Company: WBD
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001437107-25-000216
Chunk: 18

Company: Warner Bros. Discovery, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 18
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 higher marketing expenses.

Adjusted EBITDA 

Adjusted EBITDA decreased 20% and 19% for the three and nine months ended September 30, 2025, respectively.

Corporate

The following table presents our Adjusted EBITDA and a reconciliation of Adjusted EBITDA to operating loss (in millions).

 Three Months Ended September 30, Nine Months Ended September 30, 20252024% Change% Change (ex-FX)20252024% Change% Change (ex-FX)Adjusted EBITDA - Corporate$(258)$(296)13 %14 %$(807)$(927)13 %14 %Depreciation and amortization100 93 292 233 Employee share-based compensation240 157 532 413 Restructuring and other charges59 18 139 70 Transaction and integration costs11 31 108 161 Facility consolidation costs1 1 10 2 Impairment and amortization of fair value step-up for content1 1 1 2 Impairments and loss on dispositions19 4 119 242 Operating loss$(689)$(601)$(2,008)$(2,050)

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 increased 14% for the three and nine months ended September 30, 2025. The increase for the three months ended September 30, 2025 was primarily attributable to lower corporate overhead expense. The increase for the nine months ended September 30, 2025 was primarily attributable to lower facility costs due to office consolidations and closures, lower personnel costs, and the release of previously recorded non-income tax reserves.

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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 September 30,Nine Months Ended September 30, 2025202420252024Inter-segment revenue eliminations$(793)$(705)$(3,144)$(1,731)Inter-segment expense eliminations(779)(702)(2,678)(1,766)Adjusted EBITDA - Inter-segment eliminations (14)(3)(466)35