Warner Bros Discovery delivered quarterly results that showed a modest overall revenue decline alongside continued strength in its streaming business, while traditional media operations suffered notable profit contractions. The company reported total revenue of nearly $9.5 billion, a 6% decline year over year and essentially in line with the LSEG consensus estimate.
HBO Max continued to expand its global footprint during the quarter, adding 3.5 million subscribers and reaching 131.6 million total worldwide. The streaming business benefited from popular new series such as "Heated Rivalry" and "It: Welcome to Derry," which helped drive subscriber growth. Streaming revenue rose 5% to nearly $2.8 billion, though adjusted operating earnings for the streaming group fell 4% to $393 million, an outcome the company attributed to the conclusion of an unspecified distribution agreement.
By contrast, Warner Bros’ legacy studio businesses posted material declines. Adjusted income for the film and television studio group decreased 23% to $728 million. The film studio had no major theatrical releases in the holiday quarter despite releasing nine films that opened at the top of the box office earlier in 2025. Separately, the television studio saw revenue slide 18%, a decline the company linked to the timing of content renewals.
The Discovery Linear Networks unit continued to reflect structural pressure tied to industry-wide pay TV subscriber erosion. Revenue for the television network group declined 12% year over year to $4.2 billion, while adjusted income dropped 27% to $1.4 billion compared with the same quarter a year earlier.
Investor focus is likely to remain fixed on the company’s ongoing strategic discussions. The earnings statement made no mention of the talks with Paramount Skydance, which last week prompted Warner Bros’ board to return to negotiations by flagging the potential for an improved cash offer. The board has stated it has not determined whether the revised Paramount proposal is superior to the merger arrangement with Netflix, but that directors will continue engagement.
Under the terms disclosed around the competing proposals, should the board determine a superior offer has emerged, Netflix would have four business days to amend its bid.
Operational takeaways from the quarter highlight the interplay between content timing, distribution arrangements and subscriber momentum. HBO Max’s subscriber additions and incremental revenue gains illustrate content-led growth in streaming, but the hit to adjusted streaming earnings tied to the end of a distribution deal underscores the sensitivity of reported profitability to contractual shifts. Meanwhile, the studio losses driven by a lack of major holiday theatrical releases and the television studio’s renewal cadence point to timing effects that can materially affect quarterly results.
The company’s results present a mixed picture: growing streaming scale on one hand, and ongoing headwinds in traditional film, television and linear networks on the other. How the board resolves the competing proposals and what that means for corporate strategy remains a central uncertainty for investors.