Q4 revenues fall at Warner Bros Discovery
By Abigail Townsend
Date: Thursday 26 Feb 2026
(Sharecast News) - Media giant Warner Bros Discovery posted a fall in quarterly earnings on Thursday, on the back of weaker performances across its studios and traditional television arms.
The owner of HBO and CNN, which is at the centre of a bidding war with Netflix and Paramount Skydance, saw total revenues fall 7% on a constant currency basis in the three months to December end, to $9.46bn, in line with forecasts.
Adjusted earnings before interest, tax, depreciation and amortisation were 20% lower at $2.22bn.
Fourth-quarter streaming revenues were 4% higher at $2.8bn, supported by a jump in subscribers. Numbers rose by 3.5m to bring the total number of worldwide subscribers to 131.6m.
WBD's more traditional businesses fared worse, however. Revenues in the studios fell sharply, down 14% to $3.2bn, hurt by a lack of major releases during the quarter, while in global linear networks they were 13% lower at $4.2bn as the industry-wide decline in pay TV subscribers continued.
Over the full year, total revenues fell 5% to $37.3bn, after a strong showing in studios in the first three quarters and a rise in global streaming subscribers was offset by 13% slide in global linear networks. Group adjusted EBITDA was 3% lower at $8.7bn.
WBD said that 2025 had been a "significant year", with the studios division "the clear standout" following the release of popular films such as A Minecraft Movie and Superman alongside critically acclaimed titles such as Sinners and One Battle After Another.
It concluded: "We continue to execute against our strategic pillars. The studios segment is making meaningful progress towards turning to industry leadership and our $3bn adjusted EBITDA goal. We expect to exceed 150m global subscribers by the end of 2026.
"A global linear networks, we are building on our assets that underpin long-term value creation: our resilient international footprint, our premier global sports portfolio [and] a modernised CNN."
WBD is currently being courted by both Netflix and Paramount. It has agreed to be taken over by Netflix in a $82.7bn deal, and shareholders are due to vote on the deal in March. However, earlier this week it agreed to resume discussions with Paramount after it sweetened its rival offer to $31 a share.
It did not discuss the takeover tussles in the earnings statement.
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