Hollywood may be celebrating blockbuster successes, but LGBTQ representation on the big screen continues moving in the wrong direction.
According to GLAAD’s newly released 2026 Where We Are in Film study, just 46 of the 225 films released by major distributors in 2025 included LGBTQ characters. That represents 20.4% of all films analyzed, marking the third consecutive annual decline after representation peaked at 28.5% in 2023.
The findings are particularly troubling for transgender audiences. GLAAD reported that none of the 225 films featured a transgender character, meaning trans representation in mainstream theatrical releases fell to zero for the first time since the organization began tracking these numbers. LGBTQ characters of color also remained significantly underrepresented.
The report argues that the decline comes despite mounting evidence that audiences are embracing inclusive storytelling. Several LGBTQ-inclusive films released during 2025 received strong critical reviews while also delivering impressive box office performances, challenging the long-held industry assumption that queer stories are financially risky.
Rather than large studios leading the way, GLAAD found that many of the year’s strongest examples of LGBTQ representation came from independent distributors and mid-budget productions. Horror also continued to stand out as one of the genres most willing to feature LGBTQ characters in meaningful roles instead of token appearances.
GLAAD President and CEO Sarah Kate Ellis said the report demonstrates a disconnect between what audiences want and what Hollywood executives continue to produce. She noted that younger generations increasingly identify as LGBTQ and are looking for stories that reflect their lives and communities. Ignoring that audience, she argued, is both culturally harmful and a missed business opportunity.
For transgender viewers, the absence of any trans characters is especially notable. While television and streaming platforms have offered more opportunities for trans actors and stories in recent years, theatrical films appear to be moving in the opposite direction. The report suggests that the industry’s retreat is occurring despite growing public conversations around diversity and inclusion.
GLAAD hopes the annual study will serve as more than a report card. The organization views it as a roadmap for studios looking to better reflect modern audiences while demonstrating that authentic LGBTQ representation is compatible with both critical acclaim and commercial success.
As Hollywood plans its next slate of films, the message from GLAAD is clear: audiences have already shown they’re ready for inclusive stories. The question is whether the studios are willing to catch up.
