Company: WBD
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001437107-25-000216
Chunk: 67

Company: Warner Bros. Discovery, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 67
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ATED FINANCIAL STATEMENTS(unaudited)

•amortization of capitalized interest for content; and •other items impacting comparability.The CODM uses this measure to assess the operating results and performance of the segments, perform analytical comparisons, identify strategies to improve performance, and allocate resources to each segment. The Company believes Adjusted EBITDA is relevant to investors because it allows them to analyze the operating performance of each segment using the same metric management uses. The Company excludes employee share-based compensation, restructuring, certain impairment charges, gains and losses on business and asset dispositions, and transaction and integration costs from the calculation of Adjusted EBITDA due to their impact on comparability between periods. Integration costs include transformative system implementations and integrations, such as Enterprise Resource Planning systems, and may take several years to complete. The Company also excludes the depreciation of fixed assets and amortization of intangible assets, amortization of purchase accounting fair value step-up for content (which is included in consolidated costs of revenues), and amortization of capitalized interest for content, as these amounts do not represent cash payments in the current reporting period. We prospectively updated certain corporate allocations at the beginning of 2025. The impact to prior periods was immaterial. The tables below present summarized financial information for each of the Company’s reportable segments (in millions).Revenues Three Months Ended September 30,Nine Months Ended September 30,2025202420252024Streaming$2,633 $2,634 $8,082 $7,662 Studios3,321 2,680 9,436 7,950 Global Linear Networks3,883 5,010 13,460 15,407 Corporate1 4 2 6 Inter-segment eliminations (793)(705)(3,144)(1,731)Total revenues$9,045 $9,623 $27,836 $29,294 Reconciliation of Revenues to Segment Adjusted EBITDAThree months ended September 30, 2025StreamingStudiosGlobal Linear NetworksRevenues$2,633 $3,321 $3,883 Less: Content expense (a)1,497 1,843 1,055 Personnel expense (b)175 240 479 Marketing expense210 331 128 Other segment expenses (c)406 212 519 Segment Adjusted EBITDA$345 $695 $1