Warner Bros. Discovery (WBD) reported Q1 2026 financial results with total revenues of $8.9 billion, a 3% ex-FX decrease year-over-year, and a net loss of $2.9 billion, including a $2.8 billion fee to Netflix. Distribution revenues were relatively unchanged while advertising revenues decreased 8% ex-FX, partly due to the absence of NBA content and linear audience declines, offset by ad-lite streaming subscriber growth.
WBD’s quarter shows how streaming growth can offset only part of the pressure from linear declines and weaker ad markets. Distribution revenue held roughly flat because global streaming subscriber gains balanced domestic pay TV losses and the HBO Max renewal effect, while advertising fell 8% ex-FX without NBA inventory. The $2.8 billion Netflix termination fee also pushed the reported loss deeper, making the quarter a reminder that transaction costs can dominate headline earnings. Watch the next print for advertising revenue, streaming subscriber growth, and whether free cash flow stays negative.
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