WBD Stock Forecast & Price Target

Warner Bros. Discovery demonstrated significant growth in its Direct-to-Consumer (DTC) segment, achieving 116.9 million global subscribers by the end of Q4 2024, which marks a 20% year-over-year increase and includes a quarterly gain of 6.4 million subscribers. The company's DTC revenue rose 5% year-over-year to $2.7 billion, accompanied by a notable EBITDA increase from a previous loss to a profit of $409 million, indicating strong margin expansion. Additionally, revenue projections suggest a climb from $39.3 billion in 2025 to $40.5 billion in 2026, highlighting a positive outlook driven by robust growth in streaming and studio revenues.

Warner Bros. Discovery's financial performance for 4Q24 revealed a decline in revenue, reporting $10.0 billion, which is 2% lower year-over-year and fell short of estimates. The networks segment experienced a significant revenue drop of 5% year-over-year, alongside a 13% decrease in adjusted EBITDA, indicating persistent pressure on linear television profitability primarily due to a 17% drop in ad revenues. Additionally, cash from operations decreased by 24% during the quarter, with free cash flow also witnessing a notable drop, further underscoring the company's challenging financial landscape amidst declining subscriber numbers and advertising revenues.