Warner Bros. Discovery Q3 earnings show a diverging company
Warner Bros. Discovery Q3 earnings show a diverging company
WBD revealed good results from its Streaming & Studios segment, but Global Linear Networks had some struggles in the quarter.
Following a second quarter of 2025 that saw it gain 3.4 million streaming subscribers, Warner Bros. Discovery was able to post another net addition of subscribers in its third-quarter earnings report, which was released on Thursday morning. The data shows that WBD, which now faces myriad questions about its future, didn’t necessarily fare quite so well with all of its quarterly numbers.
Key Details:
- Good news first: Subscribers and profits were up for WBD’s Streaming & Studios segment.
- Still need more: Those gains weren’t enough to offset revenue declines at WBD’s Global Linear Networks.
- Sell or stay: WBD is courting interest from several potential merger partners.
The Q3 earnings report from WBD’s Streaming & Studios business was mostly a bright ray of sunshine for the company. This segment brought in a profit of $1 billion during the quarter, and its revenue of $5.3 billion overall represented an increase of 8%. WBD added a total of 2.3 million additional subscribers during the quarter, now landing at 128 million overall. Theatrical revenue jumped 74% in the quarter, but streaming revenue was flat at $2.6 billion.
At Global Linear Networks, however, profit fell by 20% to $1.7 billion, and revenue fell 22% to $3.8 billion. Consolidated revenue missed Wall Street forecasts as it fell to $1.4 billion, leading to a net loss of $148 million overall. Ad revenue declined for the company by 16% during the quarter.
The biggest story of the third quarter for WBD is no doubt the merger and acquisition opportunities that have arisen for the company. Paramount Skydance has made several attempts to purchase WBD, and other media companies like Netflix have reportedly shown levels of interest in acquiring at least a piece of the storied studio.
WBD is also in the midst of splitting itself in two, with its Streaming & Studios business set to go one way while Global Linear Networks goes another. That division is set to be complete by 2026, and could attract even more M&A chatter to the company as other firms evaluate which parts of WBD are most attractive to them.
The earnings report captures a moment of uncertainty for WBD. The company is seeing positive results from its Streaming & Studios arm, but its Global Linear Networks are continuing to struggle in a cord-cutting world.
HBO Max
HBO Max is a subscription video streaming service that gives access to the full HBO library and exclusive Max Originals. There are hubs for content from TLC, HGTV, Food Network, Discovery, TCM, Cartoon Network, Travel Channel, ID, and more. Watch hit series like “The Last of Us,” “House of the Dragon,” “Succession,” “Curb Your Enthusiasm,” and more. Within HBO Max, B/R Sports allows users to watch live NBA, MLB, NHL, March Madness, and NASCAR events.