Key Financial Data
- Total revenue: $6.7 billion (-3% year-over, pro forma; flat otherwise)
- Operating income: $324 million
- Net income: -$257 million (-25,800%)
- Streaming revenue: $2.17 billion (+17%)
- Paramount Plus revenue: $79.1 million (+14%)
- Streaming subscribers: 79.1 million (+14%)
- Streaming ARPU: $8.40 (+11%)
- TV media revenue: $3.8 billion (-12%)
- TV advertising revenue: $1.465 billion (-12%)
- TV affiliate revenue: $1.74 billion (-7%)
- Read more Q3 2025 media earnings coverage
Paramount posted mixed results in its first full quarter since merging with Skydance, as strength in streaming offset ongoing weakness in its traditional television business.
The company reported total revenue of $6.7 billion for the third quarter (Q3) of 2025, which was flat compared to the same period last year. Adjusted operating income before depreciation and amortization (OIBDA) rose 11 percent to $952 million, but the company posted a net loss of $257 million, or 37 cents per share, based on merger-related expenses and restructuring costs.
Paramount’s direct-to-consumer division, including its streaming apps, was once again a bright spot. Streaming revenue increased 17 percent to $2.17 billion, with Paramount Plus accounting for more than 80 percent of that total. The company said growth was driven by both a 10 percent increase in subscribers and an 11 percent rise in average revenue per user (ARPU), which reached approximately $8.40. Paramount Plus ended the quarter with 79.1 million subscribers worldwide, up 14 percent from the prior year.
David Ellison, the Chairman and CEO of Paramount, said the company’s focus on its direct-to-consumer business was paying off.
“Our direct-to-consumer business is our top priority,” Ellison wrote in a letter to shareholders. “We expect it to be profitable in 2025 with growth in profitability in 2026.”
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In contrast, the company’s TV media segment — which includes CBS, cable networks like MTV and Nickelodeon, and affiliated local stations — continued to struggle with industry-wide declines in advertising and affiliate fees. Advertising revenue fell 12 percent year-over-year to $1.47 billion, while affiliate and subscription revenue declined 7 percent to $1.74 billion. Paramount said political advertising and cable subscriber losses contributed to the drop.
Revenue from filmed entertainment, which includes Paramount Pictures, totaled $768 million, down 4 percent from a year earlier. The company acknowledged that its 2025 theatrical slate underperformed expectations but said it plans to recalibrate its film strategy and expand theatrical output to at least 15 films annually beginning in 2026.
Paramount ended the quarter with $3.3 billion in cash and $13.6 billion in debt. The company expects to achieve at least $3 billion in run-rate efficiencies by 2027, up from a prior target of $2 billion, through cost-cutting measures and organizational streamlining.
“Nearly 100 days have passed since we launched the new Paramount, and we are pleased with the progress to date,” Ellison affirmed. “Our goal in bringing together Paramount and Skydance was to honor a company with over a century of storied history and profound cultural impact, while transforming it for the future.”
Ellison said Paramount’s focus remains on three “North Star” priorities: investing in creative storytelling, scaling its direct-to-consumer business globally, and driving long-term free cash flow through greater efficiency. “By maintaining our relentless focus on our North Star priorities, we are building a foundation for multi-year growth as well as technology and cost transformation,” he said.
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