Warner Bros. Discovery has reported its fourth-quarter and full-year 2025 results, showing several significant changes compared to the previous year.
In the fourth quarter of 2025, total revenues were $9.5 billion, a 7% decrease from the prior year quarter, with distribution revenues down 3%, advertising revenues down 9%, and content revenues down 10%. Additionally, the net loss available to Warner Bros. Discovery, Inc. was $252.0 million, which includes $1.3 billion of pre-tax acquisition-related amortization of intangibles, content fair value step-up, and restructuring expenses.
The total adjusted EBITDA was $2.2 billion, a 20% decrease compared to the prior year quarter, primarily driven by a decline in the global linear networks segment. Cash provided by operating activities was $1.8 billion, and free cash flow was $1.4 billion, unfavorably impacted by approximately $600 million of separation & transaction related items.
For the full year 2025, total revenues were $37.3 billion, a 5% decrease from the prior year, with distribution revenues down 2%, advertising revenues down 11%, and content revenues down 7%. Net income available to Warner Bros. Discovery, Inc. was $727.0 million, including $5.8 billion of pre-tax acquisition-related amortization of intangibles, content fair value step-up, and restructuring expenses. The total adjusted EBITDA was $8.7 billion, a 3% decrease compared to the prior year, primarily due to a decline in the global linear networks segment, partially offset by growth in the streaming and studios segments. Cash provided by operating activities was $4.3 billion, and free cash flow was $3.1 billion, unfavorably impacted by approximately $1,350 million of separation & transaction related items.
In terms of segments, the streaming segment saw an increase in revenues by 4% to $2,794 million compared to the prior year quarter, with streaming subscribers reaching 131.6 million, an increase of 3.5 million subscribers compared to the previous quarter. The studios segment experienced a 14% decrease in revenues to $3,183 million compared to the prior year quarter, with content revenue down 16%. The global linear networks segment saw a 13% decrease in revenues to $4,196 million compared to the prior year quarter.
The company ended the year with $29.0 billion of net debt and 3.3x net leverage. It ended the fourth quarter with $4.6 billion of cash on hand and $33.5 billion of gross debt, and the company's $4.0 billion revolving credit facility was undrawn.
The market has reacted to these announcements by moving the company's shares 0.32% to a price of $28.58. Check out the company's full 8-K submission here.
