Paramount Skydance Corporation Class B Common Stock

Paramount reported Q2 revenue growth led by DTC at 9% and Studios at 16%, with adjusted EBITDA up 27% year over year to $1.1 billion. Paramount+ revenue rose 16% year over year, about one-third from subscriber growth and two-thirds from ARPU gains, and the service added 2 million subscribers to reach 81.6 million globally. Studios adjusted EBITDA was $36 million, up from a loss last year, and TV Media profit grew 14% even as revenue declined. For the full year, management raised adjusted EBITDA guidance to $3.8 billion-$3.9 billion, kept revenue outlook at $30 billion, and lifted free cash flow conversion to at least 10% before transformation costs. For Q3, revenue guidance is $6.95 billion-$7.15 billion, implying 4% to 7% growth, and adjusted EBITDA is guided to $875 million-$975 million; Paramount+ subscribers are expected to be relatively flat quarter over quarter.

David Ellison framed the quarter as evidence that the company is delivering on its three priorities: storytelling investment, global DTC scale, and enterprise efficiency. He pointed to a nearly doubled theatrical slate, 40 new and returning Paramount+ series, expanded sports rights, and major progress in tech convergence as proof the strategy is working. His tone was upbeat and confident, especially on streaming momentum, Studios rebuilding, AI as a tool for creators, and the company’s confidence in its strategic direction.

Dennis Cinelli emphasized that the quarter outperformed expectations across revenue and profitability, with adjusted EBITDA up 27% year over year to $1.1 billion. He highlighted Paramount+ revenue up 16%, 81.6 million global subscribers, Studios EBITDA of $36 million, and Q2 TV Media ad revenue down 14% due to NCAA timing and asset sales. On liquidity, he said the company ended the quarter with $1.6 billion in cash and $3.2 billion of undrawn revolver capacity, and on transaction timing he outlined about $190 million of incremental financing cost if the WBD deal does not close until June, plus a $0.25 per share per quarter ticking fee for WBD shareholders if closing occurs after September 30.

Analysts pressed on the WBD transaction, DTC scaling, bundling, ad trends, cord-cutting, and sports strategy. Management repeatedly said the deal is still expected to close, financing is in place, and they are open to settlement but believe they will win at trial; they also said Paramount+ is not yet at scale and still has room to grow subscribers, ARPU, and engagement. On bundling and distribution, they said partnerships will be evaluated by reach, consumer control, economics, and data sharing, while on ads they noted a strong upfront, double-digit ad growth on Paramount+, and a relaunch-driven rebound expected for Pluto in the back half of the year.