Warner Bros. Discovery revenue drops 11% as NBA loss, films weigh on results

Warner Bros. Discovery missed Wall Street’s revenue expectations in the second quarter as the loss of NBA programming and weaker theatrical releases offset continued growth at HBO Max.

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Revenue fell 11% from a year earlier to $8.72 billion. Analysts had expected $9.3 billion. The company reported diluted earnings of 6 cents per share, compared with analysts’ expectation for a loss of 13 cents. Lower operating expenses helped Warner Bros. Discovery post the surprise profit.

The studios business recorded the largest decline, with revenue falling 39% to $2.3 billion and adjusted earnings before interest, taxes, depreciation and amortization dropping 89% to $96 million.

The quarter included disappointing theatrical results for “Supergirl,” which grossed about $126 million worldwide against a reported production budget of $170 million. The film and “Mortal Kombat II” failed to match the year-earlier performance of releases including “A Minecraft Movie” and “Sinners.”

Warner Bros. Discovery said its theatrical slate is weighted toward the second half of 2026, when it plans to release films including “Digger” and “Dune: Part Three.”

Advertising revenue declined 22% to $1.7 billion, largely because Warner Bros. Discovery no longer carries NBA games in the United States. The company’s Turner networks had broadcast the league for nearly four decades before Warner Bros. Discovery lost the rights beginning with the current season.

Declining domestic television audiences and weaker international advertising also contributed to the drop. The company said conflicts involving Iran and Ukraine affected advertiser spending, while the 2026 FIFA World Cup drew viewers and advertising dollars away from some of its networks.

Revenue at the global linear networks division fell 17% to $3.99 billion. Adjusted EBITDA declined 4% to $1.4 billion, cushioned by a 23% reduction in operating expenses that included the elimination of NBA rights costs.

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Streaming remained the company’s strongest-performing segment. Revenue rose 10% to $3.1 billion, while adjusted EBITDA increased 75% to $512 million.

Warner Bros. Discovery credited HBO Max’s expansion into additional international markets and programming including “Euphoria,” “House of the Dragon,” “Hacks” and “The Pitt.” The company is relying on streaming growth to counter the continuing erosion of its traditional cable networks.

The results were released as Warner Bros. Discovery’s proposed $110 billion acquisition by Paramount Skydance remains delayed by antitrust litigation. The attorneys general of 12 states sued in July 2026, arguing the combination would reduce competition in theatrical film distribution and cable programming.

The Writers Guild of America East and Writers Guild of America West filed a separate lawsuit, contending the merger would reduce competition for writers and place downward pressure on compensation and employment opportunities.

A federal antitrust trial is scheduled for March 2027, and Paramount has agreed not to close the transaction before June 2027. The deal received clearance from British competition regulators Thursday.