Warner Bros. Discovery (WBD) shares tumbled 5.26% in pre-market trading on Thursday following the release of its disappointing first-quarter 2025 financial results. The media giant reported revenue of $8.98 billion, falling short of the $9.60 billion analysts had expected, while also posting a larger-than-anticipated loss per share of $0.18 compared to the estimated $0.11 loss.

The company's underperformance was primarily attributed to weakness in its studios segment, which saw an 18% decline in revenue to $2.31 billion. This drop was largely due to a lack of big box office hits during the quarter, with the sci-fi dark comedy "Mickey 17" failing to replicate the success of previous blockbusters like "Dune: Part Two." Additionally, Warner Bros. Discovery continued to face challenges in its traditional TV business as consumers increasingly shift towards streaming platforms.

Despite the overall disappointing results, there were some bright spots in the company's report. Warner Bros. Discovery added 5.3 million streaming subscribers during the quarter, bringing its total to 122.3 million across its platforms, including Max and Discovery+. The company also expressed confidence in its upcoming content slate, including the highly anticipated "Superman" film directed by James Gunn, scheduled for release in July. However, investors seem to be focusing on the near-term challenges, as reflected in the pre-market stock plunge.