Paramount Global Posts Q2 Earnings, Analysts Praise DTC Growth Amid Merger with Skydance Media

Paramount Global (PARA) reported Q2 earnings that beat expectations, with DTC revenue growing 15% YoY to $2.16 billion. TV Media revenue dropped 6% to $4.01 billion, and Filmed Entertainment revenue rose 2% to $690 million. Analysts remain divided on PARA's Q2 results, with one analyst reiterating a "Buy" rating and six maintaining a "Hold" rating. The company is set to merge with Skydance Media this week.

Paramount Global (PARA) reported its second-quarter earnings, which beat Wall Street expectations. The company's direct-to-consumer (DTC) revenue grew by 15% year-over-year (YoY) to $2.16 billion, while TV Media revenue dropped 6% to $4.01 billion. Filmed Entertainment revenue rose 2% to $690 million.

The company's adjusted earnings per share (EPS) for the quarter came in at $0.46, surpassing the analyst estimate of $0.35 by $0.11. Revenue for the period reached $6.85 billion, up 1% YoY but narrowly missing the consensus estimate of $6.87 billion.

DTC revenue growth was driven by strong performance at Paramount+, which saw its revenue increase by 23% and subscription revenue jump by 24%. The DTC segment generated $157 million in adjusted operating income before depreciation and amortization (OIBDA), representing a significant improvement of $131 million compared to the same period last year.

The TV Media segment continued to face challenges, with revenue declining 6% to $4.01 billion. However, overall affiliate and subscription revenue growth accelerated to 5%, helping to offset linear declines. The segment's advertising revenues decreased 4%, while affiliate and subscription revenues decreased 7%, driven principally by linear subscriber declines.

Filmed Entertainment revenue increased 11% YoY to $690 million, with theatrical revenues rising 84% to $254 million, reflecting the release of "Mission: Impossible – The Final Reckoning."

Paramount+ achieved a record low churn rate during the quarter, improving by 70 basis points, while watch time per subscriber increased 11% YoY, marking the third consecutive quarter of growth in this metric.

The company also highlighted content successes, noting that Paramount+ had the second-most top 10 SVOD originals for the first half of 2025, while CBS maintained its position as the most-watched broadcast network in primetime for the 17th consecutive season.

The company's net operating cash flow was $159 million, and free cash flow was $114 million during the quarter. The company expects its previously announced Skydance transactions to close on August 7, 2025.

Analysts remain divided on PARA's Q2 results, with one analyst reiterating a "Buy" rating and six maintaining a "Hold" rating.

References:
[1] https://www.investing.com/news/earnings/paramount-global-q2-earnings-beat-estimates-revenue-slightly-misses-93CH-4164372
[2] https://finance.yahoo.com/news/paramount-global-q2-earnings-beat-164800670.html
[3] https://www.nasdaq.com/articles/paramount-global-q2-earnings-beat-estimates-revenues-rise-y-y