Paramount Skydance (PSKY) official guidance

For the rest of the year, we expect total company ad revenue to return to growth in the back half, driven by DTC accelerating and more than offsetting declines in TV Media.

We are increasing our adj. EBITDA forecast from our previous $3.8 billion to $3.8 to $3.9 billion, or a 12.8% margin at the midpoint.

We forecast adj. EBITDA of $3.8 billion, or a 12.7% margin.

We forecast adj. EBITDA of $3.8 billion, or a 12.7% margin, which excludes roughly $300 million of stock-based compensation.

The letter details our 2026 guidance, including total revenue of $30 billion, driven by strong growth in D2C revenue and global profitability as well as adjusted OIBDA of $3.5 billion.

We expect 2026 adj. OIBDA1 of $3.5 billion and are increasing our run-rate efficiency target from $2 billion to at least $3 billion.

We expect adj. EBITDA of $875 million to $975 million, or a 13.1% margin at the midpoint, with approximately $70 million of stock-based compensation in the quarter.

We now expect free cash flow conversion of at least 10% before roughly $800 million of transformation costs.

We continue to expect free cash flow conversion of approximately 5% before roughly $800 million of transformation costs, as previously noted.

You take the restructuring charges out, we actually are hitting 5% free cash flow conversion this year, which, of course, is not where we want to be.

We continue to expect free cash flow conversion of approximately 5% before roughly $800 million of transformation costs, as previously noted.

We expect free cash flow conversion of approximately 5% before roughly $800 million of non-recurring transformation costs, as previously noted.

We expect Studios segment profitability will increase in 2026 versus 2025.

We expect Studio segment profitability will increase in 2026 versus 2025.

And so even with theatrical revenue dropping down, we do expect better cost management as well as benefits from our licensing deals to drive studio profitability up.

We expect to be profitable in our Studio segment, and to have stable margins in TV Media.

For 2026, we continue to expect total revenue of $30 billion, or 4% growth year-over-year, inclusive of predecessor and successor periods.

For 2026, we continue to expect total revenue of $30 billion, or 4% growth year-over-year, inclusive of predecessor and successor periods.

As we've put out, overall, we expect revenue this year of $30 billion, up 4% year-on-year.

For 2026, we continue to expect total revenue of $30 billion, or 4% growth year-over-year, inclusive of predecessor and successor periods.

The letter details our 2026 guidance, including total revenue of $30 billion, driven by strong growth in D2C revenue and global profitability as well as adjusted OIBDA of $3.5 billion.

For 2026, we expect total revenue of $30 billion, led by a healthy acceleration in DTC revenue with global profitability.

In Q3’26, we expect total revenue of $6.95 billion to $7.15 billion, or 4% to 7% growth year-over-year versus Q3’25 for the predecessor company, with accelerating growth in DTC and Studios and moderating declines in TV Media.

In Q3, we expect Paramount+ quarter-over-quarter subscribers will be flattish.

In TV Media, we expect continued headwinds to affiliate revenue due to pay TV subscriber declines with some moderation in linear advertising declines versus 2025, including expected political spending in 2026.

We forecast adj. EBITDA of $3.8 billion, or a 12.7% margin.

We forecast adj. EBITDA of $3.8 billion, or a 12.7% margin, which excludes roughly $300 million of stock-based compensation.

In TV Media, we expect continued headwinds to affiliate revenue due to pay TV subscriber declines with some moderation in linear advertising declines versus 2025, including expected political spending in 2026.

But as we think about the rest of the portfolio we have, right, so TV Media, we expect to see some declines in revenue, mostly in line with the industry headwinds around pay TV, though we expect our advertising revenue decline to be more moderate as we execute overall and better ad sales, we feel really good about the upfronts coming up this year.

We also expect linear advertising declines will moderate versus 2025, including the combined effects of expected political spending in 2026 and the sale of Telefe and Chilevisión.

For linear advertising, we expect a more moderate decline versus 2025 including the combined effects of expected political spending in 2026, our new ad agency partnerships, and the sale of Telefe and the planned sale of Chilevision.

We continue to expect to grow our DTC profit in 2026 relative to 2025.

At the same time, back to your question, how that comes together, we are investing in the business, but we expect DTC profitability to improve year-on-year as we both grow revenue and manage our investments.

In DTC, we continue to expect to grow our profitability in 2026 relative to 2025.

The D2C segment, obviously, will be -- it is profitable next year. It will be increasingly profitable in 2026.

On a full-year basis, we expect DTC to be profitable in 2025 with growth in profitability in 2026.