Starz Entertainment Corp. Reports Results for the Quarter Ended June 30, 2025

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Starz Entertainment (NASDAQ: STRZ) reported its Q2 2025 financial results, marking its first quarter as a standalone public company. The company posted revenue of $319.7 million, with a net loss of $(42.5) million, or $(2.54) per share. Operating loss was $(26.9) million, while Adjusted OIBDA reached $33.4 million.

The company ended Q2 with 12.2 million U.S. OTT subscribers, down 120,000 quarter-over-quarter, and total North American subscribers of 19.1 million, reflecting a decline of 520,000. The company's net debt stood at $573.5 million with a leverage ratio of 3.2x. Despite current challenges, management remains confident about sequential revenue and OTT subscriber growth in Q3 and Q4 2025, supported by strong content performance like the recent "Outlander: Blood of my Blood" premiere.

Positive

• Recent 'Outlander: Blood of my Blood' premiere achieved third-highest series premiere viewership in company history
• Undrawn $150 million revolving credit facility provides additional liquidity
• Management expects sequential revenue and OTT subscriber growth in Q3 and Q4 2025

Negative

• Net loss of $(42.5) million with operating loss of $(26.9) million
• Sequential decline of 120,000 U.S. OTT subscribers
• Total North American subscriber base decreased by 520,000
• High leverage with net debt of $573.5 million and 3.2x leverage ratio

Insights

Media Industry Financial Analyst

Starz reports quarterly loss with declining subscribers despite content success; management remains optimistic about future growth trajectory.

Starz Entertainment's Q2 2025 results reveal significant financial challenges despite management's optimistic outlook. The company reported $319.7 million in revenue alongside a concerning net loss of $42.5 million ($2.54 per share) and operating loss of $26.9 million. The adjusted OIBDA (Operating Income Before Depreciation and Amortization) of $33.4 million provides a slightly more positive metric but doesn't offset the overall negative performance.

The subscriber metrics tell a troubling story about Starz's market position. U.S. OTT subscribers decreased by 120,000 to 12.2 million, while total U.S. subscribers fell by 410,000 to 17.6 million. The North American total dropped by 520,000 to 19.1 million, with Canadian subscribers declining by 110,000. These decreases stem from continued pressure on linear subscribers and insufficient OTT subscriber growth.

From a debt perspective, Starz carries $573.5 million in net debt ($300 million Term Loan A, $325.1 million in senior unsecured notes, offset by $51.6 million cash). With a leverage ratio of 3.2x trailing twelve-month Adjusted OIBDA, their debt burden is substantial though not yet critical.

Despite these challenges, management is emphasizing content success, noting that the recent "Outlander: Blood of my Blood" premiere generated the third-highest subscriber additions for a series premiere in company history. Management's reiteration of expected sequential revenue and OTT subscriber growth in Q3 and Q4 suggests confidence in a turnaround, focusing on improved cost structure and their content slate to drive future performance.

Revenue was $319.7 Million

Net Loss was $(42.5) Million or a Net Loss Per Share of $(2.54)

Operating Loss was $(26.9) Million

Adjusted OIBDA was $33.4 Million

Management Reiterates Outlook for Sequential Revenue and OTT Subscriber Growth in Q3 and Q4 of 2025

SANTA MONICA, Calif. and VANCOUVER, BC, Aug. 14, 2025 /PRNewswire/ -- STARZ (NASDAQ: STRZ) today reported results for the quarter ended June 30, 2025. This press release includes consolidated financial results for Starz Entertainment Corp.

"In the three months since becoming a standalone public company, we have made significant progress toward achieving our key financial and operating objectives," said STARZ President and CEO Jeffrey Hirsch. "Our content strategy continues to resonate with our audience as the subscriber additions from last weekend's 'Outlander: Blood of my Blood' premiere were the third highest for a series premiere in STARZ's history.¹ Looking ahead, 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."

Quarter Ended June 30, 2025 Results
For the quarter ended June 30, 2025, STARZ reported consolidated revenue of $319.7 million and net loss of $(42.5) million or a net loss per share of $(2.54). Operating loss was $(26.9) million and Adjusted OIBDA was $33.4 million.

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. This resulted in total net debt of $573.5 million. On a trailing twelve-month basis, the company's total Adjusted OIBDA Leverage Ratio was 3.2x². STARZ's $150 million revolving credit facility was undrawn at June 30, 2025.

STARZ ended the quarter with 12.2 million U.S. Over-The-Top (OTT) subscribers, representing a sequential decline of 120,000. Total U.S. subscribers were 17.6 million, a decrease of 410,000 from the prior quarter. These declines were primarily driven by continued pressure on linear subscriber and lower OTT subscriber additions. Including Canada, total North American subscribers were 19.1 million, reflecting a sequential decline of 520,000. Canadian subscribers declined by 110,000 in the quarter due to continued linear declines and lower OTT subscriber additions.

STARZ senior management will hold its analyst and investor conference call to discuss results for the quarter ended June 30, 2025, today, Thursday, August 14, 2025 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	Source: Based on streaming viewership and first title streams on available platforms, three days after series premiere.
2	Total Adjusted OIBDA Leverage Ratio of 3.2x is calculated based on total Adjusted OIBDA of $178.6 million for the trailing twelve-month period ended June 30, 2025. Refer to "Reconciliation of Operating Income (Loss) to Adjusted OIBDA" section for further detail.

About STARZ
STARZ 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.

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 the 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-K 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
	June 30, 2025		March 31, 2025
	(Amounts in millions)
ASSETS
Cash and cash equivalents	$                 51.6		$                 17.8
Accounts receivable, net	55.7		52.7
Due from LG Studios Business	—		81.6
Prepaid expenses and other	15.9		18.4
Total current assets	123.2		170.5
Programming content, net	1,092.7		1,096.3
Property and equipment, net	50.4		48.6
Intangible assets, net	772.3		816.0
Other assets	53.0		41.8
Total assets	$            2,091.6		$            2,173.2
LIABILITIES
Accounts payable	$                 78.1		$                 64.5
Programming related payables	378.1		101.8
Other accrued liabilities	63.6		64.5
Residuals	29.3		29.5
Programming related obligations	88.2		90.7
Deferred revenue	39.8		39.4
Due to LG Studios Business	—		232.1
Total current liabilities	677.1		622.5
Debt	611.7		699.9
Other liabilities	82.2		75.9
Deferred tax liabilities	8.3		8.5
Total liabilities	1,379.3		1,406.8
EQUITY
Common stock, no par value, unlimited authorized, 16.7 shares issued (March 31, 2025 – nil)	728.3		—
Accumulated other comprehensive income	19.2		19.2
Parent net investment	—		747.2
Accumulated deficit	(35.2)		—
Total equity	712.3		766.4
Total liabilities and equity	$            2,091.6		$            2,173.2

 

STARZ ENTERTAINMENT CORP. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
	Three Months Ended
	June 30,
	2025		2024
	(Amounts in millions)
Revenue
OTT revenue	$               221.1		$               234.4
Linear and other revenue	98.6		113.2
Total revenue	319.7		347.6
Operating expenses:
Programming amortization	162.5		147.9
Other operating	36.5		39.3
Advertising and marketing	63.4		82.7
General and administrative	29.1		26.6
Depreciation and amortization	48.7		41.6
Restructuring and other	6.4		(0.6)
Total expenses	346.6		337.5
Operating (loss) income	(26.9)		10.1
Interest expense	(13.2)		(10.8)
Interest and other income	—		0.8
Other expense	(2.5)		(1.7)
Loss on extinguishment of debt	—		(4.9)
Loss from continuing operations before income taxes	(42.6)		(6.5)
Income tax benefit	0.1		7.6
Net (loss) income from continuing operations	(42.5)		1.1
Net income from discontinued operations, net of income taxes	—		3.1
Net (loss) income	$               (42.5)		$                   4.2
Per share information attributable to Starz Entertainment Corp. shareholders:
Basic and diluted net (loss) income per common share - continuing operations	$               (2.54)		$                 0.07
Basic and diluted net income per common share - discontinued operations	—		0.19
Basic and diluted net (loss) income per common share	$               (2.54)		$                 0.26
Weighted average number of common shares outstanding:
Basic	16.7		16.7
Diluted	16.7		16.7

 

STARZ ENTERTAINMENT CORP. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
	Three Months Ended
	June 30,
	2025		2024
	(Amounts in millions)
Operating Activities:
Net (loss) income	$                (42.5)		$                    4.2
Less: net loss from discontinued operations, net of tax	—		3.1
Net (loss) income from continuing operations, net of tax	(42.5)		1.1
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Depreciation and amortization	48.7		41.6
Programming amortization	162.5		149.0
Amortization of debt financing costs and other non-cash interest	0.9		0.8
Non-cash share-based compensation	7.4		5.2
Other amortization	1.7		1.8
Net content impairment recoveries	(0.3)		(0.6)
Loss on extinguishment of debt	—		4.9
Deferred income taxes	—		(0.5)
Changes in operating assets and liabilities:
Accounts receivable, net	27.4		(15.4)
Programming content payments	(160.2)		(232.7)
Programming related payables	11.9		(10.6)
Other assets	0.7		0.6
Accounts payable and accrued liabilities	5.8		(13.0)
Residuals	—		(1.0)
Deferred revenue	1.4		(0.8)
Due to LG Studios Business	—		42.8
Net cash provided by (used in) operating activities – continuing operations	65.4		(26.8)
Net cash used in operating activities – discontinued operations	—		(6.7)
Net cash provided by (used in) operating activities	65.4		(33.5)
Investing activities:
New Lionsgate revolving credit facility – increases	151.8		—
New Lionsgate revolving credit facility – decreases	(70.2)		(66.7)
Capital expenditures	(6.9)		(4.9)
Deferred purchase price of receivables sold	0.5		—
Net cash provided by (used in) investing activities – continuing operations	75.2		(71.6)
Financing activities:
Distribution to New Lionsgate upon Separation	(389.9)		—
Debt – borrowings, net of debt issuance and redemption costs	291.8		14.3
Debt – repurchases and repayments	—		(54.0)
Programming related obligations – borrowings	177.3		53.8
Programming related obligations – repayments	(180.4)		—
Parent net investment	(5.6)		76.5
Net cash (used in) provided by financing activities – continuing operations	(106.8)		90.6
Net cash provided by financing activities – discontinued operations	—		2.7
Net cash (used in) provided by financing activities	(106.8)		93.3
Net change in cash and cash equivalents	33.8		(11.8)
Cash and cash equivalents – beginning of period	17.8		37.0
Cash and cash equivalents – end of period	$                  51.6		$                  25.2

 

STARZ ENTERTAINMENT CORP. RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED OIBDA
	Three Months Ended		Three Months Ended								Trailing Twelve Months
	June 30,		September 30,		December 31,		March 31,		June 30,		June 30,
	2024		2024		2024		2025		2025		2025
					(Amounts in millions)
Operating income (loss)	$             10.1		$           (17.0)		$           (21.2)		$         (142.3)		$           (26.9)		$         (207.4)
Depreciation and amortization	41.6		41.2		39.4		48.1		48.7		177.4
Restructuring and other(1)	(0.6)		(1.1)		2.4		183.4		6.4		191.1
Adjusted share-based compensation expense(2)	5.2		4.1		4.1		4.1		5.2		17.5
Adjusted OIBDA(3)	$             56.3		$             27.2		$             24.7		$             93.3		$             33.4		$           178.6
Starz Networks (U.S. and Canada)	$             57.3		$             26.9		$             25.6		$             92.0		$             33.4		$           177.9
International	(1.0)		0.3		(0.9)		1.3		—		0.7
Adjusted OIBDA	$             56.3		$             27.2		$             24.7		$             93.3		$             33.4		$           178.6

 

(1)

Restructuring and other includes restructuring and severance costs, certain transaction and other costs, and certain unusual items, when applicable, as shown in the table below:

	Three Months Ended
	June 30,
	2025		2024
	(Unaudited, amounts in millions)
Restructuring and other:
Content and other impairments	$               (0.3)		$               (0.6)
Share-based compensation(a)	2.2		—
Transaction and other costs(b)	4.5		—
	$                6.4		$               (0.6)

(a)

This balance reflects a one-time modification of equity awards in connection with the Separation. In June 2025, the compensation committee of the Company approved a cash payment in lieu of share issuance for the restricted share units vesting during the quarter ending September 30, 2025.

(b)

Transaction and other costs in the quarter ended June 30, 2025 reflect transaction, integration and legal costs associated with certain strategic transactions, and restructuring activities.

 

(2)	The following table reconciles total share-based compensation expense to adjusted share-based compensation expense:

	Three Months Ended
	June 30,
	2025		2024
	(Unaudited, amounts in millions)
Total share-based compensation expense	$                 7.4		$                 5.2
Less: Amount included in restructuring and other(a)	(2.2)		—
Adjusted share-based compensation expense	$                 5.2		$                 5.2

(a)

Represents a one-time modification of equity awards in connection with the Separation included in restructuring and other expenses. Refer to note (1)(a).

 

(3)	See "Use of Non-GAAP Financial Measures" for the definition of Adjusted OIBDA which is reconciled to operating loss in the table above, the most directly comparable GAAP financial measure.

 

SUBSCRIBER DATA

The number of period-end subscribers is a key metric which management uses to evaluate a non-ad supported subscription video service. We believe this key metric provides useful information to investors as a growing or decreasing subscriber base is a key indicator of the health of the overall business. Service subscribers may impact revenue differently depending on specific distribution agreements we have with our distributors which may include fixed fees, rates per basic video household or a rate per STARZ subscriber. The following table sets forth, for the periods presented, subscriptions to our Starz Networks Services:

		As of
		6/30/2024		9/30/2024		12/31/2024		3/31/2025		6/30/2025
Domestic
OTT Subscribers		12.44		11.62		11.77		12.30		12.18
Linear Subscribers		6.49		6.21		5.91		5.70		5.41
Total Domestic Subscribers		18.93		17.83		17.68		18.00		17.59
Canada
OTT Subscribers		0.76		0.78		0.80		0.74		0.68
Linear Subscribers		1.61		1.54		1.45		0.86		0.81
Total Canada Subscribers		2.37		2.32		2.25		1.60		1.49
Starz Networks
OTT Subscribers		13.20		12.40		12.57		13.04		12.86
Linear Subscribers		8.10		7.75		7.36		6.56		6.22
Total Starz Networks Subscribers		21.30		20.15		19.93		19.60		19.08

 

USE OF NON-GAAP FINANCIAL MEASURES

This earnings release presents the following important financial measure utilized by Starz Entertainment Corp. (the "Company," "Starz," "we," "us" or "our") that is not a financial measure defined by U.S. generally accepted accounting principles ("GAAP"). The Company uses non-GAAP financial measures, among other measures, to evaluate the operating performance of our business. This non-GAAP financial measure is in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with United States GAAP.

Adjusted OIBDA: Adjusted OIBDA is defined as operating income (loss) before depreciation and amortization ("OIBDA"), adjusted for adjusted share-based compensation ("adjusted SBC"), restructuring and other costs, and unusual gains or losses (such as goodwill and intangible asset impairment), when applicable.

• Depreciation and amortization as presented on our combined statement of operations.
• Adjusted share-based expense compensation represents share-based compensation excluding the impact of the acceleration of certain vesting schedules for equity awards pursuant to certain severance arrangements, which are included in restructuring and other expenses, when applicable.
• Restructuring and other includes restructuring and severance costs, certain transaction and other costs, and certain unusual items, when applicable.
• Goodwill impairment and intangible asset impairment, when applicable.

Adjusted OIBDA Leverage Ratios: Adjusted OIBDA Leverage Ratio is defined as Net Corporate Debt (represents total Corporate Debt, excluding Unamortized Debt Issuance Costs, minus Cash and Cash Equivalents), divided by Adjusted OIBDA for the trailing twelve-months.

Overall: These measures are non-GAAP financial measures as defined in Regulation G promulgated by the SEC and are in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.

We use these non-GAAP measures, among other measures, to evaluate the operating performance of our business. We believe these measures provide useful information to investors regarding our results of operations before non-operating items and cash flows. Adjusted OIBDA is considered an important measure of the Company's performance because this measure eliminates amounts that, in management's opinion, do not necessarily reflect the fundamental performance of the Company's businesses, are infrequent in occurrence, and in some cases are non-cash expenses. In addition, the Adjusted OIBDA Leverage Ratio is an important metric as it provides insight into the Company's capital structure and financial risk, helping assess the Company's ability to meet its debt obligations and maintain financial flexibility.

These non-GAAP measures are commonly used in the entertainment industry and by financial analysts and others who follow the industry to measure operating performance. However, not all companies calculate these measures in the same manner and the measures as presented may not be comparable to similarly titled measures presented by other companies due to differences in the methods of calculation and excluded items.

A general limitation of these non-GAAP financial measures is that they are not prepared in accordance with GAAP. These measures should be reviewed in conjunction with the relevant GAAP financial measures and are not presented as an alternative measure of operating income, cash flow, net income (loss), or earnings (loss) per share as determined in accordance with GAAP.

 

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SOURCE Starz Entertainment LLC

FAQ

What were Starz (STRZ) key financial results for Q2 2025?

Starz reported revenue of $319.7 million, net loss of $(42.5) million ($(2.54) per share), and Adjusted OIBDA of $33.4 million.

How many subscribers does Starz (STRZ) have in Q2 2025?

Starz had 12.2 million U.S. OTT subscribers and 19.1 million total North American subscribers at the end of Q2 2025.

What is Starz (STRZ) current debt position?

Starz has $573.5 million in net debt, including $300 million in Term Loan A, $325.1 million in senior unsecured notes, with a 3.2x leverage ratio.

How did Starz (STRZ) subscriber numbers change in Q2 2025?

Starz experienced declines across all segments: U.S. OTT subscribers decreased by 120,000, total U.S. subscribers fell by 410,000, and Canadian subscribers declined by 110,000.

What is Starz (STRZ) management outlook for the rest of 2025?

Management expects sequential revenue growth and OTT subscriber growth in Q3 and Q4 2025, supported by their content strategy and improved cost structure.