Paramount Global

PARA
Financial Analysis · Updated May 13, 2026 · Coverage 2026-Q2
Latest Q Revenue
$8.0B
Q4 2024
TTM ROIC
1.6%
FY2024 · FCF / Invested Capital (estimated) · WACC ~10% · Moat spread +-8.4pp
Margin Profile
Gross 33.5%
Operating 8.6%
FCF 1.7%
FY2024
Net Debt
$13.2B
· FY2024

Business Overview


ticker: PARA step: 01 generated: 2026-05-13 source: quick-research

Paramount Global / Paramount Skydance (PARA) — Business Overview

Business Description

Paramount Global (formerly ViacomCBS) is a multinational media conglomerate owning CBS, Paramount+, Pluto TV, Paramount Pictures, MTV, Nickelodeon, Comedy Central, BET, and international networks. In August 2025, Paramount merged with Skydance Media, forming "Paramount Skydance" under new leadership (David Ellison as chairman/CEO). The combined entity is one of the largest media companies in the U.S. by content library and distribution reach. FY2024 revenue was $29.2B. The company is simultaneously managing a legacy TV/cable decline and a streaming transition, with Paramount+ now at 77.5M global subscribers.

Revenue Model

Three primary revenue streams: (1) TV Media (~64% of revenue) — advertising on CBS/cable networks + affiliate fees from cable operators; structural decline as cord-cutting accelerates; (2) Direct-to-Consumer (DTC) (~22%) — Paramount+ subscription fees + Pluto TV ad-supported revenue; Paramount+ targeting U.S. profitability in 2025; (3) Filmed Entertainment (~14%) — Paramount Pictures theatrical, home entertainment, licensing. Advertising and affiliate fees are the majority of revenue but are in secular decline; DTC subscription/ad revenue is growing 12-18% annually from a smaller base.

Products & Services

  • CBS: #1 broadcast network in U.S. ratings; NFL rights, daytime talk, procedural dramas
  • Paramount+: SVOD streaming; 77.5M global subscribers; original content + Paramount library + sports
  • Pluto TV: Free ad-supported streaming (FAST); 65M+ monthly active users; 250+ linear channels
  • Paramount Pictures: Major film studio; Mission: Impossible, Transformers, Top Gun franchises
  • Cable Networks: MTV, Nickelodeon, Comedy Central, BET, Paramount Network, Channel 5 (UK), Network 10 (Australia)
  • Nickelodeon/Nick Jr.: Dominant children's entertainment brand; SpongeBob, PAW Patrol

Customer Base & Go-to-Market

Dual monetization model: (1) advertisers (reach 200M+ U.S. consumers through CBS + cable + Pluto TV); (2) subscribers (Paramount+ SVOD). Wholesale distribution partnerships with Walmart+, Verizon, and Amazon Channels provide bundled distribution. International presence in UK, Australia, Latin America, and Europe.

Competitive Position

Paramount competes against Netflix, Disney+, HBO Max, Peacock, and Amazon for streaming subscribers — a brutal capital-intensive competitive environment. CBS is the #1 broadcast network and a premium sports rights holder (NFL). Paramount+ has the weakest competitive position of the major streamers — it is subscale relative to Netflix/Disney and has needed the Skydance merger/capital injection to fund the transition. Pluto TV's FAST leadership (65M MAUs) is a differentiated asset in the growing free streaming market.

Key Facts

  • Founded: 1912 (Paramount Pictures); modern ViacomCBS/Paramount Global formed 2019–2021
  • Headquarters: New York, NY
  • Employees: ~22,000+
  • Exchange: NASDAQ (PARA / may transition to PSKY post-merger)
  • Sector / Industry: Communication Services / Entertainment
  • Market Cap: ~$7–10B (post-merger; significant decline from peak)

Financial Snapshot


ticker: PARA step: 04 generated: 2026-05-13 source: quick-research

Paramount Global / Paramount Skydance (PARA) — Financial Snapshot

Income Statement Summary

Metric FY2022 FY2023 FY2024 YoY
Revenue ~$30.16B $29.65B $29.21B -1.5%
Gross Margin ~22% ~20% ~19%
Operating Margin ~5% ~2% ~negative
Net Income $1.10B $(608M) $(6.19B) nm
EPS (diluted) ~$1.66 $(0.95) $(9.49) nm

FY2024 net loss of $6.19B is dominated by a $5.98B goodwill impairment charge on the Cable Networks segment, reflecting the accelerating structural decline of cable TV. Underlying operational losses are smaller but persistent. FY2022 was the last year of GAAP profitability.

Note: Paramount merged with Skydance Media in August 2025. Financial data below for FY2024 reflects pre-merger Paramount Global.

Cash Flow & Balance Sheet (FY2024)

Metric Value
Operating Cash Flow (FY2024) ~$700–900M
Free Cash Flow (FY2024) ~Negative to breakeven
Net Debt ~$14–15B (pre-merger)
Post-Merger Capital Injection $1.5B (Skydance provided)
Post-Merger Annual Savings Target $500M
DTC Revenue (FY2024) ~$6.6B (+15% YoY)
Paramount+ Subscribers 77.5M global

Key Ratios (approximate)

  • P/E: N/A (GAAP losses) | EV/EBITDA: ~8–10x | FCF: Negative/Breakeven
  • Revenue Growth (FY2024): -1.5% (secular TV decline offsetting DTC growth)
  • Net Leverage: ~4–5x pre-merger; elevated post-Skydance due to deal financing
  • Analyst consensus: Predominantly Sell (12 Sell, 10 Hold, 4 Buy per Kavout May 2026)

Growth Profile

Paramount is a turnaround/transformation story, not a growth story. Revenue is declining low-single digits as affiliate fee and advertising revenue from cable decline faster than DTC (streaming) grows. The $5.98B goodwill impairment on cable networks in FY2024 signals management has finally recognized the irreversible decline in that segment's value. Streaming (Paramount+, Pluto TV) is growing DTC revenue 12-18% annually and targeting U.S. profitability. The Skydance merger brings $1.5B in new capital and $500M in targeted cost synergies to fund the transition.

Forward Estimates

  • FY2025/2026: Paramount+ targeting first full-year U.S. profitability in 2025
  • Cost Savings: $500M annual target from merger synergies
  • WBD Acquisition (announced 2026): Paramount Skydance bid for Warner Bros. Discovery — adds complexity and regulatory risk
  • Streaming subscribers: 77.5M+ Paramount+; aiming for profitability before scale

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $PARA.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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