Warner Bros. Discovery Q4 Revenue to Drop 5.7% to $9.46B, Netflix Sale Looms
Warner Bros. Discovery projects Q4 2025 revenue of $9.46 billion, down 5.7% year over year, and a $0.08 per-share loss versus $0.20 a year ago, with estimates cut 11.1% over 30 days. The $82.7 billion Streaming & Studios sale to Netflix and NBA cost relief shape outlook.
1. Q4 2025 Earnings Expectations
Warner Bros. Discovery will report fourth-quarter results on February 26, with consensus revenue of $9.46 billion, a 5.7% decline from the prior year, and a loss per share of $0.08 versus a $0.20 loss in Q4 2024. Analysts have trimmed revenue and loss estimates by 11.1% over the past month, reflecting cautious visibility.
2. Streaming Initiatives and Cost Tailwinds
The company expects its password-sharing conversion initiative to boost HBO Max engagement, supported by key content releases such as One Battle After Another and other Pay-One films. Management also forecasts approximately $100 million in sports cost relief from easing NBA rights overlap, offering a modest margin tailwind.
3. Linear Networks Pressures
Linear television operations continue to drag on overall performance, as domestic advertising revenues fall with audience declines and pay-TV subscriber erosion persists. Lingering effects of the HBO Max domestic distribution deal renewal have also suppressed distribution revenue into the quarter.
4. Netflix Acquisition and Separation Uncertainty
In December 2025, Netflix agreed to acquire Warner Bros. Discovery’s Streaming & Studios division for $82.7 billion in enterprise value, setting a valuation floor but creating deal-closure and regulatory uncertainties. The pending separation of the Discovery Global networks business adds complexity to the company’s standalone outlook.