Company: WBD
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001437107-25-000192
Chunk: 85

Company: Warner Bros. Discovery, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 85
---
 Months Ended June 30, 20252024% Change% Change (ex-FX)20252024% Change% Change (ex-FX)Adjusted EBITDA - Corporate$(316)$(285)(11)%(9)%$(549)$(631)13 %14 %Depreciation and amortization93 58 192 140 Employee share-based compensation173 156 292 256 Restructuring and other charges49 41 80 52 Transaction and integration costs17 51 97 130 Facility consolidation costs4 1 9 1 Impairment and amortization of fair value step-up for content— 1 — 1 Impairments and loss on dispositions14 231 100 238 Operating loss$(666)$(824)$(1,319)$(1,449)

Corporate operations primarily consist of executive management and administrative support services, which are recorded in selling, general and administrative expense, as well as substantially all of our share-based compensation and third-party transaction and integration costs.

Adjusted EBITDA decreased 9% and increased 14% for the three and six months ended June 30, 2025, respectively. The decrease for the three months ended June 30, 2025 was primarily attributable to higher overhead costs and securitization expense. The increase for the six months ended June 30, 2025 was primarily attributable to lower facility costs due to office consolidations and closures and the release of previously recorded non-income tax reserves.

Inter-segment Eliminations

The following table presents our inter-segment eliminations by revenue and expense, Adjusted EBITDA and a reconciliation of Adjusted EBITDA to operating loss (in millions).

 Three Months Ended June 30,Six Months Ended June 30, 2025202420252024Inter-segment revenue eliminations$(1,586)$(577)$(2,351)$(1,026)Inter-segment expense eliminations(1,187)(556)(1,899)(1,064)Adjusted EBITDA - Inter-segment eliminations (399)(21)(452)38 Impairment and amortization of fair value step-up for content14 73 41 153 Operating loss$(413)$(94)$(493)$(115)

Inter-segment revenue and expense eliminations primarily represent inter-segment content transactions and marketing and promotion activity between reportable segments. In our current segment structure, in