Paramount Global Q2 Earnings Beat Estimates, Revenues Rise Y/Y

Paramount Global PARA reported adjusted earnings of 46 cents per share for the second quarter of 2025, which beat the Zacks Consensus Estimate by 12.2%. The bottom line declined 15% from the year-ago quarter’s reported figure.

Revenues of $6.85 billion missed the Zacks Consensus Estimate by 0.22%. The figure increased 1% year over year. 

The modest growth in revenues was due to softness in TV Media revenues.

Consolidated adjusted OIBDA fell 5% from the year-ago quarter’s level to $824 million, which reflected year-over-year improvements in D2C.

Selling, general and administrative expenses decreased 11.3% year over year to $1.4 billion.

The Skydance transaction is expected to close on Aug. 7, 2025.

Paramount Global Price, Consensus and EPS Surprise

Paramount Global price-consensus-eps-surprise-chart | Paramount Global Quote

PARA’s Revenue Details

Advertising revenues (31.44% of total revenues) of $2.153 billion fell 4.4% year over year. Affiliate revenues (50.3% of total revenues) of $3.445 billion increased 42.3% year over year. Theatrical revenues (3.7% of total revenues) totaled $254 million in the reported quarter, which increased 84.05% year over year. Licensing and other revenues (14.73% of total revenues) of $1.009 billion decreased 13.32% year over year.

PARA’s Segment Details

DTC revenues increased 14.9% year over year to $2.16 billion. Its subscription revenues rose 21.8%, driven by subscriber growth and pricing increases for Paramount+.

DTC continued to show strength in the second quarter, with strong revenue growth and improved profitability. Paramount+ ranked second in the United States for Top 10 SVOD Originals year to date, led by hits like Landman and 1923. MobLand became the #2 Original Series ever on the platform, drawing more than 26 million global viewers for its premiere. The Chi returned for its seventh season with its most-streamed premiere to date. Pluto TV reached record global and domestic viewing hours and continues to lead in FAST service distribution.

DTC advertising revenues declined 3.7%, principally reflecting the impact of lower CPMs and the growing supply of Connected TV.

Global viewing hours across Paramount+ and Pluto TV grew 29% year over year. Paramount+ subscribers reached 77.7 million, with a decrease of 1.3 million in the quarter. Paramount+ global ARPU increased 9%, while its domestic watch time per user increased 11% year over year. 

DTC adjusted OIBDA improved $131 million year over year, indicating revenue growth.

TV Media revenues decreased 6.08% year over year to $4.01 billion due to ongoing declines in affiliate and advertising revenues. 

The segment’s advertising revenues decreased 4%. Affiliate and subscription revenues decreased 7%, driven principally by linear subscriber declines. The segment’s licensing and other revenues decreased 9% in the quarter.
 
TV Media adjusted OIBDA decreased 15% to $863 million, primarily reflecting the lower revenues.

CBS extended its record as the most-watched broadcast network in primetime for the 17th consecutive season. The network aired 14 of the top 20 series, including Tracker, the #1 overall show, and Matlock, the top new series. CBS Sports saw strong gains, with the NCAA Men’s Basketball Championship delivering the most-watched Final Four in eight years and golf coverage up 13% year over year, which was its best in seven years. The Daily Show ranked as the #1 late-night show on Mondays across all TV.

Filmed Entertainment revenues increased 11% year over year to $690 million. Theatrical revenues increased 84% to $254 million, reflecting the release of Mission: Impossible – The Final Reckoning. It earned more than $590 million at the global box office to date. 

Licensing and other revenues decreased 19%, driven by lower licensing of animated content.

The company reported a negative adjusted OIBDA of $84 million, down from a negative OIBDA of $54 million year over year, reflecting lower profits from licensing.

PARA’s Balance Sheet & Cash Flow Details

As of June 30, 2025, Paramount Global had cash and cash equivalents of $2.74 billion compared with $2.67 billion as of March 31, 2025.

Total debt, as of June 30, 2025, was $14.16 billion, the same as that of March 31, 2024.

The non-GAAP free cash flow was $114 million compared with $123 million reported in the previous quarter.

Zacks Rank & Stocks to Consider

Currently, PARA carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Consumer Discretionary sector are American Public Education APEI, Central Garden & Pet CENT and Amer Sports AS, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of American Public Education have gained 36.8% year to date. American Public Education is set to report second-quarter 2025 results on Aug. 6.

Shares of Central Garden & Pet have lost 0.2% year to date. Central Garden & Pet is slated to report third-quarter fiscal 2025 results on Aug. 6.

Shares of Amer Sports have jumped 31.6% year to date. Amer Sports is set to report second-quarter 2025 results on Aug. 19.

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This article originally published on Zacks Investment Research (zacks.com).

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