WBD Swings to Q2 Profit, but Six-Month Loss Reaches $2.7B on Netflix Fee; PSKY Merger Encounters Legal Hurdles
WBD has more than doubled off its 52-week low of $10.76 on light trading volume (0.1× avg).
Summary
WBD reported a Q2 profit of $162M but a six-month loss of $2.7B due to the Netflix breakup fee. The PSKY merger is now tied up in antitrust litigation with a trial set for March 2027, while the company refinanced its bridge loan with $14.7B in new term loans.
Key Events · Earnings and Guidance · WBD
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Q2 Profit, Six-Month Loss
Q2 net income of $162M ($0.06/share) on revenue of $8.7B, but six-month net loss of $2.7B ($1.11/share) due to the $2.8B Netflix termination fee. Revenue fell 11% YoY.
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Streaming Surges, Studios Slumps
Streaming Adjusted EBITDA rose 75% to $512M on 10% revenue growth. Studios Adjusted EBITDA plunged 89% to $96M as theatrical revenue dropped 46% without last year's hit films.
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Linear Networks Under Pressure
Global Linear Networks revenue fell 17% YoY; advertising dropped 27% due to the loss of NBA rights, which cost $414M in ad revenue for the quarter.
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PSKY Merger Blocked by Lawsuits
Two antitrust lawsuits (state AGs and WGA) have halted the $31/share PSKY merger. A temporary restraining order is in place, and a 12-day trial is scheduled for March 2-19, 2027.
Analysis · WBD · Technology
Warner Bros. Discovery delivered mixed Q2 results: a $162M net profit on $8.7B in revenue, yet the six-month picture shows a $2.7B loss driven entirely by the $2.8B Netflix termination fee. The core business is stabilizing—Streaming EBITDA jumped 75%—but the Studios segment collapsed 89% on a weak film slate, and linear networks continue to bleed advertising dollars. The real story, however, is the PSKY merger: two antitrust lawsuits and a temporary restraining order have pushed the trial to March 2027, injecting major uncertainty into the $31/share cash deal. The company also completed a critical refinancing, swapping a $15B bridge loan for $13B in dollar and €1.7B in euro term loans, extending maturities to 2033. With $3.4B in cash and $4B in undrawn revolver capacity, liquidity is adequate, but the merger overhang and linear decline keep the pressure on.
How filings like this one have moved
In the 30 days to Sep 16, 2026, 35.4% of the 1170 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.43%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, WBD was trading at $26.44 on NASDAQ in the Technology sector, with a market capitalization of approximately $66.3B. The 52-week trading range was $10.76 to $30.00. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.