AI Takeaway
WBD returned to profitability in FY2025 with net income of $727M versus a loss of $11.3B in the prior year, while revenue declined 5.1% to $37.3B and long-term debt was reduced by $6.9B.
Revenue
$37.3B
-5.15% YoY
EPS (Basic)
$0.29
++106.28% YoY
Operating Income
$738M
++107.36% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue fell 5.1% year-over-year from $39.3B to $37.3B, reflecting ongoing pressures in linear TV and strategic content portfolio adjustments as the company navigates the shift from traditional media to streaming.
Source: Source: 10-K Financial Data, Income Statement
Operating income surged from a loss of $10.0B to a gain of $738M (+107.4% YoY), and net income recovered from a loss of $11.3B to a profit of $727M, driven largely by the absence of the massive impairment and restructuring charges that weighed on the prior year.
Source: Source: 10-K Financial Data, Income Statement
Long-term debt was reduced by approximately $6.9B (-17.6%) from $39.5B to $32.6B, demonstrating meaningful progress on WBD's deleveraging strategy, which remains a key financial priority for the company.
Source: Source: 10-K Financial Data, Balance Sheet
2 more insights available
Upgrade to unlockWBD carries $32.6B in long-term debt with a debt-to-equity ratio of 1.75x, creating significant interest expense obligations that constrain financial flexibility. While debt was reduced by $6.9B in FY2025, the balance remains substantial and any deterioration in cash flow could impair the company's ability to service obligations.
Source: Source: 10-K Financial Data, Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $-0.10 versus the $-0.03 analyst consensus — a -222.6% miss for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $37.3B | $39.32B | -5.15% |
Operating Income | $738M | $-10.03B | +107.36% |
Net Income | $727M | $-11.31B | +106.43% |
EPS (Basic) | $0.29 | $-4.62 | +106.28% |
EPS (Diluted) | $0.29 | $-4.62 | +106.28% |
SG&A Expense | $9.42B | $9.3B | +1.31% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $100.08B | $104.56B | -4.28% |
Current Assets | $13.21B | $14.08B | -6.19% |
Total Liabilities | $62.92B | $69.62B | -9.63% |
Current Liabilities | $12.5B | $15.81B | -20.94% |
Stockholders' Equity | $35.92B | $34.04B | +5.53% |
Cash & Equivalents | $4.57B | $5.31B | -14.04% |
Long-Term Debt | $32.57B | $39.51B | -17.56% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $4.32B | $5.38B | -19.65% |
Investing Cash Flow | $-1.18B | $-349M | -237.82% |
Financing Cash Flow | $-4.24B | $-3.75B | -13.10% |
D&A | $5.68B | $7.04B | -19.23% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 2.0% | -25.5% | +27.49% |
Net Margin | 1.9% | — | — |
ROE | 2.0% | — | — |
ROA | 0.7% | — | — |
Current Ratio | $1.056 | — | — |
Debt to Equity | $1.752 | — | — |
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Yes, WBD returned to profitability in FY2025 with net income of $727M, compared to a net loss of $11.3B in the prior year. The turnaround was driven primarily by the absence of the large impairment and restructuring charges that weighed heavily on FY2024 results, though operating and net margins remain thin at approximately 2%.
The key takeaways are: revenue declined 5.1% to $37.3B reflecting linear TV headwinds; the company swung to a $727M net profit from an $11.3B loss; and long-term debt was reduced by $6.9B to $32.6B. However, operating cash flow fell 19.6% to $4.3B and margins remain razor-thin, signaling the financial recovery is still in early stages.
As of FY2025, WBD carries $32.6B in long-term debt, down from $39.5B at the end of FY2024, representing a reduction of approximately $6.9B or 17.6%. Despite this progress, the debt-to-equity ratio remains elevated at 1.75x, making debt management a continued priority.
Based on the financial data, WBD's key risks include its high leverage ($32.6B long-term debt, 1.75x debt-to-equity), the secular decline in linear TV revenue (total revenue fell 5.1% to $37.3B), and razor-thin profitability margins of approximately 2% that leave little buffer against further revenue pressure. Declining operating cash flow (-19.6% to $4.3B) also limits financial flexibility.
WBD's financial health is stabilizing but remains stretched: it returned to profitability with $727M net income, reduced long-term debt to $32.6B, and holds $4.6B in cash. However, the current ratio of only 1.06x indicates limited short-term liquidity, operating margins are thin at ~2%, and operating cash flow declined nearly 20% to $4.3B, suggesting the company still faces meaningful financial challenges.