Warner Bros. Discovery reports 46% theatrical revenue drop

Warner Bros. Discovery (WBD) reported a 46% decline in theatrical revenue for the second quarter of 2026, driven largely by the box office failures of 'Supergirl' and 'The Bride.' Total quarterly revenues reached $8.717 billion, falling short of Wall Street's $9.21 billion forecast. The company reported a net income of $100 million for the period.

Advertising revenue saw a 22% drop, influenced by the loss of NBA broadcasting rights for Turner networks. Conversely, the streaming segment grew by 9% to $3.1 billion, supported by titles such as 'Euphoria' and 'House of the Dragon.'

Amid these results, David Ellison’s $111 billion bid for WBD via Paramount Skydance faces ongoing opposition from a coalition of twelve states, with a trial set for March 2027. If the deal closes, Paramount Skydance will be required to pay a $7 million daily ticking fee to WBD shareholders starting October 1, 2026.