Executive Summary

Q1 2025 delivered stable top-line ex-Super Bowl and meaningful DTC profit improvement: revenue $7.19B (-6% YoY; +2% ex-Super Bowl), GAAP diluted EPS $0.22 vs ($0.88) YoY, Adjusted OIBDA $688M; DTC Adjusted OIBDA improved $177M YoY as Paramount+ reached 79M subs (+1.5M net adds) with stronger engagement and lower churn .
Advertising fell 19% YoY due to the Super Bowl lap, but ex-Super Bowl was flat; total affiliate & subscription revenue returned to growth (+1% YoY). Free cash flow was $123M on $180M operating cash flow .
TV Media was pressured by the Super Bowl comp and affiliate declines; DTC subscription growth (+16%) and engagement gains offset digital ad softness (Pluto supply/demand). Filmed Entertainment improved profitability on Sonic the Hedgehog 3 strength .
Outlook: Management reiterated 2025 Paramount+ domestic profitability, expects 2025 free cash flow growth, and again sees combined affiliate + subscription revenue growing; near-term, Q2 subs to decline (seasonality/bundle termination), film OIBDA loss (marketing timing), and digital ad trends similar to Q1 .

What Went Well and What Went Wrong

What Went Well

Paramount+ momentum: 79M subs (+1.5M net adds), 17% higher watch time per user, churn improved 130 bps; Paramount+ revenue +16% YoY; “Paramount+ again had the second most Top 10 SVOD originals” (management) .
Direct-to-Consumer profitability trajectory: DTC Adjusted OIBDA improved by $177M YoY to a loss of $109M, driven by subscription growth and expense discipline; management reiterated 2025 domestic profitability for Paramount+ .
Filmed Entertainment profitability: OIBDA improved $23M YoY, aided by Sonic the Hedgehog 3 across home entertainment/streaming; Gladiator II ranked as most-viewed film ever on Paramount+ (management) .

Quotes:

“We are particularly proud of our progress in DTC… Paramount+ saw continued improvement in subscribers, user watch time and churn and remains on track to reach domestic profitability for 2025.” – Co-CEOs .
“Paramount+ ended the quarter with 79 million global subscribers… Global watch time per user increased 17%… churn improved 130 basis points…” – Chris McCarthy .

What Went Wrong

Advertising headwind from Super Bowl lap: Total company ad revenue -19% YoY; ex-Super Bowl, flat; digital monetization softness given increased supply (Pluto disproportionately affected) .
TV Media declines: Revenue -13% YoY; Adjusted OIBDA -36%, with affiliate/subscription -9% and ad -21% (ex-Super Bowl flat) .
Digital ad environment: DTC advertising -9% YoY (8-pt Super Bowl impact); excluding the comp, down ~1% due to supply influx; management expects stabilization over time but not yet evident .

Financial Results

Consolidated performance (oldest → newest)

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($B)	$6.731	$7.984	$7.192
Operating Income ($M)	$337	$129	$550
Diluted EPS – GAAP (Continuing Ops)	($0.01)	($0.33)	$0.22
Adjusted OIBDA ($M)	$858	$406	$688
Adjusted Diluted EPS – Non-GAAP	$0.49	($0.11)	$0.29

Q1 YoY comps (for context): Revenue $7.192B vs $7.685B (-6%); Adjusted OIBDA $688M vs $987M; Adjusted EPS $0.29 vs $0.62; GAAP diluted EPS $0.22 vs ($0.88) .

Segment breakdown (Q1 2025 vs Q1 2024)

Segment	Revenue Q1’24 ($M)	Revenue Q1’25 ($M)	Adj. OIBDA Q1’24 ($M)	Adj. OIBDA Q1’25 ($M)
TV Media	5,231	4,538	1,445	922
Direct-to-Consumer	1,879	2,044	(286)	(109)
Filmed Entertainment	605	627	(3)	20

Notes:

TV Media advertising -21% YoY due to Super Bowl lap; ex-Super Bowl, flat; affiliate/subscription -9% .
DTC subscription revenue +16%; advertising -9% (8-pt Super Bowl impact); global viewing hours +31% across Paramount+ and Pluto .
Filmed Entertainment revenue +4% and OIBDA +$23M YoY on Sonic 3 .

KPIs (Q1 2025)

Paramount+ subscribers: 79M; net adds: +1.5M; Paramount+ revenue +16% YoY; ARPU +2% YoY; watch time/user +17% YoY; churn improved 130 bps .
Company-wide: Total ad revenue -19% YoY (flat ex-Super Bowl); total affiliate & subscription revenue +1% YoY; operating cash flow $180M; free cash flow $123M .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Paramount+ profitability (domestic)	FY 2025	Achieve 2025 domestic profitability	Reiterated 2025 domestic profitability target	Maintained
Affiliate + Subscription (total company)	FY 2025 / Q2 2025	Growth as streaming offsets linear	“Will again yield net growth” in Q2; ongoing transition to streaming	Maintained
DTC subscribers	Q2 2025	Not specified	Q2 subs to decline (seasonality; termination of intl hard bundle)	New/Updated
Digital advertising	Q2 2025	Not specified	Trends similar to underlying Q1 trends	New/Updated
Filmed Entertainment OIBDA	Q2 2025	Not specified	OIBDA loss expected (marketing timing for Mission: Impossible)	New/Updated
Free Cash Flow	FY 2025	Growth vs 2024	Reiterated full-year FCF growth; Q2 FCF similar YoY incl. ~$100M restructuring	Maintained/Updated
OIBDA (consolidated)	FY 2025	Growth ex Super Bowl/political	Working toward OIBDA outlook; growth ex Super Bowl/political; macro ad uncertainty flagged	Maintained/Color

No explicit numerical revenue/EPS guidance was provided; management emphasized qualitative/segment-level outlook .

Earnings Call Themes & Trends

Topic	Q3 2024 (Nov-24)	Q4 2024 (Feb-25)	Q1 2025 (May-25)	Trend
Paramount+ profitability path	DTC Adjusted OIBDA positive in Q3; strong ARPU and sub growth; roadmap to profitability	2025 P+ domestic profitability reiterated; content spend flat YoY, remix toward streaming	2025 P+ domestic profitability reiterated; DTC OIBDA +$177M YoY	Consistent execution; confidence maintained
Advertising (linear vs digital)	Linear ads pressured; DTC ads +18% YoY; political buoyed results	Linear ad declines; D2C ad +18% FY; Super Bowl/political tailwinds in 2024	Total ad -19% YoY due to Super Bowl lap; ex-SB flat; digital soft from supply (Pluto)	Stabilizing ex-event comps; digital monetization lagging engagement
Affiliate revenue	Ongoing pay-TV subs declines; pricing offsets	Q1’25 preview: affiliate decline rate to increase on renewals	Q1 affiliate/subscription returned to growth total-company; TV Media affiliate -9%	Mixed: linear pressure offset by streaming subscriptions
Content/licensing strategy	Paramount+ originals drive engagement; licensing volume variability	Licensing remains strong, more internal licensing; innovation in windowing	Licensing growth in TV Media; balance exclusivity vs co-exclusive to maximize value	Disciplined, monetization-first
Bundling/partnerships	Not emphasized	Open to partnerships; 2025 P+ profitability focus; bundles valuable	Opportunistic on bundles; Walmart and international hard bundles as examples	Pragmatic bundling to augment economics
Sports rights	NFL/UEFA strength across linear/streaming	Robust portfolio; sports lifts CBS and streaming	“Disciplined” approach; pursue rights that drive scale	Maintain core franchises
Film slate/costs	Strike impacts easing; varying releases	2025 slate robust; reduced avg production costs by 35% over 24 months	Sonic 3 momentum; Mission: Impossible marketing to weigh Q2 OIBDA	Profitability focus with diversified slate
Skydance transaction	Expected 1H 2025 close	Expected 1H 2025 close	Expected 1H 2025 close	Unchanged; pending close

Management Commentary

Strategic focus: “Our focused execution with high-performing content drove strong results… We are particularly proud of our progress in DTC… and [remain] on track to reach domestic profitability for 2025.” – Co-CEOs .
DTC engagement: “Global watch time per user increased 17% year-over-year and churn improved 130 basis points year-over-year… Paramount+ revenue increased 16% year-over-year.” – Chris McCarthy .
Digital ad environment: “Monetization has been softer than expected due to the influx of supply… we anticipate supply-demand dynamics will stabilize over time… engagement… will lead to improved monetization over time.” – Chris McCarthy .
Film profitability discipline: “We successfully reduced average production costs… by 35% over the last 24 months.” – Brian Robbins .
2025 outlook: “We continue to expect to deliver Paramount+ domestic profitability for 2025… working toward the full year OIBDA and free cash flow outlook… though macro ad uncertainty has potential to impact results.” – Naveen Chopra .

Q&A Highlights

Digital ads/Pluto: Pricing pressure from new supply persists; management expects normalization but hasn’t seen it yet; CBS sports strength offset digital softness in Q1 .
Affiliate economics: Renewals secure distribution; if reverse comp dynamics shift materially, could impact CBS sports/primetime investments, but relationships remain strong .
Licensing balance: Maintain valuable IP to grow owned platforms; selectively co-exclusive or window after O&O; secondary licensing remains a growth business .
Sports rights appetite: Disciplined, opportunistic; maintain optimal portfolio focused on audience scale .
Q2 color: Digital ad trends similar to Q1; Q2 subs to decline (seasonality + hard bundle end); film OIBDA loss due to marketing timing; Q2 FCF similar YoY with ~ $100M restructuring; 2025 FCF growth reiterated .

Estimates Context

Wall Street (S&P Global) consensus for Q1 2025 was unavailable via our tooling at this time; therefore, “vs estimates” comparisons could not be provided. We will update when S&P Global consensus retrieval becomes available.

Key Takeaways for Investors

Paramount+ engagement and churn continue to improve alongside double-digit subscription revenue growth; the company reiterated 2025 domestic profitability, a key de-risking milestone for the DTC investment cycle .
Ex-Super Bowl, the ad line stabilized in Q1 (flat), but digital ad monetization (Pluto) lags engagement; watch for supply/demand normalization and upfront outcomes as catalysts .
TV Media remains under structural pressure (affiliate declines), but total affiliate & subscription revenue has turned positive at the company level as streaming scales—monitor the net of linear erosion vs DTC growth each quarter .
Film profitability discipline and franchise flywheel (Sonic 3, Gladiator II) support downstream streaming economics; near-term, Mission: Impossible marketing produces Q2 OIBDA headwind before revenue tailwinds accrue .
Cash discipline improving: FCF positive in Q1 ($123M) with 2025 growth reiterated despite macro ad uncertainty; restructuring cash outflows weigh near term (Q2 ~ $100M) .
Event path: Skydance transaction remains targeted to close 1H 2025; closing clarity, upfront demand, and digital ad market balance are likely stock catalysts over the next 1-2 quarters .

Paramount Global (PARA)·Q1 2025 Earnings Summary