Warner Bros. Discovery had a rough Q1, with revenue dipping across all major segments, and total earnings down by 10% to US$8.97 billion. 

The company’s studio business sustained a 16% drop in revenue to US$2.3 billion, which WBD attributes to a softer box-office performance than this time last year, when Dune: Part Two and Godzilla x Kong: The New Empire were both driving ticket sales. 

One Q1 bright spot was the streaming segment, where revenues were up by 8% to US$2.65 billion. WBD picked up 5.3 million new subscribers this quarter, bringing its total to 122.3 million. And it expects to surpass 150 million by the end of 2026, said CEO David Zaslav in a shareholder letter. 

Zaslav also noted that WBD completed a reorganization in Q1 that’s expected to improve the company’s flexibility. Looking ahead, Warner Bros. Motion Pictures has good momentum heading into Q2, driven by A Minecraft Movie, which has grossed nearly US$900 million at the global box office. And its exclusive launch on Max in June or July should be a boon to the streaming segment’s performance in Q3. 

WBD is also currently gearing up for the July 11 premiere of tentpole feature Superman, which will have “the full power” of the company behind it, said Zaslav. “In 2025, both our streaming and studios segments are on track to significantly grow their respective year-over-year profits. As Max achieves its subscriber and profitability milestones, both its value as an asset and as a long-term strategic enabler will become even more evident.”