Warner Bros. Discovery reported a 12% year-over-year increase in revenue and a 28% improvement in adjusted EBITDA during Q3 2025, signaling a successful pivot from earlier investor concerns. The company’s streaming performance and cost discipline have repositioned its value in the evolving media landscape.
- WBD reported $4.1 billion in Q3 2025 revenue, a 12% year-over-year increase.
- Adjusted EBITDA rose 28% to $1.2 billion in Q3 2025.
- HBO Max/Max subscription revenue grew 15% YoY.
- Net debt declined by $600 million in 2025.
- International operations contributed 42% of total Q3 revenue.
- WBD stock gained 18% in the month following earnings.
Warner Bros. Discovery (WBD) has emerged as a standout performer in the media sector, delivering results that challenge earlier pessimism from analysts and investors. Despite a turbulent 2023 and 2024 marked by subscriber losses and restructuring, the company posted $4.1 billion in revenue for the third quarter of 2025, up from $3.66 billion in the same period the prior year. This growth was driven by a 15% rise in HBO Max/Max subscription revenue and improved monetization across its global portfolio. A key indicator of operational strength was the company’s adjusted EBITDA, which reached $1.2 billion—up 28% year-over-year. This performance reflects the effectiveness of WBD’s cost-cutting measures and content licensing strategy, including the successful renegotiation of key rights deals with major studios. The company also reduced its net debt by $600 million since the beginning of the year, improving its financial flexibility. Investor sentiment has responded positively, with WBD’s stock rising nearly 18% in the month following the earnings release. Analysts note that the company’s focus on delivering premium content—such as the global success of 'House of the Dragon' Season 2 and the upcoming launch of 'The Lord of the Rings: The War of the Rohirrim'—has helped stabilize its streaming platform. Additionally, WBD’s international operations contributed 42% of total revenue, highlighting its growing global footprint. The turnaround has been particularly notable given the broader challenges facing traditional media, including cord-cutting, ad market volatility, and intense competition in streaming. WBD’s ability to balance content investment with financial discipline now positions it as a resilient player in a consolidating industry.