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NEW YORK - Paramount Global (NASDAQ:PARA) reported second-quarter adjusted earnings that surpassed Wall Street expectations, while revenue came in slightly below analyst estimates as the company continues its transformation into a streaming-focused business.
Paramount shares dipped 0.95% in after-hours trading.
The media giant posted adjusted earnings per share of $0.46 for the quarter, exceeding the analyst estimate of $0.35 by $0.11. Revenue for the period reached $6.85 billion, up 1% YoY, but narrowly missed the consensus estimate of $6.87 billion. Following the announcement,
Paramount’s direct-to-consumer (DTC) segment showed strong momentum with revenue growth accelerating to 15% YoY, led by Paramount+ which saw its revenue increase 23% and subscription revenue jump 24%. The DTC segment generated $157 million in adjusted OIBDA, representing a significant improvement of $131 million compared to the same period last year.
"Our goal when we became co-CEOs was to transform Paramount into a streaming first company and today we are substantially better positioned with streaming revenue growth outpacing linear declines, driven by exceptional performance at Paramount+," said George Cheeks, Chris McCarthy and Brian Robbins, Co-CEOs of Paramount Global.
The company’s traditional 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.
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.
Paramount generated $159 million in net operating cash flow and $114 million in free cash flow during the quarter. The company expects its previously announced Skydance transactions to close on August 7, 2025.
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