Starz reported its first-quarter 2026 earnings Thursday revealing a widened loss for the media company but indications it’s been slowly improving its financial position one year out from its spinoff from Lionsgate.
OTT revenue for the January-March quarter was $211.1 million (down from $225.5 million in the year-ago quarter). Linear and “other revenue” came to $95.8 million (vs. $105.1 million).
Starz has confirmed it is no longer reporting subscriber numbers, with last quarter’s results being the most recent data: The premium TV media company closed the October-December quarter with 12.7 million U.S. streaming subscribers, an addition of 370,000 customers from the previous period. Total subscribers across Starz platforms reached 17.6 million, up 170,000 subs.
In its Q1 financial results, Starz leadership said its accelerating its 20% adjusted OIBDA margin outlook to the second half of 2027, one year ahead of its prior guidance of the latter half of 2028.
Wall Street forecast a loss of earnings per share (EPS) of 81 cents on $305.7 million in revenue (a decrease from $330.6 million in Q1 2025), according to analyst consensus data provided by LSEG. Starz reported a loss per share of $9.83, or a net loss of $164.9 million, on $306.9 million in revenue. Operating loss was $152.8 million.
Equity free cash flow stood at $68.7 million for the quarter.
Starz’s current debt is totaled at $625.1 million, which includes a Term Loan A credit facility and $325.1 million in senior unsecured notes. Net debt is $523 million.
“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,” Starz president and CEO Jeffrey Hirsch said in a letter to shareholders. “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.”
More to come…
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