Warner Bros. Discovery reported fourth‑quarter 2025 revenue of $9.46 billion, a figure that surpassed consensus estimates of $9.32 billion. The company’s top line fell 5.7% year‑over‑year, reflecting a modest decline in legacy media segments but offset by continued strength in its streaming and studio businesses.
The company posted a net loss of $252 million and a GAAP loss per share of $0.10, missing the consensus loss estimate of $0.04. Adjusted EBITDA for the quarter was $2.22 billion, down from $2.55 billion in the same period a year earlier, largely due to one‑time acquisition and restructuring costs that weighed on profitability.
Streaming subscribers grew to more than 130 million worldwide, with HBO Max adding 3.5 million new members. Although the streaming segment’s revenue figure was not disclosed, subscriber momentum supports the company’s long‑term growth strategy. Advertising revenue fell 9% ex‑FX, a decline attributed to the loss of NBA broadcast rights.
The studio segment delivered a 52% year‑over‑year increase in adjusted EBITDA to $2.55 billion, driven by a slate of high‑gross‑margin releases that topped the box office for 16 consecutive weeks. Linear networks revenue declined, but the company did not provide a specific figure; the segment’s performance is expected to continue to lag behind streaming and studio growth.
Management highlighted the studio’s success and the resilience of its streaming subscriber base, noting that the company remains focused on expanding its international streaming footprint. The company also reiterated that it is in active discussions with potential buyers, a factor that has dominated investor attention and tempered the market’s reaction to the earnings results.
Analysts projected first‑quarter 2026 revenue of $8.90 billion and an EPS loss of $0.079, indicating that the company’s guidance remains cautious amid ongoing M&A speculation.
The market’s muted response reflects the weight of the M&A conversation; investors are prioritizing the potential transaction over the company’s quarterly performance, despite the revenue beat and strong streaming subscriber growth.
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