While at the center of a tug-of-war between Paramount Skydance and Netflix, Warner Bros. Discovery reported its fourth-quarter 2025 earnings results Thursday.
According to the David Zaslav-led company, WBD narrowed its losses to $252 million during the October-December quarter and saw streaming subscribers reach nearly 132 million amid an increased international rollout for HBO Max.
“With the successful recent launches of HBO Max in Germany and Italy, as well as the upcoming launches in the United Kingdom and Ireland on March 26th, we expect to finish the first quarter of 2026 with more than 140 million subscribers, well on our way to more than 150 million subscribers by year end,” Warner Bros. Discovery said in a letter to shareholders accompanying the financials.
In these materials, Warner Bros. Discovery stated CEO Zaslav and other WBD brass “will not be answering any questions” during the earnings call with analysts Thursday regarding WBD’s acquisition battle between intended buyer Netflix, which already has a merger agreement in place to buy WBD’s studio and streaming assets, and eager suitor Paramount, which just upped its bid for the whole company, including the linear networks.
“While the Netflix Merger Agreement remains in effect and the Board continues to recommend the Netflix transaction and has not withdrawn or modified its recommendation, the Board recently determined that the latest proposal from Paramount Skydance (“PSKY”) could reasonably be expected to lead to a “Company Superior Proposal” as defined in the Netflix Merger Agreement,” the company wrote. “WBD continues to engage with PSKY to determine if a proposal that constitutes such a “Company Superior Proposal” can be reached. There can be no assurance that the Board will conclude that the transaction proposed by PSKY is superior to the merger with Netflix or that any definitive agreement or transaction will result from Warner Bros. Discovery’s discussions with PSKY. The Board remains committed to maximizing shareholder value and certainty while mitigating downside risks, and the Board will evaluate any proposal against that standard with the objective of delivering the best deal for our shareholders.”
Streaming revenue was up 5% year-over-year to reach $2.8 billion. Sales for the studio segment were down 13% at $3.2 billion. WBD’s global TV channels division saw a 12% drop to $4.2 billion.
Within the streaming business, distribution sales were up 3% ($2.4 billion) and ad sales jumped 18% to $278 million.
Streaming subscribers reached 131.6 million, an increase of 3.6 million customers vs. the July-September 2025 period. Domestic subscribers were up 1.2 million and international subscribers rose 2.4 million. Overall, streaming subscriptions were up 14.7 million vs. Q4 2024.
Turning to WBD’s studios segment, box office was down 11%, TV revenue was down 18% and gaming sales dropped a whopping 34%.
Warner Bros. Discovery’s global linear networks saw an 8% decrease in distribution revenue and 14% drop in ad sales. WBD attributes that advertising revenue decrease primarily to U.S. audience decline of 22% and the loss of its NBA rights.
Wall Street forecast earnings per share (EPS) of 0 cents on $9.37 billion in revenue, according to analyst consensus data provided by LSEG. WBD reported a diluted loss per share of 10 cents, or a net loss of $252 million, on $9.5 billion in revenue.
Free cashflow stood at $1.4 billion. The company’s debt currently stands at $33.5 billion.
variety.com
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