Slide 1: Shareholder Letter Q2 2026
SHAREHOLDER LETTER Q2 2026
Slide 2: Summary Points
August 4, 2026 Summary Points: • One year in, we’re proud of the great progress: including nearly doubling our theatrical slate from 8 to 15 films in 2026 and on track to release 15+ in 2027; 40 new or returning DTC series greenlit; and over 90 series and 800+ episodes expected from our TV studios i
Slide 3: Fellow shareholders
Fellow shareholders, A year ago, we laid out our three north star priorities that would guide the new Paramount: • Investing in our growth businesses anchored by our creative engines and superior storytelling • Scaling our direct-to-consumer business globally • Driving efficiency enterprise-wide wit
Slide 4: Direct-to-Consumer
As we’ve expanded our slate and strengthened the streaming foundation that underpins our business, we’ve made meaningful progress over the past year towards becoming a more efficient, agile company. This impact is most evident in our TV Media business, where revenue is down 7% year-to- date, yet pro
Slide 5: Direct-to-Consumer: UFC and BET+ integration
329 delivered the highest peak concurrent streams in the platform’s history for an exclusive live event, trailing only Super Bowl LVIII. Since the start of the year, 20 million subscriber households have watched more than 200 million hours of UFC programming on Paramount+, generating viewership more
Slide 6: Studios
Studios The segment is continuing to see strong, profitable growth year-over-year in the second quarter, a meaningful improvement from a loss in the prior-year period. On the film side, our Studios turnaround is showing real, measurable progress as our Q2 releases outperformed expectations, reflecti
Slide 7: TV Media
In June, we launched Paramount Games, our dedicated games division serving as both a publisher and incubator for interactive entertainment built around our world-class IP. That same week, we announced two major titles in development – TMNT: The Last Ronin and Star Trek: Shadow Frontier. Our latest r
Slide 8: Driving Efficiency and Optimizing Investment Enterprise-wide
Driving Efficiency and Optimizing Investment Enterprise-wide We continue to make progress on our transformation at Paramount, and we now expect to deliver over $2.7 billion of run-rate efficiencies by the end of 2026 versus $2.5 billion previously, and continue to expect $3 billion-plus in efficienc
Slide 9: Q2 Results and Q3 and 2026 Outlook
Q2 Results and Q3 and 2026 Outlook A summary and discussion of Q2 results and our Q3 and 2026 outlook are below2. Predecessor Successor Outlook In millions, except 7/1/25 - 8/7/25 - per share amounts Q2’25 8/6/25 9/30/25 Q4’25 Q1’26 Q2’26 Q3’26 2026 Direct-to-Consumer $ 2,264 $ 923 $ 1,344 $ 2,309 $
Slide 10: Q2'26 results
Q2’26 In Q2, total revenue of $6.9 billion increased 1% versus revenue of $6.8 billion in Q2'25 for the predecessor company, led by growth in DTC and Studios revenues, largely offset by a continued decline in TV Media. Operating income was $475 million (6.9% margin) including $153 million of transac
Slide 11: Q3'26 and 2026 outlook
Q3’26 In Q3’26, we expect total revenue of $6.95 billion to $7.15 billion, or 4% to 7% growth year-over-year versus Q3’25 for the predecessor company, with accelerating growth in DTC and Studios and moderating declines in TV Media. In Q3, we expect Paramount+ quarter-over-quarter subscribers will be
Slide 12: Capital Structure & Capital Allocation; Warner Bros. Discovery Transaction
Capital Structure & Capital Allocation We ended the quarter with $1.6 billion in cash and cash equivalents and $15.2 billion in gross debt. In Q2, we repaid $350 million of our outstanding revolver borrowings to end the quarter at $1.8 billion drawn. As a reminder, we drew $2.15 billion on our revol
Slide 13: Cautionary Note Concerning Forward-Looking Statements
Cautionary Note Concerning Forward-Looking Statements This letter contains both historical and forward-looking statements, including statements related to our future financial results and performance, potential achievements and transactions (including in connection with our pending merger with Warne
Slide 14: Financial Statement Presentation
Financial Statement Presentation On August 7, 2025, Paramount Global and Skydance Media, LLC (“Skydance”) became subsidiaries of Paramount Skydance Corporation, pursuant to a transaction agreement entered into on July 7, 2024 (the transactions contemplated by the Transaction Agreement, the “Skydance
Slide 15: Consolidated Statements of Operations
PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited; in millions, except per share amounts) Successor Predecessor Successor Predecessor Three Months Three Months Six Months Six Months Ended June 30, Ended June 30, Ended June 30, Ended June 30, 2026 2025 2
Slide 16: Consolidated Balance Sheets
PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited; in millions, except per share amounts) At At June 30, 2026 December 31, 2025 ASSETS Current Assets: Cash and cash equivalents $ 1,627 $ 3,274 Receivables, net 6,178 6,615 Programming and other inventory 1,655 1,4
Slide 17: Consolidated Statements of Cash Flows
PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited; in millions) Successor Predecessor Six Months Ended Six Months Ended June 30, June 30, 2026 2025 Operating Activities: Net earnings (Parent and noncontrolling interests) $ 216 $ 222 Adjustments to recon
Slide 18: Supplemental Disclosures Regarding Non-GAAP Financial Measures
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES (Unaudited; in millions, except per share amounts) Adjusted EBITDA (defined below), Adjusted earnings before income taxes, adjusted provision for income taxes, adjusted net earnings attributable to parent, and adjusted diluted EPS, which
Slide 19: Supplemental Disclosures Regarding Non-GAAP Financial Measures
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES (Continued) (Unaudited; in millions, except per share amounts) The following tables reconcile the adjusted measures to their most directly comparable financial measures in accordance with U.S. GAAP. The tax impacts on the items identifie
Slide 20: Supplemental Disclosures Regarding Non-GAAP Financial Measures
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES (Continued) (Unaudited; in millions, except per share amounts) Three Months Ended June 30, 2026 Successor Three Months Ended June 30, 2026 Net Earnings Earnings Before Provision for Attributable to Income Taxes Income Taxes Parent Dilute
Slide 21: Supplemental Disclosures Regarding Non-GAAP Financial Measures
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES (Continued) (Unaudited; in millions, except per share amounts) Six Months Ended June 30, 2026 Successor Six Months Ended June 30, 2026 Net Earnings Earnings Before Provision for Attributable to Income Taxes Income Taxes Parent Diluted EP
Slide 22: Supplemental Disclosures Regarding Non-GAAP Financial Measures
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES (Continued) (Unaudited; in millions) Beginning in 2026, we transitioned our reporting structure into three new segments: Studios, Direct- to-Consumer, and TV Media and updated our segment expense allocations to better reflect how we oper
Slide 23: Supplemental Disclosures Regarding Non-GAAP Financial Measures
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES (Continued) (Unaudited; in millions) Period from July 1-August 6, 2025 GAAP Non-GAAP Predecessor Predecessor Period From July 1 - Period From July 1 - August 6, August 6, 2025 2025 Filmed Entertainment Adjustments (b) Studios Theatrical
Slide 24: Supplemental Disclosures Regarding Non-GAAP Financial Measures
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES (Continued) (Unaudited; in millions) Direct-to-Consumer Our Direct-to-Consumer segment consists of our portfolio of domestic and international pay and free streaming services, including Paramount+ and Pluto TV, as well as our domestic pr
Slide 25: Supplemental Disclosures Regarding Non-GAAP Financial Measures
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES (Continued) (Unaudited; in millions) Period from July 1-August 6, 2025 GAAP Non-GAAP Predecessor Predecessor Period From July 1 - Period From July 1 - August 6, August 6, 2025 2025 Direct-to-Consumer Adjustments (b) Direct-to-Consumer Ad
Slide 26: Supplemental Disclosures Regarding Non-GAAP Financial Measures
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES (Continued) (Unaudited; in millions) TV Media Our TV Media segment consists of our (1) broadcast operations—the CBS Television Network, our domestic broadcast television network; CBS Stations, our owned television stations; and our inter
Slide 27: Supplemental Disclosures Regarding Non-GAAP Financial Measures
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES (Continued) (Unaudited; in millions) Period from July 1-August 6, 2025 GAAP Non-GAAP Predecessor Predecessor Period From July 1 - Period From July 1 - August 6, August 6, 2025 2025 TV Media Adjustments (b) TV Media Advertising $ 485 $ (1
Slide 28: Supplemental Disclosures Regarding Non-GAAP Financial Measures
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES (Continued) (Unaudited; in millions) Free Cash Flow Free cash flow is a non-GAAP financial measure. Free cash flow reflects our net cash flow provided by operating activities less capital expenditures. We deduct capital expenditures when