Paramount Skydance (PSKY) investor relations material

Executive summary

• Achieved strong Q1 2026 results with significant progress post-Sky acquisition and Skydance Transactions, transitioning to a new reporting structure with three segments: Studios, Direct-to-Consumer, and TV Media.

• Revenues for Q1 2026 rose 2% year-over-year to $7.35 billion, driven by Paramount+ growth and higher licensing revenues, partially offset by linear declines.

• Nearly doubled film slate, greenlit dozens of new and returning series, and unified platforms leveraging advanced technology and AI.

• Major content highlights include record-breaking Scream VII, Landman as the most-watched Paramount+ series, and CBS leading primetime ratings.

• Continued strong engagement in streaming and sports, with UFC and Masters coverage delivering record viewership.

Financial highlights

• Q1 2026 GAAP revenue was $7,347 million, up from $6,849 million in Q1 2025, with Adjusted EBITDA up 59% to $1.16 billion and net earnings attributable to Parent at $168 million.

• Paramount+ revenue grew 17% year-over-year, driven by a 14% increase in ARPU and underlying subscriber growth, reaching 79.6 million subscribers.

• Free cash flow for Q1 2026 was $353 million, compared to $123 million in Q1 2025.

• Studio revenue up 11% year-over-year, supported by successful film releases and third-party TV studio growth.

• D2C ad business returned to growth, offsetting declines in TV media.

Outlook and guidance

• The WBD Merger is expected to close by Q3 2026, subject to regulatory approvals, with management anticipating continued cost savings and integration benefits.

• Paramount+ margin to be impacted in Q3 and Q4 as content slate launches; full-year expenses remain on track.

• On track to consolidate streaming services into a unified platform by mid-2026, with significant tech and content investments planned.

• Management provided supplemental pro forma and combined results to reflect ongoing business operations post-Skydance Transactions.

• Risks include macroeconomic uncertainty, advertising market volatility, and integration challenges.