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Paramount Global Q2 Earnings Beat Estimates, Revenues Rise Y/Y
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Key Takeaways
PARA posted Q2 EPS of 46 cents, beating estimates but declining 15% from the prior year.
Revenues rose 1% to $6.85B, driven by strong DTC and theatrical gains despite TV Media softness.
DTC OIBDA improved $131M as Paramount+ hit 77.7M subs and MobLand drew 26M viewers globally.
Paramount Global reported adjusted earnings of 46 cents per share for the second quarter of 2025, which beat the Zacks Consensus Estimate by 12.2%. The bottom line declined 15% from the year-ago quarter’s reported figure.
Revenues of $6.85 billion missed the Zacks Consensus Estimate by 0.22%. The figure increased 1% year over year.
The modest growth in revenues was due to softness in TV Media revenues.
Consolidated adjusted OIBDA fell 5% from the year-ago quarter’s level to $824 million, which reflected year-over-year improvements in D2C.
Selling, general and administrative expenses decreased 11.3% year over year to $1.4 billion.
The Skydance transaction is expected to close on Aug. 7, 2025.
Paramount Global Price, Consensus and EPS Surprise
Advertising revenues (31.44% of total revenues) of $2.153 billion fell 4.4% year over year. Affiliate revenues (50.3% of total revenues) of $3.445 billion increased 42.3% year over year. Theatrical revenues (3.7% of total revenues) totaled $254 million in the reported quarter, which increased 84.05% year over year. Licensing and other revenues (14.73% of total revenues) of $1.009 billion decreased 13.32% year over year.
PARA’s Segment Details
DTC revenues increased 14.9% year over year to $2.16 billion. Its subscription revenues rose 21.8%, driven by subscriber growth and pricing increases for Paramount+.
DTC continued to show strength in the second quarter, with strong revenue growth and improved profitability. Paramount+ ranked second in the United States for Top 10 SVOD Originals year to date, led by hits like Landman and 1923. MobLand became the #2 Original Series ever on the platform, drawing more than 26 million global viewers for its premiere. The Chi returned for its seventh season with its most-streamed premiere to date. Pluto TV reached record global and domestic viewing hours and continues to lead in FAST service distribution.
DTC advertising revenues declined 3.7%, principally reflecting the impact of lower CPMs and the growing supply of Connected TV.
Global viewing hours across Paramount+ and Pluto TV grew 29% year over year. Paramount+ subscribers reached 77.7 million, with a decrease of 1.3 million in the quarter. Paramount+ global ARPU increased 9%, while its domestic watch time per user increased 11% year over year.
DTC adjusted OIBDA improved $131 million year over year, indicating revenue growth.
TV Media revenues decreased 6.08% year over year to $4.01 billion due to ongoing declines in affiliate and advertising revenues.
The segment’s advertising revenues decreased 4%. Affiliate and subscription revenues decreased 7%, driven principally by linear subscriber declines. The segment’s licensing and other revenues decreased 9% in the quarter.
TV Media adjusted OIBDA decreased 15% to $863 million, primarily reflecting the lower revenues.
CBS extended its record as the most-watched broadcast network in primetime for the 17th consecutive season. The network aired 14 of the top 20 series, including Tracker, the #1 overall show, and Matlock, the top new series. CBS Sports saw strong gains, with the NCAA Men’s Basketball Championship delivering the most-watched Final Four in eight years and golf coverage up 13% year over year, which was its best in seven years. The Daily Show ranked as the #1 late-night show on Mondays across all TV.
Filmed Entertainment revenues increased 11% year over year to $690 million. Theatrical revenues increased 84% to $254 million, reflecting the release of Mission: Impossible – The Final Reckoning. It earned more than $590 million at the global box office to date.
Licensing and other revenues decreased 19%, driven by lower licensing of animated content.
The company reported a negative adjusted OIBDA of $84 million, down from a negative OIBDA of $54 million year over year, reflecting lower profits from licensing.
PARA’s Balance Sheet & Cash Flow Details
As of June 30, 2025, Paramount Global had cash and cash equivalents of $2.74 billion compared with $2.67 billion as of March 31, 2025.
Total debt, as of June 30, 2025, was $14.16 billion, the same as that of March 31, 2024.
The non-GAAP free cash flow was $114 million compared with $123 million reported in the previous quarter.
Image: Bigstock
Paramount Global Q2 Earnings Beat Estimates, Revenues Rise Y/Y
Key Takeaways
Paramount Global reported adjusted earnings of 46 cents per share for the second quarter of 2025, which beat the Zacks Consensus Estimate by 12.2%. The bottom line declined 15% from the year-ago quarter’s reported figure.
Revenues of $6.85 billion missed the Zacks Consensus Estimate by 0.22%. The figure increased 1% year over year.
The modest growth in revenues was due to softness in TV Media revenues.
Consolidated adjusted OIBDA fell 5% from the year-ago quarter’s level to $824 million, which reflected year-over-year improvements in D2C.
Selling, general and administrative expenses decreased 11.3% year over year to $1.4 billion.
The Skydance transaction is expected to close on Aug. 7, 2025.
Paramount Global Price, Consensus and EPS Surprise
Paramount Global price-consensus-eps-surprise-chart | Paramount Global Quote
PARA’s Revenue Details
Advertising revenues (31.44% of total revenues) of $2.153 billion fell 4.4% year over year. Affiliate revenues (50.3% of total revenues) of $3.445 billion increased 42.3% year over year. Theatrical revenues (3.7% of total revenues) totaled $254 million in the reported quarter, which increased 84.05% year over year. Licensing and other revenues (14.73% of total revenues) of $1.009 billion decreased 13.32% year over year.
PARA’s Segment Details
DTC revenues increased 14.9% year over year to $2.16 billion. Its subscription revenues rose 21.8%, driven by subscriber growth and pricing increases for Paramount+.
DTC continued to show strength in the second quarter, with strong revenue growth and improved profitability. Paramount+ ranked second in the United States for Top 10 SVOD Originals year to date, led by hits like Landman and 1923. MobLand became the #2 Original Series ever on the platform, drawing more than 26 million global viewers for its premiere. The Chi returned for its seventh season with its most-streamed premiere to date. Pluto TV reached record global and domestic viewing hours and continues to lead in FAST service distribution.
DTC advertising revenues declined 3.7%, principally reflecting the impact of lower CPMs and the growing supply of Connected TV.
Global viewing hours across Paramount+ and Pluto TV grew 29% year over year. Paramount+ subscribers reached 77.7 million, with a decrease of 1.3 million in the quarter. Paramount+ global ARPU increased 9%, while its domestic watch time per user increased 11% year over year.
DTC adjusted OIBDA improved $131 million year over year, indicating revenue growth.
TV Media revenues decreased 6.08% year over year to $4.01 billion due to ongoing declines in affiliate and advertising revenues.
The segment’s advertising revenues decreased 4%. Affiliate and subscription revenues decreased 7%, driven principally by linear subscriber declines. The segment’s licensing and other revenues decreased 9% in the quarter.
TV Media adjusted OIBDA decreased 15% to $863 million, primarily reflecting the lower revenues.
CBS extended its record as the most-watched broadcast network in primetime for the 17th consecutive season. The network aired 14 of the top 20 series, including Tracker, the #1 overall show, and Matlock, the top new series. CBS Sports saw strong gains, with the NCAA Men’s Basketball Championship delivering the most-watched Final Four in eight years and golf coverage up 13% year over year, which was its best in seven years. The Daily Show ranked as the #1 late-night show on Mondays across all TV.
Filmed Entertainment revenues increased 11% year over year to $690 million. Theatrical revenues increased 84% to $254 million, reflecting the release of Mission: Impossible – The Final Reckoning. It earned more than $590 million at the global box office to date.
Licensing and other revenues decreased 19%, driven by lower licensing of animated content.
The company reported a negative adjusted OIBDA of $84 million, down from a negative OIBDA of $54 million year over year, reflecting lower profits from licensing.
PARA’s Balance Sheet & Cash Flow Details
As of June 30, 2025, Paramount Global had cash and cash equivalents of $2.74 billion compared with $2.67 billion as of March 31, 2025.
Total debt, as of June 30, 2025, was $14.16 billion, the same as that of March 31, 2024.
The non-GAAP free cash flow was $114 million compared with $123 million reported in the previous quarter.
Zacks Rank & Stocks to Consider
Currently, PARA carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Consumer Discretionary sector are American Public Education (APEI - Free Report) , Central Garden & Pet (CENT - Free Report) and Amer Sports (AS - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of American Public Education have gained 36.8% year to date. American Public Education is set to report second-quarter 2025 results on Aug. 6.
Shares of Central Garden & Pet have lost 0.2% year to date. Central Garden & Pet is slated to report third-quarter fiscal 2025 results on Aug. 6.
Shares of Amer Sports have jumped 31.6% year to date. Amer Sports is set to report second-quarter 2025 results on Aug. 19.