Warner Bros. Discovery Inc - Class A
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −8.32%.
Did WBD Beat Earnings? Q4 2025 Results
Warner Bros. Discovery closed out Q4 2025 with a mixed report that underscored the company's ongoing transition pains, delivering an EPS loss of $0.10 that fell well short of the $0.04 consensus loss, a 150% miss, even as revenue of $9.46 billion landed almost precisely in line with expectations despite sliding 5.7% year over year. The deeper-than-expected loss reflected the weight of separation and transaction-related costs, which consumed roughly $600 million in free cash flow during the quarter alone, pulling that figure down 43% to $1.38 billion. Strategically, the quarter was anything but quiet; WBD's planned split and the competing acquisition interest from Paramount Skydance now cloud the Netflix deal announced in December 2025, creating meaningful uncertainty around the company's future structure. On the brighter side, the streaming business crossed 131.6 million global subscribers, and management is targeting over 150 million by year-end 2026, with subscriber-related revenue growth expected to accelerate as price increases take fuller effect and NBA-related headwinds begin to lap.
- Studios segment achieved $4.4 billion at the global box office in 2025 with nine #1 openings
- Streaming segment added 3.5 million subscribers in Q4, reaching 131.6 million globally
- Streaming advertising revenue increased 17% ex-FX driven by ad-lite subscriber growth
- Corporate Adjusted EBITDA improved by $44 million from lower overhead costs
- Global Linear Networks debuted 17 of the top 25 freshman cable series in the U.S.
Forward Guidance & Outlook
WBD expects streaming subscriber-related revenue growth to accelerate throughout 2026, driven by healthy subscriber growth (targeting over 150 million by year-end), full-year benefit of price increases, strong content slate, and the lapping of one-time headwinds from NBA loss and a domestic distribution deal renewal. Studios segment 2026 Adjusted EBITDA is expected to be relatively in line with 2025 as the company laps strong 2025 box office results and a sizable TV licensing deal renewal. Global Linear Networks expects a 7% ex-FX and 20% ex-FX headwind to advertising revenue from the absence of the NBA in Q1 and Q2 respectively, more than offset by associated operating expense improvements; full-year operating expenses expected to improve in the high single-digit percentage range. Underlying free cash flow conversion expected to remain strong in 2026, with additional transaction and separation-related costs anticipated in the first half. Q4 2025 will be the last quarter the company reports subscriber counts and ARPU. The company is focused on completing the planned separation and maximizing shareholder value through either the Netflix acquisition or a potentially superior Paramount Skydance proposal.
WBD YoY Financials
WBD Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.