Warner Bros Q2 Earnings Exceed Expectations Despite Streaming Challenges.

Warner Bros Discovery reported Q2 earnings of $9.81 billion, up 1% YoY, driven by HBO Max's international rollout and blockbuster releases. Streaming revenues increased 8% to $2.8 billion, with 125.7 million subscribers. However, shares fell 7.8% due to concerns over its large debt load and restructuring uncertainty.

Warner Bros. Discovery (WBD) reported its second-quarter (Q2) earnings for 2025, showing a 1% year-over-year (YoY) increase in total revenue to $9.81 billion. The company's performance was driven by the international expansion of HBO Max and several blockbuster releases, including "A Minecraft Movie" and "Sinners." Streaming revenues increased by 8% to $2.8 billion, with the company ending the quarter with 125.7 million global subscribers [2].

However, WBD's shares fell by 7.8% following the announcement, driven by concerns over its large debt load and the uncertainty surrounding its restructuring plans. The company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 9% to $1.95 billion, with the studios segment contributing significantly to this growth [1].

The studios segment, which includes film and television content distribution, reported a 55% increase in revenue to $3.8 billion, with theatrical revenue up by 38% excluding foreign currency exchange impacts. The adjusted EBITDA for the studios segment was $863 million, a significant improvement from the $210 million reported in the same period last year [1].

Warner Bros. Discovery's film releases, including "A Minecraft Movie," "Sinners," "Final Destination: Bloodlines," and "F1," generated over $2 billion in global box office revenue. These releases helped drive the studios segment's strong performance, with the company projecting that the segment will generate at least $2.4 billion in adjusted EBITDA for the full year [1].

The company also announced plans to split into two units next year: Warner Bros., which will include the studios and streaming platform HBO Max, and Discovery Global, which will encompass the TV networks, Discovery+, and sports business. This restructuring aims to better align the company's operations and improve financial performance [1].

Warner Bros. Discovery's Q2 earnings report highlights the company's ability to leverage its extensive content library and international streaming expansion to drive growth. However, the company's large debt load and restructuring uncertainty continue to pose challenges for investors. As the company prepares to split into two separate entities, investors will be closely watching its progress and the impact of these changes on future performance.

References:
[1] https://www.cnbc.com/2025/08/07/warner-bros-discovery-film-studios-second-quarter-results.html
[2] https://finance.yahoo.com/news/warner-bros-discovery-q2-earnings-161100433.html