10-Q · May 4, 2026
Paramount Skydance Corporation's Q1 2026 results show a 2% increase in revenue to $7.35 billion compared to $7.19 billion in Q1 2025, driven by growth in Paramount+ and other licensing revenues. However, net earnings…
Earnings analysis · 10-Q
PSKY earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Paramount Skydance delivered modest Q2 revenue growth of 1% to $6.913 billion but stronger operating execution, with operating income up 19% to $475 million and adjusted EBITDA up 27% to $1.099 billion. Streaming was…
Read full summary
Paramount Skydance delivered modest Q2 revenue growth of 1% to $6.913 billion but stronger operating execution, with operating income up 19% to $475 million and adjusted EBITDA up 27% to $1.099 billion. Streaming was the principal growth engine, while TV Media continued to contract; GAAP EPS fell to $0.04 from $0.08 because higher interest and tax expense outweighed improved operations. Liquidity is adequate in the near term, but the delayed WBD transaction introduces substantial litigation, termination-fee, dilution, and potential leverage risks, including approximately $86.3 billion of assumed pro forma debt.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.04
- Operating margin
- 6.9%
What stood out
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Operating profit outpaced 1% revenue growth
Q2 revenue increased 1% to $6.913 billion from $6.849 billion. Operating income rose 19% to $475 million from $399 million, lifting operating margin to 6.9% from 5.8% despite only modest top-line growth.
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Streaming growth and profitability strengthened
Direct-to-Consumer revenue rose $210 million to $2.474 billion on the recast comparable basis, while adjusted EBITDA increased $112 million to $366 million. Paramount+ revenue grew 16% to $2.061 billion; subscribers increased 4.8 million to 81.6 million and ARPU rose 12% to $8.52.
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Studios returned to adjusted EBITDA profit
Studios revenue increased $179 million to $1.314 billion versus $1.135 billion recast, and adjusted EBITDA improved to a $36 million profit from a $31 million loss. Licensing and other revenue was $1.172 billion, aided by Skydance inclusion and secondary-market/third-party production licensing.
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Operating cash flow and free cash flow improved
Six-month operating cash flow was $504 million, up from $339 million, while capital expenditures were $150 million, or roughly 1.1% of $14.260 billion of six-month revenue. Implied free cash flow was $354 million, versus $237 million a year earlier.
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Content-cost reductions supported margins
Content costs fell $157 million, or 5%, to $3.267 billion in Q2, contributing to the operating-income increase. Management cites lower programming assets from purchase-accounting pushdown and broadcast/cable programming savings.
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Liquidity remains available ahead of merger
Liquidity included $1.63 billion of cash and $3.2 billion of unused capacity on the $5.0 billion revolving credit facility at June 30, 2026. The company met its 4.50x maximum leverage covenant.
What to watch
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WBD litigation delays closing and adds ticking fee
A new WBD-merger risk factor notes that a July 2026 antitrust action by 12 states delayed closing; Paramount agreed not to close or integrate until the earlier of five days after the court ruling or June 1, 2027. Delays after September 30, 2026 trigger a $0.00277778 per-share daily ticking fee, capped at $0.25 per share per 90-day period.
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Termination fee and sunk merger costs are material
If regulatory approval fails or an antitrust order prevents closing, Paramount may owe WBD a $7.0 billion regulatory termination fee. The filing says this would likely require issuing additional Class B equity, diluting existing holders; it has already incurred $256 million of six-month WBD transaction-related costs.
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Merger financing would sharply increase leverage
The new merger risk disclosure estimates pro forma total debt of approximately $86.3 billion if the $49.0 billion bridge facility and other assumed financing are drawn. Separately, reported debt rose to $15.156 billion at June 30 from $13.658 billion at December 31, including $1.8 billion drawn on the credit facility at a 6.13% weighted average rate.
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Linear-TV declines continue
TV Media revenue declined $326 million, or 9%, to $3.128 billion on a recast basis; advertising fell $235 million, or 14%, and affiliate/subscription revenue fell $95 million, or 6%. Management cites linear-ad-market weakness, linear subscriber declines, and an 8% NCAA comparison impact on Q2 advertising.
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Below-the-line costs pressured GAAP earnings
GAAP diluted EPS fell 50% to $0.04 from $0.08 despite the 19% operating-income gain. Net earnings attributable to parent declined 28% to $41 million as higher interest expense and a higher 55.8% effective tax rate offset operating improvement.
Management's outlook
The 10-Q provides no quantitative revenue or EPS outlook. Management states that the WBD closing is delayed until the earlier of five days after the court ruling or June 1, 2027, and expects credit-facility borrowings outstanding at closing to be repaid using private-placement funding.
Earlier filings 4
10-K · April 24, 2026
The 10-K describes Paramount Skydance as the combined public holding company formed on the Closing Date of August 7, 2025, with strategy focused on integrating Paramount and Skydance and aligning management compensation…
10-K · February 25, 2026
Paramount Skydance positions itself as a global media & entertainment company combining legacy Paramount assets with Skydance capabilities and is pursuing an aggressive strategic acquisition (a cash tender offer for…
10-Q · November 10, 2025
Paramount Skydance (PSKY) reports successor quarter (Aug 7–Sep 30, 2025) revenues of $4,121 million and operating income of $244 million, with a small net loss attributable to parent of $13 million (loss per share…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.