Paramount Global's Q2 Revenue Edges Up 1%, Streaming Service Loses 1.3 Million Subscribers.

Paramount Global reported Q2 revenue up 1% YoY at $6.85 billion, in line with estimates. EPS of $0.46 beat the consensus range of $0.37 to $0.44, but direct-to-consumer revenue was up 15% to $2.1 billion while traditional TV revenue was down 6% to $4 billion. The company lost 1.3 million subscribers, ending the quarter with 77.7 million. The $8 billion merger with Skydance Media is set to close on August 7.

Paramount Global (NASDAQ:PARA) reported mixed financial results for the second quarter of 2025, with revenue up 1% year-over-year (YoY) to $6.85 billion, in line with analyst estimates. The company's adjusted earnings per share (EPS) of $0.46 surpassed the consensus range of $0.37 to $0.44, marking a significant improvement over the previous quarter. However, direct-to-consumer (DTC) revenue grew by 15% to $2.1 billion, while traditional TV revenue declined by 6% to $4 billion. The company also reported a net loss of 1.3 million subscribers, ending the quarter with 77.7 million subscribers.

The DTC segment, led by Paramount+, showed strong momentum with revenue growth accelerating to 15% YoY. Subscription revenue jumped 24%, contributing to a significant improvement in adjusted operating income before depreciation and amortization (OIBDA) of $131 million compared to the same period last year. The company's traditional TV Media segment continued to face challenges, with revenue declining 6% to $4.01 billion, but overall affiliate and subscription revenue growth accelerated to 5%, helping to offset linear declines.

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 generated $159 million in net operating cash flow and $114 million in free cash flow during the quarter. The $8 billion merger with Skydance Media is set to close on August 7, 2025. The deal is expected to end control of Paramount by the Redstone family, led now by Shari Redstone, daughter of the executive who put the company together, Sumner Redstone. The merger aims to combine the two companies her family controlled—CBS and Viacom—with Skydance bringing its technology and resources to Paramount.

References:
[1] https://www.investing.com/news/earnings/paramount-global-q2-earnings-beat-estimates-revenue-slightly-misses-93CH-4164372
[2] https://variety.com/2025/tv/news/paramount-global-small-q2-profit-skydance-sale-1236475898/
[3] https://www.screendaily.com/news/streaming-and-theatrical-growth-drive-paramount-globals-second-quarter/5207481.article
[4] https://deadline.com/2025/07/paramount-skydance-merger-channel-5-future-1236474003/