Loading...
•
Jun 30
Warner Bros Discovery Q2 2025 Earnings Report
Warner Bros Discovery reported strong Q2 results with net income of $1.58B, driven by studio and streaming performance.
Key Takeaways
WBD posted $9.81B in revenue and $1.58B in net income, as Studios revenue surged 55% and streaming added 3.4M subscribers. Adjusted EBITDA rose 9% year-over-year to $1.95B.
Studios revenue increased 55% YoY, fueled by strong box office from multiple blockbuster films.
Streaming subscribers grew by 3.4M to reach 125.7M globally.
Net income hit $1.58B, aided by a $3B gain on extinguishment of debt.
Free cash flow came in at $702M, impacted by $250M in separation-related items.
Warner Bros Discovery
Warner Bros Discovery
Warner Bros Discovery Revenue by Segment
Revenue by Segment
Streaming Revenue
CapyFin.comStudios Revenue
CapyFin.comGlobal Linear Networks Revenue
CapyFin.com Forward Guidance
WBD remains confident in streaming profitability, with planned international expansion and stabilized advertising outlook.
Positive Outlook
- Expecting to surpass 150M streaming subscribers by end of 2026.
- Streaming Adjusted EBITDA forecasted at minimum $1.3B for FY25.
- Global distribution revenue expected to re-accelerate by 2026.
- Ongoing restructuring expected to enhance future free cash flow.
- Strong pipeline of studio releases and HBO Max originals.
Challenges Ahead
- Q3 global advertising revenue expected to decline due to lighter sports schedule and tough comps.
- Loss of NBA rights in Q4 will impact revenue and margins.
- Bridge loan raises quarterly interest expense by ~$80M.
- Separation-related restructuring costs to continue through 2025.
- ARPU pressure due to subscriber mix and pricing dynamics.