AceShowbiz - Star Wars spin-off The Mandalorian and Grogu has registered the lowest box office performance in the franchise’s history, earning $321.7 million worldwide since its May 22, 2026 release.

The film has seen a sharp week-on-week decline in revenue, falling well short of the $500 to $600 million needed to break even. Despite opening above expectations with $81.9 million domestically over its opening weekend, it currently trails behind Solo: A Star Wars Story’s lifetime gross of about $392.9 million. The movie’s domestic total of $168 million has also been eclipsed by two indie horror films, Backrooms and Obsession, which outperformed The Mandalorian and Grogu at the U.S. box office despite their modest budgets of $10 million and $750,000 respectively. Globally, Obsession is on track to surpass The Mandalorian and Grogu’s total, while Backrooms continues strong momentum that could challenge the Star Wars release as well. The Mandalorian and Grogu remains in theaters, competing against recent blockbusters like Toy Story 5 and Supergirl.

The project was originally conceived as part of The Mandalorian Season 4 but was converted into a feature film after Disney shifted its focus toward theatrical releases. Director and writer Jon Favreau had to scrap many initial ideas planned for the streaming series to accommodate the film format. This change came amid declining enthusiasm for the Star Wars franchise following the underperformance of Solo and mixed reactions to recent entries. The Mandalorian series itself saw waning momentum after a strong start, with its third season dividing audiences and long waits between seasons diminishing excitement for a theatrical spin-off.

The Star Wars franchise, which began with its groundbreaking 1977 release, has struggled to replicate the runaway success of earlier entries. Although The Mandalorian series initially revitalized interest, the disappointing box office returns for this film highlight ongoing challenges. The lower-than-expected performance raises questions about Disney and Lucasfilm’s strategic decisions, especially given the costly $165 million production budget and at least $100 million spent on marketing. With Kathleen Kennedy’s recent departure and Dave Filoni taking the helm of Lucasfilm, the future direction of the franchise is now under scrutiny.

This box office shortfall underscores the difficulties Star Wars faces in maintaining its cultural and commercial dominance amid shifting audience tastes and fierce competition. The Mandalorian and Grogu’s underwhelming showing signals a need for recalibration in how the franchise approaches both theatrical and streaming projects moving forward.