Starz 2026 Q2 Earnings Widened Net Loss of $52.6M, 71.9% Increase from 2025 Q2

Starz (STRZ) reported fiscal 2026 Q2 earnings on Nov 14, 2025, with results underscoring ongoing financial strain. The company’s revenue fell 7.5% year-over-year, and net losses widened significantly. Despite reaffirming its $200 million adjusted OIBDA guidance, the performance highlights challenges in balancing subscriber growth with profitability.

Revenue

Starz Networks accounted for the entirety of the total revenue, which declined by 7.5% to $320.90 million in Q2 2026 from $346.90 million in the same period the previous year. The segment’s performance reflects broader industry pressures, particularly in linear TV, where cord-cutting trends continue to erode subscriber counts.

Earnings/Net Income

The company’s losses deepened to $3.15 per share in Q2 2026, a 72.1% wider loss compared to $1.83 per share in 2025 Q2. Net losses expanded to $52.60 million, representing a 71.9% increase from $30.60 million in the prior-year period. The EPS decline and wider net loss indicate deteriorating profitability, signaling ongoing financial challenges for the company.

Price Action

The stock price of Starz has edged down 2.51% during the latest trading day, has edged down 1.94% during the most recent full trading week, and has tumbled 13.88% month-to-date.

Post-Earnings Price Action Review

While the strategy of buying STRZ on revenue beats and holding for 30 days shows potential, the company’s recent performance—marked by a third-quarter loss exceeding expectations despite subscriber growth—underscores significant financial headwinds. The stock’s lack of movement post-earnings may suggest market expectations of future improvements or that negative sentiment is already priced in. Starz’s post-separation plan, including content licensing and increased series ownership, offers hope for long-term gains, but risks persist, such as reliance on linear subscribers and high net debt. Historical analysis of past revenue beats would need to demonstrate robust post-beat momentum to validate the strategy. A more nuanced approach, incorporating additional financial metrics and shorter holding periods, may better align with the volatile market environment.

CEO Commentary

Jeffrey Hirsch, CEO, highlighted Starz’s Q3 2025 operational progress, noting U.S. OTT subscriber growth of 670,000 YoY. The post-separation strategy targets 20% margins by 2028, 70% adjusted OIBDA conversion to free cash flow, and deleveraging to 2.5x. Strategic priorities include restructuring the Canadian operation into a Bell Canada licensing agreement, owning half of the content slate by 2027, and leveraging co-commission partnerships to reduce costs. Hirsch emphasized confidence in the 2026 content slate and the company’s tech stack for scalable profitability.

Guidance

Starz reaffirmed its $200 million adjusted OIBDA guidance for 2025, reflecting confidence in executing its post-separation strategy.

Additional News

Starz announced a strategic restructuring in Canada, transitioning from a joint venture to a licensing agreement with Bell Canada, which is expected to improve international revenue without direct operational costs. The company also greenlit its first owned original, Fightland, in partnership with Curtis “50 Cent” Jackson, with co-commissioning deals to reduce production costs and enhance global reach. Additionally, Starz expressed interest in M&A opportunities to capitalize on media industry consolidation, focusing on networks transitioning from linear to digital platforms to expand its subscriber base and reduce churn.