Warner Bros. Discovery reported its Q1 2026 earnings this afternoon. The report showed a net loss of $2.916 billion for the first three months of the year.
That seems like a massive number, but it includes $1.3 billion in “pre-tax acquisition-related amortization of intangibles, content fair value step-up and restructuring expenses” related to the Paramount acquisition. It also includes the $2.8 billion termination fee paid to Netflix when Paramount ended its agreement with Netflix to take the Warner Bros. deal.
In a shareholder letter released along with the earnings report, Warner Bros. noted that it would not be answering questions relating to the Paramount deal during its earnings call following the release of the report. The company summarized the deal by writing: “On February 27, 2026, we and Paramount announced a definitive merger agreement under which Paramount will acquire WBD to form a premier global media and entertainment company focused on expanding consumer choice and empowering creative talent worldwide. On April 23, 2026, at a special meeting of WBD stockholder, WBD stockholders overwhelmingly approved the proposed acquisition of WBD by Paramount. The stockholder vote marks an important milestone, and we continue to expect the transaction to close during the third quarter.”
The company report that Q1 revenue was down 1% year over year, coming in at $8.89 billion.
The report highlighted streaming as a revenue driver and focus for Warner Bros. Discovery. Streaming revenue was up 7% to $2.89 billion for the quarter, with advertiser revenue up 19%. The company cited the global expansion of HBO Max as a driver – HBO Max launched in Germany, Italy, the U.K., and Ireland in Q1
