Is the business good?
How good a business is WBD?
Warner Bros. Discovery earns −1.6% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
−1.6%
Return on invested capital · cost of capital 9.0% · 11 points below what the capital costs: growth destroys value
- Operating margin
- −3.5%
Operating margin · Entertainment median 12% · 12 months to Q2 2026
- Share count, year on year
- +3.0%
Share count, year on year · shareholders own a smaller slice than a year ago
- Gross margin
- 47%
Gross margin
| Year | Operating margin |
|---|---|
| FY2020 | 24% |
| FY2021 | 17% |
| FY2022 | −22% |
| FY2023 | −3.8% |
| FY2024 | −26% |
| FY2025 | 2.0% |
Details›
- Gross margin12 months to Q2 2026
- 47%
- Operating margin12 months to Q2 2026
- −3.5%
- Net margin12 months to Q2 2026
- −8.8%
- Free cash flow margin
- 6.0%
- Revenue, trailing twelve months
- $36.1B
- Free cash flow, trailing twelve months
- $2.18B
- Net income, trailing twelve months
- −$3.17B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- −1.6%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.