Key Financial Data
- Q4 Total revenue: $7.32 billion (-7% year-over)
- Q4 Operating income: $22 million (-90%)
- Q4 Net income: -$70 million
- FY25 Total revenue: $29.03 billion (-2%)
- FY25 Operating income: -$35 million (-101%)
- FY25 Net income: -$3.13 billion (deterioration of 385%)
- Free cash flow: $308 million (-76%)
- Read more Q4 2025 media earnings coverage
Paramount Global swung to a quarterly loss and posted sharply lower profit during 2025 as programming-related write-downs and restructuring charges following the company’s merger with Skydance media weighed on results despite modest improvements in cash flow.
For the three months ended December 31 (Q4), Paramount reported revenue of $7.32 billion, down 7 percent from $7.93 billion in the year-ago quarter. Operating income fell to $22 million, compared with $220 million in the fourth quarter of 2024, reflecting the impact of programming charges and other items tied to the company’s strategic transformation efforts.
Paramount recorded a net loss from continuing operations of $70 million in the fourth quarter, reversing net earnings of $423 million a year earlier. Adjusted OIBDA totaled $23 million, down 92 percent year over year, underscoring the pressure on profitability across its business lines.
Still, cash generation improved in the period. Net cash provided by operating activities rose to $219 million, up from $102 million in the prior-year quarter. Free cash flow reached $120 million, compared with $81 million in the fourth quarter of 2024.
For the full year, Paramount’s financial performance deteriorated more sharply. Revenue totaled $29.03 billion in 2025, down 2 percent from $29.62 billion in 2024. The company posted an operating loss of $35 million for the year, compared with operating income of $2.38 billion in the prior year.
Net loss from continuing operations widened to $3.13 billion for the year, compared with net earnings of $1.10 billion in 2024. Adjusted OIBDA declined 61 percent year over year to $1.31 billion, reflecting lower profitability and the impact of charges recorded during the year.
Cash flow also softened on an annual basis. Net cash provided by operating activities was $627 million, down from $1.08 billion in 2024. Free cash flow totaled $308 million, compared with $1.27 billion in the prior year.
Stock Price
In a letter to shareholders on Wednesday, Paramount CEO David Ellison said the company’s results were affected by programming charges associated with a review of its content portfolio, as well as restructuring charges tied to transformation initiatives and transaction-related items. The company has been realigning its operations around strategic priorities following recent corporate transactions and internal reorganization efforts.
Ellison also affirmed that Paramount incurred higher legal expenses that were partially related to the company’s aggressive pursuit of peer entertainment company Warner Bros Discovery (WBD), which agreed to sell its film studio and other assets to streamer Netflix but is weighing counter-proposals made by Paramount over the past few weeks. Paramount’s offers are predicated on acquiring all of WBD, including its cable networks; the Netflix deal would see the cable networks spun out into a separate company.
Despite the weaker earnings profile, Paramount highlighted continued momentum in its direct-to-consumer business and its content pipeline. The company said direct-to-consumer remains its top priority, with investments in original programming intended to drive engagement and long-term subscriber growth.
Paramount also touted a robust upcoming slate of films and series, including new installments in established franchises and multiple first-look production deals with prominent creators. The company said it has significantly increased its output, with dozens of films currently dated for release in 2026 and a growing number of new series greenlit since the summer.
Sports remains a key driver of streaming growth, Ellison said, noting Paramount’s expanded partnerships that make its live TV networks and streaming services the exclusive home for certain live events in the United States and select international markets.
“Our momentum is exciting, and we anticipate it will carry through to 2026 as our slate really begins to fully represent the vision of our leadership team,” Ellison wrote on Wednesday.
Streaming is also a big focus for the company, with Paramount ending the year with 79 million subscribers across its different services. Most are presumed to be paying for Paramount Plus, its flagship streaming platform, though the company also counts subscribers across BET Plus and other services.
Starting next fiscal quarter, Paramount said it will stop counting streamers who are on free trial offers, opting instead to report only customers who are paying for the app directly to the company or through a bundled offering with another provider.
Paramount also exited a partnership that involved a “hard bundle” with another company, which resulted in the loss of 700,000 subscribers during the year. Ellison said the decision was made because the economics of that bundle arrangement were “unattractive” to the company. Last quarter, Paramount’s subscriber count dipped by 100,000 customers.
