WBD Q2. Lionsgate Q1.

Warner Bros. Discovery Q2 2025 results. And the change from last year:

• $1.58bn net income Q2

  • ↑ from $9.99bn loss Q2 2024 (write-off)

• $2bn EBITDA

  • ↑ 9%

• $3.8bn studio income

  • ↑55%

  • $863M EBITDA (↑310%)

  • ↑36% theatrical revenue

• 125.7M subs (57.8 M domestic)

  • ↑3.4M since last quarter (only .2M are domestic)

• $293M profit streaming (vs. Disney’s $346M)

  • ↑373% from a $107M loss Q2 2024

• $1.5bn EBITDA linear division Q2

  • ↓ 24% overall

  • ↓ 12% ad revenue

Bottom line is that linear is shrinking, and WB has already decided to spin off its cable channels.

Streaming and the studio segments are doing extremely well, as the investment in originals paid off. A Minecraft Movie ($955.1 worldwide gross), Sinners ($365.9), and Final Destination ($285.3) all did well. WBD has $35.6bn of gross debt.

They’re also following Netflix’s playbook of expanding internationally, gaining most of their subs from their expansion into Australia. So expect a price hike sometime soon after they double down on the password crackdown.

Also noted on the call: Batman Returns! The Batman Part II is officially moving forward, now set for release on October 1, 2027. Matt Reeves and Mattson Tomlin have finished the script, with production expected in early 2026.

This info comes just as James Gunn has announced he is working on the next "Super Family” film, rumored but not confirmed to be Superman 2.

Lionsgate Q1 earnings:

• $556M studio revenue

  • ↓ 5.9% since last quarter

• $94M net loss

  • $88.1M adjusted net loss (↓127% from last year)

• $267M revenue Motion Picture segment:

  • ↓23% from last year

• $2.4M profit Motion Picture segment

  • ↓97% from last year

• $28.4M studio profit

  • ↓70% from last year

TV was the one sunny side:

• 288.5M revenue Television Production segment:

  • ↑20%

• $26M profit Television Production segment:

  • ↑150%

Not the best result after the split from Starz.

CEO Jon Feltheimer said:

"We expect to double our scripted television series deliveries next year... continuing to create fresh revenue streams for our film and television library, contributing to another record trailing 12-month revenue [$1bn] performance in the quarter.”

Lionsgate films were better than in previous quarters (e.g. Borderlands, The Crow), but its Hurry Up Tomorrow (although completely funded by The Weeknd) was a flop w/ $7.8M worldwide. As well as the less-than-stellar performance of the John Wick spinoff, Ballerina.

Lionsgate’s big Michael Jackson biopic Michael had to reshoot its third act due to a legal dispute and may be pushing its release to next year, where it could easily clear a billion dollars. Their next big film is The Hunger Games, which will be released in November.

No word on if they’ll get swallowed up in another M&A. But their library value is a major draw.