Warner Bros. Discovery (WBD) Reports Record Box Office Run, Outlines Streaming Growth and Strategic Separation (WBD Q4 2025 Earnings Call)

By Dr. Graph | Updated on Apr 29, 2026 | earnings

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Warner Bros. Discovery (WBD) concluded a transformative 2025 by delivering a historic run at the global box office and robust growth in its streaming division. During its Q4 earnings call, CEO David Zaslav celebrated an unprecedented streak of theatrical hits, culminating in a leading 30 Academy Award nominations. At the same time, the company’s streaming platform, HBO Max, continues its aggressive global expansion, raising its subscriber targets. Looming over the strong operational results is the highly anticipated strategic separation of the company into Warner Bros. and Discovery Global, a move designed to unlock shareholder value and optimize the distinct operational profiles of its studio and network assets.

A Historic Year for the Motion Picture Group

Warner Bros. Motion Picture Group delivered what management described as a historic run in 2025. The studio achieved seven consecutive films opening with more than $40 million in box office sales—a first for any studio. Nine films debuted at number one globally, keeping WBD at the top of the global box office for 16 total weeks. The slate included massive tentpoles like the Minecraft movie and Superman, alongside highly successful originals like One Battle After Another (which won the Golden Globe for Best Picture, Musical or Comedy) and Sinners. The studio's momentum is continuing, as it heads into the upcoming awards season with an industry-leading 30 Academy Award nominations. Looking ahead, the pipeline remains formidable with The Batman Part II and Minecraft 2 slated for 2027, along with expansions of the Godzilla vs. Kong and Lord of the Rings franchises.

Streaming Subscriber Growth and Profitability

The company’s streaming segment is accelerating its global rollout, recently launching in Germany and Italy, with the UK and Ireland on the horizon. Management announced they are on track to reach over 140 million total streaming subscribers by the end of Q1 2026 and are poised to exceed 150 million subscribers by the end of 2026. Notably, JB Perrette, CEO of Global Streaming and Games, highlighted an internal forecast expecting streaming profits to roughly triple by 2030. This growth is underpinned by multiple levers: strong content delivery (with returning hits like The White Lotus and House of the Dragon), geographic expansion, the initiation of password-sharing enforcement in 2026, and early-stage ad sales growth on streaming tiers.

Linear Networks and the Olympic Lift

Despite well-known secular headwinds in traditional television, WBD's linear networks commanded a dominant 30% of all prime-time cable viewing in the U.S. and accounted for 17 of last year's top 25 new cable series. The company noted sequential improvement in advertising trends during Q4 that has carried into Q1. Internationally, the networks division received a massive boost from the 2026 Milano Cortina Olympic Winter Games. WBD reported that streaming audiences for the event more than tripled, and linear hours viewed across Europe jumped over 50% compared to the 2022 Winter Games.

Strategic Review and Discovery Global Separation

A focal point for investors is the ongoing strategic review and planned separation of the company into Warner Bros. and Discovery Global. CFO Gunnar Wiedenfels addressed concerns regarding the capital structure of the spin-off, noting that Discovery Global is expected to debut with a highly sustainable net leverage ratio of roughly 3.3x and projected single-B to low double-B credit ratings. Wiedenfels emphasized the strength of Discovery Global's international footprint, where the company expects ad sales to remain flat to slightly up this year, driven by free-to-air presence in key markets and a robust portfolio of premium sports rights and trusted news (CNN).

Gaming Reset and Future Pipeline

Addressing the video game segment, management acknowledged that 2025 was a "reset" year as the company refocused on proven studios and core IPs following some distractions. While 2026 will largely mirror 2025 financially as the pipeline replenishes, WBD is gearing up for two major launches: a new console/PC game from TT Games in May, and a highly anticipated mobile title, Game of Thrones: Dragonfire, launching this summer from its Boston studio.

Frequently Asked Questions

What were the major box office achievements for Warner Bros. in 2025?

Warner Bros. became the first studio to have seven consecutive films open with over $40 million. They had nine films debut at number one, dominated the global box office for 16 weeks, and secured 30 Academy Award nominations.

What is WBD's target for streaming subscribers?

WBD expects to reach over 140 million total streaming subscribers by the end of Q1 2026 and is on track to surpass 150 million subscribers by the end of the year, driven by European expansion.

What is the leverage expectation for Discovery Global post-separation?

CFO Gunnar Wiedenfels stated that Discovery Global will debut with a sustainable net leverage of roughly 3.3x, and the company expects it to secure single-B or low double-B credit ratings.