Paramount Skydance Corp (PSKY) Q4 2025 Earnings Call Highlights: Strategic Growth and …

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Thu, February 26, 2026 at 2:03 PM GMT+9 3 min read

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PSKY

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**Revised Bid for Acquisition:** Submitted a revised bid of $31 per share, all cash, for Warner Brothers Discovery.

Release Date: February 25, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Paramount Skydance Corp (NASDAQ:PSKY) reported strong growth in its streaming service, Paramount Plus, with a 17% increase year-to-date.

The partnership with UFC has exceeded expectations, reaching approximately 7 million households and becoming the platform's largest exclusive live event.

PSKY has greenlit 11 original series in the past six months, indicating a strong commitment to expanding its content library.

The company is focusing on long-term shareholder value by reinvigorating and building upon its core franchises and intellectual property.

PSKY is committed to becoming the most technologically capable media company, with plans to significantly increase its investment in AI and technology.

Negative Points

Theatrical revenue is expected to decline in 2026 due to a comparison with a strong previous year that included a major release, Mission Impossible.

Pluto TV, part of the non-Paramount Plus segment, faced monetization headwinds, with a 16% decline in revenue despite increased user engagement.

The company is in a rebuild phase for its studio business, with significant improvements in profitability not expected until 2027.

There are concerns about the impact of exiting uneconomic hard bundles on subscriber growth, although these represented less than 2% of revenue in 2025.

PSKY faces challenges in improving churn and customer acquisition costs (CAC) in its streaming business, which are critical for long-term economic success.

Q & A Highlights

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Q: Can you comment on your initial experience as the home of UFC on your streaming service and your strategy of being something for everyone every day? A: David Ellison, CEO, stated that the UFC partnership has been a phenomenal start, reaching approximately 7 million households across the US and Latin America. It was the platform’s largest exclusive live event to date, with strong advertising demand. The partnership has exceeded expectations, and UFC fans are engaging with other content offerings. Paramount Plus has seen over 17% growth year-to-date, and the company is optimistic about the partnership’s future.

Q: What are you seeing in terms of ARPU and profitability for D2C next year? A: Dennis Cinelli, CFO, explained that they expect revenue of $30 billion, up 4% year-on-year, with DTC as the growth driver. They anticipate healthy subscriber growth and better ARPU due to a mix shift and price increases. The company is exiting uneconomic hard bundles, which represented less than 2% of Paramount Plus revenue in 2025. They expect DTC ad revenue to grow and profitability to improve year-on-year.

Story Continues  

Q: Have you had any conversations with the NFL regarding future opportunities and risks with the NFL renewal? A: Jeff Shell, President, stated that they have a strong relationship with the NFL, being the first NFL broadcaster. They feel confident about continuing their partnership and have accounted for potential impacts in their forecasts. The regionalization of games maximizes viewership and benefits both the NFL and Paramount.

Q: How critical is it to reinvigorate and build upon your core franchises and IP for long-term shareholder value? A: David Ellison emphasized the importance of creating long-term shareholder value by reinvesting in core franchises and IP. They plan to release 16 movies this year, doubling down on franchises like A Quiet Place and Sonic. Investments in original series and improved product experiences on Paramount Plus and Pluto are expected to drive growth.

Q: How are you positioning the company for the evolution of AI in content creation? A: David Ellison highlighted that AI is seen as a tool for artists to unlock creativity. Paramount aims to be the most technologically capable media company, investing in AI to enhance storytelling. They plan to significantly increase their engineering headcount to lead this transformation, viewing AI as a tailwind for the company.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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