Warner Bros Discovery 4Q subscriber net adds 3.5M, est. 3.09M || 4Q loss/shr 10c, est. loss/shr 3.8c || 4Q total subscribers 131.6M, est. 131.38M || 4Q streaming adj. EBITDA $393M, -3.9% y/y

Warner Bros Discovery 4Q subscriber net adds 3.5M, est. 3.09M || 4Q loss/shr 10c, est. loss/shr 3.8c || 4Q total subscribers 131.6M, est. 131.38M || 4Q streaming adj. EBITDA $393M, -3.9% y/y

Warner Bros. Discovery Reports Q4 2025 Earnings: Subscriber Growth Outpaces Estimates, but Loss Widens

Warner Bros. Discovery (WBD) reported fourth-quarter 2025 financial results on Feb. 26, showing mixed performance amid ongoing strategic and operational challenges. The company added 3.5 million net streaming subscribers, exceeding the estimated 3.09 million, bringing total global subscribers to 131.6 million, slightly above the projected 131.38 million. Despite this progress, the quarterly loss per share widened to 10 cents, surpassing the estimated 3.8-cent loss, while revenue fell short of expectations, aligning with a projected 5.7% year-over-year decline to $9.46 billion.

Streaming adjusted EBITDA for the quarter was reported at $393 million, reflecting a 3.9% year-over-year decline. The results highlight persistent pressures in the linear networks segment, where domestic advertising revenue remains weak due to audience declines and pay-TV subscriber erosion. Additionally, the residual impact of the HBO Max domestic distribution deal renewal continued to weigh on distribution revenues.

Positive factors included momentum from the password-sharing conversion initiative, which management described as "in its early innings," and a content slate featuring titles like One Battle After Another on HBO Max. The company also benefited from $100 million in sports cost relief as NBA rights overlap eased. However, these gains were offset by broader industry headwinds and uncertainty surrounding the pending $82.7 billion acquisition of WBD's Streaming & Studios division by Netflix, announced in December 2025.

Peer performance in the media sector varied, with Warner Music Group reporting 10.4% revenue growth and News Corp exceeding estimates by 3%. WBD's stock, up 2.4% in the past month, trades near its $28.92 level, with an average analyst price target of $29.21.

Analysts note that while subscriber growth and cost management efforts provide near-term support, structural challenges and regulatory uncertainties around the Netflix deal may limit investor confidence. The Zacks model assigns WBD a Rank #3 (Hold), citing a -126.42% Earnings ESP and mixed historical earnings performance. Investors are advised to monitor developments in the acquisition process and Q4 operational trends ahead of further strategic decisions.