Warner Bros. Discovery (WBD) Q1 2025 earnings summary

Executive summary

• Net loss for Q1 2025 was $453 million, a significant improvement from $966 million in Q1 2024, driven by strong streaming growth and improved profitability, despite revenue declines in Studios and Global Linear Networks.

• Total revenues for Q1 2025 were $8.98 billion to $9.0 billion, down 9–10% year-over-year, reflecting declines in distribution, advertising, and content revenues.

• Streaming segment added over 5 million subscribers in Q1, reaching 122.3 million globally, and delivered $339 million in EBITDA.

• Adjusted EBITDA was $2.1 billion, flat to up 4% ex-FX, with growth in Streaming and Studios offsetting declines elsewhere.

• Implemented a new corporate structure, now operating as Streaming & Studios and Global Linear Networks divisions, with continued focus on cost management, content investment, and debt reduction.

Financial highlights

• Revenues: $8.98 billion to $9.0 billion, down 9–10% year-over-year; distribution revenue down 1–2%, advertising down 8%, content down 25–27%.

• Net loss: $453 million, improved from $966 million net loss in Q1 2024.

• Adjusted EBITDA: $2.1 billion, flat to up 4% ex-FX; Streaming Adjusted EBITDA rose to $339 million from $86 million.

• Operating loss: $37 million, compared to $267 million loss in Q1 2024.

• Cash provided by operating activities: $553 million; cash and equivalents at quarter-end: $3.9–4.0 billion.

Outlook and guidance

• Streaming EBITDA expected to reach at least $1.3 billion in 2025, an 85% increase over 2024, with subscriber base projected to surpass 150 million by end of 2025.

• Management expects continued pressure on linear distribution and advertising, with ongoing declines in linear subscribers and softness in the U.S. ad market.

• No specific quantitative guidance provided for the remainder of 2025; forward-looking statements caution results may differ due to risks and uncertainties.

• Studio EBITDA target of $3 billion remains, with significant progress anticipated this year and a strong Q2 expected.

• Moderate annual increases in content spend and CapEx planned to support growth.