Warner Bros. Discovery swung to a profit and saw revenue growth of 1% during its second quarter of 2025, driven primarily by studios and streaming businesses.
The streaming business saw revenue grow 9% to $2.8 billion and eked out a profit of $293 million, compared to a loss of $107 million a year ago. Meanwhile, studios grew revenue 55% to $3.8 billion, while its profits came in at $863 million, up from a profit of $210 million a year ago. But the global linear networks business weighed on the results with revenue falling 9% to $4.8 billion and profits falling 25% to 1.5 billion.
Here are the quarterly results:
Net income: $1.58 billion, compared to a loss of $9.99 billion a year ago.
Earnings Per Share: 63 cents per diluted share, compared to a loss of 23 cents a share expected by analysts surveyed by Yahoo Finance.
Revenues: $9.81 billion, flat year over year, compared to $9.83 billion expected by analysts surveyed by Yahoo Finance.
Streaming subscribers: Added 3.4 million subscribers for a total of 125.7 million globally.
WBD is targeting at least 150 million streaming subscribers by the end of 2026 and anticipates the streaming segment will deliver a profit of approximately $1.3 billion in 2025. It also has set a long-term goal to reach at least $3 billion of adjusted EBITDA in its studios division.
The latest results come as WBD is gearing up to split into two companies in mid-2026: Warner Bros. and Discovery Global.
The former, which will be led by WBD CEO David Zaslav, will house Warner Bros. Television Group, Warner Bros. Motion Picture Group, DC Studios, HBO and HBO Max, Warner Bros. Games, Tours, Retail and Experiences, as well as studio production facilities in Burbank and Leavesden.
The latter, which will be led by CFO Gunnar Wiedenfels, will include CNN, TNT Sports in the U.S., Discovery, top free-to-air channels across Europe, Discovery+ and Bleacher Report (B/R). Discovery Global will retain a 20% stake in Warner Bros. to help the company deleverage and is expected to take the majority of WBD’s debt.
WBD ended the quarter with $4.9 billion of cash on hand and $35.6 billion of gross debt.
More to come…
