Paramount Skydance (PSKY) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue increased 1% year-over-year to $6.85 billion, driven by streaming and theatrical growth, while linear TV and content licensing declined.

• Paramount+ delivered strong performance, with 23% revenue growth, 24% subscription revenue growth, and watch time per subscriber up 11% year-over-year.

• Adjusted net earnings from continuing operations were $315 million, with adjusted diluted EPS of $0.46; net earnings were $57 million, or $0.08 per diluted share.

• Significant non-recurring items included $157 million in impairment charges and $181 million in restructuring and transaction-related costs.

• The Paramount-Skydance transaction is expected to close August 7, 2025, creating a new holding company and major structural changes.

Financial highlights

• Q2 2025 revenue was $6.85 billion, up 1% year-over-year; six-month revenue was $14.04 billion, down 3%.

• Adjusted OIBDA for Q2 was $824 million, down 5% year-over-year, but up from $688 million in the previous quarter.

• Operating income for Q2 was $399 million, reversing a $5.3 billion loss in Q2 2024 due to prior goodwill impairment.

• Free cash flow for Q2 was $114 million, up from $10 million in Q2 2024; net operating cash flow was $159 million.

• Paramount+ revenue increased nearly $330 million versus Q2 2024, with global ARPU up 9% year-over-year.

Outlook and guidance

• No full-year 2025 standalone guidance provided due to the imminent Skydance transaction closing.

• Skydance deal is expected to close in Q3 2025, bringing up to $6.0 billion in new investment and a minimum of $1.5 billion in cash to remain at New Paramount.

• Management highlights ongoing transformation to a streaming-first company and expects continued DTC growth, but notes risks from macroeconomic uncertainty and integration challenges.