Company: WBD
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001437107-25-000216
Chunk: 148

Company: Warner Bros. Discovery, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 148
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407 Less: Content expense (a)4,736 5,157 5,487 Personnel expense (b)587 700 1,638 Marketing expense905 866 328 Other segment expenses (c)1,166 525 1,722 Segment Adjusted EBITDA$268 $702 $6,232 (a) Content expense includes amortization, impairments, participations, residuals, development expense, and production costs, including talent costs, and is a component of costs of revenues. Content expense excludes content impairments and other development costs recorded in restructuring and other charges, amortization of purchase accounting fair value step-up for content, and amortization of capitalized interest for content as these items are excluded from the calculation of Adjusted EBITDA.(b) Personnel expense is a component of costs of revenues and selling, general and administrative expense. Personnel expense includes marketing personnel compensation and excludes commissions (included in other segment expenses) and talent costs (included in content expense).(c) Other segment expenses include distribution costs, other direct costs, software and hardware costs, IT services, professional and consulting fees, commissions, and certain other overhead costs. Other segment expenses exclude depreciation and amortization, amortization of purchase accounting fair value step-up for content, amortization of capitalized interest for content, employee share-based compensation, third-party transaction and integration costs, and other items impacting comparability as these items are excluded from the calculation of Adjusted EBITDA.

30

WARNER BROS. DISCOVERY, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(unaudited)

Reconciliation of segment adjusted EBITDA to loss before income taxes Three Months Ended September 30,Nine Months Ended September 30,2025202420252024Streaming$345 $289 $977 $268 Studios695 308 1,817 702 Global Linear Networks1,702 2,115 5,007 6,232 Segment Adjusted EBITDA2,742 2,712 7,801 7,202 Depreciation and amortization1,375 1,762 4,369 5,394 Employee share-based compensation240 157 533 412 Restructuring and other charges88 9 222 161 Transaction and integration costs11 33 108 165 Facility consolidation costs1 2 10 9 Impairment and amortization of fair value step