The sequel is estimated to have made $56 million in North America over the weekend, compared with $134 million on the opening weekend – lower than the $150 million to $175 million projections.
"The Way of Water" is already the third highest-grossing film worldwide this year, according to Comscore figures, bringing in $855 million and behind "Top Gun: Maverick" and "Jurassic World Dominion.
The film reportedly cost $350 million and Cameron suggested it would need to make more than $2 billion to break even given marketing costs, according to Variety.
Disney took control of the rights to "Avatar" with its $71 billion acquisition of Fox in 2019.