Warner Bros. Discovery reported a net loss of $148 million for the third quarter ended September 30, 2025, reversing a $135 million profit a year earlier. A 16% decline in advertising revenue and continued pressure on its linear television networks overwhelmed growth in its studio and streaming operations.
Total revenue fell 6% on an ex-FX basis to $9.045 billion, missing analyst expectations of roughly $9.18 billion. The decline was driven by a 17% ex-FX drop in advertising to $1.407 billion, a 4% ex-FX decline in distribution revenue to $4.702 billion, and a 3% ex-FX dip in content revenue to $2.649 billion. Excluding the prior-year benefit of European Olympics rights, content revenue rose 23% ex-FX, reflecting stronger theatrical performance.
The advertising decline was broad-based. U.S. linear ad revenue sank 20% to $1.19 billion, while streaming advertising grew 14% to $235 million. The company attributed the linear ad weakness to domestic audience declines and the loss of NBA game programming on TNT, which had generated an estimated $477 million in national TV ad revenue during the prior NBA season. A lighter sports calendar and the absence of the Paris Olympics comparison compounded the pressure.