New $70 million goodwill impairment charge on Publishing & Advertising reporting unit recorded
In Practise Forensics
Surfacing the accounting concerns and leading indicators of trouble in this filing.
Gross margin contracted 3.7pp YoY to 45.3% from 49.0%; gross profit contracted to $379.8M in Q1 2026 compared to $391.2M in Q4 2025
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Reported finance charges revenue grew 22% from 2023 to 2025 while $1.246B in credit losses on forecast changes flowed below the line.
Recurring inventory write-off is excluded from adjusted EBITDA while non-cash FX gain is kept.
Scrapped inventory is classified as restructuring rather than COGS, and outside non-GAAP metrics
New $70 million goodwill impairment charge on Publishing & Advertising reporting unit recorded
New WBD Merger Agreement disclosed: $31.00/share, $80.9B equity value, $54B debt financing commitments
Basis of presentation changed from UK-adopted IFRS to U.S. GAAP, reported in U.S. dollars