Streaming fuels growth for David Zaslav-led company as losses cut to just over $250m
Warner Bros Discovery reported a 6% year-on-year revenue decline in its Q4 earnings down but HBO Max global subs grew to 131.6m.
Revenues came in down at $9.5bn, while WBD reduced losses to $252m loss in the final quarter of 2025, when Netflix and Paramount were making their initial overtures for the company.
WBD’s streaming segment delivered a 5% gain to $2.8bn revenue as distribution and advertising increased by 3% and 18%, respectively. After rolling out in Italy and Germany, international HBO Max membership increased from 70m in Q3 2025 to 72.4m, while North America grew from 58m to 59.2m.
HBO Max will launch in the UK & Ireland on March 26, and WBD executives expect to end Q1 2026 on more than 140m members, and more than 150m by the end of the year.
WBD said it will stop reporting subscriber numbers, a matter which would no longer be in its hands given that Paramount now looks set become the new owner. Netflix and Disney have already stopped reporting quarterly subscriber updates.
The streaming and studios unit saw a 4% revenue increase to $5.6bn as adjusted EBITDA increased by 6% to $1.2bn.
Studios revenue fell 13% to $3.2bn. Warner Bros did not release a film theatrically in the quarter after a sensational 2025 in which a string of hits generated $4.4bn in global ticket sales. Warner Bros has the two best picture Oscar frontrunners in One Battle After Another and Sinners and the outcome will be decided at the 98th Academy Awards on March 15.
The cable TV unit saw a 12% drop in revenue to $4.2bn. This is the division that had been due to be spun off into the Global Networks stand-alone, but which now looks set to be acquired by Paramount as part of its broader acquisition of WBD.
Total revenue for 2025 of $37.3bn dropped 5% year-on-year. Free cash flow reached $1.4bn and the company ended Q4 with $4.6bn of cash on hand, and debt of $33.5bn.
WBD execs did not comment on the potential of a Paramount or Netflix takeover on the earnings call, which took place before Paramount’s bid was deemed to be superior to Netflix’s, causing the streamer to walk away from its $82.7bn deal.
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