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Dec 31, 2025
Paramount Q4 2025 Earnings Report
Paramount Q4 2025 Earnings Report
Key Takeaways
Paramount (now Paramount Skydance) reported Q4 revenue of $8.15 billion, a 2% increase year-over-year, driven by strong growth in Direct-to-Consumer (DTC) and Filmed Entertainment. Despite a GAAP operating loss due to restructuring and merger-related costs, Adjusted OIBDA grew 51% to $612 million, and the company ended the year with 79 million Paramount+ subscribers.
DTC revenue grew 10% year-over-year, led by 17% growth at Paramount+ which reached 79 million paid subscribers.
The company is on track to deliver at least $3 billion in efficiencies through 2027, with $2.5 billion expected by the end of 2026.
Paramount has made a $31 per share all-cash offer to acquire Warner Bros. Discovery, which was recently deemed a potential superior proposal by the WBD board.
TV Media remains the largest profit contributor with $1.1 billion in Adjusted OIBDA, despite a 5% decline in revenue due to advertising and affiliate headwinds.
Revenue by Segment
Forward Guidance
For 2026, Paramount expects total revenue of $30 billion (4% growth) and Adjusted EBITDA of $3.8 billion, driven by DTC acceleration and efficiency gains.
Positive Outlook
- Expected total revenue of $30 billion for full year 2026.
- DTC revenue expected to accelerate through subscription and ad growth.
- On track for $2.5 billion in run-rate efficiencies by end of 2026.
- Studio segment expected to be profitable in 2026.
- Paramount+ expected to have healthy underlying subscriber growth.
Challenges Ahead
- Strategic exit of 4-5 million low-economy hard bundle subscribers.
- Theatrical revenue expected to be significantly lower year-over-year in 2026.
- Continued headwinds in TV Media affiliate revenue due to pay TV declines.
- Approximately $800 million in transformation costs expected to impact cash flow.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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