Warner Bros. Discovery reported a 91% decline in profit to $149 million in the second quarter of 2026, down from $1.6 billion a year earlier, as its film studio struggled and cable networks faced continued challenges. The company’s overall revenue fell 11% to $8.7 billion, missing Wall Street expectations of $9.21 billion.
The earnings report, released Thursday, highlighted weakness in the theatrical business, where revenue dropped 46% due to underperforming films such as Supergirl and The Bride. This contrasted with the prior year’s strong slate, which included A Minecraft Movie and Sinners. The company’s cable networks also saw a 17% ratings decline, partly attributed to the loss of NBA broadcasting rights, which contributed to a 27% drop in advertising revenue to $1.4 billion.
Despite these setbacks, Warner Bros. Discovery’s streaming segment reported 10% revenue growth, reaching $3 billion for the quarter. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for streaming exceeded $500 million, driven by HBO Max’s expansion into new international markets and the success of series like Euphoria, House of the Dragon, and The Pitt. Advertising revenue for streaming rose 9%, though the absence of NBA-related ad inventory reduced growth by 16 percentage points.
The company’s total adjusted EBITDA fell to $1.88 billion, compared to $1.95 billion in the same period last year. Warner Bros. Discovery attributed the decline in net income to intangible-asset write-downs tied to its pending acquisition and restructuring charges. The company continues to carry approximately $30 billion in debt, a legacy of its 2022 merger.
The earnings report comes amid increased scrutiny of Warner Bros. Discovery’s proposed $110 billion acquisition by Paramount Skydance, which aims to combine the companies’ streaming operations and film studios. The deal, currently facing legal challenges from state attorneys general, has drawn early criticism over potential anticompetitive effects. Paramount CEO David Ellison has stated that the combined streaming service would have about 200 million subscribers, with HBO remaining a distinct brand under the new structure.
Warner Bros. Discovery’s second-quarter results underscore the ongoing challenges in its traditional media and theatrical divisions, even as its streaming business shows signs of growth ahead of the potential merger.