Warner Bros. Discovery Reports Q4 Results as Streaming Grows While Studio and TV Decline

Warner Bros. Discovery (WBD) reported its fourth-quarter 2025 earnings results Thursday, highlighting continued subscriber growth in streaming while its traditional television and studio operations faced ongoing headwinds.

Revenue totaled $9.46 billion for the quarter, down from $10.027 billion in the same period a year earlier. The company posted a net loss of $252 million, or 10 cents per diluted share, falling short of analyst expectations that had called for break-even earnings.

Free cash flow reached nearly $1.4 billion, and total debt stood at $33.5 billion at quarter’s end.

Streaming remained a bright spot. The company finished the quarter with 131.6 million global streaming subscribers, an increase of about 3.5 million from the previous quarter. Domestic subscriptions rose by 1.2 million, while international markets contributed 2.4 million additions. Compared with a year ago, streaming subscriptions were up by nearly 15 million. Streaming revenue climbed 5% year over year to roughly $2.8 billion. Within the segment, distribution revenue grew 3% to nearly $2.4 billion, and advertising revenue jumped 18% to $278 million.

In its shareholder letter, the company cited the recent rollout of HBO Max in Germany and Italy, along with upcoming launches in the United Kingdom and Ireland. WBD said it expects to surpass 140 million global streaming subscribers by the end of the first quarter of 2026 and is aiming to top 150 million by year’s end.

Outside of streaming, results were weaker. Studio revenue declined 13% from a year earlier to approximately $3.2 billion, primarily due to softer content sales and box office results. Box office revenue fell 11%, television revenue dropped 18%, and gaming revenue decreased 34% compared with the same quarter last year.

The company’s global linear networks division generated about $4.2 billion in revenue, a 12% decline year over year. Distribution revenue slipped 8%, and advertising revenue fell 14%. Overall advertising revenue across the company was down 9% for the quarter.

WBD attributed much of the advertising downturn to a 22% decline in U.S. audiences and the loss of NBA broadcast rights, which it said accounted for roughly half of the drop in ad revenue.

The quarterly results were released as takeover discussions continue to unfold around the company. WBD reached a deal in December 2025 with Netflix involving its studio and streaming businesses, and that agreement remains active.

At the same time, Paramount Skydance is continuing its effort to acquire the full company. Paramount recently submitted an increased offer of $31 per share, up from $30, and the revised proposal includes a $7 billion regulatory termination fee. It also includes a $0.25 per share per quarter “ticking fee” beginning after September 30, 2026, which would continue until the deal closes.

In its letter to shareholders, WBD said it would not comment on either transaction: “We will not be answering any questions on this topic during our earnings call.”

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