Paramount Skydance Reports Net Loss

Paramount Skydance reported a widened net loss of $573 million in its fiscal fourth quarter ended December 31, 2025—the first full quarter since the Skydance merger closed—despite modest overall revenue growth of 2% to $8.15 billion.

The increased loss, up from $224 million in the year-ago period, stemmed largely from ongoing challenges in the legacy linear TV business, including a 5% revenue decline in TV Media to about $4.7 billion, driven by 10% drops in advertising and 7% in distribution revenues. This offset gains elsewhere, leading to an operating loss of $339 million (versus a prior-year profit) and a per-share loss of 52 cents.

Streaming showed clear improvement: Paramount+ added subscribers to reach 79 million (excluding free trials), fueling 17% growth in Paramount+ revenue and contributing to a 10% rise in direct-to-consumer (DTC) revenue to $2.21 billion. 

David Ellison

Filmed entertainment revenue also climbed 16% to nearly $1.26 billion, aided by Skydance contributions.

The company highlighted cost discipline and merger-related efficiencies, projecting at least $3 billion in savings through 2027. For full-year 2026, Paramount Skydance guided to $30 billion in total revenue (up 4% year-over-year) and adjusted EBITDA of $3.8 billion.

Amid these results, executives remained largely silent on the company's high-profile pursuit of Warner Bros. Discovery (WBD), offering only brief boilerplate language. David Ellison described a potential WBD acquisition as an "accelerant" to accelerating turnaround goals, achieving them more quickly and in an economically compelling way for shareholders. 

This comes as Paramount recently raised its all-cash bid to $31 per share (plus incentives like ticking fees and a large termination fee), prompting WBD's board to deem it potentially superior to an existing Netflix deal for certain assets. Talks with WBD's board continue, though no agreement is in place.

The earnings release underscores a transitional period for the David Ellison-led entity: streaming momentum and cost controls provide optimism for future profitability, while linear TV declines and restructuring costs weigh on near-term results.