Warner Bros. Discovery (NASDAQ:WBD) executives used the company’s fourth-quarter and full-year 2025 earnings call to highlight momentum in the studio and streaming businesses, discuss plans for the upcoming separation of Discovery Global, and outline what management sees as improving trends in advertising and subscriber growth.
Management emphasized a strong 2025 for theatrical releases and an expanding film slate
Chief Executive Officer David Zaslav said the Warner Bros. Motion Picture Group posted a “historic run of success” in 2025, citing nine films that debuted at number one at the box office and seven consecutive films opening above $40 million. He said Warner Bros. titles spent 16 total weeks atop the global box office.
Looking ahead, Zaslav said the company’s momentum carried into early 2026, citing Wuthering Heights as the “ninth consecutive theatrical release to open number one,” generating more than $160 million globally in two weeks with an $83 million opening weekend. He outlined a 2027 slate including major franchise entries such as Godzilla vs. Kong 3, Superman: Man of Tomorrow, Minecraft 2, Conjuring: First Communion, Batman Part 2, Gremlins, and Lord of the Rings: Hunt for Gollum.
HBO and streaming content drove viewership, while global rollout continued
Zaslav said HBO and HBO Max delivered several “breakout sensations” in the fourth quarter. He highlighted It, Welcome to Derry, which he said delivered the fourth-strongest debut season in HBO history, averaging 27 million viewers per episode, and Heated Rivalry, which he said averaged 13 million viewers per episode.
He also cited first-quarter 2026 audience growth for returning series, including The Pitt and Industry, which he said saw 30% and 50% audience growth, respectively, versus prior seasons. Zaslav said A Knight of the Seven Kingdoms debuted strongly, averaging more than 24 million viewers per episode and growing. He listed additional 2026 programming expected to return or debut, including House of the Dragon, Euphoria, The Gilded Age, Dune: Prophecy, Hacks, Lanterns, and Stuart Fails to Save the Universe.
On the direct-to-consumer business, Zaslav said Warner Bros. Discovery exceeded the 130 million subscriber target it set in August 2022. He said HBO Max launched in Germany and Italy, with launches in the U.K. and Ireland coming next. Management said it was on track to surpass 140 million total streaming subscribers by the end of the first quarter and to exceed 150 million by year-end.
In a separate exchange focused on streaming economics, management described several drivers it believes can support growth in streaming profitability over time, including strengthening content, subscriber volume and penetration growth (including from newer market launches), product improvements aimed at engagement and retention, churn reduction initiatives, and monetization through subscription pricing and advertising growth, particularly internationally where fill rates were described as relatively low.
Discovery Global separation: leverage, international dynamics, and sports positioning
Chief Financial Officer Gunnar Wiedenfels addressed investor questions about the upcoming separation of Discovery Global, including concerns around leverage. Wiedenfels said that based on figures disclosed in the company’s proxy materials, Discovery Global would begin with “roughly” 3.3x net leverage, which he called “absolutely sustainable and supportable.” He added that he expected Discovery Global to receive “single B, maybe low double B” ratings, while noting final ratings were not yet set.
Wiedenfels also said the company was not targeting significant debt moves, noting the proxy included an estimated $0 to $2 billion range to provide flexibility. When asked directly if he was worried about leverage, Wiedenfels responded, “Absolutely not.”
He emphasized what he called Discovery Global’s international scale and said international advertising trends differed from the domestic market, stating the company expected international ad sales to be flat to slightly up for the year. Wiedenfels also pointed to sports as a differentiator, saying that over the past 12 months the portfolio included 140 events reaching 2 million people or more. He said the company would remain committed to supporting the sports portfolio and would be disciplined on economics when pursuing new rights.
Wiedenfels also discussed discovery+, saying the service still had “millions” of regular viewers and that the company had reopened purchase flows in certain international territories. He said discovery+ was profitable, as described in proxy materials, and that management saw additional opportunity ahead.
On CNN, Wiedenfels described it as the “most trusted global news brand” with an “unrivaled” newsgathering organization. He said viewership spiked entering the first quarter and pointed to the launch of CNN All Access as part of an effort to broaden monetization.
Advertising trends improved sequentially; games pipeline described as rebuilding
Wiedenfels said the company saw sequential improvement in advertising trends during the fourth quarter that continued into the first quarter. He said the U.S. ad market was “relatively consistent with prior quarters,” and that the sequential improvement occurred despite a 100 basis point NBA-related headwind to ad sales. He attributed improvement to the upfront cycle, scatter premiums, and better underlying audience delivery across the portfolio. He also said international advertising outperformed the U.S., with EMEA described as continuing to do well and potentially showing stability or “a little bit of growth” heading into 2026.
In response to a question about video games, streaming and games chief JB Perrette said 2025 was a “reset” year for the games business, focused on returning to proven studios, proven game types, and proven player demand after management had pursued too many IPs across too broad a studio base. Perrette said 2026 would look similar to 2025 because the pipeline was not replenished during the reset period, with the “real fruits” expected in 2027 and 2028 tied to a return to major franchises that have not yet been announced.
For 2026 releases, Perrette highlighted two launches:
- A LEGO Batman series scheduled for May from TT Games, which Perrette said was tracking well and had strong quality feedback.
- Dragonfire, a second mobile title tied to the Game of Thrones: Conquest franchise, expected to launch in the summer from the company’s Boston studio.
During the call, investor relations noted that management would not take questions regarding a proposed Netflix transaction or discussions with Paramount Skydance.
About Warner Bros. Discovery (NASDAQ:WBD)
Warner Bros. Discovery (NASDAQ: WBD) is a global media and entertainment company formed when WarnerMedia and Discovery, Inc combined their businesses in 2022. Headquartered in New York City, the company assembles a broad portfolio of film and television production, linear and cable networks, streaming services and consumer distribution operations. Its assets span well-known studio brands, premium scripted and unscripted programming, news and factual entertainment, and licensed franchise properties.
The company’s core activities include film and television production and distribution through units such as Warner Bros.
Featured Articles
- Five stocks we like better than Warner Bros. Discovery
- MAJOR BUY ALERT: Mar-a-Lago/Trump/Elon
- REVEALED: Something Big Happening Behind White House Doors
- Why the Smart Money Is Looking Beyond Single-Metal Stories
- ALERT: Drop these 5 stocks before the market opens tomorrow!
- Read this or regret it forever
