Substack vs Warner Bros. Discovery: Revenue, Profit and Business Model
Substack had $11.9M of annual revenue in FY2021 and a net loss of $22.9M. Warner Bros. Discovery had $37.3B of annual revenue in FY2025 and $727M of net income.
Latest financial snapshot
Substack
- Latest annual revenue
- $11.9M (FY2021)
- Net income
- -$22.9M
- Net margin
- -192.4%
- Revenue growth
- +395.8% a year, FY2020–FY2021
Warner Bros. Discovery
- Latest annual revenue
- $37.3B (FY2025)
- Net income
- $727M
- Net margin
- 1.9%
- Revenue growth
- +32.3% a year, FY2021–FY2025
Financial summary
Substack
Substack is private and publishes no audited financials. Its revenue comes mainly from a 10% fee on paid subscriptions sold by creators. Newcomer reported in 2025 that Substack told investors it had about $45 million in annual recurring revenue. Funding includes a $15.3M Series A led by Andreessen Horowitz (2019), a $65M Series B at a reported.1B valuation (2021), roughly $7.8M from a 2023 Wefunder community round, and a $100M Series C led by BOND and The Chernin Group at a $1.1B valuation (July 2025). That valuation implies a revenue multiple of roughly 24x on reported ARR.
Warner Bros. Discovery
FY2025 revenue was $37.3 billion, down 5% ex-FX, with net income available to WBD of $727 million, adjusted EBITDA of $8.7 billion, and free cash flow of $3.1 billion. The company ended 2025 with 131.6 million streaming subscribers and $29.0 billion of net debt. In 2026, Q1 revenue was $8.9 billion with a $2.9 billion net loss that included the $2.8 billion termination fee owed to Netflix, which Paramount Skydance paid on WBD's behalf. Q2 revenue was $8.7 billion, down 12% ex-FX, with net income of $149 million and adjusted EBITDA of $1.9 billion. During Q2 WBD repaid its $15 billion bridge loan with new term loans.
Revenue and profit by year
Substack
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 run-rate | $45M | — | — | — | Source |
| FY2021 | $11.9M | -$22.9M | -192.4% | +395.8% | Source |
| FY2020 | $2.4M | -$2.3M | -95.8% | — | Source |
Warner Bros. Discovery
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $37.3B | $727M | 1.9% | -5.1% | Source |
| FY2024 | $39.3B | -$11.3B | -28.8% | -4.8% | Source |
| FY2023 | $41.3B | -$3.1B | -7.6% | +22.2% | Source |
| FY2022 | $33.8B | -$7.4B | -21.8% | +177.4% | Source |
| FY2021 | $12.2B | $1B | 8.3% | — | Source |
Where the revenue comes from
Substack
- Paid subscription fee (10%)
Majority (not disclosed)
A 10% cut of the subscription revenue readers pay to creators; Stripe processing fees are separate.
- Other fees
Small (not disclosed)
Smaller charges such as the one-time custom domain fee.
Warner Bros. Discovery
- Distribution
Largest revenue type
Streaming subscription fees and carriage fees from pay-TV distributors.
- Advertising
Declining
Ad sales on linear networks and ad-supported streaming tiers; down 22% ex-FX in Q2 2026.
- Content
Varies with film slate
Theatrical releases, TV licensing, games, and consumer products.
Business model and strategy
Substack
How it makes money
Substack is free to use for free publications. When a writer turns on paid subscriptions, Substack takes 10% of the revenue and Stripe charges its standard card fees. Substack does not run ads on publications. Revenue therefore scales with creator earnings, which is why the company invests in discovery features (recommendations, Notes, the app) that help writers sell more subscriptions.
Growth strategy
Substack's growth strategy centres on making its app a destination rather than just an email tool: Notes, recommendations, video and livestreaming give readers reasons to open the app and help writers find subscribers internally. It also recruits creators from other platforms, including a reported $20 million fund launched in 2025 to attract video creators.
Competitive advantage
Substack's core advantage is distribution: its app, Notes feed and cross-publication recommendations help writers gain subscribers inside the network, which standalone email tools struggle to replicate. Writers also keep their mailing lists, which lowers the risk of joining.
Warner Bros. Discovery
How it makes money
WBD earns money from three revenue types. Distribution revenue comes from HBO Max and discovery+ subscriptions and from fees that pay-TV distributors pay to carry its cable networks. Advertising revenue comes from linear networks such as TNT, TBS, CNN, Discovery and HGTV, plus ad-supported streaming tiers.
Growth strategy
Before the sale, WBD's plan centered on growing HBO Max internationally, rebuilding the film slate and DC under DC Studios, licensing its library, and managing linear networks for cash. In 2025 it planned to split into two companies (Streaming & Studios and Global Networks) before the board ran a sale process that ended with the Paramount Skydance agreement.
Competitive advantage
WBD's main asset is its content library and franchise IP: Warner Bros. films and TV, HBO series, DC, Harry Potter, Looney Tunes, and a large unscripted catalog from Discovery, HGTV and Food Network. That library is the main reason it drew competing bids from Netflix and Paramount Skydance in 2025 and 2026.
Questions about Substack vs Warner Bros. Discovery
Which company has higher revenue — Substack Inc. or Warner Bros. Discovery?
Substack Inc. had $11.9M (FY2021), while Warner Bros. Discovery had $37.3B (FY2025). By latest annual revenue, Warner Bros. Discovery is the larger business, with Substack Inc. showing a smaller revenue base. Note: these are from different fiscal years and are not a direct like-for-like comparison.
What is the market cap of Substack Inc. vs Warner Bros. Discovery?
Warner Bros. Discovery has a market capitalisation of $77.0B. A public market cap figure for Substack Inc. was not available (it may be privately held).
How does revenue per employee compare for Substack Inc. and Warner Bros. Discovery?
Warner Bros. Discovery generates $1.05M / employee in revenue per employee. A comparable figure for Substack Inc. requires matching employee and revenue data from the same reporting period.
How do Substack Inc. and Warner Bros. Discovery make money?
Substack Inc. and Warner Bros. Discovery generate revenue in fundamentally different ways. Substack Inc.: Substack is free to use for free publications. Warner Bros. Discovery: WBD earns money from three revenue types.
Is Substack Inc. bigger than Warner Bros. Discovery?
By last reported revenue, Warner Bros. Discovery ($37.3B (FY2025)) is the larger company compared to Substack Inc. ($11.9M (FY2021)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Substack vs Warner Bros. Discovery overview