Reconciliations of these non-GAAP financial measures to the closest can be found in our earnings release and in our trending schedules, which can be found in the Investor Relations section of our website. TV led all studios in nominations, and HBO set a new record with 142 nominations. As a result, our studio's business is now on track to deliver at least $2.4 billion in Adjusted EBITDA in 2025, with our sights set on our $3 billion goal. We have transformed HBO Max and have our streaming business on track to exceed $1.3 billion in Adjusted EBITDA in 2025 and reach over 150 million subscribers by the end of 2026.
It's really a decision to fight for asset value and growth rather than near-term value. Gunnar, now that you're becoming the CEO of Global Networks, it's a segment that's obviously been challenged from just the secular challenges. Can you talk about what you see as the underappreciated opportunity for growth in this business? I've known many of these people for years, and it's a team that has a track record of fighting to win.
We announced he will be the COO of our new business, and we think that's a real growth opportunity for us. You saw it with Superman, the way Bruce and the team deployed Superman across all the merchandising elements. That's what we wanted to call it out because it's going to have a meaningful impact on our revenue growth for a 12-month period until we lapse this deal. It's also important to note that we expect a re-acceleration not only once we lapse this deal, but also from the various market launches that we have in the pipeline beginning Q1 of 2026.
| Metric | Period | Current guidance |
|---|---|---|
| Studio adjusted EBITDA | FY2025 | At least $2.4 billion, with sights on $3 billion goal |
| Streaming adjusted EBITDA | FY2025 | Exceed $1.3 billion |
| Total subscribers | End of 2026 | Over 150 million |
| Net leverage | Q2 2025 | 3.3 times, lowest since merger close |
| Streaming revenue growth | H2 2025 / 2026 | Dampened in H2 2025 by deal reset; re-acceleration globally in Q1 2026 and U.S. in H2 2026 |
| Q4 sports cost benefit | Q4 2025 | Roughly $100 million from NBA, with hundreds of millions net benefit in 2026 |
| Metric | YoY | Note |
|---|---|---|
| HBO Max subscribers | Added more than 3.4 million in Q2 | Continued international market launches and strong content slate. |
| Net leverage | From over five times to 3.3 times | Dramatic deleveraging since the merger; lowest level since merger close. |
| Streaming ARPU | More dilution through the year | Ad-supported SKU ramp lowering blended ARPU plus the legacy U.S. distribution deal rate reset. |
| Upfront advertising pricing | Up across all categories | Market held up well despite macro/geopolitical concerns; sports pricing stronger than general entertainment, with maintained digital price premium. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Content licensing strategy | Higher external library monetization | Deliberately selling significantly less externally to differentiate HBO Max, shifting to internal sales and parking a ten-digit intercompany profit figure on the balance sheet | — |
| Franchise/IP monetization | Earned about $0.22 for every dollar Disney makes circulating IP | Up to about $0.30, with untapped value in experiences, parks (Harry Potter Leavesden/Japan/Abu Dhabi), and DC merchandising | — |
| Company separation | Combined Warner Bros. Discovery | Splitting into two independent public companies in 2026, with U.S. sports, discovery+, and Bleacher Report moving to Discovery Global | — |
| Bundling / better together | Standalone DTC | Disney bundle outperforming expectations with churn cut in half and LTV doubled; active international bundle discussions ahead of European launches | — |