Almost two months after The Mandalorian & Grogu was released in cinemas, Disney is finally addressing the film's box office disappointment. The recent Lucasfilm title is the first major live-action Star Wars film release since 2019's Episode IX: The Rise of Skywalker, and expectations were high for Star Wars' return to the big screen. Despite gathering three seasons' worth of fans on Disney+ through The Mandalorian, The Mandalorian & Grogu failed to leave an impression when it switched format to the big screen.
Disney CEO Josh D'Amaro spoke out about The Mandalorian & Grogu's financial performance during a quarterly earnings report on August 5 (via The Hollywood Reporter). The CEO acknowledged that The Mandalorian & Grogu "[didn't] meet our box office expectations," before adding that the film still "drove healthy growth" in other parts of the business, including retail, theme parks, and gaming.
“Even when our franchise films don’t meet our box office expectations, as with The Mandalorian and Grogu and the live-action Moana, our investments in these core properties fuel other parts of our company. The Mandalorian and Grogu drove healthy growth in retail sales for the Star Wars franchise and drew guests to the updated Millennium Falcon attraction at Disneyland and Walt Disney World, and led to significant engagement in gaming as well."
Disney added in a company shareholder letter that The Mandalorian & Grogu "underperformed our box office expectations."
The 2026 Star Wars film ended up bringing in $345 million globally - the lowest of any Star Wars theatrical release, a record previously held by 2018's Solo: A Star Wars Story. The movie has since completed its theatrical run, and Disney is preparing to release The Mandalorian & Grogu on Disney+.
Despite the poor performance, Disney Chief Financial Officer Hugh Johnston noted that "theatrical performance is important to us," but overall, Disney is more focused on a "portfolio game."
"Look, theatrical performance is important to us, of course, and we certainly aspire to deliver consistent financial results for our films, but the nature of the film industry is such that it is more of a portfolio game. The good news for us is our diversified business helps us basically cover the volatility that comes out of the film business."
The sentiment from the company is clear: while The Mandalorian & Grogu didn't perform well at the box office, Disney still saw value in its release, particularly in boosting profits in other areas of the company and expanding the Star Wars IP.
The Mandalorian & Grogu released in theaters on May 22. The film is a continuation of The Mandalorian on Disney+ and stars Pedro Pascal, Sigourney Weaver, and Jeremy Allen White.
Is Disney Done With The Mandalorian & Grogu After Its Box Office Flop?
The Mandalorian & Grogu was a risky experiment for Disney, marking the first time a live-action Star Wars TV show had transitioned to a theatrically released feature film. With the experiment not paying off at the box office, it's unclear what Disney plans to do next with Mando and Grogu.
The company's stance in its earnings report suggests that The Mandalorian & Grogu haven't been written off yet and could still be invaluable characters in the Star Wars universe, but whether they'll have the chance to lead their own series or film again is less certain.
However, The Mandalorian & Grogu are part of a universe much bigger than them, particularly with the surrounding MandoVerse still in operation. For some time now, Lucasfilm CEO Dave Filoni has been developing a crossover MandoVerse movie that would include characters from Ahsoka, The Mandalorian, and The Book of Boba Fett, serving as something of a culmination of their stories.
While The Mandalorian & Grogu may not get a direct sequel based on its box office performance, that doesn't rule out the duo from appearing in Star Wars again, particularly if Filoni's crossover film gets off the ground.
