Warner Bros. Discovery’s losses widened last quarter due to charges from its acquisition by Paramount Skydance, though its streaming and film studios revenue was supported by HBO Max’s growth.
Its net loss per share was US$1.17, down from a loss of $0.18 one year ago and below Zacks consensus estimates of a $0.10 loss. Revenue fell 1% to $8.89 billion, under estimates by 0.42%.
“As we prepare for our next chapter, our focus remains on executing our key strategic priorities: scaling HBO Max globally, returning our Studios to industry leadership, and optimizing our Global Linear Networks,” the company wrote in a letter to shareholders.
“In the first quarter, we sustained – and in many cases accelerated – the progress we realised in 2025 against these strategic priorities.”
The company’s streaming segment reported 9% revenue growth to reach $2.89 billion, above LSEG-compiled estimates of 7.6%. This was driven by HBO Max’s global expansion and a 19% spike in advertising revenue.
Revenue for its studios segment climbed 31% to $3.13 billion, also lifted by HBO Max’s expansion due to intercompany content licensing. Global linear networks revenue dropped 8% to $346 million.
Warner Bros. Discovery posted a total net loss of $2.92 billion, including $1.3 billion of amortisation and restructuring expenses after Paramount agreed to buy the company in February. The loss also features a $2.8 billion termination fee to Netflix after its acquisition bid fell through, though Paramount paid this fee on Warner Bros.’ behalf.
Its operating loss widened from $37 million to $2.47 billion. Adjusted EBITDA was up 5% to $2.20 billion.
Paramount said when reporting its own earnings results this week that it expects to close the acquisition in 2026’s third quarter. Paramount’s revenue climbed 2% to $7.35 billion last quarter, with earnings per share dropping from $0.22 to $0.15.
Shares in Warner Bros. Discovery (NASDAQ: WBD) closed 0.1% lower at $27.20, and fell a further 0.1% after-hours. Its market capitalisation is $68.18 billion.
