Warner Bros Discovery

WBD Q1 2025 Earnings

Reported May 8, 2025 at 7:05 AM ET · SEC Source

Q1 25 EPS

$-0.18

MISS 39.00%

Est. $-0.13

Q1 25 Revenue

$8.98B

MISS 6.49%

Est. $9.60B

Did WBD Beat Earnings? Q1 2025 Results

Warner Bros. Discovery delivered a disappointing first quarter, missing on both the top and bottom lines as the ongoing collapse of its linear TV business and a thin theatrical slate weighed heavily on results. Revenue fell 9.8% year-over-year to $8.… Read more Warner Bros. Discovery delivered a disappointing first quarter, missing on both the top and bottom lines as the ongoing collapse of its linear TV business and a thin theatrical slate weighed heavily on results. Revenue fell 9.8% year-over-year to $8.98 billion, coming in 6.49% below the $9.60 billion consensus, while the adjusted loss per share of $0.18 missed estimates of $0.13 by 39.00%, with the shortfall driven largely by a 27% ex-FX plunge in content revenues tied to the absence of marquee theatrical releases that had boosted the year-ago period. Yet the streaming narrative offered genuine encouragement, with Max adding 5.3 million subscribers to reach 122.3 million globally and streaming Adjusted EBITDA surging to $339.00 million from $86.00 million a year ago, reinforcing management's confidence in delivering at least $1.30 billion in streaming Adjusted EBITDA for full-year 2025. Post-quarter box office momentum, including A Minecraft Movie approaching $900.00 million globally, and the Superman release slated for July 11, underpin the case for a meaningful Studios recovery, even as S&P's recent downgrade of WBD's debt to junk status serves as a pointed reminder of the structural pressures still confronting the business.

Key Takeaways

  • Streaming subscriber growth of 5.3 million sequentially to 122.3 million globally
  • Streaming advertising revenue up 35% ex-FX driven by ad-lite subscriber growth
  • Streaming Adjusted EBITDA increased to $339M from $86M YoY
  • Studios Adjusted EBITDA up 63% ex-FX despite lighter theatrical slate
  • Games content expense decreased 66% ex-FX due to prior year Suicide Squad impairment
  • Corporate costs improved by $113M driven by release of non-income tax reserves, lower facility costs, and lower securitization expense
  • Content hits including The White Lotus Season 3 (25M+ global viewers per episode), The Pitt (12M+ worldwide viewers per episode)
  • Distribution revenue growth from 2% increase in domestic affiliate rates
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WBD YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

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WBD Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q4 25