Paramount Skydance (PSKY) Q2 2026 Earnings Call Transcript
Paramount Skydance (NASDAQ:PSKY) reported Q2 2026 revenue of $6.9B, up 1% year over year, and adjusted EBITDA of $1.1B, up 27%. Net earnings were $41M ($0.04/share) including $153M transaction costs tied to the pending Warner Bros. Discovery merger. Paramount+ had 81.6M subscribers, up 6%, and revenue of $2.1B, up 16%. Full-year guidance: adjusted EBITDA $3.8B-$3.9B and revenue about $30B.
How this was made
The 30-second read
Why it matters
The call emphasizes DTC and Paramount+ growth, rising run-rate efficiencies, and raised FCF conversion guidance, while also quantifying merger delay costs and providing updated Q3 and full-year guidance ranges.
Market read
Traders can update models for PSKY using the provided guidance ranges, subscriber and ARPU trends, and explicit merger delay cost mechanics.
What to watch
Bridge fees and the ticking fee are explicitly time-dependent; if regulatory clearance or closing slips, incremental financing costs could outweigh efficiency progress in the near term.
Background
Paramount Skydance is reporting Q2 2026 performance while progressing toward a pending Warner Bros. Discovery merger, with antitrust litigation scheduled for March 2027.
Ticker impact
Paramount Skydance reported Q2 2026 results and raised full-year free-cash-flow conversion guidance, alongside $3.8B to $3.9B adjusted EBITDA guidance.
Likely two-way volatility: upside from higher efficiency/run-rate and DTC/Paramount+ growth, offset by higher transaction costs if the Warner Bros. Discovery merger timing slips.
The article provides multiple forward-looking numeric datapoints (EBITDA and revenue ranges, run-rate efficiencies, FCF conversion) plus explicit incremental financing costs tied to closing delays, which can drive scenario-based revaluation.
Market effects
Streaming and media peers may face read-across on DTC profitability, advertising recovery, and synergy execution assumptions tied to consolidation.
Limited direct regional spillover; deal and regulatory timing are primarily US-focused but can influence global media sentiment.
Warner Bros. Discovery merger progress and antitrust timeline can affect broader global entertainment M&A expectations and financing costs.
Counterpoint
The headline profitability gains may be partially offset by transaction-related costs and subscriber exits, so the market may discount synergy quality until integration milestones are proven.
Key entities
- companyParamount Skydance Corporation
NASDAQ-listed media company reporting Q2 2026 results and issuing full-year guidance amid a pending Warner Bros. Discovery merger.
- companyWarner Bros. Discovery
Counterparty in the pending merger; deal timing affects Paramount Skydance’s bridge fees and ticking fee disclosures.
- personDavid Ellison
CEO who discussed run-rate efficiencies, technology stack convergence, and live sports impact on Paramount+.
- personDennis Cinelli
CFO who quantified transaction-related costs and discussed TV Media advertising headwinds.
