Overview
- Warner Bros. Discovery posted net income of $149 million and total revenue of $8.7 billion in the quarter, a large year-over-year decline driven by weakness outside streaming.
- Direct-to-consumer revenue rose about 10% to roughly $3.08 billion and streaming operating profit increased substantially, supported by international expansion and more ad-supported subscribers.
- Linear-TV ad sales and distribution revenue fell sharply after the company lost NBA rights for the 2025 season and domestic pay-TV subscribers declined, cutting into affiliate fees and ad revenue.
- The studios segment saw a roughly 39% revenue drop and much lower profits because theatrical receipts fell versus the prior-year quarter, and the quarter included about $1.1 billion of pre-tax acquisition, content and restructuring charges.
- The proposed roughly $110 billion merger with Paramount has cleared many regulators but is stalled by U.S. litigation and additional reviews, which could trigger large 'ticking' fees and leave the deal’s closing uncertain.