Warner Bros. Discovery (WBD) Q4 2025 earnings summary

Executive summary

• Achieved a historic year in film, with nine movies debuting at number one and multiple box office records, including seven consecutive films opening above $40 million and 16 weeks atop the global box office.

• Won nine Golden Globe Awards and received 30 Academy Award nominations, reflecting critical and audience acclaim for original and franchise films.

• HBO and HBO Max delivered strong global TV hits, with series like It, Welcome to Derry, and Heated Rivalry driving significant viewership growth and cultural impact.

• Q4 2025 total revenues were $9.5 billion, down 7% ex-FX year-over-year, with declines in distribution, advertising, and content revenues.

• Ended Q4 with 131.6 million streaming subscribers, up 3.5 million from Q3.

Financial highlights

• Sequential improvement in advertising trends in Q4, continuing into Q1, with strong performance in both linear and streaming platforms.

• 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.

• Q4 cash provided by operating activities was $1.8 billion; free cash flow was $1.4 billion, impacted by $600 million in separation and transaction-related items.

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

• International ad sales projected to be flat to slightly up, outperforming domestic trends due to strong free-to-air presence.

Outlook and guidance

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

• International streaming businesses are profitable within 1-2 years of launch, ahead of initial expectations.

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

• Discovery Global's capital structure expected to support single B to low double B credit ratings.

• Continued focus on cost efficiencies, including AI-driven initiatives, and disciplined approach to sports rights acquisitions.