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Sep 30, 2025
Warner Bros Discovery Q3 2025 Earnings Report
Warner Bros Discovery reported a net loss and flat revenues compared to the prior year quarter.
Key Takeaways
Warner Bros. Discovery posted a net loss of $148 million for Q3 2025, with total revenue declining 6% year-over-year. Studios showed strong performance, but declines in the Global Linear Networks segment and separation-related costs weighed on the results.
Studios segment delivered $695 million in Adjusted EBITDA, more than doubling year-over-year.
Streaming subscribers grew to 128 million, adding 2.3 million from Q2.
Total revenue was $9.045 billion, down 6% from Q3 2024.
Free cash flow reached $701 million, despite $500 million in separation-related expenses.
Revenue by Segment
Forward Guidance
WBD expects steady growth in streaming and continued free cash flow generation, with headwinds from the absence of NBA content and modest marketing investments ahead of major international launches.
Positive Outlook
- Streaming on track to hit 150M subscribers by end of 2026.
- Free cash flow expected to remain strong in Q4.
- HBO Max launches planned in Germany and Italy in Q1 2026.
- Streaming revenue expected to reaccelerate in 1H 2026.
- Password sharing enforcement and US price increases should support revenue growth.
Challenges Ahead
- 300 bps hit to streaming ad revenue in Q4 due to NBA absence.
- Further headwinds expected from NBA content absence in 1H 2026.
- Modest startup costs for upcoming HBO Max launches.
- Distribution revenue growth to remain in low single digits.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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