UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 9, 2026
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification Number) |
(Address of principal executive offices) | (Zip Code) | ||
Registrant’s telephone number, including area code: (212 ) 258-6000
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation
of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of
1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period
for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange
Act. ☐
Item 2.02 | Results of Operations and Financial Condition. |
On November 9, 2026, Skydance Corporation issued a Shareholder Letter announcing its financial results for the
third quarter ended September 30, 2026. A copy of the Shareholder Letter is furnished herewith as Exhibit 99 and is
incorporated by reference herein in its entirety.
The information furnished pursuant to this Item 2.02, including Exhibit 99, shall not be deemed “filed” for purposes
of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the
liabilities under that Section and shall not be deemed to be incorporated by reference into any filings under the
Securities Act of 1933, as amended, or the Exchange Act.
Item 9.01 | Financial Statements and Exhibits. |
(d)Exhibits.
Exhibit Number | Description of Exhibit |
99 | |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused
this report to be signed on its behalf by the undersigned hereunto duly authorized.
SKYDANCE CORPORATION | ||
By: | /s/ Makan Delrahim | |
Name: | Makan Delrahim | |
Title: | Chief Legal Officer & President, Global Corporate Affairs | |
Date: November 9, 2026
Exhibit 99
Exhibit 99
1 See Supplemental Disclosures Regarding Non-GAAP Financial Measures.
2 Source: Skydance rankings based on Nielsen data. Includes Paramount, HBO and Warner Bros. productions;
based on P2+ average audience during first 35 days of playback
3 Source: Skydance rankings based on Nielsen Streaming Content Ratings data. Includes Paramount, HBO and
Warner Bros. productions; based on P2+ audience viewing hours
4 As of the latest published The Gauge report for August 2026.
5 DTC revenue for the combined company is calculated on a pro forma basis assuming the WBD Merger occurred on
January 1, 2025.
2
November 9, 2026
Highlights
•Paramount Skydance Q31 (excludes WBD)
◦Paramount Skydance Q3 net earnings was $73 million and adj. EBITDA was $1.0
billion, a 14% margin on revenue of $7.0 billion, which grew 5% year-over-year.
Paramount remains on track for the high end of its 2026 profitability outlook at
$3.9 billion.
◦Paramount+ revenue grew 21%, its fastest quarterly growth this year, with
ARPU up approximately 14%. Studios revenue grew 23% and TV Media achieved
a 34% adj. EBITDA margin.
•Skydance (combined company)
◦Completed the acquisition of Warner Bros. Discovery on October 6, 2026.
◦Targeting at least $6 billion of annualized run-rate synergies within three years,
with progress underway across more than 20 workstreams.
◦Executing our operational plan to reduce net leverage ratio to 3.0x by the end of
2029 and reach investment-grade credit metrics.
◦Planning to launch a bundled offering of HBO Max and Paramount+ in early
2027.
◦Skydance produced 7 of the top 10 most watched series across linear and
streaming2 and the top 4 original titles on streaming.3 Across Paramount and
Warner Bros. platforms, Skydance is the second largest media distributor by
share of total U.S. TV time, per Nielsen’s The Gauge.4
◦DTC Q3 pro forma revenue grew 15%.5
◦In Q4, we expect continued strong DTC revenue growth, Skydance TV trends to
remain consistent with recent quarters, and the improved Paramount film slate
results to be more than offset by underperformance of the Warner Bros. film
slate.
3
Fellow shareholders,
It has been just over a month since we launched the combined company, Skydance, and the
energy across our organization is unmistakable. We came together with a clear mission to
build the next generation media and entertainment company powered by creativity and
technology. Our teams are bringing discipline and urgency and early progress is already
evident.
This is a demanding time for our industry, and we are starting from a strong point as the
second largest media distributor by share of total U.S. TV time after YouTube, per Nielsen. But
audiences have more choices than ever, technology is reshaping how stories are made and
experienced, and the competition for attention is relentless. Legacy business models are being
disrupted, and we see that as an opportunity. We are creative-first, audience-focused, tech-
forward, and globally scaled. We believe we have the right assets, the right capabilities and
the right strategy to win by executing on our three strategic goals:
•Establish Skydance as the premier global content engine and the home for the
world’s leading storytellers.
•Accelerate our integrated direct-to-consumer platform with the best content,
leading-edge technology, and a superior fan experience.
•Optimize our highly profitable TV portfolio, anchored by CBS in the U.S., to reach
audiences globally across every entertainment vertical.
To achieve all of this, we will:
•Win in storytelling by leveraging our creative capabilities, talent relationships,
production prowess and expansive library of iconic IP.
•Build the most technologically capable media company with a unified technology
platform spanning streaming, live and linear that improves the user experience and
drives efficiencies.
•Lead in a crowded market by using our scale, assets and global reach to drive
transformation and growth.
•Earn trust every day by communicating directly and transparently, backing up our
words with action, and following through on our commitments to the people we serve
and work alongside.
The work ahead is significant, and so is the opportunity. And we’ve already begun to act: new
leadership teams are in place, integration work is underway, and we are executing on our plan
to realize at least $6 billion in run-rate synergies within three years.
We expect to reach our medium-term financial outlook of mid-single-digit annualized revenue
growth, mid-20% adjusted EBITDA margins, and more than $10 billion in free cash flow by
2030, while transitioning a meaningful majority of revenue and profit from TV to our
streaming and studios businesses.
We are building this great company with ambition, discipline, and an unwavering belief in the
power of great storytelling combined with world-class technology, and we are doing it
together, with deep respect for the talent and dedication of our people.
4
To leverage our assets and capitalize on our strengths, we are organized into three segments:
Skydance Studios, Skydance Direct-to-Consumer, and Skydance TV.
Skydance Studios
Skydance Studios include our motion picture and television production businesses. Our motion
picture group brings together two of the most iconic studios in Hollywood’s history, Warner
Bros. Pictures and Paramount Pictures, as well as the highly acclaimed New Line Cinema, DC
Studios and Skydance Animation. Our television group includes well-established industry
leaders Warner Bros. Television Group, CBS Studios, Paramount Television Studios and
Skydance Sports Entertainment. In addition, Skydance owns a deep library of more than
15,000 films and hundreds of thousands of series hours, which we distribute on our own
platforms and license to third parties.
Our goal is to establish Skydance as the premier global content engine and the home for the
world’s leading storytellers. Our strategy is anchored by the strength of our franchises and
quality of the content made by our world class studios, and we expect that demand for
premium content and global franchises will continue to increase. Collectively, our studios have
created approximately forty franchises that have generated at least $1 billion in revenue
across platforms over the past 15 years and continue to resonate with audiences today. We
are now one of the largest producers and suppliers of original live-action TV content to both
our platforms and third-parties in the world.
Paramount Pictures continues to perform well and is expected to double its output in 2026
with 15 releases. In the third quarter, PAW Patrol: The Dino Movie grossed more than $160
million worldwide and drove revenue across multiple lines of business, including consumer
products. David Ayer’s original film Heart of the Beast, starring Brad Pitt, has grossed more
than $180 million globally.
In the final two months of the year, we have six film releases across Paramount Pictures and
Warner Bros. Pictures, starting with The Cat in the Hat, which opened last Friday. Ebenezer,
starring Johnny Depp, arrives in theaters this Friday, followed by Focker-in-Law on November
25, with Paramount Pictures distributing internationally. On December 18, audiences return to
Arrakis for Dune: Part Three. The Angry Birds Movie 3 premieres December 23, followed on
Christmas Day by Mr. Irrelevant, starring David Corenswet and Isabel May, which is the first
theatrical release under Skydance Sports’ partnership with the NFL.
We expect the Warner Bros. film slate in Q4 to underperform. As we integrate the businesses,
we are applying the playbook we ran at Paramount: testing earlier, tailoring our marketing
and release strategy to the size of each opportunity, enhanced with real-time market data,
and strengthening the slate we greenlight. That approach served us well at Paramount where
our 2026 slate is expected to generate more than $500 million more in lifetime profit than last
year’s.
2027 is shaping up well for our motion pictures group, with a lineup that runs from beloved
franchises to fresh stories. At Paramount, we start the year with Children of Blood and Bone in
January and K-Pop: The Debut in February, followed by Sonic the Hedgehog 4 in March,
starring Jim Carrey, Keanu Reeves and others, and A Quiet Place Part III in July. At Warner
Bros., we are building on our biggest franchises, with Godzilla x Kong: Supernova arriving in
March, and Man of Tomorrow and A Minecraft Movie Squared in July. And we have even more
amazing stories coming with the Ocean’s Eleven prequel starring Bradley Cooper and Margot
6 Amount is based on each company's historical subscriber definition and for WBD is applicable only to HBO and
HBO Max, and accordingly does not include Discovery+ or other WBD streaming services that may have previously
been included in subscriber counts. See WBD’s 2025 Annual Report on Form 10-K for its historical definition and
our Quarterly Report on Form 10-Q for the third quarter of 2026 for the Paramount+ definition. Such amount does
not account for subscriber overlap.
5
Robbie premiering in June, and a return to Middle-earth with The Lord of the Rings: The Hunt
for Gollum in December.
To leverage our scale and at the same time continue to strengthen quality and talent
relationships, our motion picture group is now integrated under one leadership team, while
each studio has its own dedicated creative teams.
Our Television Studios achieved another strong quarter, with hits across broadcast, streaming
and cable, for our own platforms and for third-party partners. In Q3, 11 of the top 20
streaming programs were owned and produced by our studios. CBS Studios continues to drive
CBS' network leadership, most recently highlighted by the successful debut of NCIS: New
York, the latest addition to television's #1 franchise. The series debuted in October as the
season’s #1 new broadcast series, drawing more than 10 million viewers, up 58% from last
year’s time-period premiere (NCIS: Origins). This adds to the success of the NCIS franchise
which after 24 years on air is still a top 5 show on streaming and broadcast and has
generated $10 billion of lifetime revenues across platforms. Paramount Television Studios
built on its momentum with three of the top four streaming original series in September:
Reacher, Neagley and Lioness.
The ambition of our Studios business is to create and tell great stories for audiences wherever
they watch: in theaters, on broadcast and cable, and on streaming, across our distribution
platforms and third-party partners. With the creative talent, production scale and global
franchises, we are on track to release over 30 theatrical films and produce more than 180
television and streaming series in 2027.
Skydance Direct-to-Consumer
The Direct-to-Consumer segment encompasses Paramount+, HBO, HBO Max, Discovery+,
and Pluto TV, representing a globally scaled DTC business available in over 130 markets.
Paramount+, HBO, and HBO Max combined reach 203 million aggregate subscribers
worldwide6, and Pluto TV has approximately 75 million monthly active users. We provide
consumers with choice across our premium and standard ad-free, ad-lite, and free ad-
supported product offerings.
Our streaming products are powered by an unparalleled portfolio of leading brands and
franchises, such as Star Trek, Yellowstone, Top Gun: Maverick, Mission: Impossible, Harry
Potter, Game of Thrones, SpongeBob SquarePants, The Pitt, The Big Bang Theory, Superman,
Batman, and Teenage Mutant Ninja Turtles, along with sports and news in a number of
markets around the world.
We see a meaningful opportunity to grow reach and engagement, improve retention, and
increase the revenue and profitability of our streaming services in line with or ahead of the
leading competitors in the industry. Our first step toward bringing together Paramount+ and
HBO Max is to offer them in a single bundle. Starting in early 2027, consumers will be able to
subscribe to both world-class streaming services at an even greater value. We look forward to
sharing more details on the bundle and our streaming roadmap in the coming months.
6
As we work toward a fully unified offering, we will phase in changes based on consumer
feedback so we can continue to drive healthy financial growth through the transition. During
Q3, Paramount+ revenue was up 21% – with engagement up over 20% year-over-year – and
pro forma DTC revenue growth including WBD was 15% year-over-year. We expect to achieve
strong top-line growth in our streaming business in Q4 2026 and in 2027, as well as expand
margins over that same period as we harness the reach of our global platform and verticalized
studio system. Accelerating our integrated direct-to-consumer business is a key priority and
important growth engine, and with Paramount+ and HBO Max together, we have the global
scale to compete and win.
With the unmatched production capabilities of Paramount and Warner Bros., we expect to
provide a powerful combination of breadth and depth of content each year. And with at least
30 theatrical releases annually, a new movie will arrive across our bundled services every two
weeks, on average.
Great storytelling is the foundation of everything we do, and viewers are responding. Lioness
viewership grew 62% in its third season, and MobLand’s second installment became the
biggest original series ever for Paramount+ in the UK and Ireland. DC’s Lanterns and House of
the Dragon Season 3 rank among HBO Max’s strongest launches and returning seasons ever,
averaging 22 million and 42 million global viewers, respectively. We are excited for our
upcoming slate, which we expect will carry momentum through year end, highlighted by the
premiere of the HBO Original Series Harry Potter and the Philosopher’s Stone on Christmas
Day.
Alongside that investment in programming, we are enhancing how audiences discover and
enjoy our content. We’ve largely completed phase one of the tech convergence, moving Pluto
TV onto the unified Paramount+ platform across all major devices. It is the largest technology
investment in Pluto TV’s history, and it is already improving the user experience with better
personalization and on-demand offerings that serve both consumers and advertisers. Running
the services on a unified backend system lowers our cost to operate, speeds up product
development, and gives us shared personalization and monetization capabilities across our
free and subscription offerings.
At the same time, we are expanding Pluto TV’s free line-up of iconic series, with more than 25
generation-defining series as of the end of Q3, contributing more than a quarter of all VOD
viewing on the platform. Last week we also added 14 channels from the Warner Bros. library.
Great content brings viewers to Pluto TV and keeps them watching, and with shared
monetization capabilities across our services, a larger, more engaged audience becomes a
stronger business.
The integration of Pluto TV with Paramount+ took about 18 months. Drawing on that
experience, our combined technology team, and the latest in AI tools, we expect to bring
Paramount+ and HBO Max together much faster, aiming to align our backend systems within
a year of closing, enabling us to quickly deliver a unified product.
We will manage the DTC business for long-term profitable growth, with an emphasis on the
value of each customer relationship. We expect to grow our subscriber base with healthy
economics and measure performance by financial results. To that end, beginning with Q4’26
results and in line with other leading DTC players in the industry, we will no longer provide
quarterly subscriber disclosures. We will instead highlight key milestones and KPIs, such as
engagement, along the way.
7
Skydance TV
Skydance TV brings together broadcast and cable networks, underpinned by a leading
portfolio of live news and sports programming, serving audiences in 200+ countries and
territories. Our offering spans CBS and more than 50 cable networks, among them MTV,
Comedy Central, Nickelodeon and BET, and WBD’s CNN, TNT, TBS, HGTV, Food Network and
Discovery. TNT, TBS, TLC, Food Network and CNN were five of the top 10 ad-supported cable
networks among adults 25-54 last year. We distribute marquee sports, including the NFL and,
via Eurosport, the Olympics in Europe, and we provide trusted news through CBS News and
CNN. Skydance TV is a highly profitable, cash-generative business, anchored by the enduring
strength of CBS, the crown jewel of U.S. broadcast television.
Our goal is to manage the combined portfolio to optimize long-term profitability and cash flow
as the industry shifts toward streaming. To achieve that, we have established a unified
leadership structure across TV and DTC to ensure we fully align distribution, advertising sales,
and content sales as part of a holistic strategy. This will allow us to follow one globalized
commercial approach to maximize the full potential of our scale across TV and DTC.
CBS is having another strong year and currently leads the new fall season with the #1 show
on television, all five of the top series and seven of the top 10, and 11 shows are up year over
year. Excluding sports, CBS is the #1 broadcast network in primetime and up 18% year-over-
year among total viewers. Live sports add to that strength: the NFL on CBS is posting its
highest viewership through Week 8 on record, averaging 19.6 million viewers, up 5% from
last year’s record-setting pace. It has also brought us the season’s most-watched game on
any network and the most-watched international NFL game ever.
Our scale in sports is also a competitive advantage. With CBS Sports and TNT Sports under
one roof, we have a premium sports offering that includes NFL, NHL, UFC, MLB, NASCAR,
March Madness, as well as the Olympics in Europe and the Champions League in key markets.
Advertisers can purchase media across the sports portfolio through a single partner spanning
broadcast, cable, and streaming. Sports advertising commitments have risen over 20% year-
over-year for current and upcoming sports seasons leading into 2027.
U.S. pay TV subscriber declines moderated sequentially in the third quarter as genre-based
packages gained traction with the start of the NFL season. Our sports and news networks,
including CBS, drive a majority of the U.S. Skydance TV revenues and EBITDA, giving us a
durable, live-driven foundation. We believe more consumer choice supports the long-term
health of the pay TV ecosystem, and we will continue partnering with distributors to optimize
the experience across linear and streaming.
With the CBS Television Network, premier live sports and some of the most beloved cable
brands in the world, Skydance TV is well positioned to give viewers more of what they love
across broadcast, cable and streaming, and to create lasting value for our shareholders.
8
Transformation Program
We expect to achieve at least $6 billion in run-rate synergies, net of reinvestment across our
cost structure within three years. More than 20 workstreams are already underway, as we
evaluate and rightsize every aspect of our organization and cost structure. But this is more
than cutting costs: it is a tech-forward transformation that will make us more efficient and
agile, create flexibility to reinvest for long-term growth, and establish a healthy margin profile
and free cash flow trajectory.
By combining two global streaming services, two film and TV studio groups, two television
portfolios, and overlapping corporate functions, we can reduce duplicative spend across an
expense base of more than $50 billion. We have identified multi-billion dollar opportunities in
key areas, including non-labor and labor spend where we expect to deliver across these
areas:
•Corporate overhead, real estate & facilities (2026 ~$8 billion): At least $2.2
billion of cost reduction, by consolidating redundant back-office and corporate
functions, reducing management layers, using shared services, implementing a single
ERP, scaling AI workflows, and shifting to lower-cost support functions. In addition, we
are rationalizing our office footprint (while keeping our production lots).
•Marketing (2026 ~$5 billion): At least $1.0 billion in savings by streamlining and
optimizing our enterprise-wide spend, as well as strategic utilization of our expanded
global portfolio to promote our key projects and initiatives. This includes unifying media
planning and buying across business units to eliminate audience overlap, coordinate
cross-BU campaigns, and maximize media efficiency at scale.
•Technology (2026 ~$4 billion): At least $1.4 billion reduction to our annual spend
by unifying our enterprise tech stack, streaming ecosystem, and broadcast architecture,
merging parallel technology functions, leveraging AI coding tools, and integrating
platforms and systems.
•Procurement and vendor management (2026 ~$9 billion): At least $1.4 billion in
savings by optimizing third-party spend across vendors spanning hundreds of services.
Our combined purchasing levels will give us economies of scale by consolidating
purchasing decisions into one centralized group.
We also see opportunity in content, which is both an expense for us but also an investment in
building valuable, long-term assets for the company. We start from an industry-leading base
of more than $30 billion in annual content spend and a deep library built over a combined
200-plus years of storytelling, and we will keep investing in the content engine that drives our
growth. With the reach of our combined platforms across streaming, broadcast and cable,
each title can work harder for us, and as one company we can make smarter choices about
how we distribute and monetize our slate.
9
We are confident in achieving these savings, drawing on our playbook from Paramount. That
program is on track to achieve over $2.7 billion in run-rate efficiencies by the end of 2026.
We’ve raised its target to more than $3 billion, over 50% above our initial 2024 goal, as we
identified additional broad-based opportunities across the business. Year-to-date, we’ve
realized over $1 billion in run-rate efficiencies, and we expect to realize the remainder in
2027, which is incremental to our Skydance program.
It is early, but we have strong confidence in achieving at least $6 billion in run-rate synergies
within three years for Skydance, with 30% realized in year one and 70% through year two.
We’ll share milestones as we go and measure success by our ability to operate more
efficiently and grow margins.
7 We present periods before ("predecessor") and after ("successor") the close of the Skydance Transactions (see
Financial Statement Presentation). We discuss revenue for Q3 2025 on a pro forma basis, reflecting the
combination of the predecessor and successor periods and the inclusion of Skydance Media revenues during the
predecessor period. In addition, because our current GAAP segment structure was not in effect during the
predecessor period, the 2025 predecessor revenues by segment shown in this letter constitute a non-GAAP
presentation. See Supplemental Disclosures Regarding Non-GAAP Financial Measures for reconciliations to the
historical GAAP segment presentation and pro forma revenues for Q3 2025.
10
Q3 Results and Outlook
Our Q3 financial highlights below are for Paramount Skydance and exclude WBD, as the
acquisition closed after the end of Q3. Starting in Q4, we will be reporting Skydance results on
a consolidated basis. Forward looking commentary below reflects our current expectations for
Skydance, the combined company.
A summary and discussion of Paramount Skydance’s Q3 results are below7.
In millions, except per share amounts | Predecessor | Successor | ||||||
7/1/25 - | 8/7/25 - | |||||||
8/6/25 | 9/30/25 | Q4’25 | Q1’26 | Q2’26 | Q3’26 | |||
Total Revenue | $2,581 | $4,121 | $8,148 | $7,347 | $6,913 | $7,025 | ||
Y/Y Growth (%) | 2% | 2% | 1% | 5% | ||||
Operating Income (Loss) | $80 | $244 | $(339) | $616 | $475 | $368 | ||
Operating Margin (%) | 3.1% | 5.9% | (4.2)% | 8.4% | 6.9% | 5.2% | ||
Net Earnings (Loss) | $(244) | $(13) | $(573) | $168 | $41 | $73 | ||
Diluted EPS (1) | $(.36) | $(.01) | $(.52) | $.15 | $.04 | $.06 | ||
Adjusted EBITDA (2) | $313 | $684 | $674 | $1,161 | $1,099 | $1,000 | ||
Y/Y Growth (%) | 42% | 59% | 27% | 0.3% | ||||
Adj. EBITDA Margin (%) | 12.1% | 16.6% | 8.3% | 15.8% | 15.9% | 14.2% | ||
Net Cash (Used For) Provided by Operating Activities | $(175) | $268 | $217 | $185 | $319 | $123 | ||
Free Cash Flow (2) | $(207) | $222 | $101 | $96 | $258 | $31 | ||
Shares Outstanding (3) | 675 | 1,098 | 1,104 | 1,118 | 1,120 | 1,125 | ||
Paramount+ Revenue | $709 | $1,060 | $1,837 | $1,974 | $2,061 | $2,134 | ||
Y/Y Growth (%) | 17% | 17% | 16% | 21% | ||||
Paramount+ Subscribers | 77.9 | 78.9 | 79.6 | 81.6 | 82.2 | |||
Y/Y Growth (%) | 4% | 2% | 6% | 6% | ||||
Note: (1) Diluted EPS from continuing operations attributable to predecessor or successor;
(2) See Supplemental Disclosures Regarding Non-GAAP Financial Measures; (3) Weighted
average number of diluted shares outstanding
11
Paramount Skydance Q3’26
In Q3, total revenue of $7.0 billion increased 5% versus revenue of $6.7 billion in Q3'25 for
Paramount Skydance, led by growth in Studios and DTC revenues, partially offset by a decline
in TV Media. Operating income was $368 million (5.2% margin) including $187 million of
restructuring and transaction-related costs. Adjusted EBITDA was $1.0 billion, a 14.2%
margin, with profitability stable year-over-year.
Direct-to-Consumer
•DTC revenue growth improved to 11% year-over-year to $2.5 billion, led by
accelerating Paramount+ revenue growth of 21% year-over-year, reflecting subscriber
growth of approximately 6% and ARPU growth of approximately 14% as our
monetization improved in the quarter driven by previous price adjustments and
accelerating advertising growth. As previously noted, we completed our integration of
BET+ into Paramount+ in Q2 and realized a full quarter of impact in Q3, which along
with Showtime declines, amounted to a six-percentage-point headwind to total DTC
growth in the quarter.
•DTC adj. EBITDA was $225 million (9.0% margin), as we recognized higher costs from
planned investment in our programming schedule in the quarter, including the UFC and
ongoing investment in Originals.
Studios
•Studios revenue increased 23% year-over-year to $1.5 billion, reflecting a strong
quarter for secondary market licensing and content produced for third parties.
•Studios adj. EBITDA was $129 million (8.6% margin), reflecting the increase in
licensing revenues.
TV Media
•TV Media revenue declined 7% year-over-year to $3.0 billion. Advertising revenue was
down 8% year-over-year, including an approximate three-percentage-point headwind
from the absence of Telefe and Chilevisión, which were sold in October 2025 and
January 2026, respectively, offset by higher political advertising revenues. Affiliate
revenue decreased 5% year-over-year, consistent with continued pay TV subscriber
erosion while rates remain resilient.
•TV Media adj. EBITDA was $1 billion, a 34.0% margin, benefiting from cost savings
initiatives.
12
Skydance Outlook
We will provide our full-year outlook for 2027 during our Q4 2026 earnings when we will share
our full year financial results.
Going forward, we will provide guidance on an annual basis, as we prioritize long-term value
creation, which we believe will be more consistent with our strategic approach. We will
continue to provide quarterly updates, including certain forward-looking commentary where
applicable, which will give investors visibility into our near-term progress of the business.
Based on year-to-date results, Paramount Skydance as a standalone would remain on track
for our prior 2026 guidance, including achieving the high end of our prior profitability range at
$3.9 billion.
In Q4, we expect to see continued strong growth in DTC revenue, and consistent TV revenue
trends to prior quarters, adjusting for seasonality around politics and sports. And while we are
incredibly excited about the shape of the combined Studio business and our Paramount
theatrical slate continues to perform, the near-term performance of the Warner Bros. film
slate in Q4, including films already released quarter-to-date, has underperformed. Based on
our current forecasts for the rest of the year for Studios, we expect slower revenue growth
and a profit impact of up to $200 million vs. prior expectations for Q4.
Looking ahead to 2027, we expect continued strong growth in DTC revenue, higher Studios
revenue, and an increase in pro forma total company adj. EBITDA year-over-year based on
underlying growth and the ramp of our $6 billion-plus synergies program. 2027 is the first
step in working towards achieving our medium-term financial goals.
Capital Structure & Capital Allocation
Paramount Skydance ended the quarter with $1.4 billion in cash and cash equivalents and
$15.0 billion in gross debt, prior to the acquisition. Free cash flow was $31 million, inclusive of
$174 million of restructuring, transaction-related, and transformation costs. On October 6, we
completed the Warner Bros. Discovery acquisition funded with $47 billion of new equity and
$57 billion of new secured debt. Gross debt following closing and related debt activity was $87
billion, with cash of approximately $10 billion, part of which is earmarked for payment of
cash-converted equity to WBD employees who joined the company and also to pay down
WBD’s securitization program.
We are restructuring our cost base so we can invest for growth while achieving at least $6
billion of run-rate synergies within three years and strengthening our balance sheet. Growing
our business and paying down debt are our top priorities, and we strongly believe we can
achieve both simultaneously. We expect to reduce net leverage to 3.0x by the end of 2029,
reaching investment-grade credit metrics within approximately three years of closing. To get
there, we expect to ramp our annual free cash flow to more than $10 billion in 2030. One-
time cash costs to achieve the synergies are expected to be roughly $1.5 to $2 billion in 2027
and roughly $4 billion throughout our transformation, 60% to 70% of which will impact 2027
and 2028, and have been contemplated in our financial and leverage outlook.
Until we reach our leverage target, we will use excess cash, beyond our reinvestment into the
business and our current dividend, to repay debt.
13
Closing
We came together to build something bigger, bolder and better, with the stories, the
technology and the scale to win. We’ll move quickly over the coming months and share more
with investors, partners and consumers at an Investor Day in the first half of 2027. There is
still a lot to work through, but our vision is clear, and we are steadfast in our operational goals
and financial commitments. We are confident in our plan, excited for what’s ahead and just
getting started.
Sincerely, | ||
David Ellison | Ynon Kreiz | |
Chairman & CEO | Co-CEO | |
Skydance | Skydance |
14
Cautionary Note Concerning Forward-Looking Statements
This communication contains both historical and forward-looking statements, including
statements related to our future financial results and performance (including our expectations
for the fourth quarter of 2026 and for 2027, Paramount Skydance's prior standalone 2026
outlook, and our medium-term financial outlook through 2030), potential achievements and
transactions (including in connection with our completed merger with WBD, such as the
expected amount, timing and phasing of run-rate synergies, and our net leverage and
investment-grade credit metrics targets) and their expected benefits, our strategic goals and
plans, and industry trends and developments. All statements that are not statements of
historical fact are, or may be deemed to be, forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Similarly, statements that describe our
objectives, plans or goals are or may be forward-looking statements. These forward-looking
statements reflect our current expectations concerning future results and events; can
generally be identified by the use of statements that include phrases such as “believe,”
“expect,” “anticipate,” “intend,” “plan,” “foresee,” “likely,” “will,” “may,” “could,” “estimate” or
other similar words or phrases; and involve known and unknown risks, uncertainties and other
factors that are difficult to predict and which may cause our actual results, performance or
achievements to be different from any future results, performance or achievements expressed
or implied by these statements. These risks, uncertainties and other factors include, among
others: risks that the expected benefits, synergies and opportunities of the WBD Merger may
not be realized or may take longer to realize than expected; risks and costs associated with
the integration of the business of WBD, including our ability to integrate successfully and to
achieve anticipated synergies and financial targets; risks that we may not achieve the
expected run-rate synergies or other financial goals within the expected timeframes or at all;
risks related to the commitments we made under the states consent decree; potential
disruption to business operations and relationships, including our and WBD’s business and
commercial relationships, as a result of the WBD Merger and ongoing integration; the risk of
stockholder litigation and other litigation relating to the WBD Merger, including litigation that
could result in the payment of damages; risks related to our streaming business; the adverse
impact on our advertising revenues as a result of changes in consumer behavior, advertising
market conditions and deficiencies in audience measurement; risks related to operating in
highly competitive and dynamic industries; the unpredictable nature of consumer behavior, as
well as evolving technologies and distribution models; risks related to our decisions to invest
in new businesses, products, services and technologies, and the evolution of our business
strategy; the potential for loss of carriage or other reduction in or the impact of negotiations
for the distribution of our content; damage to our reputation or brands; losses due to asset
impairment charges for goodwill, content and long-lived assets, including finite-lived
intangible assets; liabilities related to discontinued operations and former businesses;
increasing scrutiny of, and evolving expectations for, sustainability initiatives; evolving
business continuity, cybersecurity, privacy and data protection and similar risks; challenges in
protecting and maintaining our intellectual property rights; domestic and global political,
economic and regulatory factors affecting our businesses generally; the inability to hire or
retain key employees or secure creative talent; disruptions to our operations as a result of
labor disputes; risks and costs associated with the integration of, and our ability to integrate,
the businesses of Paramount Global, Skydance Media, LLC and WBD successfully and to
achieve anticipated synergies, including in the amounts or on the timelines anticipated to
realize such synergies; litigation relating to the Skydance Transactions potentially resulting in
substantial costs; volatility in the price of our Class B common stock; the effect our dual-class
capital structure and the concentrated ownership may have on the price of our Class B
common stock or business; risks related to a private sale of a controlling interest in our
Company, including that our stockholders may not realize any change of control premium on
shares of our Class B common stock and that we may become subject to the control of a
15
presently unknown third party; risks associated with our status as a “controlled company”
under New York Stock Exchange rules, including our exemption from certain corporate
governance requirements; risks associated with the lack of voting rights of our Class B
common stock; risks that anti-takeover provisions in our amended and restated certificate of
incorporation (“Charter”) and amended and restated bylaws, and under Delaware law could
deter, delay, or prevent a change of control; risks that exclusive forum provisions in our
Charter could limit a stockholder’s choice of forum for certain claims and discourage lawsuits
against our directors and officers; risks that corporate opportunity provisions in our Charter
could permit certain persons to pursue competitive opportunities that might otherwise be
available to us; risks associated with our holding company structure, including our
dependence on distributions from our subsidiaries to meet our tax obligations and other cash
requirements; risks to our business, financial condition or results of operations as a result of
the incurrence of substantial costs and indebtedness in connection with the WBD Merger; risks
related to our ability to incur substantially more debt and our ability to meet the financial and
other covenants contained in the agreements governing our substantial indebtedness; risks
relating to our ability to deleverage the business in accordance with management’s targets,
including risks arising from assumptions, uncertainties and contingencies that may affect our
ability to reduce indebtedness; risks relating to management’s ability to execute on our
strategic plan and improve our financial profile and cash flows from operations; risks relating
to any capital or other financing we may have to raise in order to reduce our indebtedness
following the WBD Merger; risks of reduced ownership and economic interest by our previous
stockholders as a result of the WBD Merger; risks related to our Warrants; and other factors
described in our news releases and filings with the Securities and Exchange Commission,
including but not limited to our most recent Annual Report on Form 10-K and our reports on
Form 10-Q and Form 8-K. There may be additional risks, uncertainties and factors that we do
not currently view as material or that are not necessarily known. The forward-looking
statements included in this communication are made only as of the date hereof, and we do
not undertake any obligation to publicly update any forward-looking statements to reflect
subsequent events or circumstances.
16
Financial Statement Presentation
On August 7, 2025, Paramount Global and Skydance Media, LLC (“Skydance Media”) became
subsidiaries of Paramount Skydance Corporation, pursuant to a transaction agreement
entered into on July 7, 2024 (the transactions contemplated by the Transaction Agreement,
the “Skydance Transactions”).
As a result of the new accounting basis established for Paramount Global’s net assets upon
the closing of the Skydance Transactions, the results of operations and cash flows are not
comparable between the Successor and Predecessor periods. Accordingly, our consolidated
financial statements within our Form 10-Q for the third quarter of 2026 are presented in two
distinct periods. The periods prior to August 7, 2025 include only Paramount Global and are
identified as “Predecessor,” and the periods beginning on August 7, 2025 reflect Skydance
Corporation and are identified as “Successor.” The presentation in this letter, the
accompanying financial statements, and supplemental disclosures of non-GAAP financial
measures also reflect the distinction between the Successor and Predecessor periods.
Refer to Note 1 of our Form 10-Q for the third quarter of 2026 for additional information
regarding the new accounting basis established in connection with the Skydance Transactions.
Subsequent Event
On October 6, 2026, we completed the acquisition of Warner Bros. Discovery, Inc. (“WBD”)
and changed our name from Paramount Skydance Corporation to Skydance Corporation.
References herein to “Skydance,” “Skydance Corporation,” the “Company,” "we," "us" and
"our" refer, prior to such date, to Paramount Skydance Corporation, and beginning on such
date to Skydance Corporation, in each case with its consolidated subsidiaries, unless the
context otherwise requires. WBD will be included in our results beginning on October 6, 2026
and as a result is not reflected in the periods presented in the following pages.
17
SKYDANCE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; in millions, except per share amounts)
Successor | Predecessor | Successor | Predecessor | ||||||||||||||||||||||
Three Months Ended September 30, | Period From August 7 - September 30, | Period From July 1 - August 6, | Nine Months Ended September 30, | Period From August 7 - September 30, | Period From January 1 - August 6, | ||||||||||||||||||||
2026 | 2025 | 2025 | 2026 | 2025 | 2025 | ||||||||||||||||||||
Revenues | $7,025 | $4,121 | $2,581 | $21,285 | $4,121 | $16,622 | |||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||
Operating | 4,656 | 2,641 | 1,702 | 13,954 | 2,641 | 11,287 | |||||||||||||||||||
Selling, general and administrative | 1,443 | 825 | 582 | 4,297 | 825 | 3,526 | |||||||||||||||||||
Depreciation and amortization | 371 | 226 | 29 | 1,097 | 226 | 204 | |||||||||||||||||||
Impairment charges | — | — | — | — | — | 157 | |||||||||||||||||||
Restructuring and transaction- related items | 187 | 185 | 188 | 478 | 185 | 454 | |||||||||||||||||||
Total costs and expenses | 6,657 | 3,877 | 2,501 | 19,826 | 3,877 | 15,628 | |||||||||||||||||||
Gain on dispositions | — | — | — | — | — | 35 | |||||||||||||||||||
Operating income | 368 | 244 | 80 | 1,459 | 244 | 1,029 | |||||||||||||||||||
Interest expense | (260) | (138) | (85) | (753) | (138) | (516) | |||||||||||||||||||
Interest income | 31 | 24 | 13 | 98 | 24 | 83 | |||||||||||||||||||
Net gain on derivatives | 514 | — | — | 502 | — | — | |||||||||||||||||||
Other items, net | (27) | (8) | (16) | (73) | (8) | (92) | |||||||||||||||||||
Earnings (loss) before income taxes and equity in loss of investee companies | 626 | 122 | (8) | 1,233 | 122 | 504 | |||||||||||||||||||
(Provision for) benefit from income taxes | (464) | (85) | 229 | (739) | (85) | 79 | |||||||||||||||||||
Equity in loss of investee companies, net of tax | (64) | (33) | (31) | (180) | (33) | (171) | |||||||||||||||||||
Net earnings (Parent and noncontrolling interests) | 98 | 4 | 190 | 314 | 4 | 412 | |||||||||||||||||||
Net earnings attributable to noncontrolling interests | (25) | (17) | (434) | (32) | (17) | (447) | |||||||||||||||||||
Net earnings (loss) attributable to Parent | $73 | $(13) | $(244) | $282 | $(13) | $(35) | |||||||||||||||||||
Basic net earnings (loss) per common share attributable to Parent | $.07 | $(.01) | $(.36) | $.25 | $(.01) | $(.05) | |||||||||||||||||||
Diluted net earnings (loss) per common share attributable to Parent | $.06 | $(.01) | $(.36) | $.25 | $(.01) | $(.05) | |||||||||||||||||||
Weighted average number of common shares outstanding: | |||||||||||||||||||||||||
Basic | 1,120 | 1,098 | 675 | 1,116 | 1,098 | 674 | |||||||||||||||||||
Diluted | 1,125 | 1,098 | 675 | 1,121 | 1,098 | 674 | |||||||||||||||||||
18
SKYDANCE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited; in millions, except per share amounts)
At | At | |||||||
September 30, 2026 | December 31, 2025 | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $1,377 | $3,274 | ||||||
Receivables, net | 6,098 | 6,615 | ||||||
Programming and other inventory | 2,024 | 1,461 | ||||||
Prepaid expenses and other current assets | 2,336 | 1,970 | ||||||
Total current assets | 11,835 | 13,320 | ||||||
Property and equipment, net | 2,254 | 2,195 | ||||||
Programming and other inventory | 15,881 | 15,028 | ||||||
Goodwill | 2,034 | 1,600 | ||||||
Intangible assets, net | 5,339 | 6,238 | ||||||
Operating lease assets | 1,007 | 1,126 | ||||||
Deferred income tax assets, net | 1,231 | 1,282 | ||||||
Advance consideration for WBD acquisition | 2,800 | — | ||||||
Other assets | 2,589 | 2,553 | ||||||
Total Assets | $44,970 | $43,342 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $663 | $906 | ||||||
Accrued expenses | 2,280 | 2,077 | ||||||
Participants’ share and royalties payable | 2,732 | 2,646 | ||||||
Accrued programming and production costs | 1,793 | 1,832 | ||||||
Deferred revenues | 1,453 | 1,355 | ||||||
Debt | 668 | 433 | ||||||
Other current liabilities | 1,204 | 1,350 | ||||||
Total current liabilities | 10,793 | 10,599 | ||||||
Long-term debt | 14,376 | 13,225 | ||||||
Participants’ share and royalties payable | 1,403 | 1,361 | ||||||
Pension and postretirement benefit obligations | 1,158 | 1,185 | ||||||
Deferred income tax liabilities, net | 198 | 85 | ||||||
Operating lease liabilities | 1,029 | 1,150 | ||||||
Programming obligations | 503 | 400 | ||||||
Other liabilities | 2,478 | 2,450 | ||||||
Commitments and contingencies | ||||||||
Parent stockholders’ equity: | ||||||||
Class A Common Stock, par value $.001 per share; 55 shares authorized; 32 (2026 and 2025) shares issued | — | — | ||||||
Class B Common Stock, par value $.001 per share; 7,000 (2026) and 5,500 (2025) shares authorized; 1,092 (2026) and 1,076 (2025) shares issued | 1 | 1 | ||||||
Additional paid-in capital | 13,329 | 13,386 | ||||||
Accumulated deficit | (1,471) | (1,753) | ||||||
Accumulated other comprehensive income | 110 | 59 | ||||||
Total Parent stockholders’ equity | 11,969 | 11,693 | ||||||
Noncontrolling interests | 1,063 | 1,194 | ||||||
Total Equity | 13,032 | 12,887 | ||||||
Total Liabilities and Equity | $44,970 | $43,342 | ||||||
19
SKYDANCE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in millions)
Successor | Predecessor | |||||||||||
Nine Months Ended September 30, | Period From August 7 - September 30, | Period From January 1 - August 6, | ||||||||||
2026 | 2025 | 2025 | ||||||||||
Operating Activities: | ||||||||||||
Net earnings (Parent and noncontrolling interests) | $314 | $4 | $412 | |||||||||
Adjustments to reconcile net earnings to net cash flow provided by operating activities: | ||||||||||||
Depreciation and amortization | 1,097 | 226 | 204 | |||||||||
Impairment charges | — | — | 157 | |||||||||
Deferred tax provision (benefit) | 260 | 27 | (401) | |||||||||
Stock-based compensation | 262 | 59 | 113 | |||||||||
Gain on dispositions | — | — | (35) | |||||||||
Net gain on derivatives | (502) | — | — | |||||||||
Equity in loss of investee companies, net of tax and distributions | 182 | 33 | 179 | |||||||||
Change in assets and liabilities | (986) | (81) | (465) | |||||||||
Net cash flow provided by operating activities | 627 | 268 | 164 | |||||||||
Investing Activities: | ||||||||||||
Investments | (224) | (1) | (205) | |||||||||
Capital expenditures | (242) | (46) | (134) | |||||||||
Advance consideration for WBD acquisition | (2,800) | — | — | |||||||||
Proceeds from dispositions | 19 | 5 | 66 | |||||||||
Other investing activities | (6) | — | (3) | |||||||||
Net cash flow used for investing activities | (3,253) | (42) | (276) | |||||||||
Financing Activities: | ||||||||||||
Borrowings under credit facility | 3,595 | — | — | |||||||||
Repayment of credit facility borrowings | (1,930) | — | — | |||||||||
Repayment of notes and debentures | (347) | — | — | |||||||||
Repayment of Skydance Media credit facility | — | (720) | — | |||||||||
Dividends paid on common stock | (174) | (33) | (101) | |||||||||
Payment of payroll taxes in lieu of issuing shares for stock-based compensation | (122) | (63) | (26) | |||||||||
Payments to noncontrolling interests | (190) | (2) | (32) | |||||||||
Other financing activities | (70) | (3) | — | |||||||||
Net cash flow provided by (used for) financing activities | 762 | (821) | (159) | |||||||||
Effect of exchange rate changes on cash and cash equivalents | (33) | 7 | 70 | |||||||||
Net decrease in cash and cash equivalents | (1,897) | (588) | (201) | |||||||||
Cash and cash equivalents at beginning of period | 3,274 | 3,851 | 2,661 | |||||||||
Cash and cash equivalents at end of period | $1,377 | $3,263 | $2,460 | |||||||||
20
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES
(Unaudited; in millions, except per share amounts)
Adjusted EBITDA (defined below), Adjusted earnings before income taxes, adjusted
provision for income taxes, adjusted net earnings attributable to Parent, and adjusted
diluted EPS, which are measures of performance not calculated in accordance with
accounting principles generally accepted in the United States (“U.S. GAAP” or “GAAP”)
(together, the “adjusted measures”) exclude certain items identified as affecting
comparability that are not part of our normal operations, including programming charges,
impairment charges, restructuring charges, transaction-related items, other corporate
matters, gain (loss) on dispositions, gain (loss) from investments and discrete tax items,
each where applicable. We define Adjusted EBITDA as net earnings (loss) attributable to
Parent before interest expense and income; (provision for) benefit from income taxes; other
items; net gain on derivatives; equity in earnings (loss) of investee companies, net of tax;
and depreciation and amortization, adjusted to exclude stock-based compensation expense
(which is a noncash expense that management does not consider to be part of our
underlying operating performance) and certain items identified as affecting comparability
that are not part of our normal operations.
We use these adjusted measures to, among other things, evaluate our operating
performance. These measures are among the primary measures used by management for
planning and forecasting of future periods, and they are important indicators of our
operational strength and business performance. In addition, we use Adjusted EBITDA to,
among other things, value prospective acquisitions. We believe these measures are relevant
and useful for investors because they allow investors to view our performance in a manner
consistent with the method used by our management; and because they exclude items that
are not representative of our normal operations, they provide a clearer perspective on
underlying performance, and make it easier for investors, analysts and peers to compare
our operating performance to other companies in the industry and to compare our results
across reporting periods.
Because the adjusted measures are measures of performance not calculated in accordance
with U.S. GAAP, they should not be considered in isolation of, or as a substitute for, our
results as reported under U.S. GAAP, including net earnings (loss), (provision for) benefit
from income taxes, net earnings (loss) attributable to Parent, and diluted EPS, as
applicable, as indicators of operating performance and undue reliance should not be placed
on these adjusted measures. Other companies may define these measures, including
Adjusted EBITDA, differently and, as a result, our adjusted measures may not be directly
comparable to similarly titled measures of other companies.
We are not able to reconcile forward-looking non-GAAP financial measures because we are
unable without unreasonable efforts to accurately estimate the individual adjustments for
such reconciliations, as applicable, or to quantify the probable significance of these items at
this time.
21
SUPPLEMENTAL DISCLOSURES
REGARDING NON-GAAP FINANCIAL MEASURES (Continued)
(Unaudited; in millions, except per share amounts)
The following tables reconcile the adjusted measures to their most directly comparable
financial measures in accordance with U.S. GAAP. The tax impacts on the items identified as
affecting comparability in the tables below have been calculated using the tax rate
applicable to each item.
Three Months Ended September 30, 2026 and 2025
Successor | Predecessor | |||||||||||
Three Months Ended September 30, | Period From August 7 - September 30, | Period From July 1 - August 6, | ||||||||||
2026 | 2025 | 2025 | ||||||||||
Net earnings (loss) attributable to Parent (GAAP) | $73 | $(13) | $(244) | |||||||||
Net earnings attributable to noncontrolling interests | 25 | 17 | 434 | |||||||||
Equity in loss of investee companies, net of tax | 64 | 33 | 31 | |||||||||
Provision for (benefit from) income taxes | 464 | 85 | (229) | |||||||||
Other items, net | 27 | 8 | 16 | |||||||||
Net gain on derivatives | (514) | — | — | |||||||||
Interest expense, net | 229 | 114 | 72 | |||||||||
Transaction-related items (a) | 98 | — | 175 | |||||||||
Restructuring charges (a) | 89 | 185 | 13 | |||||||||
Stock-based compensation (b) | 74 | 29 | 16 | |||||||||
Depreciation and amortization | 371 | 226 | 29 | |||||||||
Adjusted EBITDA (Non-GAAP) (c) | $1,000 | $684 | $313 | |||||||||
(a) See notes on the following tables for additional information on items affecting comparability.
(b) For the three months ended September 30, 2026 (Successor) and the period from August 7 - September 30, 2025
(Successor), stock-based compensation expense of $27 million and $30 million, respectively, is included in
“Restructuring and transaction-related items.” For the Predecessor period from July 1 - August 6, 2025, stock-based
compensation expense of $10 million is included in “Restructuring and transaction-related items.”
(c) The Adjusted EBITDA margin for the three months ended September 30, 2026 of 14% is calculated as Adjusted
EBITDA of $1.00 billion divided by total revenues of $7.03 billion.
22
SUPPLEMENTAL DISCLOSURES
REGARDING NON-GAAP FINANCIAL MEASURES (Continued)
(Unaudited; in millions, except per share amounts)
Nine Months Ended September 30, 2026 and 2025
Successor | Predecessor | |||||||||||
Nine Months Ended September 30, | Period From August 7 - September 30, | Period From January 1 - August 6, | ||||||||||
2026 | 2025 | 2025 | ||||||||||
Net earnings (loss) attributable to Parent (GAAP) | $282 | $(13) | $(35) | |||||||||
Net earnings attributable to noncontrolling interests | 32 | 17 | 447 | |||||||||
Equity in loss of investee companies, net of tax | 180 | 33 | 171 | |||||||||
Provision for (benefit from) income taxes | 739 | 85 | (79) | |||||||||
Other items, net | 73 | 8 | 92 | |||||||||
Net gain on derivatives | (502) | — | — | |||||||||
Interest expense, net | 655 | 114 | 433 | |||||||||
Gain on dispositions (a) | — | — | (35) | |||||||||
Transaction-related items (a) | 354 | — | 199 | |||||||||
Restructuring charges (a) | 124 | 185 | 255 | |||||||||
Impairment charges (a) | — | — | 157 | |||||||||
Stock-based compensation (b) | 226 | 29 | 99 | |||||||||
Depreciation and amortization | 1,097 | 226 | 204 | |||||||||
Adjusted EBITDA (Non-GAAP) | $3,260 | $684 | $1,908 | |||||||||
(a) See notes on the following tables for additional information on items affecting comparability.
(b) For the nine months ended September 30, 2026 (Successor) and the period from August 7 - September 30, 2025
(Successor), stock-based compensation expense of $36 million and $30 million, respectively, is included in
“Restructuring and transaction-related items.” For the Predecessor period from January 1 - August 6, 2025, stock-
based compensation expense of $14 million is included in “Restructuring and transaction-related items.”
23
SUPPLEMENTAL DISCLOSURES
REGARDING NON-GAAP FINANCIAL MEASURES (Continued)
(Unaudited; in millions, except per share amounts)
Three Months Ended September 30, 2026
Successor | |||||||||||||||
Three Months Ended September 30, 2026 | |||||||||||||||
Earnings Before Income Taxes | Provision for Income Taxes | Net Earnings Attributable to Parent | Diluted EPS | ||||||||||||
Reported (GAAP) | $626 | $(464) | $73 | $.06 | |||||||||||
Items affecting comparability: | |||||||||||||||
Restructuring charges (a) | 89 | (21) | 68 | .06 | |||||||||||
Transaction-related items (b) | 98 | (8) | 90 | .08 | |||||||||||
Discrete tax items (c) | — | 275 | 275 | .25 | |||||||||||
Adjusted (Non-GAAP) | $813 | $(218) | $506 | $.45 | |||||||||||
(a) Reflects severance costs associated with changes in management and aligning the business around
our strategic priorities following the Skydance Transactions, as well as exit costs associated with a
contract termination.
(b) Principally reflects legal, advisory, and other professional fees associated with the planned WBD
Merger and related integration.
(c) Primarily attributable to the establishment of a reserve for uncertain tax positions.
24
SUPPLEMENTAL DISCLOSURES
REGARDING NON-GAAP FINANCIAL MEASURES (Continued)
(Unaudited; in millions, except per share amounts)
Three Months Ended September 30, 2025
Successor | |||||||||||||||
Period From August 7 - September 30, 2025 | |||||||||||||||
Earnings Before Income Taxes | Provision for Income Taxes | Net Earnings (Loss) Attributable to Parent | Diluted EPS | ||||||||||||
Reported (GAAP) | $122 | $(85) | $(13) | $(.01) | |||||||||||
Items affecting comparability: | |||||||||||||||
Restructuring charges (a) | 185 | (30) | 155 | .13 | |||||||||||
Discrete tax items | — | (4) | (4) | — | |||||||||||
Adjusted (Non-GAAP) | $307 | $(119) | $138 | $.12 | |||||||||||
Predecessor | |||||||||||||||
Period From July 1 - August 6, 2025 | |||||||||||||||
Earnings (Loss) Before Income Taxes | Benefit from (Provision for) Income Taxes | Net Loss Attributable to Parent | Diluted EPS | ||||||||||||
Reported (GAAP) | $(8) | $229 | $(244) | $(.36) | |||||||||||
Items affecting comparability: | |||||||||||||||
Restructuring charges | 13 | (3) | 10 | .02 | |||||||||||
Transaction-related items (b) | 175 | (30) | 145 | .21 | |||||||||||
Discrete tax items (c) | — | (73) | (73) | (.11) | |||||||||||
Adjusted (Non-GAAP) | $180 | $123 | $(162) | $(.24) | |||||||||||
(a) Restructuring charges during the Successor period were comprised of severance costs, principally
associated with actions following the Skydance Transactions, including costs related to a plan under
which severance payments are being provided to certain eligible employees who voluntarily elected to
participate.
(b) Reflects banking, legal, advisory, and other professional fees relating to the Skydance Transactions,
and transaction awards that became payable to eligible employees upon closing of the Skydance
Transactions.
(c) Reflects the reversal of the valuation allowance on our interest limitation carryforward deferred tax
asset, partially offset by the establishment of a reserve for uncertain tax positions.
25
SUPPLEMENTAL DISCLOSURES
REGARDING NON-GAAP FINANCIAL MEASURES (Continued)
(Unaudited; in millions, except per share amounts)
Nine Months Ended September 30, 2026
Successor | |||||||||||||||
Nine Months Ended September 30, 2026 | |||||||||||||||
Earnings Before Income Taxes | Provision for Income Taxes | Net Earnings Attributable to Parent | Diluted EPS | ||||||||||||
Reported (GAAP) | $1,233 | $(739) | $282 | $.25 | |||||||||||
Items affecting comparability: | |||||||||||||||
Restructuring charges (a) | 124 | (26) | 98 | .09 | |||||||||||
Transaction-related items (b) | 354 | (29) | 325 | .29 | |||||||||||
Discrete tax items (c) | — | 267 | 267 | .24 | |||||||||||
Adjusted (Non-GAAP) | $1,711 | $(527) | $972 | $.87 | |||||||||||
(a) Reflects severance costs associated with changes in management and aligning the business around
our strategic priorities following the Skydance Transactions, as well as exit costs associated with a
contract termination.
(b) Principally reflects legal, advisory and other professional fees associated with the planned WBD Merger
and related integration.
(c) Primarily attributable to the establishment of a reserve for uncertain tax positions.
26
SUPPLEMENTAL DISCLOSURES
REGARDING NON-GAAP FINANCIAL MEASURES (Continued)
(Unaudited; in millions, except per share amounts)
Nine Months Ended September 30, 2025
Successor | |||||||||||||||
Period From August 7 - September 30, 2025 | |||||||||||||||
Earnings Before Income Taxes | Provision for Income Taxes | Net Earnings (Loss) Attributable to Parent | Diluted EPS | ||||||||||||
Reported (GAAP) | $122 | $(85) | $(13) | $(.01) | |||||||||||
Items affecting comparability: | |||||||||||||||
Restructuring charges (a) | 185 | (30) | 155 | .13 | |||||||||||
Discrete tax items | — | (4) | (4) | — | |||||||||||
Adjusted (Non-GAAP) | $307 | $(119) | $138 | $.12 | |||||||||||
Predecessor | |||||||||||||||
Period From January 1 - August 6, 2025 | |||||||||||||||
Earnings Before Income Taxes | Benefit from (Provision for) Income Taxes | Net Earnings (Loss) Attributable to Parent | Diluted EPS | ||||||||||||
Reported (GAAP) | $504 | $79 | $(35) | $(.05) | |||||||||||
Items affecting comparability: | |||||||||||||||
Impairment charges (b) | 157 | (39) | 118 | .17 | |||||||||||
Restructuring charges (a) | 255 | (61) | 194 | .29 | |||||||||||
Transaction-related items (c) | 199 | (31) | 168 | .25 | |||||||||||
Gain on dispositions (d) | (35) | 2 | (33) | (.05) | |||||||||||
Discrete tax items | — | (64) | (64) | (.10) | |||||||||||
Adjusted (Non-GAAP) | $1,080 | $(114) | $348 | $.51 | |||||||||||
(a) Both periods reflect severance charges and also included in the period from January 1 - August 6,
2025 are charges for the impairment of lease assets.
(b) Reflects a charge to reduce the carrying values of FCC licenses in certain markets to their estimated
fair values.
(c) Reflects banking, legal, advisory, and other professional fees relating to the Skydance Transactions,
and transaction awards that became payable to eligible employees upon closing of the Skydance
Transactions.
(d) Principally reflects a gain associated with the disposition of a noncore business.
27
SUPPLEMENTAL DISCLOSURES
REGARDING NON-GAAP FINANCIAL MEASURES (Continued)
(Unaudited; in millions)
Beginning in 2026, we transitioned our reporting structure into three new segments:
Studios, Direct-to-Consumer, and TV Media and updated our segment expense allocations
to better reflect how we operate and make cost decisions across the business. As a result of
the new accounting basis established for Paramount Global’s net assets upon the closing of
the Skydance Transactions (see Financial Statement Presentation), the GAAP basis for our
segment information for the Predecessor period is based on our previous segments, Filmed
Entertainment, Direct-to-Consumer, and TV Media. To provide information consistent with
how management reviews results, this letter includes non-GAAP presentations in which the
2025 Predecessor amounts have been recast under the new segment presentation and
therefore constitute a non‑GAAP presentation. Reconciliations from the GAAP presentation
to this recast non-GAAP presentation are provided on the following pages.
In addition, as described in Financial Statement Presentation, the presentation within this
letter reflects the distinction between the Successor and Predecessor periods. In order to
help investors view our results in a manner consistent with our management we are
including the below supplemental presentation of pro forma revenue, which reflects the
inclusion of Skydance Media revenues after the elimination of intercompany revenues from
Paramount Global in the Predecessor period from July 1, 2025-August 6, 2025 and the
combination of the Predecessor and Successor periods during the third quarter of 2025.
Revenues
Three Months Ended September 30, 2026 and 2025
Successor | Predecessor | Supplemental Pro Forma Revenues (a) | ||||||||||||||||||
Three Months Ended September 30, | Period From August 7 - September 30, | Period From July 1 - August 6, | Three Months Ended September 30, | Pro Forma Increase/ (Decrease) | ||||||||||||||||
2026 | 2025 | 2025 | 2025 | $ | % | |||||||||||||||
Revenues by Type: | ||||||||||||||||||||
Advertising | $1,889 | $1,280 | $664 | $1,944 | $(55) | (3)% | ||||||||||||||
Affiliate and subscription | 3,521 | 2,027 | 1,400 | 3,427 | 94 | 3 | ||||||||||||||
Theatrical | 112 | 39 | 73 | 112 | — | — | ||||||||||||||
Licensing and other | 1,503 | 775 | 444 | 1,231 | 272 | 22 | ||||||||||||||
Total Revenues | $7,025 | $4,121 | $2,581 | $6,714 | $311 | 5% | ||||||||||||||
(a) Supplemental Pro Forma Revenues for the three months ended September 30, 2025 reflect the combination of the Successor period with the
Predecessor period from July 1 - August 6, 2025 and for Licensing and other and total Supplemental Pro Forma Revenues also include $12
million of Skydance Media revenues after the elimination of intercompany revenues from Paramount Global during the Predecessor period
from July 1 - August 6, 2025. While the Successor and Predecessor periods are distinct reporting periods, revenues were not impacted by
the new accounting basis established for Paramount Global’s net assets, and are supplementally presented on a pro forma combined basis to
help investors view these revenues in a manner consistent with our management.
28
SUPPLEMENTAL DISCLOSURES
REGARDING NON-GAAP FINANCIAL MEASURES (Continued)
(Unaudited; in millions)
Studios/Filmed Entertainment
Our Studios segment consists of our television and film studio operations, including CBS
Studios, Paramount Television Studios, Nickelodeon Animation, Paramount Pictures,
Paramount Animation, and Miramax, as well as Skydance Animation, Film, and Television,
Paramount Sports Entertainment and Paramount Games Studio. For the Predecessor period,
our Filmed Entertainment segment was most comparable to our new Studios segment and
excluded studio operations related to our TV Media businesses, including CBS Studios and
Paramount Television Studios.
Three Months Ended September 30, 2026 and 2025
Successor | Predecessor | Studios Supplemental Pro Forma Revenues (b) (Non-GAAP) | |||||||||||||||||||||||||
Studios (GAAP) | Filmed Entertainment (GAAP) | Adjustments (a) | Studios (Non- GAAP) | ||||||||||||||||||||||||
Three Months Ended September 30, | Period From August 7 - September 30, | Period From July 1 - August 6, | Three Months Ended September 30, | Pro Forma Increase/ (Decrease) (d) | |||||||||||||||||||||||
2026 | 2025 | 2025 | 2025 | $ | % | ||||||||||||||||||||||
Theatrical | $112 | $39 | $73 | $— | $73 | $112 | $— | —% | |||||||||||||||||||
Licensing and other | 1,377 | 695 | 202 | 185 | 387 | 1,094 | 283 | 26 | |||||||||||||||||||
Advertising | 7 | 4 | 1 | 1 | 2 | 6 | 1 | 17 | |||||||||||||||||||
Revenues | 1,496 | 738 | 276 | 186 | 462 | $1,212 | $284 | 23% | |||||||||||||||||||
Content costs | 977 | 540 | 131 | 147 | 278 | ||||||||||||||||||||||
Advertising and marketing | 187 | 57 | 106 | 2 | 108 | ||||||||||||||||||||||
Other | 203 | 120 | 75 | 3 | 78 | ||||||||||||||||||||||
Expenses | 1,367 | 717 | 312 | 152 | 464 | ||||||||||||||||||||||
Adjusted EBITDA/OIBDA (c) | $129 | $21 | $(36) | $34 | $(2) | ||||||||||||||||||||||
(a) Reflects the inclusion of the historical TV Media studio operations and updates to our segment expense allocations to better reflect how we
operate and make cost decisions across the business.
(b) Supplemental Non-GAAP Pro Forma Revenues for the third quarter of 2025 reflect the combination of the Predecessor Non-GAAP Studios
revenues for the period from July 1 - August 6, 2025 with the Successor revenues for the Studios segment for the period from August 7 -
September 30, 2025. Licensing and other and total Supplemental Non-GAAP Pro Forma Revenues also include $12 million of Skydance Media
revenues after the elimination of intercompany revenues from Paramount Global during the Predecessor period from July 1 - August 6, 2025.
While the Successor and Predecessor periods are distinct reporting periods, revenues were not impacted by the new accounting basis
established for Paramount Global’s net assets, and are supplementally presented on a pro forma combined basis to help investors view these
revenues in a manner consistent with our management.
(c) In the first quarter of 2026, we renamed our primary measure of profit and loss for our operating segments from Adjusted OIBDA to
Adjusted EBITDA.
(d) Reflects the comparison between the Successor revenues for the three months ended September 30, 2026 to the non-GAAP pro forma
revenues for the three months ended September 30, 2025.
29
SUPPLEMENTAL DISCLOSURES
REGARDING NON-GAAP FINANCIAL MEASURES (Continued)
(Unaudited; in millions)
Direct-to-Consumer
Our Direct-to-Consumer segment consists of our portfolio of domestic and international pay
and free streaming services, including Paramount+ and Pluto TV, as well as our domestic
premium cable network, Paramount+ with Showtime. For the Predecessor period, the
Direct-to-Consumer segment excluded Paramount+ with Showtime.
Three Months Ended September 30, 2026 and 2025
Successor | Predecessor | Direct-to-Consumer Supplemental Pro Forma Revenues (b) (Non-GAAP) | |||||||||||||||||||||||||
Direct-to-Consumer (GAAP) | Direct-to- Consumer (GAAP) | Adjustments (a) | Direct-to- Consumer (Non- GAAP) | ||||||||||||||||||||||||
Three Months Ended September 30, | Period From August 7 - September 30, | Period From July 1 - August 6, | Three Months Ended September 30, | Pro Forma Increase/ (Decrease) (d) | |||||||||||||||||||||||
2026 | 2025 | 2025 | 2025 | $ | % | ||||||||||||||||||||||
Advertising | $542 | $300 | $179 | $— | $179 | $479 | $63 | 13% | |||||||||||||||||||
Affiliate and subscription | 1,968 | 1,043 | 704 | 40 | 744 | 1,787 | 181 | 10 | |||||||||||||||||||
Licensing | — | 1 | — | — | — | 1 | (1) | (100) | |||||||||||||||||||
Revenues | 2,510 | 1,344 | 883 | 40 | 923 | $2,267 | $243 | 11% | |||||||||||||||||||
Content costs | 1,320 | 546 | 412 | 16 | 428 | ||||||||||||||||||||||
Advertising and marketing | 312 | 160 | 114 | 6 | 120 | ||||||||||||||||||||||
Other | 653 | 329 | 252 | (14) | 238 | ||||||||||||||||||||||
Expenses | 2,285 | 1,035 | 778 | 8 | 786 | ||||||||||||||||||||||
Adjusted EBITDA/OIBDA (c) | $225 | $309 | $105 | $32 | $137 | ||||||||||||||||||||||
Successor | Predecessor | Supplemental Pro Forma Revenues (b) | |||||||||||||||||
Three Months Ended September 30, | Period From August 7 - September 30, | Period From July 1 - August 6, | Three Months Ended September 30, | Pro Forma Increase/ (Decrease) (d) | |||||||||||||||
Paramount+ (Global) | 2026 | 2025 | 2025 | 2025 | $ | % | |||||||||||||
Revenues | $2,134 | $1,060 | $709 | $1,769 | $365 | 21% | |||||||||||||
(a) Reflects the inclusion of our premium cable channel, Paramount+ with Showtime, which was included in the TV Media segment in 2025, and
updates to our segment expense allocations to better reflect how we operate and make cost decisions across the business.
(b) Supplemental Non-GAAP Pro Forma Revenues for the third quarter of 2025 reflect the combination of the Predecessor Non-GAAP Direct-to-
Consumer revenues for the period from July 1 - August 6, 2025 with the Successor revenues for the Direct-to-Consumer segment for the
period from August 7 - September 30, 2025. While the Successor and Predecessor periods are distinct reporting periods, revenues were not
impacted by the new accounting basis established for Paramount Global’s net assets, and are supplementally presented on a pro forma
combined basis to help investors view these revenues in a manner consistent with our management.
(c) In the first quarter of 2026, we renamed our primary measure of profit and loss for our operating segments from Adjusted OIBDA to
Adjusted EBITDA.
(d) Reflects the comparison between the Successor results for the three months ended September 30, 2026 to the non-GAAP pro forma
revenues for the three months ended September 30, 2025.
30
SUPPLEMENTAL DISCLOSURES
REGARDING NON-GAAP FINANCIAL MEASURES (Continued)
(Unaudited; in millions)
TV Media
Our TV Media segment consists of our (1) broadcast operations—the CBS Television
Network, our domestic broadcast television network; CBS Stations, our owned television
stations; and our international free-to-air networks, including Network 10 and Channel 5;
(2) domestic basic cable networks, including MTV, Comedy Central, Paramount Network,
The Smithsonian Channel, Nickelodeon, BET Media Group, CBS Sports Network, and
international extensions of certain of these brands; and (3) CBS Media Ventures, which
produces and distributes first-run syndicated programming. TV Media also includes a
number of digital properties such as CBS News 24/7 for 24-hour news and CBS Sports HQ
for sports news and analysis. For the Predecessor period, the TV Media segment also
included domestic and international television studio operations and the premium cable
network, Paramount+ with Showtime.
Three Months Ended September 30, 2026 and 2025
Successor | Predecessor | TV Media Supplemental Pro Forma Revenues (b) (Non-GAAP) | |||||||||||||||||||||||||
TV Media (GAAP) | TV Media (GAAP) | Adjustments (a) | TV Media (Non- GAAP) | ||||||||||||||||||||||||
Three Months Ended September 30, | Period From August 7 - September 30, | Period From July 1 - August 6, | Three Months Ended September 30, | Pro Forma Increase/ (Decrease) (d) | |||||||||||||||||||||||
2026 | 2025 | 2025 | 2025 | $ | % | ||||||||||||||||||||||
Advertising | $1,344 | $977 | $485 | $(1) | $484 | $1,461 | $(117) | (8)% | |||||||||||||||||||
Affiliate and subscription | 1,553 | 984 | 696 | (40) | 656 | 1,640 | (87) | (5) | |||||||||||||||||||
Licensing and other | 127 | 81 | 247 | (189) | 58 | 139 | (12) | (9) | |||||||||||||||||||
Revenues | 3,024 | 2,042 | 1,428 | (230) | 1,198 | $3,240 | $(216) | (7)% | |||||||||||||||||||
Content costs | 1,115 | 903 | 657 | (153) | 504 | ||||||||||||||||||||||
Advertising and marketing | 73 | 52 | 59 | (7) | 52 | ||||||||||||||||||||||
Other | 808 | 527 | 430 | (73) | 357 | ||||||||||||||||||||||
Expenses | 1,996 | 1,482 | 1,146 | (233) | 913 | ||||||||||||||||||||||
Adjusted EBITDA/OIBDA (c) | $1,028 | $560 | $282 | $3 | $285 | ||||||||||||||||||||||
(a) Reflects the transfer of the historical TV Media studio operations to the Studios segment and our premium cable channel, Paramount+ with
Showtime, to the Direct-to-Consumer segment, and updates to our segment expense allocations to better reflect how we operate and make
cost decisions across the business.
(b) Supplemental Non-GAAP Pro Forma Revenues for the third quarter of 2025 reflect the combination of the Predecessor Non-GAAP TV Media
revenues for the period from July 1 - August 6, 2025 with the Successor revenues for the TV Media segment for the period from August 7 -
September 30, 2025. While the Successor and Predecessor periods are distinct reporting periods, revenues were not impacted by the new
accounting basis established for Paramount Global’s net assets, and are supplementally presented on a pro forma combined basis to help
investors view these revenues in a manner consistent with our management.
(c) In the first quarter of 2026, we renamed our primary measure of profit and loss for our operating segments from Adjusted OIBDA to Adjusted
EBITDA.
(d) Reflects the comparison between the Successor results for the three months ended September 30, 2026 to the non-GAAP pro forma revenues
for the three months ended September 30, 2025.
31
SUPPLEMENTAL DISCLOSURES
REGARDING NON-GAAP FINANCIAL MEASURES (Continued)
(Unaudited; in millions)
Free Cash Flow
Free cash flow is a non-GAAP financial measure. Free cash flow reflects our net cash flow
provided by operating activities less capital expenditures. We deduct capital expenditures
when we calculate free cash flow because investment in capital expenditures is a use of cash
that is directly related to our operations. Our net cash flow provided by operating activities is
the most directly comparable U.S. GAAP financial measure.
Management believes free cash flow provides investors with an important perspective on the
cash available to us to service debt, pay dividends, make strategic acquisitions and
investments, maintain our capital assets, satisfy our tax obligations, and fund ongoing
operations and working capital needs. We believe the presentation of free cash flow is
relevant and useful for investors because it allows investors to evaluate the cash generated
from our underlying operations in a manner similar to the method used by management.
Free cash flow is one of the quantitative performance metrics used in determining our
annual incentive compensation awards. In addition, free cash flow is a primary measure
used externally by our investors, analysts and industry peers for purposes of valuation and
comparison of our operating performance to other companies in our industry.
As free cash flow is not a measure calculated in accordance with U.S. GAAP, free cash flow
should not be considered in isolation of, or as a substitute for, either net cash flow provided
by operating activities as a measure of liquidity or net earnings as a measure of operating
performance. Free cash flow, as we calculate it, may not be comparable to similarly titled
measures employed by other companies.
The following table presents a reconciliation of our net cash flow provided by operating
activities to free cash flow.
Successor | Predecessor | Successor | Predecessor | ||||||||||||||||||||||
Three Months Ended September 30, | Period From August 7 - September 30, | Period From July 1 - August 6, | Nine Months Ended September 30, | Period From August 7 - September 30, | Period From January 1 - August 6, | ||||||||||||||||||||
2026 | 2025 | 2025 | 2026 | 2025 | 2025 | ||||||||||||||||||||
Net cash flow provided by (used for) operating activities | $123 | $268 | $(175) | $627 | $268 | $164 | |||||||||||||||||||
Capital expenditures | (92) | (46) | (32) | (242) | (46) | (134) | |||||||||||||||||||
Free cash flow (Non-GAAP) | $31 | $222 | $(207) | $385 | $222 | $30 | |||||||||||||||||||