Entertainment giant trims Q4 losses to $252M, grows streaming to 131.6M subs while weighing Netflix merger against Paramount bid.
As takeover talks swirl, Warner Bros. Discovery is showing signs of financial steadiness — even as its traditional TV and film businesses continue to struggle.
The David Zaslav-led company reported Thursday that it narrowed its fourth-quarter 2025 losses to $252 million, or 10 cents per share, on $9.5 billion in revenue. That’s slightly better than Wall Street expected, though still a loss.
Free cash flow came in strong at $1.4 billion, while total debt stands at $33.5 billion.
The brighter spot? Streaming.
WBD’s direct-to-consumer division reached 131.6 million global subscribers by the end of December, adding 3.6 million customers in the quarter. Domestic subscribers rose by 1.2 million, while international markets added 2.4 million — helped by expanded rollouts of HBO Max in Germany and Italy.
Launches in the U.K. and Ireland are set for March 26, and the company says it expects to surpass 140 million subscribers by the end of Q1 2026, with a goal of topping 150 million by year’s end.
Streaming revenue climbed 5% year-over-year to $2.8 billion. Ad sales in the segment jumped 18%, a rare bright spot in a soft ad market.
But the rest of the business told a tougher story.
Studio revenue fell 13% to $3.2 billion, with box office down 11%, TV revenue dropping 18%, and gaming sales plunging 34%. Global linear networks revenue declined 12% to $4.2 billion, hurt by an 8% drop in distribution revenue and a 14% slide in ad sales.
The company pointed to a 22% decline in U.S. audiences and the loss of NBA rights as key reasons.
Adding to the uncertainty is WBD’s ongoing merger battle. The company has a merger agreement in place with Netflix for its studio and streaming assets. However, Paramount Skydance has submitted a higher proposal for the entire company, including its linear networks.
WBD’s board says it continues to recommend the Netflix deal but is reviewing whether Paramount’s latest offer could qualify as a “superior proposal.”
One more change: Q4 2025 will be the final quarter WBD regularly reports subscriber numbers — following a path recently taken by Netflix and Disney.
For now, the company is balancing growth in streaming with ongoing pressure across Hollywood and cable — all while its future ownership remains up in the air.
