Starz Entertainment Reports Q2 GAAP EPS of -$2.54, Revenue of $319.7M, Misses Expectations

Starz Entertainment reported a GAAP EPS of -$2.54, missing estimates by $2.50. Revenue of $319.7M also missed expectations by $6.3M, with an 8.0% YoY decline. However, adjusted OIBDA was $33.4M. Management reiterated its outlook for sequential revenue and OTT subscriber growth in Q3 and Q4 of 2025.

Starz Entertainment Corp. (NASDAQ: STRZ) reported its financial results for the quarter ended June 30, 2025, with a net loss of $42.5 million, missing analysts' estimates by $2.50. The company's revenue of $319.7 million also fell short of expectations by $6.3 million, marking an 8.0% year-over-year (YoY) decline. However, adjusted operating income before depreciation and amortization (OIBDA) came in at $33.4 million, indicating some operational strength.

The company ended the quarter with 12.2 million U.S. Over-The-Top (OTT) subscribers, a decline of 120,000 from the prior quarter, and total North American subscribers stood at 19.1 million, down by 520,000. These declines were primarily driven by continued pressure on linear subscribers and lower OTT subscriber additions.

Starz Entertainment's management reiterated its outlook for sequential revenue and OTT subscriber growth in Q3 and Q4 of 2025. The company's President and CEO, Jeffrey Hirsch, stated, "Our content strategy continues to resonate with our audience, and our highly compelling slate, coupled with an improved cost structure, puts us on a clear path to achieving our key objectives: returning to revenue growth, improving our margins, and increasing our conversion of Adjusted OIBDA to free cash flow."

The company's total net debt stood at $573.5 million, with a trailing twelve-month Adjusted OIBDA Leverage Ratio of 3.2x. STARZ ended the quarter with $300 million outstanding on its Term Loan A credit facility, $325.1 million in senior unsecured notes, and $51.6 million in cash.

For the full year 2025, Starz Entertainment expects to return to revenue growth, improve its margins, and increase its conversion of Adjusted OIBDA to free cash flow. The company's outlook remains positive, despite the recent quarterly results.

References:
[1] https://www.prnewswire.com/news-releases/starz-entertainment-corp-reports-results-for-the-quarter-ended-june-30-2025-302530529.html