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Call sheet · Q1'26

Paramount Skydance (PARA)

Q1'26 earnings call · held May 4, 2026 · compared with the Q4'25 call · management-credibility review
2/12
Disclosure score
3 high, 4 medium, 1 low flags
Financial quality
Bottom line
The sleeper story is that Pluto's monetization has completely collapsed and management buried it by eliminating segment reporting; this high-margin FAST cash cow was supposed to fund the streaming transition but instead it's dying while they burn cash on 15 movies nobody asked for. Yes, UFC is beating expectations and Paramount+ added subs, but the binding constraint is they have zero theatrical tentpoles until 2027 and are hoping volume filmmaking somehow substitutes for franchises while Netflix and Disney mint billions from IP. Management keeps saying 'we view AI as a tool for artists' but can't name a single dollar of cost savings or revenue uplift. My view changes if they restore quarterly cash flow disclosure and Pluto returns to growth, but Dennis literally said the content amortization benefit 'steps down next year' which means 2027 margins are already compromised.

The 30-second version

  • The real story: DTC ad revenue 'returned to growth' but they killed the Pluto breakdown, the high-margin FAST cash cow that was down 16% last quarter
  • UFC over-delivery masks a theatrical disaster: studio revenue only up 11% despite nearly doubling film count from 8 to 15 movies
  • Oracle Fusion ERP delay from 'Q4 2025' to 'early 2027' signals integration complexity ahead of WBD deal

What changed this quarter

MetricQ4'25Q1'26Change
Total Revenue$7.6B (Q4, flat YoY)Not disclosed (guided $30B for FY26)Stopped quarterly disclosure
Adjusted EBITDA$1.05B (Q4)'Beat guidance' (no number given)Went opaque on actuals
Paramount+ Revenue+17% YoY (Q4)+17% YoYFlat growth rate despite UFC
Paramount+ Subscribers79M global+700K net adds (+2M underlying, -1M hard bundle exits)Quality improving but headline weak
DTC Ad RevenueDeclining (Q4)'Returned to growth'Directional improvement, no % given
Total Company Ad RevenueDown YoY (Q4)Down 3% YoYStill declining despite UFC boost
Pluto RevenueDown 16% (Q4)Not disclosed separatelyMetric disappeared
Studio RevenueNot separately disclosed+11% YoYWeak given film count doubled
Film Releases8 films (2025)15 films planned (2026)+88% volume increase
UFC Engagement7M households UFC 32410M+ households, 100M+ hoursStrong uptake

Accountability tracked

8 new promises made5 narrative shifts flagged6 prior promises scored
Inside the full report
The complete write-up covers the full promise ledger with kept/missed calls, disclosure-quality scoring, the metrics-vanished check, verification items, and the questions to ask next quarter.
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This is a free preview. The full write-up and promise ledger are published to subscribers on Substack.
Scores, kept-promise rates, and flags on this site reflect the author's opinion, applying a stated methodology to statements management made on public earnings calls. Informational and educational purposes only - not investment advice, a recommendation, or an offer to buy or sell any security. Sources believed reliable but not guaranteed; the author may hold positions in the securities discussed.

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