Warner Bros. Discovery's first quarter 2026 streaming segment grows, but a large one-time fee drives net loss.

Warner Bros. Discovery reported first quarter revenues of $8.9 billion, a 1% decrease from the prior year. The company posted a net loss of $2.9 billion, or ($1.17) per share, which was driven by a significant one-time termination fee. Adjusted EBITDA grew 5% to $2.2 billion, while free cash flow was negative $476 million.

Key Highlights

• A net loss of $2.9 billion was primarily caused by a one-time $2.8 billion termination fee paid to Netflix.
• The Streaming segment showed continued strength, with revenues growing 7% ex-FX to $2.9 billion and Adjusted EBITDA increasing 17% ex-FX to $438 million.
• The company announced it "meaningfully exceeded" its guidance of more than 140 million global streaming subscribers, a key focus for investors.
• The Global Linear Networks segment continues to face headwinds, with revenue declining 9% ex-FX and Adjusted EBITDA falling 10% ex-FX due to pay-TV subscriber declines and lower advertising.