Warner Bros. Discovery’s streaming business delivered sharply higher profitability during the second quarter of 2026, with Streaming Adjusted EBITDA increasing 63% on a constant-currency basis to $512 million despite the loss of NBA programming.
Streaming revenue increased 10% ex-FX to $3.079 billion, while subscriber-related revenue also increased 10% ex-FX to nearly $3 billion. Distribution revenue increased 11% ex-FX, supported by growth in existing markets, international HBO Max expansion and new distribution agreements.
Streaming advertising revenue increased 8% ex-FX to $306 million, primarily because of growth in global ad-lite subscribers. That growth came despite the absence of the NBA, which Warner Bros. Discovery said reduced the year-over-year streaming advertising growth rate by 16 percentage points.
The profitability expansion significantly outpaced revenue. Streaming operating expenses increased only 3% ex-FX to $2.567 billion, while costs of revenue were relatively flat. Higher international content spending tied to HBO Max launches was offset by changes in the programming mix.
The streaming gains helped offset weakness elsewhere in Warner Bros. Discovery’s portfolio. Companywide revenue declined 12% ex-FX to $8.7 billion, and total Adjusted EBITDA decreased 6% ex-FX to $1.9 billion as declines in Studios and Global Linear Networks outweighed streaming growth.
The NBA departure had an especially large impact on the broader advertising business. Companywide advertising revenue fell 22% ex-FX, with Warner Bros. Discovery estimating that the absence of the NBA reduced the year-over-year growth rate by 20 percentage points.
The company generated $572 million of free cash flow in Q2, despite approximately $350 million of separation and transaction-related items. Warner Bros. Discovery also refinanced its $15 billion bridge facility during the quarter using a $13 billion Term Loan B and a €1.7 billion Term Loan B.
