Warner Bros. Stock Slides After Profit Miss, Cable Ad Sales Tumble

Author: Anusuya Lahiri | November 06, 2025 11:35am

Warner Bros. Discovery Inc (NASDAQ: WBD) stock slid after it reported fiscal third-quarter results on Thursday.

The entertainment company reported quarterly revenue of $9.045 billion, down 6% year-on-year (Y/Y) ex-FX, missing the analyst consensus estimate of $9.150 billion. 

Total revenues excluding the impact of the 2024 Olympics in Europe were flat ex-FX compared to the prior-year quarter.

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Warner Bros. also reported:

• An earnings per share (EPS) loss of 6 cents trailed the analyst consensus estimate of 4 cents loss.
• A net loss of $148 million, compared to a profit of $135 million Y/Y. WBD reported an adjusted EBITDA of $2.47 billion, a 2% ex-FX growth primarily due to growth in the Streaming and Studios segments.
• Distribution revenues declined 4% ex-FX at $4.70 billion due to domestic linear pay-TV subscriber declines. Advertising revenues decreased 17% ex-FX at $1.41 billion due to domestic linear audience declines.
• Content revenues decreased 3% ex-FX to $2.65 billion, primarily driven by the sublicensing of Olympic sports rights to broadcast networks throughout Europe in the prior year partially offset by the stronger performance of the theatrical releases in the current year quarterr.
• $979 million in operating cash flow and $701 million in free cash flow
• $4.3 billion in cash and equivalents. 

Streaming

The company ended the quarter with 128 million subscribers versus 110.5 million Y/Y and 125.7 million quarter-over-quarter (Q/Q).

Streaming revenues remained flat ex-FX to $2.63 billion.

Distribution revenue remained flat ex-FX despite a 16% increase in subscribers, partially offset by an offset to international revenue associated with a legal ruling that may require adjustments to prior customer billings.

Advertising revenue increased 14% ex-FX, primarily driven by increased ad-lite subscribers, partially offset by domestic pricing pressures.

Global streaming ARPU decreased 16% ex-FX to $6.64, primarily attributable to growth in lower ARPU international markets, an offset to international revenue associated with a legal ruling that may require adjustments to prior customer billing and an 13% decrease in domestic streaming ARPU to $10.40. The reduction in domestic streaming ARPU was primarily driven by the first full quarter impact of the domestic distribution deal renewal with a former related party.

Content revenue decreased 27% ex-FX, driven by the launch of HBO Max in new international markets which resulted in lower third-party licensing.

Adjusted EBITDA for the Streaming Segment was $345 million, versus $289 million Y/Y.

Studios

• Revenues increased 23% ex-FX to $3.32 billion.
• Content revenue increased 26% ex-FX.
• Theatrical revenue increased 74% ex-FX, from higher box office revenue (courtesy of “Superman” and “Weapons”) and higher content licensing. Carry-over from the Brad Pitt movie “F1” in Q2 also helped.
• Games revenue decreased 23% ex-FX primarily driven by lower carryover in the current year quarter.
• Adjusted EBITDA for the Studios Segment was $695 million, up from $308 million Y/Y.

Global Linear Networks

Global Linear Networks revenues decreased 23% ex-FX to $3.88 billion. Distribution revenue declined 8% ex-FX, driven by a 9% decrease in domestic linear pay TV subscribers. 

Advertising revenue decreased 21% ex-FX, primarily due to 26% declines in domestic networks' audience and the broadcast of the Olympics in Europe in the prior year. Content revenue decreased 74% ex-FX, primarily due to the sublicensing of Olympic sports rights to broadcast networks throughout Europe in the prior year.

Outlook

Warner Bros. Studios segment expects to meaningfully top its prior guidance of $2.4 billion in adjusted EBITDA and at least $1.3 billion in streaming adjusted EBITDA for full-year 2025.

Price Action: WBD stock is trading lower by 1.05% to $22.53 at last check Thursday.

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Posted In: WBD