Four hundred million new shares is more than half of Paramount Skydance’s prior comparable diluted share count of 680 million. That is the scale of the capital raise sitting behind a deceptively ordinary three-month period.
Revenue edged up 0.9% to $6.9 billion for the three months ended June 30, while operating income rose 19% to $475 million. The income statement looked better at the operating line, but diluted EPS fell from $0.08 to $0.04 as the share count jumped 64.7% to 1.1 billion.
The arithmetic is not subtle: Paramount Skydance made more from operations, then divided the result among many more shares. Net income also fell 28.1% to $41 million, despite operating margin improving by one percentage point to 6.9%.
The company’s filing ties the dilution and new liquidity to the Skydance transaction. It says $1.52 billion of the PIPE proceeds went to the company, while $4.45 billion funded the cash-stock election tied to the deal.
"Concurrent with the NAI Transaction, the NAI Equity Investors and certain other affiliates of investors in Skydance made an investment of $6.0 billion into Paramount Skydance Corporation (the “PIPE Transaction”) in exchange for 400 million newly issued shares of Paramount Skydance Corporation Class B Common Stock for a purchase price of $15.00 per share, and the NAI Equity Investors also received warrants to purchase 200 million shares of Paramount Skydance Corporation Class B Common Stock at an initial exercise price of $30.50 per share (subject to customary anti-dilution adjustments), which expire five years after issuance. $4.45 billion of the PIPE Transaction investment was used to fund the cash-stock election discussed below and $1.52 billion of cash was provided to the Company."
10-Q 2026-08-04
That cash changes the balance-sheet starting point, but it does not make the per-share comparison cleaner. The reconciliation also shows higher interest expense, taxes, transaction-related items, and depreciation and amortization in the latest period.
The operating picture itself has two speeds. Paramount+ subscribers increased by 4.8 million, or 6%, with domestic growth partly offset by international declines after distribution agreements were not renewed. Advertising, meanwhile, remained under pressure from the linear market and an unfavorable comparison with CBS’s 2025 NCAA Tournament broadcasts.
Management described the advertising decline this way:
"The decreases in advertising revenues of 9% and 6% for the three and six months ended June 30, 2026 , respectively, are primarily due to declines in the linear advertising market and a negative impact of 6% and 3% from the comparison against CBS’s broadcast in the second quarter of 2025 of the National Semifinals and National Championship games of the NCAA Division I Men’s Basketball Championship (the “NCAA Tournament”), which we have the rights to broadcast every other year , partially offset by growth for Paramount+."
10-Q 2026-08-04
That leaves Paramount Skydance with a business that is adding streaming subscribers while its advertising business faces a declining linear market. The NCAA comparison is calendar-shaped noise; the linear advertising decline is the broader pressure described in the paragraph.
The company’s annual record provides additional context. Revenue fell 1.5% to $29.2 billion in 2024, while operating margin moved to negative 18.0%. Against that history, the latest operating-margin improvement matters, but the three-month period’s 0.9% revenue growth is still modest.
Paramount Skydance closed at $8.40 on August 4, up 2.2% that day. Its reported enterprise value was $2.9 billion against a $5.6 billion market cap, though the filing’s more immediate market question is how the new capital structure changes the value assigned to each share.
Paramount Skydance’s next 10-Q will provide the next comparable diluted share count and show how interest expense has changed.
Operating improvement and per-share economics are moving in opposite directions.
Source: Paramount Skydance Corporation 10-Q filed August 4, 2026.