Paramount’s first quarter results were positively received by the market, reflecting operational improvements despite ongoing industry pressures. Management credited strong engagement on Paramount+ and robust sports programming on CBS for mitigating declines in traditional TV and digital advertising. Co-CEO Chris McCarthy highlighted, “Our focused execution with high performing content drove strong results across the company,” pointing to D2C (direct-to-consumer) profitability improvements and subscriber growth. Advertiser demand for live sports and hit programming, such as the NFL playoffs and NCAA tournaments, helped offset digital ad softness, while cost discipline and content investment supported margin expansion.
Is now the time to buy PARA? Find out in our full research report (it’s free).
Paramount (PARA) Q1 CY2025 Highlights:
- Revenue: $7.19 billion vs analyst estimates of $7.1 billion (6.4% year-on-year decline, 1.3% beat)
- Adjusted EPS: $0.29 vs analyst estimates of $0.26 (12% beat)
- Adjusted EBITDA: $688 million vs analyst estimates of $642.5 million (9.6% margin, 7.1% beat)
- Operating Margin: 7.6%, up from -5.4% in the same quarter last year
- Market Capitalization: $8.85 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Paramount’s Q1 Earnings Call
- Steven Cahall (Wells Fargo) asked about digital ad pricing pressure and affiliate revenue outlook; Co-CEO Chris McCarthy said supply-demand imbalances in digital ads persist but expects normalization, while Co-CEO George Cheeks highlighted the importance of affiliate partnerships for revenue stability.
- Robert Fishman (MoffettNathanson) questioned content licensing strategy; Co-CEO Brian Robbins explained Paramount is balancing exclusive use of key IP on its own platforms with selective licensing to third parties for incremental revenue.
- Ben Swinburne (Morgan Stanley) inquired about the long-term outlook for linear declines and streaming growth; CFO Naveen Chopra emphasized subscriber declines and deal renewals as key linear trends, while streaming growth is driven by subscriber and ARPU gains.
- Richard Greenfield (LightShed) probed on the relationship with Taylor Sheridan and 101 Studios; McCarthy explained the value of the exclusive creative partnership and preference for the current model of collaboration rather than acquisition.
- Rick Preis (Raymond James) raised the potential for bundling, joint ventures, and M&A; McCarthy stated Paramount remains opportunistic, with current success in partnerships like Walmart but open to future combinations that add value.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will watch (1) the trajectory of Paramount+ subscriber growth and profitability milestones, (2) trends in digital and linear advertising monetization as industry supply and macroeconomic conditions evolve, and (3) execution on upcoming franchise launches and major film releases. Additional attention will be on the pace of expense reductions and any strategic moves, such as partnerships or M&A, that could reshape Paramount’s competitive landscape.
Paramount currently trades at $12.52, up from $11.68 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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