In a stark admission during its latest quarterly earnings report, The Walt Disney Company has officially labeled Marvel’s Thunderbolts* as a financial disappointment, attributing significant operating losses to the film’s lackluster performance. Released in May 2025, the ensemble superhero movie, featuring stars like Florence Pugh, David Harbour, and Sebastian Stan, grossed just $382.4 million worldwide against a reported production budget of around $180 million—far below expectations for a Marvel Cinematic Universe (MCU) entry. This confirmation marks yet another setback for the once-unstoppable franchise, highlighting ongoing challenges in the post-Avengers: Endgame era.

Disney’s Q3 earnings call, held in early August 2025, painted a grim picture for its Content Sales/Licensing division, which reported a $21 million operating loss compared to a $254 million gain in the same quarter the previous year. The report explicitly cited Thunderbolts* and Pixar’s Elio as primary culprits, noting “higher film cost impairments” that signal anticipated long-term losses. In corporate terms, this means Disney has written down the value of these films, acknowledging they won’t recoup costs through box office, streaming, or ancillary revenue. During the earnings call, CEO Bob Iger and CFO Hugh Johnston praised successes like the live-action Lilo & Stitch (which crossed $1 billion globally) and other hits such as Moana 2, Deadpool & Wolverine, and Inside Out 2, but Thunderbolts* was conspicuously absent from the highlights—further underscoring its flop status.

This isn’t an isolated incident for Marvel Studios. The MCU, which dominated the box office for over a decade with billion-dollar juggernauts like Avengers: Infinity War ($2.05 billion) and Avengers: Endgame ($2.8 billion), has seen a string of underperformers in recent years. Just months before Thunderbolts*, February 2025’s Captain America: Brave New World—starring Anthony Mackie as the new Cap—earned $415.1 million worldwide, making it one of the lowest-grossing MCU films ever. While not a total disaster, it fell short of the franchise’s lofty standards, especially given its ties to the broader Multiverse Saga. Critics and analysts point to this as evidence of “superhero fatigue,” where audiences are growing weary of the formulaic spectacle and interconnected storytelling that requires homework from Disney+ series.

Rewinding to 2023, The Marvels set a dubious record as the MCU’s biggest box office bomb, pulling in only $206.1 million globally against a staggering $455 million in total costs (including production, marketing, and distribution). This resulted in a net loss of $237 million for Disney, topping the list of 2023’s flops. Bob Iger, in a candid moment, attributed The Marvels‘ failure partly to pandemic-era production issues, including reduced on-set supervision, and the studio’s overreliance on sequels. He emphasized the need for stronger stories rather than quantity.

The roots of Marvel’s current woes trace back to the launch of Disney+ in 2019, which shifted the company’s strategy toward flooding the market with content to boost subscriber growth. Under former CEO Bob Chapek, Marvel ramped up production, releasing multiple films and series annually. This “expansion” diluted the brand, as Kevin Feige later confessed, pointing to how characters from TV shows like WandaVision and Ms. Marvel complicated theatrical releases, alienating casual viewers. Series such as Secret Invasion and Moon Knight received mixed reviews and failed to generate buzz, while the interconnected narrative web made films feel inaccessible without binge-watching hours of streaming content.

This overproduction has extended beyond Marvel to other Disney pillars like Star Wars and Pixar, but the MCU has borne the brunt. In 2024, Marvel released only Deadpool & Wolverine, which shattered records with $1.3 billion worldwide, proving that standalone, nostalgia-fueled entries can still thrive. However, 2025’s slate—Captain America: Brave New World, Thunderbolts*, and The Fantastic Four: First Steps—has largely faltered. First Steps, despite a promising $118 million domestic opening, suffered a 66% drop in its second weekend, earning just $40 million and bringing its global total to $368 million. Analysts described it as a “cratering,” raising alarms for the upcoming Avengers: Doomsday in 2026.

Superhero fatigue isn’t the sole culprit; audience preferences have evolved. Post-pandemic, moviegoers are more selective, favoring event films over mid-tier releases. Disney’s push for Disney+ content has “de-emphasized the theatrical experience,” training viewers to wait for streaming. Indeed, flops like Captain America: Brave New World found second life on Disney+, with 750 million minutes streamed in its debut week, but this hasn’t translated to box office recovery.

Disney’s leadership has acknowledged the need for change. In 2024, Iger announced a reduction to two or three films and two series per year, focusing on quality over quantity. Marvel co-president Louis D’Esposito echoed this, stating, “If we just stayed on top, that would have been the worst thing… We took a little hit, we’re coming back strong.” The studio is betting big on nostalgia, with Robert Downey Jr. returning as Doctor Doom in Avengers: Doomsday and Secret Wars, directed by the Russo brothers. These films could serve as a “reset,” potentially streamlining the MCU post-Multiverse Saga.

Yet, challenges persist. Fan forums buzz with concerns over inflated budgets and creative missteps, with some labeling The Marvels the “biggest flop in movie history” based on nominal losses. Broader critiques argue Marvel is losing “average moviegoers” by relying on past glories rather than fresh storytelling. Disney+ leaks suggest Thunderbolts* will hit streaming by late August 2025, offering a chance for redemption through viewership metrics.

As Disney navigates this turbulent phase, the confirmation of Thunderbolts* as a flop serves as a wake-up call. The MCU’s future hinges on recapturing the magic that made it a cultural phenomenon—balancing spectacle with substance, without overwhelming audiences. With Spider-Man: Brand New Day slated for 2026 and the Avengers duology on the horizon, Marvel has opportunities to rebound. But if the pattern of underperformance continues, even the mightiest heroes might struggle to assemble at the box office.