Warner Bros. Discovery reported a challenging fourth quarter with declining revenues across most segments, primarily driven by a significant drop in Global Linear Networks. While streaming subscriber growth showed positive momentum, it was offset by a decrease in ARPU and increased content costs. The company continues to manage its debt and focus on operational efficiencies.
Global streaming subscribers increased by 3.5 million sequentially to 131.6 million.
positiveStreaming revenues increased 4% ex-FX to $2,794 million.
positiveStudios segment revenue increased 9% year-over-year for the full year.
positiveCorporate Adjusted EBITDA improved by $44 million due to lower overhead costs.
positiveTotal revenues decreased 7% ex-FX to $9.5 billion in Q4 and 5% ex-FX to $37.3 billion for the full year.
negativeGlobal Linear Networks revenue decreased 13% ex-FX in Q4 and 12% ex-FX for the full year, with Adjusted EBITDA down 27% ex-FX in Q4 and 21% ex-FX for the full year.
negativeStudios revenue decreased 14% ex-FX in Q4, driven by lower content, theatrical, and games revenue.
negativeGlobal streaming ARPU decreased 9% ex-FX to $6.80, with domestic ARPU down 11% to $10.45.
negativeQ4 2025 cash provided by operating activities decreased 34% to $1.8 billion, and free cash flow decreased 43% to $1.4 billion.
negativeFull-year free cash flow decreased 30% to $3.1 billion, unfavorably impacted by approximately $1,350 million of separation & transaction related items.
negativeMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Streaming | N/A | — | — | — |
Studios | N/A | — | — | — |
Global Linear Networks | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Total revenues were $9.5 billion, a 7% ex-FX(1) decrease from the prior year quarter.
Distribution revenues decreased 3% ex-FX, as dynamic underlying growth in global streaming subscribers was more than offset by continued domestic linear pay TV subscriber declines and the impact of the HBO Max domestic distribution deal renewal with a former related party previously disclosed in Q2.
Advertising revenues decreased 9% ex-FX, as ad-lite streaming subscriber growth was more than offset by domestic linear audience declines.
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Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.