PARA

This article first appeared on GuruFocus. Revenue: $2.3 million in Q2 2026, a decrease of 27% from $3.1 million in Q2 2025. Gross Profit: $1.8 million in Q2 2026, down from the prior-year quarter. Gross Margin: 80.2% in Q2 2026, remaining robust and fairly stable. Operating Expenses: $6.2 million in Q2 2026, a 16% improvement over Q2 2025. Net Loss: $5 million in Q2 2026, a 37% improvement from a $7 million loss in Q2 2025. Adjusted EBITDA: Loss of $1.7 million in Q2 2026, compared to a loss of $0.9 million in Q2 2025. Year-to-Date Revenue: $5 million through June 2026, a 24% decrease from $6.5 million in the first half of 2025. Year-to-Date Gross Profit: $4 million through June 2026, down 25% from $5.3 million in the first half of 2025. Year-to-Date Gross Margin: 80.5% for the first six months of 2026, compared to 82.2% in the same period of 2025. Year-to-Date Operating Expenses: $14.2 million through June 2026, down from $15.1 million in the first half of 2025. Year-to-Date Net Loss: $13.4 million through June 2026, compared to $11.6 million in the first half of 2025. Year-to-Date Adjusted EBITDA: Loss of $3.5 million through June 2026, compared to a loss of $1.7 million in the first half of 2025. Cash: $600,000 at the end of Q2 2026, up from approximately $300,000 at December 31, 2025. Stockholders' Equity: $12.2 million on June 30, 2026, an all-time high, up from $8.1 million on December 31, 2025. Net-Dollar Retention Rate: 91% in Q2 2026, an all-time high for the core customer segment. Customer Base: Over 150,000 total customers who have purchased or subscribed to Parabolic products. ConnectAndSell Acquisition: Expected to increase annual revenue by approximately $15 million when fully realized, boosting total annualized revenue to approximately $27 million; adds about 250 enterprise customers and has a gross margin of approximately 86%. Warning! GuruFocus has detected 7 Warning Signs with PARA. Is PARA fairly valued? Test your thesis with our free DCF calculator. Release Date: August 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Banzai International Inc (NASDAQ:PARA) closed the acquisition of ConnectAndSell, which is expected to add approximately $15 million in annual revenue and boost total annualized revenue to about $27 million. The company achieved an all-time high stockholders' equity of $12.2 million, reflecting a stronger balance sheet and improved financial position. Net-dollar retention for the core customer segment reached an all-time high of 91%, indicating strong customer satisfaction and upsell potential. Operating expenses were reduced by $1.7 million compared to Q1 and $1.2 million year-over-year, contributing to a 41% improvement in net loss. The company expects significant revenue growth in the second half of 2026, driven by a 10% improvement in legacy products and ConnectAndSell's contribution, with a projected 50% improvement in EBITDA. Banzai International Inc (NASDAQ:PARA) has a robust pipeline of potential acquisitions and is seeing attractive opportunities, supported by a $1.1 million tranche from its existing facility. The company is on track to obtain ISO 27001 certification by the end of Q3 2026, which will also unlock additional operational cost savings. Total revenue for Q2 2026 decreased 27% year-over-year to $2.3 million, primarily due to non-recurring revenue from the prior year. Adjusted EBITDA loss widened to $1.7 million in Q2 2026 from $0.9 million in Q2 2025, indicating ongoing profitability challenges. The company's cash position remains low at $600,000, though improved from $300,000 at the end of 2025. Net loss for the first half of 2026 increased 16% year-over-year to $13.4 million, despite cost reductions. The ConnectAndSell acquisition closed in July, so its financial benefits are not yet reflected in Q2 results, and integration risks remain. The company's reliance on acquisitions for growth may pose execution risks, and management declined to provide details on future acquisition targets. Q: Any more acquisitions in the pipeline? A: Joe Davy (Chairman & CEO) declined to discuss specific deals but confirmed a robust acquisition process, noting they are seeing "a lot of attractive companies coming through right now." He reiterated the company's policy of not commenting on potential acquisitions until they are ready to close. Q: Any update on the progress of the strategic alliance with Ingram Micro? A: Joe Davy (Chairman & CEO) expressed excitement about the partnership, which provides access to Ingram Micro's large sales network. He mentioned upcoming milestones and positive feedback from the team, highlighting the potential for this to become a powerful sales channel for Parabolic. Q: Can you comment on the quality of the sales pipeline? A: Joe Davy (Chairman & CEO) reported a very high-quality sales pipeline, driven by new demand-generation strategies led by Matt McCurdy. He noted that initiatives launched in Q1 have already converted into closed customers, and importantly, this was achieved while reducing marketing expenses. He also sees a significant opportunity to apply these marketing capabilities to the newly acquired ConnectAndSell business. Q: What is the expected financial impact of the ConnectAndSell acquisition? A: Joe Davy (Chairman & CEO) stated the acquisition is expected to increase annual revenue by approximately $15 million when fully realized, boosting Parabolic's total annualized revenue to roughly $27 million. The business has a high gross margin of ~86%, about 250 enterprise customers, and 10 issued and pending patents. The results will begin to reflect in Q3 and Q4 of 2026. Q: What is the company's financial outlook for the second half of 2026 and 2027? A: Dean Ditto (CFO) guided for significant revenue growth in H2 2026, driven by a forecasted 10% improvement in legacy products and the addition of ConnectAndSell revenue (expected to contribute $6.5 million this year). They expect a 50% improvement in EBITDA and a 40% decrease in operating losses from H1 to H2. For 2027, they expect 50% to 55% revenue growth, driven by organic growth and the full-year effect of ConnectAndSell. Q: What were the key drivers of the improved net loss in Q2 2026? A: Dean Ditto (CFO) explained that the net loss improved by 37% year-over-year to $5 million, primarily driven by lower operating expenses. Total operating expenses were reduced by $1.7 million compared to Q1 2026 and $1.2 million compared to Q2 2025, as a result of the cost-management plan announced in May. Q: How is the company's balance sheet strengthening? A: Dean Ditto (CFO) highlighted that stockholders' equity reached an all-time high of $12.2 million on June 30, 2026, up from $8.1 million at the end of 2025. The company finished the quarter with $600,000 in cash, up from $300,000 at the end of 2025, and has continued to reduce debt. Q: What is the status of the ISO 27001 certification? A: Joe Davy (Chairman & CEO) stated that the company is working diligently on the certification and expects to obtain ISO 27001 certification by the end of Q3 2026. He noted that this certification will also unlock additional operational cost savings for the company. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Cost Reductions Contribute to $3.4M Increase to Net Income from Q1 2026; Company Acquires ConnectAndSell, Expected to Increase FY2026 Revenue to $17M and FY2027 Revenue to $26M Management to Host Second Quarter 2026 Results Conference Call Today, Friday, August 14, 2026 at 4:30 p.m. Eastern Time SEATTLE, Aug. 14, 2026 (GLOBE NEWSWIRE) -- Banzai International, Inc. (NASDAQ: PARA) (d/b/a “Parabolic” or the “Company”), a leading AI-powered agentic applications technology company, today reported financial results for the second quarter ended June 30, 2026. Second Quarter 2026 and Subsequent Key Financial & Operational Highlights Company expands vision to Agentic Applications for enterprise with Parabolic rebrand Net Loss for Q2 2026 was $5.0 million, compared to Q1 2026 Net Loss of $8.4 million. The Company achieved net dollar retention in its core customer base of 91% in Q2 2026, an all-time high. Revenue of $2.3 million for Q2 2026, which represented a decrease of $0.4 million from Q1 2026, due to one-time non-recurring revenue in Q1 2026. Gross profit of $1.8 million for Q2 2026, a decrease of $0.4 million compared to Q1 2026. Gross margin was 80.2% for Q2 2026 compared to 80.7% in Q1 2026. Q2 2026 Adjusted EBITDA Loss improved to $1.7 million, compared to an Adjusted EBITDA Loss of $1.9 million in Q1 2026. Reduced net debt by $3.8 million compared to December 31, 2025, bringing net debt to an all-time low. Stockholder’s Equity increased to an all-time high of $12.2 million as of June 30, 2026; converted $7.0 million of debt to equity and raised an additional $8.1 million of equity since December 31, 2025. Customer base includes over 150,000 total customers who have purchased or subscribed to Parabolic products. Closed the acquisition of the assets of ConnectAndSell, expected to increase annual revenue and expand AI Platform capabilities beginning in third quarter 2026. “Our proposed name change to Parabolic represents more than a new brand. This change reflects where we believe the future of software is headed, and the path to strategic growth through investment in high potential businesses. Our continued aim is to build a business that delivers profitable growth both organically and strategically. For example, the recently announced acquisition of ConnectAndSell, an AI sales acceleration platform, will begin contributing to company results in the third quarter of this year and will transform the scale of our business in 2H 2026 and FY 2027 when we estimate 2027 revenue growth of 50% year-over-year. “ConnectAndSell serves approximately 250 B2B organizations such as Intuit, RingCentral, Truckstop, and SAP across financial services, healthcare, technology, and other industries. ConnectAndSell’s FY 2025 revenue was $14.7 million, with a gross margin of 86%, and an average revenue per customer of approximately $59,000. “I am pleased to report the second quarter operating losses have decreased primarily from executing on the cost management plan that we announced in May. Additionally, I am pleased that Parabolic's management is making further cost reductions, which we expect will meaningfully reduce operating expenses within this calendar year. “Overall, our revenue trend was influenced by one-time non-recurring revenue recognized in Q1 2026. We saw many bright spots including all-time high NRR in and growing bookings in our enterprise segment, consistently high gross margin, and meaningful decreases in operating expenses as a result of the management actions announced in May. Additionally, we are seeing improvements in leading indicators within the sales pipeline and strong customer retention statistics,” said Joe Davy, Founder and CEO of Parabolic. “During the quarter, we strengthened our balance sheet by retiring debt totaling $4.5 million through cash payments and share conversions and improving Stockholder’s Equity by $4.1 million. “Looking ahead, we have announced a rebranding and have aligned our business units to align leadership and go-to-market execution with our evolved vision. The Company’s operations are now organized into three business units: ConnectAndSell, the Company’s AI sales acceleration platform, Banzai, our enterprise video business, and CreateStudio, our AI-powered video content creation platform. These business units are supported by a cost-efficient shared service function. “We also maintain an active pipeline of potential acquisition opportunities across key industries where we have strong sector experience and can leverage our AI platform and experience to add value and strategic operational acceleration. The recent acquisition of ConnectAndSell is a demonstration of a successful execution of our strategic growth goal,” concluded Davy. Second Quarter 2026 Financial Results Total revenue for the three months ended June 30, 2026 decreased $0.9 million to $2.3 million compared to the prior year quarter, with declines split evenly between our consumer direct products and enterprise products. On a sequential basis, total revenue for the three months ended June 30, 2026 decreased 15.7% compared to the three months ended March 31, 2026. Total cost of revenue for the three months ended June 30, 2026 was $0.5 million, compared to $0.6 million in the prior year quarter, a decrease of 18.8%. On a sequential basis, total cost of revenue decreased by $0.1 million, or 13.6% compared to the three months ended March 31, 2026. Gross profit for the three months ended June 30, 2026 was $1.8 million, compared to $2.6 million in the prior year quarter. Gross margin was 80.2% in second quarter 2026 compared to 82.3% in second quarter 2025. On a sequential basis, gross profit decreased by $0.4 million from $2.2 million for the three months ended March 31, 2026. Gross margin was 80.7% in first quarter 2026. Total operating expenses for the three months ended June 30, 2026 were $6.2 million, compared to $7.4 million in the prior year quarter. Operating expenses decreased primarily driven by professional fees, partially offset by higher people expenses and stock-based compensation. On a sequential basis, total operating expenses decreased $1.7 million from $8.0 million in the three months ended March 31, 2026. Operating expenses decreased primarily driven by professional fees, sales and marketing, and people expenses. Net Loss for three months ended June 30, 2026 was $5.0 million. Q2 2025 Net Loss of $7.9 million included a one-time expense of $1.4 million related to the termination fee from the Act-On acquisition. Adjusting for this one-time expense, Q2 2025 Net Loss would have been $6.5 million, compared to $5.0 million for Q2 2026. On a sequential basis, Net Loss for Q1 2026 was $8.4 million. The decrease in Net Loss was driven by general and administrative expense reduction and Other (Income) Expense items, primarily loss on private placement issuance. Adjusted EBITDA Loss for the three months ended June 30, 2026 increased to $1.7 million, compared to an Adjusted EBITDA Loss of $0.9 million in the prior year quarter. On a sequential basis, Adjusted EBITDA Loss for the three months ended June 30, 2026 improved by $0.2 from $1.9 million in first quarter 2026. First Half Financial Results Total revenue for the six months ended June 30, 2026 decreased 23.6% to $5.0 million compared to the prior year period. Our consumer direct products showed the largest declines compared to our enterprise products. Total cost of revenue for the six months ended June 30, 2026 was $1.0 million, compared to $1.2 million in the prior year period, an decrease of 16.3%. Gross profit for the six months ended June 30, 2026, was $4.0 million, compared to $5.3 million in the prior year period. Gross margin was 80.5% for the six months ended June 30, 2026, compared to 82.2% in the prior year period. Total operating expenses for the six months ended June 30, 2026 were $14.2 million, compared to $15.1 million in the prior year period. The decrease in operating expenses were primarily driven by professional fees and technology expenses, partially offset by higher people expenses and stock-based compensation expense. Net loss for the six months ended June 30, 2026 was $13.4 million, compared to $11.6 million in the prior year period. Both periods included non-cash gains related to a negotiated reduction of liabilities. Adjusting for these gains, year to date Q2 2026 Net Loss would have been $14.1 million compared to $16.1 million for year to date Q2 2025. Adjusted EBITDA Loss for the six months ended June 30, 2026, was $3.5 million, compared to Adjusted EBITDA Loss of $1.7 million for the prior year period. Net cash used in operating activities for the six months ended June 30, 2026, was $9.4 million, compared to $9.0 million for the six months ended June 30, 2025. Cash totaled $0.6 million as of June 30, 2026, compared to $0.3 million as of December 31, 2025. During the six months ended June 30, 2026, we continued to fund our operations through a combination of equity and debt financings, and most notably, closed an additional tranche of convertible debt, totaling approximately $2.3 million, and raised an additional $8.1 million of equity. Management has continued to strengthen the balance sheet and reduced net debt by $3.8 million in line with our strategic priorities. Stockholder’s Equity increased to $12.2 million as of June 30, 2026. 2026 and 2027 Outlook The addition of the ConnectAndSell business will more than double the company’s revenue, on an annualized basis. Full year effect of this acquisition will be realized in 2027. Combined with cost reduction actions, Management expects operations to generate operating income, excluding non-cash expenses, on a monthly run rate basis starting during Q2 2027. Second Quarter 2026 Results Conference Call Parabolic Founder & CEO Joe Davy and CFO Dean Ditto will host the conference call, followed by a question-and-answer session. The conference call will be accompanied by a presentation, which can be viewed during the webcast or accessed via the investor relations section of the Company’s website here. To access the call, please use the following information: A replay of the webcast and the presentation utilized during the call will be available in the Company’s investor relations website here. Note About Non-GAAP Financial Measure Adjusted EBITDA In addition to our results determined in accordance with U.S. GAAP, we believe that Adjusted EBITDA, a non-GAAP measure as defined below, is useful in evaluating our operational performance distinct and apart from certain irregular, non-cash, and non-operational expenses. We use this information for ongoing evaluation of operations and for internal planning purposes. We believe that non-GAAP financial information, when taken collectively with results under GAAP, may be helpful to investors in assessing our operating performance and comparing our performance with competitors and other comparable companies. Non-GAAP measures should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. We endeavor to compensate for the limitation of Adjusted EBITDA, by also providing the most directly comparable GAAP measure, which is net loss, and a description of the reconciling items and adjustments to derive the non-GAAP measure. Adjusted EBITDA should only be considered alongside results prepared in accordance with GAAP, including various cash-flow metrics, net income (loss) and our other GAAP results and financial performance measures. About Parabolic Parabolic builds agentic applications that power the future of business. We believe that the future of enterprise software will be agentic applications that are net-beneficiaries of AI transformation, and we focus on building, acquiring, and investing in those and related businesses. We have over 150,000 customers including Amazon, Dell, Salesforce, Aflac, Thermo Fisher Scientific, RBC Wealth Management, and Fitch Group. Learn more at www.parabolic.io. For investors, please visit ir.banzai.io. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements often use words such as “believe,” “may,” “will,” “estimate,” “target,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “propose,” “plan,” “project,” “forecast,” “predict,” “potential,” “seek,” “future,” “outlook,” and similar variations and expressions. Forward-looking statements are those that do not relate strictly to historical or current facts. Examples of forward-looking statements may include, among others, statements regarding Banzai International, Inc.’s (d/b/a Parabolic, the “Company’s”): future financial, business and operating performance and goals; annualized recurring revenue and customer retention; ongoing, future or ability to maintain or improve its financial position, cash flows, and liquidity and its expected financial needs; potential financing and ability to obtain financing; acquisition strategy and proposed acquisitions and, if completed, their potential success and financial contributions; strategy and strategic goals, including being able to capitalize on opportunities; expectations relating to the Company’s industry, outlook and market trends; total addressable market and serviceable addressable market and related projections; plans, strategies and expectations for retaining existing or acquiring new customers, increasing revenue and executing growth initiatives; and product areas of focus and additional products that may be sold in the future. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Forward-looking statements are not guarantees of future performance, and our actual results of operations, financial condition and liquidity and development of the industry in which the Company operates may differ materially from those made in or suggested by the forward-looking statements. Therefore, investors should not rely on any of these forward-looking statements. Factors that may cause actual results to differ materially include changes in the markets in which the Company operates, customer demand, the financial markets, economic, business and regulatory and other factors, such as the Company’s ability to execute on its strategy. More detailed information about risk factors can be found in the Company’s Annual Report on Form 10-K and the Company’s Quarterly Reports on Form 10-Q under the heading “Risk Factors,” and in other reports filed by the Company, including reports on Form 8-K. The Company does not undertake any duty to update forward-looking statements after the date of this press release. Investor RelationsDean DittoChief Financial Officer206 414-1777ir.banzai.io MediaPaul WitkowskiSenior Director Financial [email protected]

As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the broadcasting industry, including Paramount (NASDAQ:PARA) and its peers. Broadcasting companies have been facing secular headwinds in the form of consumers abandoning traditional television and radio in favor of streaming services. As a result, many broadcasting companies have evolved by forming distribution agreements with major streaming platforms so they can get in on part of the action, but will these subscription revenues be as high quality and high margin as their legacy revenues? Only time will tell which of these broadcasters will survive the sea changes of technological advancement and fragmenting consumer attention. The 7 broadcasting stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was in line. Luckily, broadcasting stocks have performed well with share prices up 19.7% on average since the latest earnings results. Owner of Spongebob Squarepants and formerly known as ViacomCBS, Paramount Global (NASDAQ:PARA) is a major media conglomerate offering television, film production, and digital content across various global platforms. Paramount reported revenues of $6.85 billion, flat year on year. This print was in line with analysts’ expectations, and overall, it was a very strong quarter for the company with a beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates. Unsurprisingly, the stock is down 12.1% since reporting and currently trades at $11.04. Is now the time to buy Paramount? Access our full analysis of the earnings results here, it’s free. Founded in 1915, Fox (NASDAQ:FOXA) is a diversified media company, operating prominent cable news, television broadcasting, and digital media platforms. FOX reported revenues of $3.29 billion, up 6.3% year on year, outperforming analysts’ expectations by 5.5%. The business had a stunning quarter with a solid beat of analysts’ adjusted operating income estimates and a beat of analysts’ EPS estimates. FOX pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems content with the results as the stock is up 2.8% since reporting. It currently trades at $58.68. Is now the time to buy FOX? Access our full analysis of the earnings results here, it’s free. Occasionally featuring celebrity hosts like Ryan Seacrest on its shows, iHeartMedia (NASDAQ:IHRT) is a leading multimedia company renowned for its extensive network of radio stations, digital platforms, and live events across the globe. iHeartMedia reported revenues of $933.7 million, flat year on year, exceeding analysts’ expectations by 2.4%. Still, it was a slower quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EPS estimates. Interestingly, the stock is up 45.6% since the results and currently trades at $2.33. Read our full analysis of iHeartMedia’s results here. Specializing in local media coverage, Gray Television (NYSE:GTN) is a broadcast company supplying digital media to various markets in the United States. Gray Television reported revenues of $772 million, down 6.5% year on year. This result was in line with analysts’ expectations. More broadly, it was a slower quarter as it recorded a significant miss of analysts’ EPS estimates and a miss of analysts’ adjusted operating income estimates. Gray Television had the slowest revenue growth among its peers. The stock is up 41.5% since reporting and currently trades at $5.90. Read our full, actionable report on Gray Television here, it’s free. Spun out of Gannett in 2015, TEGNA (NYSE:TGNA) is a media company operating a network of television stations and digital platforms, focusing on local news and community content. TEGNA reported revenues of $675 million, down 5% year on year. This number beat analysts’ expectations by 0.6%. It was a strong quarter as it also produced a beat of analysts’ EPS estimates and a decent beat of analysts’ adjusted operating income estimates. The stock is up 28.4% since reporting and currently trades at $21.05. Read our full, actionable report on TEGNA here, it’s free. The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

Multinational media and entertainment corporation Paramount (NASDAQ:PARA) met Wall Street’s revenue expectations in Q2 CY2025, but sales were flat year on year at $6.85 billion. Its non-GAAP profit of $0.46 per share was 24.6% above analysts’ consensus estimates. Is now the time to buy PARA? Find out in our full research report (it’s free). Revenue: $6.85 billion vs analyst estimates of $6.86 billion (flat year on year, in line) Adjusted EPS: $0.46 vs analyst estimates of $0.37 (24.6% beat) Adjusted EBITDA: $824 million vs analyst estimates of $749.8 million (12% margin, 9.9% beat) Operating Margin: 5.8%, up from -78.1% in the same quarter last year Market Capitalization: $12.02 billion Paramount’s second quarter was marked by stability in overall sales and a notable positive market reaction, driven largely by outperformance on non-GAAP profitability metrics. Management attributed the improvement to the company’s streaming-first strategy, highlighting Paramount+ as a primary engine of growth. Co-CEO Chris McCarthy pointed to the success of original content and disciplined cost control, noting, “D2C revenue growth outpaced linear declines,” and emphasizing that subscriber engagement and churn improved alongside new franchise releases. The company’s ability to drive direct-to-consumer profitability helped offset continued challenges in its traditional TV business. Looking ahead, Paramount’s outlook is shaped by both its pending Skydance transaction and the continued expansion of its streaming business. Management underscored a strategic focus on quality over quantity in original content, with upcoming franchise releases and exclusive streaming rights expected to support engagement and revenue. Chris McCarthy said, “We have our biggest hits to come,” referencing anticipated launches like Dexter Resurrection and new NCIS franchise extensions. However, executives also noted the absence of detailed forward guidance due to the impending change in ownership structure. Paramount’s management credited the quarter’s performance to streaming growth, franchise strength, and cost reductions, while also preparing for a major corporate transition. Streaming business momentum: Management highlighted Paramount+ as the core growth driver, with subscriber gains and increased watch time from new original series such as Landman and MobLand, leading to a 19% year-over-year revenue increase. Content strategy focus: The company emphasized a shift from producing a high volume of originals to prioritizing a smaller number of impactful hits, which improved subscriber engagement and reduced churn. This approach was credited with solidifying Paramount+ as a top four global streaming service. Franchise monetization: Paramount leveraged major film releases like Mission Impossible: The Final Reckoning, which not only drove box office results but also boosted streaming engagement with legacy content, exemplified by a 60% lift in franchise library viewing after the new film’s release. Cost structure improvements: The company delivered over $800 million in annual run rate non-content expense savings over the past year, with interim CFO Andrew Warren citing these efforts as key to margin recovery and improved free cash flow. Corporate restructuring and ownership: With the Skydance transaction set to close, executives framed this as a pivotal transition, suggesting that new leadership and resources would help sustain the company’s transformation toward a streaming-first model. Paramount’s future performance will hinge on streaming expansion, franchise execution, and the operational impact of the Skydance acquisition. Upcoming franchise releases: Management expects new content such as Dexter Resurrection and NCIS: Tony & Ziva to drive engagement and subscriber growth on Paramount+, aiming to replicate the success seen with recent hits. Integration with Skydance: The pending acquisition is expected to bring fresh capital and strategic direction, with management believing this will help accelerate technology upgrades and global expansion of the streaming platform. Ongoing linear TV headwinds: Paramount acknowledged continued declines in traditional TV advertising and affiliate revenue, with leadership emphasizing the importance of offsetting these pressures through digital growth and operational efficiencies. As we move into the next several quarters, our team will be monitoring (1) the rollout and audience response to major new streaming releases, (2) the pace and execution of integration initiatives following the Skydance transaction, and (3) efforts to maintain cost discipline as legacy television revenue continues to contract. The strategic direction set by new ownership will also be a key area of focus. Paramount currently trades at $11.04, down from $12.56 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free). Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines. Take advantage of the rebound by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). 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Paramount’s second quarter was marked by stability in overall sales and a notable positive market reaction, driven largely by outperformance on non-GAAP profitability metrics. Management attributed the improvement to the company’s streaming-first strategy, highlighting Paramount+ as a primary engine of growth. Co-CEO Chris McCarthy pointed to the success of original content and disciplined cost control, noting, “D2C revenue growth outpaced linear declines,” and emphasizing that subscriber engagement and churn improved alongside new franchise releases. The company’s ability to drive direct-to-consumer profitability helped offset continued challenges in its traditional TV business. Is now the time to buy PARA? Find out in our full research report (it’s free). Revenue: $6.85 billion vs analyst estimates of $6.86 billion (flat year on year, in line) Adjusted EPS: $0.46 vs analyst estimates of $0.37 (24.6% beat) Adjusted EBITDA: $824 million vs analyst estimates of $749.8 million (12% margin, 9.9% beat) Operating Margin: 5.8%, up from -78.1% in the same quarter last year Market Capitalization: $12.02 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. There were no analyst questions taken on this quarter’s call, as management stated they would not be conducting a Q&A session due to the pending Skydance transaction. Typically, analyst questions would focus on direct-to-consumer profitability trends and the sustainability of cost reductions in the context of the streaming transition. Another common area of inquiry is the outlook for CBS and linear TV, especially in relation to ongoing advertising headwinds and affiliate fee trends. Analysts often probe management about the performance and pipeline of high-profile franchise releases and their impact on subscriber and revenue growth. With the Skydance acquisition pending, questions would likely have centered on integration plans, expected leadership changes, and strategic priorities under new ownership. As we move into the next several quarters, our team will be monitoring (1) the rollout and audience response to major new streaming releases, (2) the pace and execution of integration initiatives following the Skydance transaction, and (3) efforts to maintain cost discipline as legacy television revenue continues to contract. The strategic direction set by new ownership will also be a key area of focus. Paramount currently trades at $11.04, down from $12.56 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free). Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities. The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

Paramount Global PARA reported adjusted earnings of 46 cents per share for the second quarter of 2025, which beat the Zacks Consensus Estimate by 12.2%. The bottom line declined 15% from the year-ago quarter’s reported figure. Revenues of $6.85 billion missed the Zacks Consensus Estimate by 0.22%. The figure increased 1% year over year. The modest growth in revenues was due to softness in TV Media revenues. Consolidated adjusted OIBDA fell 5% from the year-ago quarter’s level to $824 million, which reflected year-over-year improvements in D2C. Selling, general and administrative expenses decreased 11.3% year over year to $1.4 billion. The Skydance transaction is expected to close on Aug. 7, 2025. Paramount Global price-consensus-eps-surprise-chart | Paramount Global Quote Advertising revenues (31.44% of total revenues) of $2.153 billion fell 4.4% year over year. Affiliate revenues (50.3% of total revenues) of $3.445 billion increased 42.3% year over year. Theatrical revenues (3.7% of total revenues) totaled $254 million in the reported quarter, which increased 84.05% year over year. Licensing and other revenues (14.73% of total revenues) of $1.009 billion decreased 13.32% year over year. DTC revenues increased 14.9% year over year to $2.16 billion. Its subscription revenues rose 21.8%, driven by subscriber growth and pricing increases for Paramount+. DTC continued to show strength in the second quarter, with strong revenue growth and improved profitability. Paramount+ ranked second in the United States for Top 10 SVOD Originals year to date, led by hits like Landman and 1923. MobLand became the #2 Original Series ever on the platform, drawing more than 26 million global viewers for its premiere. The Chi returned for its seventh season with its most-streamed premiere to date. Pluto TV reached record global and domestic viewing hours and continues to lead in FAST service distribution. DTC advertising revenues declined 3.7%, principally reflecting the impact of lower CPMs and the growing supply of Connected TV. Global viewing hours across Paramount+ and Pluto TV grew 29% year over year. Paramount+ subscribers reached 77.7 million, with a decrease of 1.3 million in the quarter. Paramount+ global ARPU increased 9%, while its domestic watch time per user increased 11% year over year. DTC adjusted OIBDA improved $131 million year over year, indicating revenue growth. TV Media revenues decreased 6.08% year over year to $4.01 billion due to ongoing declines in affiliate and advertising revenues. The segment’s advertising revenues decreased 4%. Affiliate and subscription revenues decreased 7%, driven principally by linear subscriber declines. The segment’s licensing and other revenues decreased 9% in the quarter. TV Media adjusted OIBDA decreased 15% to $863 million, primarily reflecting the lower revenues. CBS extended its record as the most-watched broadcast network in primetime for the 17th consecutive season. The network aired 14 of the top 20 series, including Tracker, the #1 overall show, and Matlock, the top new series. CBS Sports saw strong gains, with the NCAA Men’s Basketball Championship delivering the most-watched Final Four in eight years and golf coverage up 13% year over year, which was its best in seven years. The Daily Show ranked as the #1 late-night show on Mondays across all TV. Filmed Entertainment revenues increased 11% year over year to $690 million. Theatrical revenues increased 84% to $254 million, reflecting the release of Mission: Impossible – The Final Reckoning. It earned more than $590 million at the global box office to date. Licensing and other revenues decreased 19%, driven by lower licensing of animated content. The company reported a negative adjusted OIBDA of $84 million, down from a negative OIBDA of $54 million year over year, reflecting lower profits from licensing. As of June 30, 2025, Paramount Global had cash and cash equivalents of $2.74 billion compared with $2.67 billion as of March 31, 2025. Total debt, as of June 30, 2025, was $14.16 billion, the same as that of March 31, 2024. The non-GAAP free cash flow was $114 million compared with $123 million reported in the previous quarter. Currently, PARA carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Zacks Consumer Discretionary sector are American Public Education APEI, Central Garden & Pet CENT and Amer Sports AS, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Shares of American Public Education have gained 36.8% year to date. American Public Education is set to report second-quarter 2025 results on Aug. 6. Shares of Central Garden & Pet have lost 0.2% year to date. Central Garden & Pet is slated to report third-quarter fiscal 2025 results on Aug. 6. Shares of Amer Sports have jumped 31.6% year to date. Amer Sports is set to report second-quarter 2025 results on Aug. 19. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American Public Education, Inc. (APEI) : Free Stock Analysis Report Central Garden & Pet Company (CENT) : Free Stock Analysis Report Paramount Global (PARA) : Free Stock Analysis Report Amer Sports, Inc. (AS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Paramount Global (PARAA) came out with quarterly earnings of $0.46 per share, beating the Zacks Consensus Estimate of $0.44 per share. This compares to earnings of $0.54 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +4.55%. A quarter ago, it was expected that this company would post earnings of $0.39 per share when it actually produced earnings of $0.29, delivering a surprise of -25.64%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Paramount Global, which belongs to the Zacks Media Conglomerates industry, posted revenues of $6.85 billion for the quarter ended June 2025, missing the Zacks Consensus Estimate by 3.47%. This compares to year-ago revenues of $6.81 billion. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Paramount Global shares have added about 4.4% since the beginning of the year versus the S&P 500's gain of 8.2%. While Paramount Global has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Paramount Global was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.41 on $6.85 billion in revenues for the coming quarter and $1.25 on $28.64 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Media Conglomerates is currently in the bottom 26% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Madison Square Garden Entertainment (MSGE), is yet to report results for the quarter ended June 2025. This live entertainment company is expected to post quarterly loss of $0.63 per share in its upcoming report, which represents a year-over-year change of -144.7%. The consensus EPS estimate for the quarter has been revised 2.7% lower over the last 30 days to the current level. Madison Square Garden Entertainment's revenues are expected to be $162.34 million, down 12.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Paramount Global (PARAA) : Free Stock Analysis Report Madison Square Garden Entertainment Corp. (MSGE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

(Bloomberg) -- After months of underperforming their tech peers, Alphabet Inc. shares are finally showing signs of life as investors bet that a strong earnings performance will outweigh concerns about a looming antitrust ruling. Most Read from Bloomberg Trump Awards $1.26 Billion Contract to Build Biggest Immigrant Detention Center in US Why the Federal Reserve’s Building Renovation Costs $2.5 Billion Salt Lake City Turns Winter Olympic Bid Into Statewide Bond Boom Milan Corruption Probe Casts Shadow Over Property Boom How San Jose’s Mayor Is Working to Build an AI Capital The stock just rose for a tenth straight session, its longest streak of gains since 2010, and turned positive for the year ahead of results that are expected to bolster sentiment about the company’s position in artificial intelligence. The rebound comes even as a ruling in the Justice Department’s case over Google’s internet search monopoly is expected by August, with a breakup among the potential outcomes. “If Alphabet can deliver the growth that’s expected of it, then the stock looks incredibly attractive,” said Luke O’Neill, chief investment officer at CooksonPeirce Wealth Management. “There are a lot of questions about what’s on the table in terms of antitrust remedies, and certainly scenarios that are negative, and obviously there are questions about the long-term impact of AI, but it is hard to be too negative.” For the second quarter, Alphabet is expected to report net earnings of $2.18 a share on revenue of nearly $80 billion, according to data compiled by Bloomberg. That would represent an expansion of 15% and 12%, respectively, over the same period a year ago. That growth is expected to persist, with annual sales projected to expand at a similar clip through 2028. Shares rose 0.7% on Tuesday. They rose 9.7% over the 10-day rally, and are up 1.1% this year. While investors have grown more confident about Alphabet’s ability to compete in AI, the stock is still underperforming the Nasdaq 100 Index and peers like Meta Platforms Inc. in 2025 as antitrust concerns add to fears that Google is at risk of losing share in the web search market from AI chatbots. Even with Alphabet’s recent gains, it’s still lagging Nasdaq 100’s nearly 10% advance for the year and Meta’s 20% gain over the same period. In Alphabet’s antitrust suit, the Justice Department has proposed that Google be forced to sell its Chrome web browser and banned from paying to make its search engine a default, among other remedies. Google has argued that the government’s requests are too extreme and would harm consumers and weaken US technological leadership. Outside of antitrust problems, investors see Alphabet as well-suited to both monetize new services and defend its market share. Worries about losing ground to rivals like OpenAI have been a persistent fear for investors, especially the idea that Google’s dominance in internet search — from which Alphabet gets more than half its overall revenue — could be at risk. In May, Alphabet unveiled new AI features that were greeted with enthusiasm, while rising adoption and usage of AI is expected to be a tailwind for the company’s cloud business. Last month, Reuters reported that OpenAI, whose ChatGPT is a key rival, plans to use the company’s Google cloud service for additional computing capacity. Wall Street remains largely bullish on Alphabet’s potential for long-term revenue growth. More than 80% of analysts tracked by Bloomberg that cover the company have a buy rating and there are no sells. Alphabet is 7.2% below the average analyst price target, suggesting Wall Street sees the stock returning to near-record levels over the coming months. Alphabet is priced at about 18 times estimated earnings, a discount to its 10-year average. It’s by far the cheapest among the seven most valuable technology companies, with a price-to-projected profit ratio that’s nearly half of Microsoft Corp.’s at 33 times. “The stock looks like a steal, especially as its tech has advanced, but antitrust risk coming after people were worried about AI disruption is creating a drag,” said Daniel Newman, chief executive officer of The Futurum Group. “The ruling could be deeply punitive, and so long as we don’t know how this will play out, there’s an overhang of uncertainty that can linger on for an extended period.” Top Tech Stories Hackers exploited a security flaw in common Microsoft Corp. software to breach governments, businesses and other organizations across the globe and steal sensitive information, according to officials and cybersecurity researchers. Oracle Corp. is in discussions with Skydance Media LLC for a major software deal once the media company’s acquisition of Paramount Global is complete. Opendoor Technologies Inc. jumped as much as 121% on Monday, extending its gravity-defying rally from last week, as investors continued to pile into the stock that has found a sudden fandom among retail traders and social-media platforms. FuriosaAI Inc., the Seoul-based startup seeking to design chips to compete with Nvidia Corp., has sealed its first major contract months after rejecting an $800 million acquisition offer from Meta Platforms Inc. NXP Semiconductors NV shares slid in late trading after the chipmaker’s third-quarter forecast was less bullish than some investors had anticipated. Earnings Due Tuesday Earnings Premarket: Interpublic Group of Cos. Inc/T (IPG US) Earnings Postmarket: Manhattan Associates Inc. (MANH US) Pegasystems Inc. (PEGA US) Texas Instruments Inc. (TXN US) --With assistance from Subrat Patnaik and Margaryta Kirakosian. (Updates to market close.) Most Read from Bloomberg Businessweek Elon Musk’s Empire Is Creaking Under the Strain of Elon Musk Burning Man Is Burning Through Cash A Rebel Army Is Building a Rare-Earth Empire on China’s Border Thailand’s Changing Cannabis Rules Leave Farmers in a Tough Spot How Starbucks’ CEO Plans to Tame the Rush-Hour Free-for-All ©2025 Bloomberg L.P.