Warner Bros. Discovery announced its financial results for the fourth quarter of 2025, revealing a narrowed net loss of $252 million for the period ending December 31. The company reported total revenue of $9.5 billion, slightly exceeding Wall Street expectations, and highlighted growth in its streaming subscriber base, which reached nearly 132 million users.
Streaming revenue rose by 5% year-over-year to $2.8 billion, supported by a surge in both domestic and international HBO Max subscribers. The platform added 3.6 million subscribers compared to the previous quarter, including 1.2 million in the U.S. and 2.4 million internationally. Overall, subscribers increased by 14.7 million since the end of Q4 2024. This growth was bolstered by recent HBO Max launches in Germany and Italy, with planned expansions in the United Kingdom and Ireland scheduled for March 26.
Despite these gains in streaming, Warner Bros. Discovery’s studio segment experienced a 13% decline in sales to $3.2 billion, with box office revenue down 11% and television revenue falling 18%. Gaming sales also decreased significantly, dropping 34%. The company’s global TV channels division saw a 12% revenue decrease to $4.2 billion. Within the global linear networks, distribution revenue dropped 8% and advertising sales fell 14%, primarily attributed to a 22% decline in U.S. audiences and the loss of NBA broadcasting rights.
The company’s free cash flow was reported at $1.4 billion, while total debt stood at $33.5 billion. Warner Bros. Discovery’s reported diluted loss per share was 10 cents, compared to a Wall Street forecast of earnings per share of 0 cents.
Warner Bros. Discovery also addressed ongoing corporate developments related to a potential acquisition. The company confirmed that its board continues to recommend a merger agreement with Netflix for the sale of Warner Bros. Discovery’s studio and streaming assets. However, the board acknowledged a competing bid from Paramount and Skydance, describing it as a possible “company superior proposal.” The company stated it is in discussions with Paramount Skydance to determine if a deal surpassing the Netflix offer can be reached, though no assurances were given about the outcome.
CEO David Zaslav and other executives declined to answer questions about the acquisition battle during the earnings call. The board emphasized its commitment to maximizing shareholder value and certainty while minimizing downside risks, and it will continue to evaluate proposals with this objective.
In summary, Warner Bros. Discovery’s fourth-quarter performance featured improved results in streaming despite declines in other areas of the business, with subscriber growth marking a key highlight amid ongoing strategic corporate negotiations.
