Almost one year exactly from Skydance’s acquisition of Paramount, the merged company reported mixed numbers for the June quarter with strong streaming, tough theatrical comps and an ongoing drop in linear television. The numbers hit just as a judge announced a March trial date to hear the AGs’ antitrust case against Par’s merger with Warner Bros. Discovery.

“Q2 was our best quarter for retention in Paramount+’s history, powered by Dutton Ranch, UFC, and the FIFA World Cup non-exclusively across six countries in Latin America, gaining ~2 million new Paramount+ subscribers in the quarter to reach 81.6 million worldwide,” the company said. DTC revenue rose 9% year-over-year to $2.5 billion. Paramount+ ad revenue jumped 30%. The streamer had the lowest quarterly churn in its history.

DTC profit rose 44% to $366 million. BET+ was integrated into Paramount+ in Q2.

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Total revenue was in line with Wall Street forecasts at about $6.9 billion and flat from the year before. Par expects $30 billion in revenue for all of 2026.

Net profit dipped to $41 million from $57 million.

The company raised its full-year 2026 outlook to a range of $3.8-$3.9 billion in adjusted ebitda, and said it expects over $2.7 billion of cost savings by the end of 2026, above its previous projection. It continues to expect $3 billion-plus in efficiencies from the Skydance-Paramount combination.

In TV Media, profits grew year-over-year while revenue declined 9% to $3.1 billion, “reflecting steps to rightsize the cost structure relative to overall declines in linear revenues.”

Advertising revenue dropped 14% (including a headwind of about eight percentage points from lapping NCAA Final Four and Championship game in the prior-year quarter, and another three from the sales of Telefe and Chilevision). Affiliate revenue declined 6% on continued pay TV subscriber erosion.

Studios revenue grew16% to $1.3 billion reflecting a strong quarter of third-party deliveries at Paramount Television Studios and the consolidation of Skydance licensing revenues, partially offset by lower theatrical revenue from lapping Mission: Impossible – The Final Reckoning in the prior year. Paramount handled the successful revival of the Scary Movie franchise (in a distribution deal) but drew a muted response to Jackass: Best and Last.

The studio swung to a profit of $36 million from a $31 million loss the year earlier.

Investors will be studying the numbers closely as the ambitious combination with Warner Bros. Discovery is now on hold pending a trial. The “merger pause shifts Wall Street focus to standalone execution,” wrote one analyst in a recent note. CEO David Ellison et al will take questions on a call at 5 pm ET.

The initial response was positive Paramount shares nosed higher after the numbers in late trading Tuesday following a 2% gain on the day. They’ve since reversed and are down about 1%. PSKY shares have been pummeled by merger delays. Beyond the hefty purchase price, Par is on the hook for a large so-called ticking fee of 25 cents per WBD share per quarter starting Oct. 1 if the transaction is not closed.

“We continue to prepare for our proposed combination with Warner Bros. Discovery, while staying focused on executing our standalone strategy and delivering strong results,” Par promised.

Paramount and WBD announced their deal in February, a $31 a share all-cash transaction valued at $110 billion. Ellison had said repeatedly he anticipated a close in the third quarter – so now. The merger has key regulatory approvals but is now halted after State Attorneys General led by California’s Rob Bonta filed an antitrust suit to block it. A judge issued a temporary restraining order and today set a March trial. Paramount has requested a November date. The AGs asked for February. Principals and proxies for both sides have been flooding the zone with commentary.

“As it relates to the planned acquisition of Warner Bros. Discovery, we fully expect the transaction to close and remain focused on preparing for a successful combination once it is complete,” wrote Ellison in a letter to shareholders, ticking off approvals and insisting a merged company will be better, not worse, for the entertainment industry.

The creative community has come out in force against the deal. TKO CEO Ari Emanuel has defended it publicly in recent days.

“Over the past several months, our leadership team and legal partners have worked closely with antitrust and competition authorities around the world. As a result, regulatory bodies and governments representing 65 jurisdictions — including the European Commission, Australia, Brazil, China, the U.S., Germany, France, Spain, Canada, South Africa, Saudi Arabia, and South Korea — have either cleared the transaction or elected not to challenge it on competition and/or foreign direct investment grounds,” Ellison said today.

“As these clearances demonstrate, the transaction is fully consistent with antitrust laws. The claims in pending antitrust litigation do not reflect the realities of today’s highly competitive entertainment marketplace. Even combined, Paramount and Warner Bros. Discovery would account for just 13.4% of total U.S. television and streaming viewing time, 18% of the domestic box office over the past 12 months, and 22% on average over the last six years. Those figures reflect a company competing in an intensely competitive marketplace against tech giants such as Netflix, Amazon, Apple, and others — not one with the market power to dictate outcomes for audiences, creators, or distributors. We remain confident the transaction will be completed, creating a stronger, more competitive media company.”