Paramount Skydance (PSKY) Q4 2025 earnings summary

Executive summary

• Ended Q4 2025 with strong momentum, meeting or exceeding guidance and showing positive results under new leadership.

• Leadership transition completed, with Dennis Cinelli joining as CFO and Andy Warren continuing as strategic advisor.

• Paramount Global and Skydance Media became subsidiaries of Paramount Skydance Corporation on August 7, 2025, establishing a new accounting basis and dividing results into Predecessor and Successor periods.

• Financial schedules present both GAAP and non-GAAP (adjusted, pro forma, and combined) results to aid comparability across the transition.

• Submitted a revised $31 per share all-cash bid to acquire Warner Bros. Discovery, but no further comments provided.

Financial highlights

• Fiscal 2025 revenue guidance set at $30 billion, up 4% year-over-year, driven by DTC growth.

• Adjusted revenue for 2025 was $29.4 billion, with adjusted OIBDA at $3.08 billion.

• Paramount+ grew over 17% year-to-date; DTC segment up 10% in Q4 year-over-year; Paramount+ subscribers reached 78.9 million at year-end.

• Adjusted EBITDA outlook for 2025 is $3.8 billion, excluding $300 million in stock-based compensation.

• Free cash flow for 2025 was $649 million; net debt at year-end was $10.4 billion.

Outlook and guidance

• DTC expected to accelerate growth in 2026 versus 2025, with healthy underlying subscriber growth and improved ARPU from price increases and mix shift.

• DTC profitability expected to improve year-over-year as revenue grows and investments are managed.

• TV media revenue expected to decline in line with industry trends, but profitability to remain stable.

• Studio segment in a rebuild phase; theatrical revenue to decline in 2026 due to tough comps, but overall studio profitability to rise from licensing and cost management.

• Free cash flow conversion at 5% in 2025 (excluding restructuring), with expectations to return to industry norms by 2027 and achieve investment-grade credit metrics.