Aureus
FRed Flag

Warner Bros. Discovery, Inc. -(WBD)

F

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

FCF Margin6.2%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 / FCF14.0xElevated debt burden
Current Ratio1.06Adequate short-term liquidity
YoY FCF Growth-49.6%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseD
→
-2Very high debt-to-FCF ratio (14.0x)
→
-1Significant YoY FCF decline (-49.6%)
→
-0.5Highly volatile FCF (consistency: 0.82)
→
FinalF

Analysis Summary

Concerns

  • Low FCF margin (6.2%)
  • Heavy debt position ($28.0B net debt, 14.0x FCF)
  • High debt-to-FCF ratio (14.0x)
  • Significant YoY FCF decline (-49.6%)
  • Highly volatile quarterly FCF
Cash conversion ratio unavailable or not meaningfulSBC-adjusted FCF used — $0.8B stock-based compensation (25% of reported FCF) subtracted

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin6.2%
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 / FCF14.0xElevated debt burden
Current Ratio1.06Adequate liquidity
Debt / Equity0.91Low leverage

Quarterly FCF Trend

-49.6% YoYDeclining (-49.6%)

Free cash flow per quarter

Sector Comparison — Communication Services

FCF Margin ranked against sector peers

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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 Margin6.2%
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 / FCF14.0x
YoY FCF Growth-49.6%
Positive Quarters5 of 5
Trend DirectionDeclining
Report DateDec 31, 2025
GradeF
Data SourceYahoo Finance

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