Warner Bros. Discovery (WBD) Q4 2025 earnings summary

Executive summary

• Achieved a historic year in 2025 with nine films debuting number one at the box office, nine Golden Globe wins, and 30 Academy Award nominations.

• HBO and HBO Max delivered breakout series, with It, Welcome to Derry averaging 27 million viewers per episode and strong franchise growth.

• Streaming surpassed 130 million subscribers, ending Q4 with 131.6 million, and targeting over 150 million by year-end 2026 through global expansion and content investments.

• Corporate reorganization and planned separation of Warner Bros. and Discovery Global underway, with a 63% increase in value from initial bids.

• Q4 2025 total revenues were $9.5 billion, down 7% ex-FX year-over-year, with a net loss of $252 million due to $1.3 billion in pre-tax acquisition-related amortization and restructuring expenses.

Financial highlights

• Sequential improvement in advertising trends in Q4 2025, continuing into Q1 2026.

• Over 50% growth in linear hours viewed during the 2026 Milano Cortina Olympic Winter Games compared to 2022.

• Q4 Adjusted EBITDA was $2.2 billion, down 20% ex-FX year-over-year; FY 2025 Adjusted EBITDA was $8.7 billion, down 3% ex-FX.

• FY 2025 cash from operations was $4.3 billion; free cash flow was $3.1 billion, impacted by $1.35 billion in separation and transaction-related items.

• Ended FY 2025 with $29.0 billion net debt and 3.3x net leverage.

Outlook and guidance

• On track to reach over 140 million streaming subscribers by end of Q1 2026 and targeting 150 million by year-end.

• Streaming profits forecasted to triple by 2030, driven by content, subscriber growth, product enhancements, retention, and monetization.

• International ad sales expected to be flat to slightly up in 2026, with EMEA region performing strongly.

• Management highlighted significant risks and uncertainties related to the proposed separation transaction, including regulatory, market, and operational risks.