Paramount Skydance Corporation (NASDAQ: PSKY) reported third‑quarter 2025 results on November 10, 2025, with total revenue of $6.71 billion—$280 million below the $6.99 billion consensus estimate and flat compared with the combined company’s predecessor revenue a year earlier. Adjusted earnings per share were a loss of 12 cents, missing the consensus estimate of 46‑49 cents, while operating income reached $324 million and the company recorded a net loss of $257 million, largely driven by merger‑related integration and restructuring costs that were higher than analysts had anticipated.
The direct‑to‑consumer (DTC) segment, led by Paramount+, grew 17 % year‑over‑year to $2.17 billion in revenue and added 1.4 million new subscribers, bringing the total to 79.1 million. Subscriber growth was supported by a 10 % increase in subscriber base and an 11 % rise in average revenue per user (ARPU), reflecting the company’s ability to monetize its expanding content library and to price its streaming service competitively in a crowded market. The DTC momentum offsets the decline in traditional media and signals that the company’s core growth engine is gaining traction.
The TV Media segment declined 12 % year‑over‑year, driven by a 12 % drop in advertising revenue and a 7 % decline in affiliate fees, underscoring the continued erosion of linear television income. In contrast, the Filmed Entertainment segment posted a 30 % year‑over‑year increase in revenue, a result of consolidating Skydance’s licensing and distribution operations following the August 7, 2025 merger. The revenue lift in filmed entertainment demonstrates the synergy benefits of the merger, but the segment still faces headwinds from a slower film slate and higher production costs.
Management guided fourth‑quarter revenue to $8.1 billion–$8.3 billion, a 1 %–4 % year‑over‑year increase, and projected adjusted operating income before depreciation and amortization (OIBDA) of $500 million–$600 million, with $500 million in restructuring charges. For the full year, the company reiterated that the DTC segment will be profitable in 2025 and will see further profitability improvement in 2026. Management also projected 2026 revenue of approximately $30 billion and adjusted OIBDA of $3.5 billion, reflecting confidence in the streaming platform’s growth and the company’s cost‑saving initiatives. The merger, completed on August 7, 2025, has already enabled a $3 billion cost‑savings target and a planned $1.5 billion annual investment in new programming, with a unified streaming platform slated for launch by mid‑2026.
David Ellison, Chairman and CEO, emphasized that “our direct‑to‑consumer business is our top priority. We expect it to be profitable in 2025 with growth in profitability in 2026.” He added that the company has taken “significant steps to align our business around our North Star priorities: investing in growth businesses, scaling our DTC globally, and driving efficiency enterprise‑wide.” Investors reacted with mixed sentiment, reflecting both optimism about the company’s streaming strategy and concerns about the current earnings miss and the impact of integration costs.
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