The media company reported a 200 basis point sequential acceleration in streaming revenue, achieving a 17% adjusted EBITDA margin.
Warner Bros Discovery reported streaming revenue exceeding $3 billion for the first time in Q2 2026, driven by a 10% increase in subscriber-related revenue. The growth marks a 200 basis point sequential acceleration and a turnaround from 2022 losses, delivering a 17% adjusted EBITDA margin.
The company attributed the success to the global expansion of HBO Max and high-engagement series like ‘The Pitt’ and ‘House of the Dragon,’ which averaged 25 million viewers per episode. However, the Studio segment faced challenges due to underperforming films and tough comparisons against 2025’s content licensing deals.
Management highlighted a shift toward internal content utilization to improve margins, alongside a long-term target of $3 billion in adjusted EBITDA for the Studio segment by increasing film production.