Skydance Q3 revenue rises 5% to $7B, excluding WBD

Q4 will be the first consolidated reporting period for Warner Bros. Discovery, following its October 6, 2026 acquisition.

Available on EDGAR 11/09/2026 - 04:04 PM EST Accepted by SEC EDGAR 11/09/2026 - 04:04 PM EST Learn about SEC filing dates

Rhea-AI Filing Summary

Skydance Corp reported third-quarter results for the Paramount Skydance business, excluding Warner Bros. Discovery (WBD), which it acquired on October 6, 2026. Revenue was $7.0 billion, up 5% year over year; net earnings attributable to Parent were $73 million, and adjusted EBITDA was $1.0 billion at a 14% margin. Paramount+ revenue grew 21% and Studios revenue 23%; TV Media revenue declined 7% on a pro forma year-over-year basis. Free cash flow was $31 million.

WBD enters reported results beginning October 6, 2026, making Q4 the first consolidated quarter. Skydance targets at least $6 billion in annualized run-rate synergies within three years, with 30% to be realized in year one and 70% through year two, and targets a 3.0x net leverage ratio by the end of 2029. Its medium-term outlook calls for mid-single-digit annualized revenue growth, mid-20% adjusted EBITDA margins, and more than $10 billion in free cash flow by 2030. For Q4, it expects continued strong DTC revenue growth, TV trends consistent with recent quarters, and Warner Bros. film underperformance to more than offset improved Paramount film slate results.

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Positive

• Moderate pointRevenue grew 5% year over year to $7.0 billion.
• Moderate pointParamount+ revenue grew 21% year over year.

Negative

• Moderate pointTV Media revenue declined 7% on a pro forma year-over-year basis.

Filing Explained

Beginning with its Q4 2026 results, Skydance says it will stop providing quarterly subscriber counts and instead report selected milestones and key performance indicators, including engagement.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

Key Figures

Revenue: $7.0 billion Net earnings attributable to Parent: $73 million Adjusted EBITDA: $1.0 billion +5 more

8 metrics

Revenue $7.0 billion Third quarter 2026; up 5% year over year.

Net earnings attributable to Parent $73 million Third quarter 2026.

Adjusted EBITDA $1.0 billion Third quarter 2026; 14% margin.

Free cash flow $31 million Third quarter 2026.

Paramount+ revenue growth 21% Third quarter, year over year.

TV Media revenue change 7% decrease Third quarter, pro forma year-over-year comparison.

Annualized run-rate synergies At least $6 billion Targeted within three years.

Free cash flow outlook More than $10 billion Medium-term outlook by 2030.

Key Terms

Adjusted EBITDA, run-rate synergies, pro forma basis, net leverage ratio, +1 more

5 terms

Adjusted EBITDA financial

"We define Adjusted EBITDA as net earnings (loss) attributable to Parent"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

run-rate synergies financial

"at least $6 billion in run-rate synergies within three years"

Run-rate synergies are the estimated steady annual savings or additional revenue a company expects once cost cuts and revenue enhancements from a merger or restructuring are fully in place; think of it as the new normal speed after a car finishes accelerating. Investors care because these numbers quantify the deal’s payoff, influence future profit forecasts and valuation, and reveal how quickly and realistically the company can turn the combination into lasting financial benefit.

pro forma basis financial

"calculated on a pro forma basis assuming the WBD Merger occurred on January 1, 2025"

An accounting presentation that shows financial results after removing, adding, or adjusting items to reflect certain assumptions or hypothetical situations, such as excluding one-time charges or showing combined results after a merger. It matters to investors because it offers a clearer view of recurring performance or how results would look under specific scenarios, like comparing scores after neutralizing one-off events—similar to looking at a cleaned-up version of a household budget to see regular living costs.

net leverage ratio financial

"reduce net leverage ratio to 3.0x by the end of 2029"

The net leverage ratio measures how much debt a company has compared to its available assets or earnings, after accounting for its cash and liquid assets. It helps investors understand how heavily a company relies on borrowed money to finance its operations and growth. A higher ratio indicates greater financial risk, while a lower ratio suggests a more cautious approach to borrowing.

free cash flow financial

"Free cash flow reflects our net cash flow provided by operating activities less capital expenditures"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

Earnings Snapshot

Revenue: $7.0 billion · Guidance included

Third quarter ended September 30, 2026

Revenue $7.0 billion Up 5% year over year

Net earnings attributable to Parent $73 million

Adjusted EBITDA $1.0 billion 0.3% year over year

Free cash flow $31 million

Guidance

Targets at least $6 billion in annualized run-rate synergies within three years, a 3.0x net leverage ratio by the end of 2029, and more than $10 billion in free cash flow by 2030.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did SKYD report in Q3 2026?

Skydance reported $7.0 billion in revenue, up 5% year over year, net earnings attributable to Parent of $73 million, and adjusted EBITDA of $1.0 billion. These results cover Paramount Skydance and exclude WBD, which Skydance acquired on October 6, 2026.

How much in synergies does SKYD expect from the WBD combination?

Skydance targets at least $6 billion in annualized run-rate synergies within three years. It expects 30% to be realized in year one and 70% through year two.

Will SKYD continue reporting quarterly streaming subscriber totals?

Beginning with Q4 2026 results, Skydance will no longer provide quarterly subscriber disclosures. It plans to highlight milestones and key performance indicators, such as engagement.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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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

Skydance Corporation

(Exact name of registrant as specified in its charter)

Delaware	001-42791	99-3917985
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification Number)

1515 Broadway
New York,	New York		10036
(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
Class B Common Stock, $0.001 par value		SKYD		New York Stock Exchange
Warrants to Purchase Class B Common Stock, par value $0.001 per share		SKYD WS		New York Stock Exchange

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	Shareholder Letter, dated November 9, 2026.
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

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