Minecraft Movie, Sinners and Final Destination Bloodlines in the year-earlier quarter. In its Aug 6 shareholder letter, the company said LEGO Batman: Legacy of the Dark Knight and Game of Thrones: Dragonfire, its second mobile game from that universe, were the first launches under a refocused strategy built around four key $1 billion+ franchises. The letter said the company expected at the time that Games would contribute more to segment profitability going forward as its pipeline expanded, including the second installment of Hogwarts Legacy.17^,18^,19^,20^,21^,22^,23^,24^,25^,26^,27^,28

On Feb 27, 2026, Warner Bros. Discovery ended its agreement with Netflix and entered an agreement under which it would become a wholly owned subsidiary of Paramount Skydance. Under the agreement, as the 10-Q describes it, each Warner Bros. Discovery share, subject to certain exceptions, was to be converted into the right to receive $31.00 in cash, plus a daily amount if the closing came after Sep 30, 2026. The 10-Q says two lawsuits, filed in July 2026 by a coalition of twelve state attorneys general and the Writers Guild of America West and East, sought to block the merger, and that on Jul 24 the defendants agreed not to complete it until five days after a merits determination or Jun 1, 2027, whichever is earlier.29^,30^,31^,32^,33^,34^,35

Our records hold the 10-Q's management discussion, not its notes to the financial statements, so detail beyond that discussion, on the Tender Offers for instance, is outside what we hold. Our records also cannot tell whether this filing's year-earlier figures were restated.36^,37