Warner Bros. Discovery, Inc. (Nasdaq: WBD) reported third‑quarter 2025 results before the bell on Thursday, detailing a sharper‑than‑expected loss as cord‑cutting weighed on TV networks, while the film studio outperformed on the back of “Superman” and other tentpoles. Management also reiterated that a strategic review—ranging from a full or partial sale to a previously announced two‑way split—remains underway, with no hard deadline. 1
Top takeaways (Q3 FY2025)
- Revenue:$9.05B, down 6% year over year. 2
- Net result:-$148M (‑$0.06 per share). 2
- Adjusted EBITDA:$2.47B, up 2% YoY. 2
- Free cash flow:$701M; operating cash flow$979M. 2
- Cash & debt:$4.3B cash; $34.5B gross debt; 3.3x net leverage. 2
- Streaming subscribers:128.0M, +2.3M net adds vs. Q2. 2
By segment (revenue): Streaming $2.63B (flat), Studios $3.32B (+24%), Global Linear Networks $3.88B (‑22%). Studio growth was driven by “Superman,” “Weapons,” and “The Conjuring: Last Rites.” 2
What management said — and what it means
Strategic review & potential transactions. CEO David Zaslav told investors “an active process” is underway. Options include (1) completing the already announced separation of the business into two companies—Streaming & Studios and Global Networks—or (2) pursuing other structures including selling parts or potentially the whole company. Management emphasized there is no deadline for a decision. 1
Background: WBD revealed plans in June to split into two companies by mid‑2026 (subject to approvals), with Streaming & Studios housing HBO/Max and Warner Bros. Pictures/TV, and Global Networks encompassing CNN, TNT Sports and Discovery’s linear portfolio. 3
Incoming M&A interest: Reuters reported last week that Netflix retained Moelis & Co. to explore a bid for WBD’s studio and streaming assets; Comcast has also evaluated possibilities, while some analysts view David Ellison‑led Skydance/Paramount as a logical suitor. WBD declined to discuss specific parties. 4
Sports strategy & product changes. Zaslav said sports will be a “key pillar” of the Discovery Global (networks) business after the split. The company is planning a standalone U.S. sports app tied to TNT Sports’ rights portfolio (with HBO Max set to phase out live sports domestically post‑separation). Outside the U.S., sports remain within Max. The loss of U.S. NBA live games beginning with the 2025‑26 season will pressure advertising comparisons in Q4 2025 and 1H 2026—management quantified an expected ~300 bps ad hit in streaming for Q4 and ~400 bps in cable networks. 1
Where WBD won — and where it struggled
Studio momentum: Warner Bros. Pictures delivered a standout quarter as “Superman” led a slate that lifted Studio revenue 24%. The performance underscores WBD’s IP leverage across DC, New Line horror and original genre plays. 1
Streaming steady, but growth mixed: Streaming revenue held essentially flat at $2.63B; net adds of +2.3M brought the base to 128.0M. Management pointed to fewer new seasons after last year’s Paris Olympics and flagship debuts as a near‑term headwind, with upcoming content and international rollouts expected to reaccelerate momentum. 2
Linear networks under pressure: Global Linear Networks revenue fell 22% on cord‑cutting and softer ad demand—illustrating why investors and potential acquirers prize the faster‑growing Streaming & Studios side relative to legacy TV. 2
Pricing, password sharing and product roadmap
WBD reiterated that Max price increases introduced last month—raising monthly rates across tiers—plus a stricter approach to account sharing are designed to lift distribution revenue as 2026 begins. Reported current U.S. monthly rates: Basic with Ads $10.99, Standard $18.49, Premium $22.99. 5
Sports rights update (today)
Separately today (Nov. 6), WBD Sports Europe said it is expanding luge coverage across Europe through a partnership with the International Luge Federation (FIL)—with Eurosport and TNT Sports (UK & Ireland) carrying all major World Cup events and Max/discovery+ providing comprehensive streaming (territorial exclusions apply). The move strengthens WBD’s winter‑sports portfolio ahead of Milano Cortina 2026. 6
By the numbers (Q3 detail)
- Revenue mix: Distribution $4.70B (‑4%), Advertising $1.41B (‑16%), Content $2.65B (‑3%), Other $287M (‑4%). 2
- Segment revenue: Streaming $2.633B (flat), Studios $3.321B (+24%), Global Linear Networks $3.883B (‑22%). 2
- Adjusted EBITDA by segment: Streaming $345M (+19%), Studios $695M (up sharply YoY). 2
What to watch next
- Deal decision & structure. Will WBD pursue a sale of assets, a whole‑company transaction, or proceed with the mid‑2026 split into Streaming & Studios and Global Networks? Management says there’s no firm deadline. 1
- NBA transition math. Expect ad‑revenue headwinds in Q4 2025 and 1H 2026 as U.S. NBA live games exit TNT/Max; watch how a TNT Sports app and new rights (NHL, MLB, March Madness, European properties) offset the gap. 1
- Max monetization. Do price hikes and paid‑sharing enforcement improve ARPU and churn? Look for updates as European Max launches expand in 2026. 5
- Studio slate durability. “Superman” helped Q3; keep an eye on the release calendar (DC, franchise horror and event films) and downstream windows on Max. 1
Editorial note
This article covers all material WBD developments published today (November 6, 2025)—notably Q3 earnings and the WBD Sports luge expansion—and provides necessary background on the company’s ongoing strategic review and previously disclosed plan to split in 2026.
Sources & further reading
- Warner Bros. Discovery Q3 results and strategic review commentary; subscriber adds; advertising outlook; sports‑app plan. 1
- Official Q3 2025 numbers (revenue, FCF, segment detail, subs, leverage). 2
- Max price increases and password‑sharing enforcement framework. 5
- WBD Sports Europe extends luge coverage (Eurosport/TNT Sports; Max/discovery+). 6
- Prior announcement: WBD to split into two companies by mid‑2026. 3
- Prior week: Netflix actively exploring a bid for WBD’s studio & streaming assets. 4
Disclosure: This analysis is for informational purposes only and is not investment advice.
