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PSKY Reports Q3 Earnings, Shares Jump on $1.5B Programming Plan
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Key Takeaways
PSKY reported Q3 combined revenue of $6.7B, flat year over year amid merger-related impacts.
A $1.5B programming plan targets expansion in theatrical, streaming, and gaming content.
Direct-to-Consumer revenue grew 17% as Paramount added 1.4M subscribers in the quarter.
Paramount Skydance (PSKY - Free Report) is set to invest $1.5 billion on theatrical and direct-to-consumer platforms as announced on its third-quarter 2025 earnings Monday. PSKY shares are up 7.5% at the time of writing this article. The investments are designed to expand the pipeline of premium films, television, sports, news and gaming content for global audiences.
PSKY's third-quarter 2025 results are its first full quarter under new ownership following the merger completion on Aug. 7, 2025. Excluding transformation costs and transaction-related expenses, PSKY reported adjusted earnings of 12 cents per share in the successor period (Aug. 7 – Sept. 30) and an adjusted loss of 24 cents per share in the predecessor period (July 1 – Aug. 6). The company reported earnings of 49 cents in the third quarter of 2024.
The year-over-year decline in EPS primarily reflected revenue pressures in TV Media and Filmed Entertainment segments, partially offset by strong Direct-to-Consumer growth. The Zacks Consensus Estimate for third-quarter EPS was pegged at 45 cents per share.
Paramount Skydance Corporation Price, Consensus and EPS Surprise
PSKY posted combined revenues of $6.7 billion across the predecessor and successor period, representing flat performance compared to $6.73 billion in 2024. The consensus mark for revenues was pegged at $6.94 billion.
Operating income totaled $244 million in the successor period and $80 million in the predecessor period, compared to $337 million in the third quarter of 2024. The year-over-year decline reflected revenue headwinds in the TV Media segment and underperformance in Filmed Entertainment, partially offset by strong Direct-to-Consumer growth.
Adjusted OIBDA reached $655 million (15.9% margin) in the successor period and $297 million (11.5% margin) in the predecessor period, compared to $858 million (12.7% margin) in 2024. The combined adjusted OIBDA of $952 million represented 11% year-over-year growth despite revenue pressures, demonstrating operational efficiency gains.
Advertising revenues totaled $1.94 billion on a pro forma basis in the reported quarter, down 11% year-over-year from $2.17 billion, driven by secular headwinds in linear advertising and political spending timing comparisons.
Affiliate and subscription revenue reached $3.43 billion, up 7% from $3.22 billion, primarily driven by strong Direct-to-Consumer subscription growth offsetting linear affiliate declines.
Theatrical revenue increased modestly to $112 million from $108 million, while licensing and other revenue declined 15% to $1.23 billion from $1.44 billion, reflecting content delivery timing and strategic portfolio changes.
PSKY’s Q3 Segment Performance Details
The Direct-to-Consumer segment delivered exceptional performance with pro forma revenue of $2.17 billion, representing robust 17% year-over-year growth from $1.86 billion in 2024. Paramount+ specifically drove the segment's performance with 24% revenue growth year-over-year. The platform added 1.4 million subscribers during the quarter, ending with 79.1 million total subscribers, representing 14% year-over-year growth from 71.9 million in 2024.
Segment profitability improved dramatically, with a combined adjusted OIBDA of $340 million representing a margin expansion of approximately 730 basis points year-over-year from the 2.6% margin in 2024. This improvement reflected continued revenue momentum, operational efficiencies and benefits from content asset write-downs under purchase accounting following the merger.
The TV Media segment continued facing industry headwinds with pro forma revenues of $3.80 billion, down 12% from $4.3 billion in 2024. Advertising revenue declined 12% year over year to $1.47 billion, with an 8% headwind from political spending timing and prior year revenue recognition adjustments. Affiliate revenue decreased 7% year over year to $1.74 billion, consistent with industry-wide pay TV subscriber volume declines.
Despite revenue pressures, the segment demonstrated strong cost discipline with a combined adjusted OIBDA of $822 million, representing a margin expansion of approximately 70 basis points year over year, despite a 12% revenue decline. CBS continued delivering strong viewership performance, maintaining its position as the most-watched broadcast network for the 17th consecutive year.
The Filmed Entertainment segment reported pro forma revenue of $768 million in the third quarter of 2025, down 4% from $799 million in the year-ago quarter. The segment reported a combined adjusted OIBDA loss of $49 million compared to a profit of $3 million in the third quarter of 2024, reflecting underperformance of the 2025 theatrical slate.
PSKY’s Q3 Balance Sheet and Cash Flow Details
As of Sept. 30, 2025, cash and cash equivalents totaled $3.26 billion, up from $2.74 billion as of June 30 from year-end 2024. Total debt as of Sept. 30 was $13.63 billion. Free cash flow totaled $15 million combined for the third quarter of 2025.
PSKY Offers Fourth Quarter and 2025 Outlook
For the fourth quarter 2025, PSKY expects total revenue between $8.10-$8.30 billion, indicating 1%-4% year-over-year growth, and adjusted OIBDA between $500-$600 million, suggesting a 6.7% margin at the midpoint.
The company expects 2025 total revenues approaching $29 billion and adjusted OIBDA of approximately $3 billion, indicating a 10% margin.
For 2026, Paramount Skydance projects total revenues of $30 billion, representing approximately 4% year-over-year growth, and adjusted OIBDA of $3.5 billion, representing an 11.7% margin and approximately 17% growth year-over-year.
PSKY projects a free cash flow of approximately $1.5 billion before roughly $800 million of non-recurring transformation costs. The company expects to achieve investment-grade debt metrics by the end of 2027.
The Zacks Consensus Estimate for Carnival’s 2025 earnings is pegged at $2.15 per share, revised upward by 3 cents over the past 30 days and suggests a year-over-year increase of 51.41%.
The Zacks Consensus Estimate for Amer Sport’s 2025 earnings is pegged at 84 cents per share, unchanged over the past 30 days and suggests a year-over-year increase of 78.72%.
The Zacks Consensus Estimate for Alto Ingredients' 2025 loss is pegged at 10 cents per share, improving 72.9% over the past 30 days and suggests a year-over-year increase of 78.72%.
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PSKY Reports Q3 Earnings, Shares Jump on $1.5B Programming Plan
Key Takeaways
Paramount Skydance (PSKY - Free Report) is set to invest $1.5 billion on theatrical and direct-to-consumer platforms as announced on its third-quarter 2025 earnings Monday. PSKY shares are up 7.5% at the time of writing this article. The investments are designed to expand the pipeline of premium films, television, sports, news and gaming content for global audiences.
PSKY's third-quarter 2025 results are its first full quarter under new ownership following the merger completion on Aug. 7, 2025. Excluding transformation costs and transaction-related expenses, PSKY reported adjusted earnings of 12 cents per share in the successor period (Aug. 7 – Sept. 30) and an adjusted loss of 24 cents per share in the predecessor period (July 1 – Aug. 6). The company reported earnings of 49 cents in the third quarter of 2024.
The year-over-year decline in EPS primarily reflected revenue pressures in TV Media and Filmed Entertainment segments, partially offset by strong Direct-to-Consumer growth. The Zacks Consensus Estimate for third-quarter EPS was pegged at 45 cents per share.
Paramount Skydance Corporation Price, Consensus and EPS Surprise
Paramount Skydance Corporation price-consensus-eps-surprise-chart | Paramount Skydance Corporation Quote
PSKY’s Financial Performance Overview
PSKY posted combined revenues of $6.7 billion across the predecessor and successor period, representing flat performance compared to $6.73 billion in 2024. The consensus mark for revenues was pegged at $6.94 billion.
Operating income totaled $244 million in the successor period and $80 million in the predecessor period, compared to $337 million in the third quarter of 2024. The year-over-year decline reflected revenue headwinds in the TV Media segment and underperformance in Filmed Entertainment, partially offset by strong Direct-to-Consumer growth.
Adjusted OIBDA reached $655 million (15.9% margin) in the successor period and $297 million (11.5% margin) in the predecessor period, compared to $858 million (12.7% margin) in 2024. The combined adjusted OIBDA of $952 million represented 11% year-over-year growth despite revenue pressures, demonstrating operational efficiency gains.
Advertising revenues totaled $1.94 billion on a pro forma basis in the reported quarter, down 11% year-over-year from $2.17 billion, driven by secular headwinds in linear advertising and political spending timing comparisons.
Affiliate and subscription revenue reached $3.43 billion, up 7% from $3.22 billion, primarily driven by strong Direct-to-Consumer subscription growth offsetting linear affiliate declines.
Theatrical revenue increased modestly to $112 million from $108 million, while licensing and other revenue declined 15% to $1.23 billion from $1.44 billion, reflecting content delivery timing and strategic portfolio changes.
PSKY’s Q3 Segment Performance Details
The Direct-to-Consumer segment delivered exceptional performance with pro forma revenue of $2.17 billion, representing robust 17% year-over-year growth from $1.86 billion in 2024. Paramount+ specifically drove the segment's performance with 24% revenue growth year-over-year. The platform added 1.4 million subscribers during the quarter, ending with 79.1 million total subscribers, representing 14% year-over-year growth from 71.9 million in 2024.
Segment profitability improved dramatically, with a combined adjusted OIBDA of $340 million representing a margin expansion of approximately 730 basis points year-over-year from the 2.6% margin in 2024. This improvement reflected continued revenue momentum, operational efficiencies and benefits from content asset write-downs under purchase accounting following the merger.
The TV Media segment continued facing industry headwinds with pro forma revenues of $3.80 billion, down 12% from $4.3 billion in 2024. Advertising revenue declined 12% year over year to $1.47 billion, with an 8% headwind from political spending timing and prior year revenue recognition adjustments. Affiliate revenue decreased 7% year over year to $1.74 billion, consistent with industry-wide pay TV subscriber volume declines.
Despite revenue pressures, the segment demonstrated strong cost discipline with a combined adjusted OIBDA of $822 million, representing a margin expansion of approximately 70 basis points year over year, despite a 12% revenue decline. CBS continued delivering strong viewership performance, maintaining its position as the most-watched broadcast network for the 17th consecutive year.
The Filmed Entertainment segment reported pro forma revenue of $768 million in the third quarter of 2025, down 4% from $799 million in the year-ago quarter. The segment reported a combined adjusted OIBDA loss of $49 million compared to a profit of $3 million in the third quarter of 2024, reflecting underperformance of the 2025 theatrical slate.
PSKY’s Q3 Balance Sheet and Cash Flow Details
As of Sept. 30, 2025, cash and cash equivalents totaled $3.26 billion, up from $2.74 billion as of June 30 from year-end 2024. Total debt as of Sept. 30 was $13.63 billion. Free cash flow totaled $15 million combined for the third quarter of 2025.
PSKY Offers Fourth Quarter and 2025 Outlook
For the fourth quarter 2025, PSKY expects total revenue between $8.10-$8.30 billion, indicating 1%-4% year-over-year growth, and adjusted OIBDA between $500-$600 million, suggesting a 6.7% margin at the midpoint.
The company expects 2025 total revenues approaching $29 billion and adjusted OIBDA of approximately $3 billion, indicating a 10% margin.
For 2026, Paramount Skydance projects total revenues of $30 billion, representing approximately 4% year-over-year growth, and adjusted OIBDA of $3.5 billion, representing an 11.7% margin and approximately 17% growth year-over-year.
PSKY projects a free cash flow of approximately $1.5 billion before roughly $800 million of non-recurring transformation costs. The company expects to achieve investment-grade debt metrics by the end of 2027.
Zacks Rank and Other Stocks to Consider
Currently, PSKY carries a Zacks Rank #4 (Sell).
Carnival (CCL - Free Report) , Amer Sports (AS - Free Report) and Alto Ingredients (ALTO - Free Report) are some other top-ranked stocks that investors can consider in the Zacks Consumer Discretionary sector.
Carnival, Amer Sports and Alto Ingredients sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Carnival’s 2025 earnings is pegged at $2.15 per share, revised upward by 3 cents over the past 30 days and suggests a year-over-year increase of 51.41%.
The Zacks Consensus Estimate for Amer Sport’s 2025 earnings is pegged at 84 cents per share, unchanged over the past 30 days and suggests a year-over-year increase of 78.72%.
The Zacks Consensus Estimate for Alto Ingredients' 2025 loss is pegged at 10 cents per share, improving 72.9% over the past 30 days and suggests a year-over-year increase of 78.72%.