Skydance reported revenue growth before its Warner acquisition, while the combined company now carries $87 billion in gross debt and expects net cash outflows in 2026.
Revenue rose 5% year over year to $7.03 billion in the quarter ended Sept. 30, slightly below the $7.04 billion estimate. Adjusted EPS came to 45 cents per share. The results cover the quarter ending Sept. 30. Warner Bros. Discovery was outside that reporting period because the acquisition closed Oct. 6.
Shares fell 8.7% to $7.94 Tuesday, Nov. 10. Following the acquisition, gross debt stood at $87 billion, with about $10 billion in cash. Skydance said Warner Bros.' fourth-quarter film releases may put profit as much as $200 million below its previous expectations.
Management expects net cash outflows during 2026. It set a goal of more than $6 billion in annual savings within three years and a separate $10 billion positive cash flow target for 2030.
The acquisition's timing is covered in EconoTimes' earlier report on the third-quarter results, which noted the deal closed after the reporting period. Skydance did not provide full fourth-quarter guidance and plans to issue its full-year 2027 outlook with its fourth-quarter 2026 results.