-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
WBD reported Q1 2026 mixed results with revenues declining 1% to $8.0B and a $2.9B net loss vs. a $453M gain in the prior year, primarily due to a $2.8B Netflix termination fee related to Paramount Skydance's pending acquisition. Excluding one-time charges, adjusted EBITDA remained resilient at $2.2B (flat ex-FX) despite NBA programming absence impacting advertising revenues by 7%. We believe the underlying business shows encouraging streaming momentum with segment revenues up 7% ex-FX to $2.9B and 29% adjusted EBITDA growth, driven by successful HBO Max international launches in the U.K., Ireland, Germany, and Italy. The Paramount Skydance acquisition is expected to close in Q3 2026. We expect continued streaming subscriber growth to offset linear network declines, though free cash flow turned negative at -$476M from +$302M due to higher content investment and transaction costs. The company maintains financial flexibility with 3.4x net leverage and $3.3B in cash as it navigates the pending acquisition.