Aureus
FRed Flag

Warner Bros. Discovery, Inc. -(WBD)

F

Financial data as of Dec 31, 2025Declining · Communication Services

FCF Margin8.3%Free Cash Flow / Revenue
Cash Conversion—Operating CF / Net Income
Free Cash Flow$3.1B
Revenue$37.3B
Net Cash-$28.0BNet debt position
Debt / FCF10.5xElevated debt burden
Current Ratio1.06Adequate short-term liquidity
YoY FCF Growth-43.1%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseC
→
-2Very high debt-to-FCF ratio (10.5x)
→
-1Significant YoY FCF decline (-43.1%)
→
FinalF

Analysis Summary

Concerns

  • Low FCF margin (8.3%)
  • Heavy debt position ($28.0B net debt, 10.5x FCF)
  • High debt-to-FCF ratio (10.5x)
  • Significant YoY FCF decline (-43.1%)
Cash conversion ratio unavailable or not meaningful

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin8.3%
Net Margin1.9%
Operating CF Margin11.6%
CapEx Ratio3.3%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$28.0BNet debt position
Debt / FCF10.5xElevated debt burden
Current Ratio1.06Adequate liquidity
Debt / Equity0.91Low leverage

Quarterly FCF Trend

-43.1% YoYDeclining (-43.1%)

Free cash flow per quarter

Sector Comparison — Communication Services

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameWarner Bros. Discovery, Inc. -
SectorCommunication Services
Free Cash Flow$3.1B
Revenue$37.3B
Net Income$727.0M
Operating Cash Flow$4.3B
Capital Expenditure$1.2B
FCF Margin8.3%
Cash Conversion Rate—
Net Margin1.9%
Total Debt$32.6B
Total Cash$4.6B
Net Cash-$28.0B
Current Ratio1.06
Debt / Equity0.91
Debt / FCF10.5x
YoY FCF Growth-43.1%
Positive Quarters5 of 5
Trend DirectionDeclining
Report DateDec 31, 2025
GradeF
Data SourceYahoo Finance

Related Research

All research →
Sector Report4 min read

Communication Services: Eight A-Grades Hiding Three Failures

Half the sector earns A-grades. The other half is bleeding cash or barely breaking even.

Feb 13, 2026
MTCHEAMETANFLX+14