Peacock Aims for Profitability in Q2 as Comcast Leaders Discuss Streaming Growth Potential
Comcast executives have indicated that Peacock may be on the verge of turning a profit, describing the streaming service as being at “a meaningful inflection point.” During a post-earnings conference call on Thursday, CFO Jason Armstrong stated that Peacock is expected to “approach profitability” in the second quarter of the year.
This potential profitability correlates with a newly negotiated NBA deal as NBCUniversal executes a straight-line amortization of the broadcasting rights. Armstrong noted that the first quarter featured peak activity, with approximately 50% of NBA games completed, resulting in significant associated costs. “As a result, this quarter represents our peak EBITDA dilution from NBA costs,” he explained. The repercussions were evident at Peacock, where EBITDA losses reached $432 million. However, Armstrong expressed optimism, stating, “Importantly, we expect the set up to improve from here, with the second quarter reflecting a meaningful inflection point, with Peacock expected to approach profitability.”
In contrast, competing services such as Disney+, HBO Max, and Paramount+ are currently profitable.
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When questioned by an analyst regarding expectations for “consistent profitability” for Peacock post-Q2, co-CEO Mike Cavanagh responded that due to the amortization of NBA rights, the outlook for sustained profitability looks promising. “As we look to the next season, so to speak, of NBA lapping itself, I think the prospect for ongoing and durable profitability for Peacock is what we have our sights set on,” he stated.
Cavanagh added, “And that, combined with really putting it together with linear media business in NBC, is how we’re going to manage the media business going forward.”
Comcast’s robust first-quarter performance, marked by what they referred to as “Legendary February,” which included the Milan Cortina Winter Olympics, the Super Bowl, and the NBA All-Star Game, contributed to record advertising revenue and growth for Peacock. The streamer added 5 million subscribers over the past year, bringing its total to 46 million—an increase of 2 million from the fourth quarter of 2025.
Peacock’s revenue surpassed $2 billion, up from $1.2 billion the previous year and $1.6 billion from the last quarter. However, losses increased to $423 million in the last quarter, a rise from $215 million year-over-year but still less than half of the $552 million reported in the preceding quarter.
