Warner Bros. Discovery has recently reported its fourth-quarter 2025 earnings results amidst a tense acquisition battle between Paramount Skydance and Netflix. The company, led by CEO David Zaslav, narrowed its losses to $252 million during the October-December quarter. Additionally, Warner Bros. Discovery saw its streaming subscribers reach nearly 132 million, with an increased international rollout for HBO Max contributing to this growth.
The company announced that it expects to finish the first quarter of 2026 with more than 140 million subscribers, on track to surpass 150 million by the end of the year. However, amidst the acquisition talks with Netflix and Paramount Skydance, Warner Bros. Discovery stated that they will not be providing any further details or answering questions during the earnings call regarding the pending acquisition.
In terms of financial performance, streaming revenue increased by 5% year-over-year to $2.8 billion, while sales for the studio segment decreased by 13% to $3.2 billion. The global TV channels division also saw a 12% drop to $4.2 billion. Within the streaming business, distribution sales were up 3% at $2.4 billion, and ad sales jumped by 18% to $278 million.
Streaming subscribers reached 131.6 million, with domestic subscribers up by 1.2 million and international subscribers rising by 2.4 million. The overall increase in streaming subscriptions was 14.7 million compared to the previous year. However, the studios segment experienced a decline in box office revenue by 11%, TV revenue by 18%, and gaming sales by 34%.
Warner Bros. Discovery’s global linear networks also faced challenges, with an 8% decrease in distribution revenue and a 14% drop in ad sales. The company attributed the decline in advertising revenue to a 22% decrease in the U.S. audience and the loss of NBA rights.
Despite Wall Street’s forecast of earnings per share of 0 cents on $9.37 billion in revenue, Warner Bros. Discovery reported a diluted loss per share of 10 cents, or a net loss of $252 million, on $9.5 billion in revenue. The company’s free cashflow stood at $1.4 billion, with a current debt of $33.5 billion.
These financial results and ongoing acquisition discussions have put Warner Bros. Discovery in a unique position within the entertainment industry. As the company continues to navigate through these challenges, it remains focused on maximizing shareholder value and delivering the best deal for its stakeholders.
