Starz 2026 Q1 Earnings Sharp Earnings Deterioration of 1,111.9%

Starz (STRZ) reported its fiscal 2026 Q1 earnings on August 14, 2025. The results reflected a significant downturn in profitability, with the company posting a net loss of $42.50 million, a 1,111.9% deterioration from the $4.20 million net income in the prior-year period. Investors were left with mixed signals as the company reiterated confidence in its long-term strategy despite missing key financial benchmarks.

Starz reported total revenue of $319.70 million in Q1 2026, marking an 8.0% decline from the $347.60 million recorded in Q1 2025. The entirety of this revenue was attributed to the Starz Networks segment, indicating no diversification into new revenue streams during the period. This decline was driven by broader industry trends and content monetization challenges, which continue to pressure linear and streaming operations alike.

The earnings per share (EPS) also swung dramatically from a profit of $0.26 in the prior-year period to a loss of $2.54, representing a 1076.9% negative change. The sharp drop in profitability signals a significant challenge in maintaining margins amid rising content costs and shifting consumer preferences.

Starz’s stock price has shown a mixed performance in recent trading periods, gaining 2.13% on the latest day and 8.55% over the past week, but falling 9.22% month-to-date. The post-earnings trading strategy of buying shares and holding for 30 days has historically yielded an 8.5% annualized return from July 2022 to July 2025, though it has been marked by notable volatility. The approach captured both positive and negative market reactions, with periods of decline offsetting some gains.

Jeffrey Hirsch, President and CEO of Starz, emphasized the company’s progress toward key financial and operational objectives since becoming a standalone public company. He highlighted a content strategy that resonates with audiences, including strong subscriber additions following the premiere of “Outlander: Blood of My Blood.” Hirsch expressed optimism about the company’s trajectory toward revenue growth, margin improvement, and higher conversion of Adjusted OIBDA to free cash flow, citing a compelling content slate and an improved cost structure as key enablers.

The company reiterated its outlook for sequential revenue and OTT subscriber growth in Q3 and Q4 of 2025, expressing confidence in its content strategy and operational improvements. However, it did not provide specific quantitative targets, choosing instead to focus on a qualitative trajectory of returning to revenue growth, improved margins, and greater free cash flow conversion.

The earnings report comes amid broader market uncertainty and regulatory scrutiny in the media and entertainment sector. In Nigeria, for instance, the Economic and Financial Crimes Commission (EFCC) arrested five individuals for illegal mining in Akwa Ibom state, signaling increased enforcement in the region. Meanwhile, political developments continue to shape the business landscape, as Nigeria’s two dominant political parties, the Peoples Democratic Party (PDP) and the All Progressives Congress (APC), rejected a Canadian court ruling labeling them as terrorist organizations. The PDP also launched a 44-member zoning committee, emphasizing internal party cohesion ahead of upcoming elections.