Skydance Media co-Chief Executives David Ellison and Ynon Kreiz used their first post-merger earnings call to signal that Warner Bros.’ 2026 film lineup will shave roughly $200 million from adjusted EBITDA in the current quarter, a hit driven largely by the Tom Cruise political satire *Digger*. The disclosure arrived five weeks after the combination closed, meaning consolidated Warner Bros. figures were absent from the third-quarter print but very much present in the forward commentary.

The Paramount contrast

Ellison framed the gap between the two studios in blunt terms. He said Paramount’s 2026 slate is on track to produce $500 million more in lifetime profit than the prior year’s lineup, while the inherited Warner Bros. portfolio remains a drag. The company is still targeting $6 billion in merger synergies and intends to apply the same selective-greenlight strategy that steadied Paramount, prioritizing profitable streaming growth over raw subscriber additions.

The numbers behind the noise

Chief Financial Officer Dennis Cinelli quantified the near-term pain. Warner Bros. is otherwise tracking in line with Skydance’s underwriting model, he said, but the film slate is the exception. The $200 million headwind covers titles already released in the quarter as well as those still on the calendar. *Digger*, which cost $160 million before global marketing and collected $50.3 million worldwide, accounts for the bulk of the shortfall. Cinelli reiterated that Paramount remains on course for the high end of its 2026 adjusted EBITDA guidance at $3.9 billion.

Box office scorecard

Through November 9, Warner Bros. leads Paramount domestically with $569 million versus $537 million, though the former represents a 70 percent decline from the same period in 2025 while the latter is up 15 percent. Neither studio has a title above $100 million domestic this year. Warner Bros. misfires include *Supergirl* and *The Bride* alongside *Digger*. Paramount’s bright spots have been *Scream 7* at $121.9 million and *Scary Movie* at $108.2 million. Combined, the two lots sit fourth behind Universal, Disney, and Sony with $1.1 billion in domestic receipts.

The $800 million rumor

A circulating report that Warner Bros.’ 2026 slate would lose $800 million for the full year is inaccurate, according to people familiar with the projections. Even assuming a blockbuster performance from Legendary’s *Dune: Part Three*, the estimated loss is closer to $400 million.

Cost discipline ahead

In a further signal to investors that the combined entity intends to cut fat, executives emphasized tighter cost structures and linear optimization. The playbook is familiar: fewer greenlights, stricter return thresholds, and a streaming model built on margin rather than volume. Whether the Warner Bros. turnaround moves as quickly as Paramount’s did remains the open question for the next several quarters.