Netflix nets $2.8B termination fee from canceled Warner Bros. Discovery deal

Filed April 17, 2026 · Period ending March 31, 2026 · Compared to 10-Q Apr 18, 2025 · ~1 min read

Key Changes

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  Netflix received a $2.8 billion termination fee after canceling its agreement to acquire Warner Bros. Discovery's streaming and studios businesses, driving an 83% surge in Q1 2026 net income to $5.3 billion.

  MD&A: WBD Transaction verify on EDGAR →
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  Revenue growth accelerated to 16% year-over-year (from 13% prior year), driven by membership growth, price increases, and increased advertising revenue as a material contributor.

  MD&A: Revenue verify on EDGAR →
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  Content obligations rose from $21.8 billion to $24.1 billion, with off-balance-sheet commitments increasing $2.5 billion to $18.5 billion, reflecting continued heavy investment in original programming.

  MD&A: Content Obligations verify on EDGAR →