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Paramount Skydance (PSKY) investor relations material

Paramount Skydance Q3 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 earnings summary10 Nov, 2025

Executive summary

  • Marking the first earnings call since the merger, leadership highlighted rapid progress in integrating assets and setting strategic priorities within the first 100 days.

  • Paramount Global and Skydance Media became subsidiaries of Paramount Skydance Corporation on August 7, 2025, resulting in a new basis of accounting and non-comparable results between Predecessor and Successor periods.

  • The company is focused on three North Star priorities: investing in creative growth, scaling direct-to-consumer (D2C) globally, and driving enterprise-wide efficiency for long-term free cash flow.

  • Major creative partnerships and content investments, including UFC, South Park, and the Duffer Brothers, are central to the growth strategy.

  • Financial schedules present both GAAP and non-GAAP (Adjusted/Pro Forma) results, with supplemental combined presentations for the third quarter of 2025.

Financial highlights

  • Q3 2025 combined revenue was $6.7B, with advertising at $1.28B, affiliate/subscription at $1.4B, and licensing/other at $4.1B.

  • Q3 saw 1.4 million new D2C subscribers, reaching a total of 79 million.

  • Paramount+ revenue grew 24% year-over-year, with the D2C segment up 17%.

  • Combined operating income for Q3 2025 was $244M; net loss from continuing operations was $(13)M.

  • 2026 guidance includes total revenue of $30 billion and adjusted EBITDA of $3.5 billion.

Outlook and guidance

  • The company plans to grow theatrical output to at least 15 movies per year starting in 2026.

  • Incremental programming investments exceeding $1.5 billion are planned for 2026 across theatrical and D2C platforms.

  • D2C segment is expected to be profitable next year, with increasing profitability in 2026.

  • Free cash flow for 2026 will be negative on a reported basis due to $800 million in transformation costs, but positive on an adjusted basis.

  • Pro forma and combined presentations are provided to help investors assess ongoing performance post-transaction.

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Frequently asked questions

Over 110 years of entertainment experience

Paramount is an American entertainment company established in 1912, boasting an impressive history and track record of film production. The company's catalog and operations primarily focus on production of movies and TV-series, but Paramount also owns CBS Broadcasting, which is a broadcaster producing shows and various news programs.

Production and distribution

Paramount's production and distribution operations encompass a range of activities within the entertainment industry. The company engages in the development, financing, and production of films and television shows through collaboration with writers, directors, and actors. Paramount then distributes their produced content globally through partnerships, licensing deals, and digital platforms. Paramount's historical success has been driven by its focus on content quality, market relevance, and effective distribution strategies.

The news side of the Paramount organization

The news side of the wider Paramount organization is CBS, which operates a robust news division that delivers reliable and up-to-date news coverage. With teams of journalists, anchors, and correspondents, CBS News provides comprehensive reporting on national and international events across various platforms, including television, digital, and radio. As part of the broader Paramount organization, CBS benefits from the company's extensive resources and expertise in content creation, distribution, and production.

Breaking into the streaming world

Paramount has, in the wake of the streaming revolution brought on primarily by Netflix, started their own streaming service. This isn’t something that Paramount is alone in pursuing and similar services are being offered to consumers by companies such as Amazon and Disney. Paramount+ is the company’s own foray into the streaming world and was launched in 2014 under the name CBS All Access. Back then, the primary function of the service was to enable consumers to live-stream content from CBS. Paramount has made a big push with their streaming service in recent years and the platform includes movies and shows produced in-house, as well as content from other production companies.

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