Netflix vs Warner Bros. Discovery
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KIRA’s take AI analyst
I put Netflix and Warner Bros. Discovery side by side, using each one’s latest annual report. Here is what stands out:
- Netflix is the larger business, with $45.2B of revenue in fiscal 2025 against $37.3B for Warner Bros. Discovery.
- Netflix grew revenue faster (15.9%, against −5.2%).
- Netflix kept more of each dollar of sales as operating profit (29.5% operating margin, against 2.0%).
- Netflix turned more of its sales into free cash flow (20.9% FCF margin, against 8.3%).
- Netflix earned a higher return on the capital invested in it (36.7%, against 0.6%).
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
Netflix
NFLX
8/10
Revenue growthOperating marginNet marginFCF marginReturn on capitalReturn on equityNet debt / EBITDAShare count change
Warner Bros. Discovery
WBD
1/10
5-year growth
Side by side
Best in the row
| Latest fiscal year | NFLX FY25 | WBD FY25 |
|---|---|---|
| Size | ||
| Market cap | $268.1B | $79.7B |
| Revenue | $45.2B | $37.3B |
| Free cash flow | $9.5B | $3.1B |
| Net income | $11.0B | $727M |
| Growth | ||
| Revenue growth | 15.9% | −5.2% |
| 5-year growth | 12.6% | 28.4% |
| Share count change | −1.1% | 3.3% |
| Profitability | ||
| Gross margin | 48.5% | — |
| Operating margin | 29.5% | 2.0% |
| Net margin | 24.3% | 2.0% |
| FCF margin | 20.9% | 8.3% |
| Return on capital | 36.7% | 0.6% |
| Return on equity | 42.8% | 2.1% |
| Balance sheet | ||
| Net debt | $5.4B | $28.7B |
| Net debt / EBITDA | 0.4x | 4.5x |
| Dividends and buybacks | $9.1B | $0.0M |
| Valuation & quality | ||
| P/E | 18.5x | — |
| Piotroski F-score | 7 | 7 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.