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Skydance Q3 2026 Earnings Report
Skydance reports $7.0 billion revenue with 5% YoY growth as it integrates Warner Bros. Discovery.
In brief
Skydance reports $7.0 billion revenue with 5% YoY growth as it integrates Warner Bros. Discovery. Skydance achieved $73 million net earnings and $1.0 billion adjusted EBITDA for Q3 2026 after merging with Warner Bros. Discovery. Originally reported by The Motley Fool.
Q3 2026 Financial Results
Skydance reported $7.0 billion revenue with 5% year over year growth for Paramount Skydance business.
Net Earnings
Net earnings reached $73 million reflecting Paramount Skydance segment performance before full consolidation of Warner Bros. Discovery.
Adjusted EBITDA
Adjusted EBITDA stood at $1.0 billion, remaining stable compared to prior year.
Paramount+ Growth
Paramount+ revenue grew 21% year over year driven by higher ARPU and subscriber gains.
ARPU Increase
Paramount+ ARPU increased 14% reflecting previous price adjustments and accelerating advertising growth.
Direct-to-Consumer Revenue
Direct-to-consumer pro forma revenue grew 15% year over year when including Warner Bros. Discovery results.
Studios Revenue
Studios revenue reached $1.5 billion, a 23% increase year over year driven by secondary market licensing and third-party production.
TV Media Revenue
TV Media revenue dropped 7% year over year due to sale of international networks and pay TV subscriber erosion.
Combined DTC Subscribers
Combined direct-to-consumer subscribers reached 203 million across Paramount+, HBO, and HBO Max.
Pluto TV Users
Pluto TV monthly active users reached 75 million with engagement benefiting from integration onto Paramount+ tech stack.
Run-Rate Synergies
Targeted $6 billion in run-rate synergies within three years following merger with Warner Bros. Discovery.
Acquisition Funding
$47 billion in new equity and $57 billion in new secured debt funded Warner Bros. Discovery acquisition.
Gross Debt
Gross debt stood at $87 billion following transaction close on Oct. 6, 2026.
Free Cash Flow Target
Targeted at least $10 billion free cash flow by 2030 supported by synergy realization and debt reduction.
Net Leverage Target
Net leverage target below 3x by end of 2029 with goal of investment-grade credit metrics.
Content Spend
Content spend exceeds $30 billion annually with opportunities to optimize budgets across combined platforms.
Here's the gist
Skydance achieved $73 million net earnings and $1.0 billion adjusted EBITDA for Q3 2026 after merging with Warner Bros. Discovery.
