Net earnings fell to $41 million, but the company saw its best quarter for retention ever on Paramount+.

With free cash flow at just $96 million, the $110 billion Warner Bros. bid faces a ticking fee Paramount can barely afford as states want a 2027 trial.

Paramount Skydance reported second-quarter earnings after the bell and said it continues to prepare for its proposed merger with Warner Bros. Discovery.

Net earnings fell to $41 million, but the company saw its best quarter for retention ever on Paramount+.