OTT Revenue Grew Sequentially to $211.1 Million
Net Cash Provided by Operating Activities was $73.2 Million, a Year-over-Year Improvement of $136.7 Million
Unlevered Free Cash Flow and Equity Free Cash Flow were $80.7 Million and $68.7 Million, Respectively
Operating Loss was $(152.8) Million
Adjusted OIBDA1 Grew Sequentially to $58.0 Million
Management Accelerates 20% Adjusted OIBDA Margin Outlook to the Second Half of 2027, One Year Ahead of Prior Guidance2
Management Reiterates All Previously Provided 2026 Outlook Targets
SANTA MONICA, Calif. and VANCOUVER, B.C., May 7, 2026 /PRNewswire/ -- STARZ (NASDAQ:STRZ) today reported results for the quarter ended March 31, 2026. This press release includes consolidated financial results for STARZ Entertainment Corp.
"As we mark the one-year anniversary of our separation today, I'm proud to report that STARZ is a structurally stronger company than when we separated," said STARZ President and CEO Jeffrey Hirsch. "Over the past year, we have executed with discipline against our strategic and financial priorities to position the company for long-term value creation, and we delivered a strong start to the year, meeting or exceeding all of our key financial targets. Given our progress and one of our strongest content lineups we've had in years, we are increasingly confident in our ability to drive OTT revenue growth, reduce leverage, expand margins, and generate sustainable free cash flow in the years ahead."
Summary of First Quarter 2026 Financial Results
For the quarter ended March 31, 2026, STARZ reported:
Revenue: $306.9 million
Operating loss: $(152.8) million
Adjusted OIBDA1: $58.0 million
Net cash provided by operating activities: $73.2 million
Unlevered free cash flow: $80.7 million
Equity free cash flow: $68.7 million
As of March 31, 2026, key balance sheet metrics included:
Cash and cash equivalents: $102.1 million
Total debt: $625.1 million, including a $300.0 million Term Loan A credit facility and $325.1 million in senior unsecured notes
Net debt: $523.0 million
Adjusted OIBDA leverage3 ratio: 3.1x (trailing twelve months)
The Company's $150.0 million revolving credit facility remained fully undrawn
2026 outlook reiterated:
Positive year-over-year OTT revenue growth
Low-single-digit year-over-year Adjusted OIBDA growth
Unlevered free cash flow of between $80.0 million to $120.0 million
Adjusted OIBDA leverage ratio exiting 2026 at approximately 2.7x
Conference Call
STARZ senior management will hold its analyst and investor conference call to discuss results for the quarter ended March 31, 2026, today, Thursday, May 7, 2026, at 5:00 p.m. ET / 2:00 p.m. PT. Interested parties may listen to the live webcast by visiting the events page on the STARZ Investor Relations website. A full replay will become available this evening at the same link.
1
See "Use of Non-GAAP Financial Measures" for a definition of Adjusted OIBDA.
2
The forecasted Operating Income (Loss) is not reasonably estimable due to the nature of certain individual items: restructuring and other, and adjusted share-based compensation expense. The variability of these items could have a significant impact on our future GAAP financial results.
3
Total Adjusted OIBDA Leverage Ratio of 3.1x is calculated based on total Adjusted OIBDA of $168.7 million for the trailing twelve-month period ended March 31, 2026. Refer to "Reconciliation of Operating Loss to Adjusted OIBDA" section for further detail.
About STARZSTARZ is the leading premium entertainment destination for women and underrepresented audiences, and home to some of the most popular franchises and series on television. STARZ offers a robust programming mix for discerning adult audiences, including boundary-breaking originals and an expansive lineup of blockbuster movies, and is embodied by its brand positioning "We're All Adults Here." Complementary to any platform or service, STARZ is available across a wide range of digital OTT platforms and multichannel video distributors and is a bundling partner of choice. STARZ is powered by an industry-leading advanced technology, data analytics and digital infrastructure and the highly rated and first-of-its-kind STARZ app.
Investor Inquiries - Contact:Nilay Shah[email protected]
Press Inquiries - Contact:Jennifer Minezaki[email protected]
The matters discussed in this press release include forward-looking statements, including those regarding expected future performance. Such statements are subject to a number of risks and uncertainties. Actual results in the future could differ materially and adversely from those described in the forward-looking statements as a result of various important factors, including, but not limited to: the benefits of the separation of Lionsgate's Studios Business and Lionsgate's STARZ Business (the "Separation"); unexpected costs related to the Separation; the substantial investment of capital required to produce and market films and television series; budget overruns; limitations imposed by our credit facilities and notes; unpredictability of the commercial success of our programming; risks related to acquisition and integration of acquired businesses; the effects of dispositions of businesses or assets, including individual films or libraries; the cost of defending our intellectual property; technological changes and other trends affecting the entertainment industry; potential adverse reactions or changes to business or employee relationships; the impact of global pandemics on our business; weakness in the global economy and financial markets, including a recession and past and future bank failures; wars, terrorism and multiple international conflicts that could cause significant economic disruption and political and social instability; labor disruptions and strikes; and the other risk factors set forth in STARZ's Annual Report on Form 10-KT filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances.
STARZ ENTERTAINMENT CORP.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
March 31,2026
December 31,2025
(Amounts in millions)
ASSETS
Cash and cash equivalents
$ 102.1
$ 35.7
Accounts receivable, net, including other receivables of $10.7 million and $9.9 million as of March31, 2026 and December 31, 2025, respectively.
81.7
84.4
Prepaid expenses and other
10.8
12.1
Total current assets
194.6
132.2
Programming content, net
874.0
993.8
Property and equipment, net
48.0
49.1
Intangible assets, net
627.9
690.9
Other assets
44.2
47.2
Total assets
$ 1,788.7
$ 1,913.2
LIABILITIES
Current portion of debt
$ 11.3
$ 7.5
Accounts payable
68.3
60.0
Programming related payables
287.7
255.2
Other accrued liabilities
57.4
49.1
Residuals
22.2
27.1
Programming related obligations
127.3
87.7
Deferred revenue
54.1
52.8
Total current liabilities
628.3
539.4
Debt
603.0
605.8
Production loan
—
41.4
Other liabilities
74.4
72.7
Deferred tax liabilities
4.3
7.9
Total liabilities
1,310.0
1,267.2
Contingencies
EQUITY
Common stock, no par value, unlimited authorized, 16.8 million and 16.7 million shares issued andoutstanding as of March 31, 2026 and December 31, 2025, respectively.
731.6
735.1
Accumulated other comprehensive income
20.5
19.4
Accumulated deficit
(273.4)
(108.5)
Total equity
478.7
646.0
Total liabilities and equity
$ 1,788.7
$ 1,913.2
STARZ ENTERTAINMENT CORP.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
March 31,
2026
2025
(Amounts in millions)
Revenue
OTT revenue
$ 211.1
$ 225.5
Linear and other revenue
95.8
105.1
Total revenue
306.9
330.6
Operating expenses:
Programming amortization
138.3
118.4
Other operating
34.3
38.7
Advertising and marketing
50.4
58.9
General and administrative
29.1
25.4
Depreciation and amortization
68.5
48.1
Restructuring and other
139.1
183.4
Total expenses
459.7
472.9
Operating loss
(152.8)
(142.3)
Interest expense
(13.9)
(10.9)
Interest and other income
0.4
1.7
Other expense
(1.8)
(1.8)
Loss on extinguishment of debt
—
(0.7)
Loss from continuing operations
(168.1)
(154.0)
Income tax benefit
3.2
—
Net loss from continuing operations
(164.9)
(154.0)
Net income from discontinued operations, net of income taxes
—
1.0
Net loss
$ (164.9)
$ (153.0)
Per share information attributable to Starz Entertainment Corp. shareholders:
Basic and diluted net loss per common share - continuing operations
$ (9.83)
$ (9.21)
Basic and diluted net income per common share - discontinued operations
—
0.06
Basic and diluted net loss per common share
$ (9.83)
$ (9.15)
Weighted average number of common shares ...
