Paramount Global released its first-quarter 2025 financial results, signaling mixed performance as the company continues to navigate the transformation from traditional television to a digital-first strategy. While revenue declined overall, gains in the direct-to-consumer and filmed entertainment segments provided a degree of momentum heading into the rest of the fiscal year.
Paramount+ added 1.5 million new subscribers during the quarter, bringing the platform’s global total to 79 million, an 11% increase year-over-year. This growth drove a 9% rise in direct-to-consumer (DTC) revenue, which reached $2.04 billion. Subscriber watch time, engagement, and churn also improved in the period, with Paramount reaffirming that the platform remains on track to reach domestic profitability in 2025. Losses for the DTC segment narrowed significantly to $109 million, compared to $286 million in the same quarter last year.
Total company revenue came in at $7.19 billion, slightly above Wall Street estimates of $7.09 billion but down 6% from the first quarter of 2024. The decline was largely attributed to the absence of last year’s Super Bowl broadcast, which had provided a temporary lift. When excluding the Super Bowl impact, revenue actually grew 2% year-over-year. Adjusted earnings per share (EPS) stood at $0.29, beating analyst expectations of $0.25 per share, providing some reassurance to investors.
The company’s TV Media segment faced significant headwinds, with revenue dropping 13% to $4.96 billion. Advertising revenue was down 21%, reflecting broader softness in the ad market as well as secular declines in linear television. Affiliate and licensing revenues were also down by 5% and 6%, respectively, underscoring continued pressure in the traditional broadcast business.
By contrast, the filmed entertainment division saw a 4% increase in revenue, rising to $627 million. The uplift was attributed to theatrical and digital success of titles including “Sonic the Hedgehog 3” and “Novocaine,” which contributed to higher licensing and box office revenue. The segment’s operating income came in at $50 million, an improvement from $40 million in the year-ago quarter.
Co-CEO Chris McCarthy acknowledged the challenges but struck an optimistic tone on Paramount’s future direction. “We are particularly proud of our progress in DTC where Paramount+ saw continued improvement in subscribers, user watch time, and churn and remains on track to reach domestic profitability for 2025,” he said. The company pointed to major upcoming releases, including “Mission Impossible – The Final Reckoning,” as expected catalysts for future earnings growth.
Paramount also confirmed its planned $8 billion merger with Skydance Media is progressing on schedule. The transaction, subject to regulatory approval, is anticipated to close in the first half of 2025. Executives view the merger as a strategic path to scale and cost-efficiency across both traditional and digital content ecosystems.
As of May 9, 2025, Paramount Global shares (NASDAQ: PARA) were trading at $11.79, reflecting cautious investor optimism amid the company’s transition. While challenges remain—particularly in advertising and legacy TV—the first-quarter results suggest that Paramount’s focus on streaming growth and strategic consolidation is beginning to yield measurable progress.