Paramount Global earns nearly $7 billion in Q2 revenue, streaming profitability improves

The company reported $157 million in adjusted operating income from its streaming division

by e4m Staff
Published: Aug 4, 2025 8:54 AM | 2 min read

Paramount Global reported $6.85 billion in revenue for Q2 2025, a marginal 1 percent increase from the same period last year.

The standout story for the quarter was streaming. Paramount’s direct-to-consumer revenue grew 15 percent to $2.16 billion, with subscription revenue jumping 23 percent. Paramount+ and Pluto TV remain the twin engines of that growth.

However, total streaming subscribers dipped to 77.7 million, down 1.3 million from Q1, largely due to the expiration of a bulk deal in Europe. Despite the decline, increased ARPU and stronger engagement helped offset the loss.

Streaming advertising revenue slipped 4 percent year-on-year, reflecting the broader pressure on connected TV ad markets amid increased inventory and softer CPMs. Linear TV advertising also declined, falling 6 percent, as cord-cutting and shifting consumer behaviour continued to erode the traditional broadcast base.

Theatrical revenue provided a rare boost on the content side, rising 84 percent on the back of strong performance from "Mission: Impossible – The Final Reckoning." Overall content licensing revenue came in at $690 million, up 2 percent from the previous year.

The company reported $157 million in adjusted operating income from its streaming division, marking a significant improvement over the $26 million reported a year ago. Free cash flow doubled to $863 million, while total debt edged down to $11.78 billion.

During the earnings call, co-CEO Chris McCarthy emphasised the company’s evolving content strategy, stating that Paramount is focusing less on the volume of originals and more on the volume of original hits. Flagship shows like "Landman," "MobLand," and "Yellowjackets" were cited as engagement drivers.

The company is also preparing for its pending merger with Skydance Media, which is expected to close on August 7. The deal, if approved by shareholders, will create the Paramount Skydance Corporation and bring in fresh capital, content pipelines, and AI-driven production capabilities.

For marketers and media buyers, the quarter underscored a pivot point. Streaming is gaining financial traction, even as advertising trends remain mixed. With linear continuing its decline, the shift to ad-supported streaming models is only expected to accelerate in the quarters ahead.