Warner Bros. Discovery Reports $9.812 Billion Revenue and $1.588 Billion Net Income for Q2 2025

Warner Bros. Discovery, Inc. reported a total revenue of $9.812 billion for the three months ended June 30, 2025, marking a 1% increase from $9.713 billion in the same period last year. The company achieved a net income of $1.588 billion, a significant recovery from a net loss of $10.028 billion in the prior year. For the first half of 2025, total revenues were $18.791 billion, down 4% from $19.671 billion in the first half of 2024, while net income for this period was $1.139 billion compared to a loss of $10.983 billion in the previous year.

The financial performance reflects notable changes, particularly in the advertising segment, which saw a decline of 9% to $2.216 billion for the quarter, attributed to audience declines in domestic networks. Conversely, content revenue increased by 17% to $2.471 billion, driven by a 38% rise in theatrical product revenue, bolstered by successful film releases. The company also reported a significant gain on extinguishment of debt of approximately $2.958 billion, contributing to the improved net income figures.

Strategically, Warner Bros. Discovery announced plans in June 2025 to separate into two publicly traded companies, a move expected to be completed by mid-2026. This separation will create a company focused on streaming and studios, including HBO Max and Warner Bros. Television, while the other will encompass global linear networks and related digital products. The company has also restructured its reportable segments, renaming its Direct-to-Consumer segment to Streaming and its Networks segment to Global Linear Networks.

Operationally, the company reported a total of 125.7 million streaming subscribers as of June 30, 2025, a 22% increase from the previous year. The increase in subscribers was attributed to the global expansion of HBO Max. However, the company faced challenges in its Global Linear Networks segment, with a 9% decline in distribution revenue due to a decrease in domestic linear subscribers. The total employee headcount remained stable, reflecting ongoing efforts to streamline operations amid the restructuring process.

Looking ahead, Warner Bros. Discovery anticipates continued challenges in the advertising market and linear distribution, which may impact future revenues. The company is closely monitoring industry trends, including competition for advertising expenditures and the effects of macroeconomic conditions. The successful execution of the planned separation is expected to position both resulting companies for enhanced operational focus and long-term value creation, although uncertainties remain regarding market conditions and regulatory approvals.