Paramount Skydance Corp
(MIL:1PARA)
€
10.22
(0%)
Market Cap: 9.59 Bil
Enterprise Value: 20.32 Bil
PE Ratio: 0
PB Ratio: 0.78
GF Score: 37/100 
Q2 2026 Paramount Skydance Corp Earnings Call Transcript
Aug 04, 2026 / 09:00PM GMT
Key Points
Positve
- Paramount+ subscriber base grew to nearly 82 million, with its best-ever retention quarter and double-digit growth in total view hours.
- Direct-to-consumer revenue grew 16% year-over-year, driven by a mix of subscriber growth and ARPU increases.
- The studios business returned to profitability with adjusted EBITDA of $36 million, up from a loss last year, and revenue growth of 16%.
- The company is on track to achieve over $2.7 billion in run-rate efficiencies by year-end, with a target of $3 billion-plus from the Skydance-Paramount merger.
- The proposed Warner Bros. Discovery combination has received regulatory approvals from 65 jurisdictions, with management expressing high confidence in closing.
- The company raised its full-year adjusted EBITDA guidance to $3.8-$3.9 billion and increased free cash flow conversion guidance to at least 10%.
- The upfront advertising season was the strongest since the CBS-Viacom merger, with double-digit percentage growth year-over-year.
- The company is making progress on technology convergence, with the Paramount+, Pluto, and BET+ platforms on track to unify by the end of summer.
- The theatrical slate has nearly doubled to 15 films in 2026, with a strong pipeline including 'Sonic the Hedgehog' and 'Days of Thunder' sequels.
- Live sports, including UFC and the World Cup, have driven record engagement and subscriber growth, reinforcing the company's commitment to sports rights.
Negative
- TV Media revenue declined due to the broader industry shift away from linear, with advertising down 14% year-over-year in Q2.
- The company faces incremental financing costs of around $190 million if the Warner Bros. Discovery deal closes by June 2027, including bridge fees and ticking fees.
- The Warner Bros. Discovery transaction is subject to litigation, with a trial set for March 2027, creating uncertainty and potential delays.
- Paramount+ subscriber growth was partially offset by exits from hard bundles, with 4 million underlying adds before those exits.
- Pluto TV remained a drag on advertising revenue, though a relaunch is expected to return it to growth in the back half of the year.
- The company's free cash flow conversion is still below peer levels, with elevated content spend expected to moderate over time.
- Q3 adjusted EBITDA is expected to be lower due to timing of content amortization, particularly for sports and new originals.
- The company's revenue guidance of $30 billion was not raised despite EBITDA and free cash flow improvements, indicating ongoing linear declines.
- The company faces potential additional ticking fees of $650 million per quarter for Warner Bros. Discovery shareholders if the deal closes after September 30.
- The company's liquidity position, while sufficient, includes $1.6 billion in cash and $3.2 billion in undrawn revolver capacity, which may be strained by extended transaction timelines.
Kevin Creighton
Paramount Skydance Corp - Executive Vice President - Corporate Finance and Investor Relations
Good afternoon, and thank you for taking the time to join us for the Paramount Q2 2026 earnings call. I'm Kevin Creighton, EVP of Corporate Finance and Investor Relations. Joining me today is our Chairman and Chief Executive Officer, David Ellison, our Chief Financial Officer, Dennis Gianelli, and our Chief Strategy and Operating Officer, Andy Gordon.
As a reminder, we will be making forward-looking statements today that involve risks and uncertainties. Our remarks will also include non-GAAP financial measures, and reconciliations of these measures can be found in our earnings letter or in our trending schedules, which contain supplemental information.
These can be found on our investor relations website.
I'll now turn it over to David for a few brief remarks before we address analyst questions.
David Ellison
Paramount Skydance Corp - Chairman of the Board, Chief Executive Officer
Thanks, Kevin, and good afternoon,
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