Paramount Skydance (PSKY) Q3 2025 earnings summary

Executive summary

• The merger of Paramount Global and Skydance Media created Paramount Skydance Corporation, with pushdown accounting applied as of August 7, 2025, resulting in a new basis of accounting and non-comparable Predecessor and Successor periods.

• Leadership highlighted rapid integration progress, a $6.0 billion PIPE investment, and new ownership structure, with the Ellison Family controlling 77.5% of voting Class A shares.

• The company is focused on three North Star priorities: investing in creative growth, scaling direct-to-consumer 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 results, with supplemental combined presentations for Q3 2025.

Financial highlights

• Q3 2025 combined revenue was $6.7B, with operating income of $244M and net loss from continuing operations of $(13)M; Paramount+ subscribers reached 79.1M, up 10% year-over-year.

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

• Adjusted OIBDA for Q3 2025 was $952M; adjusted net loss from continuing operations was $(24)M.

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

• Run rate efficiency target increased from $2 billion to at least $3 billion.

Outlook and guidance

• The company plans to grow theatrical output to at least 15 movies per year starting in 2026 and invest over $1.5 billion in programming for 2026.

• 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.

• Ongoing transformation and cost-saving initiatives include further restructuring charges expected in Q4 2025.

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