STARZ Q3 2026 earnings: net loss narrows to $34.8M
Adjusted OIBDA more than doubled year over year, while nine-month net loss widened to $389.1 million.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
STARZ Entertainment Corp. reported third-quarter 2026 revenue of $322.4 million, compared with $320.9 million a year earlier; OTT revenue was $226.6 million versus $222.8 million. Operating loss was $(21.2) million versus $(34.8) million, and net loss was $(34.8) million versus $(52.6) million. Adjusted OIBDA, a non-GAAP measure, was $44.2 million, more than double $21.8 million. Operating cash flow was $18.9 million and Unlevered Free Cash Flow was $18.8 million.
For the first nine months, revenue was $937.2 million versus $971.2 million, net loss was $(389.1) million versus $(248.1) million, and operating cash flow was $63.9 million versus $24.2 million used in 2025. As of September 30, 2026, cash was $86.8 million, total debt was $687.5 million, Net Corporate Debt was $600.7 million, and the Adjusted OIBDA Leverage Ratio was 2.8x. STARZ reaffirmed 2026 outlook for positive year-over-year OTT revenue growth, mid-single-digit percentage Adjusted OIBDA growth, $100 million to $120 million in Unlevered Free Cash Flow, and approximately 2.7x leverage exiting 2026. It also reiterated a 20% Adjusted OIBDA margin outlook for the second half of 2027.
1 point · 0 major0 major · 1 point
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointNine-month operating cash flow was $63.9 million, versus $24.2 million used in 2025.
Negative
- Moderate pointNine-month net loss was $(389.1) million, versus $(248.1) million in 2025.
Filing Explained
STARZ reported 17.2 million common shares issued and outstanding at
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Total revenue: $322.4 million
OTT revenue: $226.6 million
Operating loss: $(21.2) million
+5 more
8 metrics
Total revenue
$322.4 million
Third quarter 2026; $320.9 million in the third quarter of 2025
OTT revenue
$226.6 million
Third quarter 2026; $222.8 million in the third quarter of 2025
Operating loss
$(21.2) million
Third quarter 2026; $(34.8) million in the third quarter of 2025
Adjusted OIBDA
$44.2 million
Third quarter 2026; $21.8 million in the third quarter of 2025
Net loss
$(389.1) million
Nine months ended September 30, 2026; $(248.1) million in 2025
Operating cash flow
$63.9 million
Nine months ended September 30, 2026; $(24.2) million in 2025
Total debt
$687.5 million
As of September 30, 2026
Unlevered Free Cash Flow outlook
$100 million to $120 million
2026 outlook
Key Terms
Adjusted OIBDA, Unlevered Free Cash Flow, Equity Free Cash Flow, Net Corporate Debt, +1 more
5 terms
Adjusted OIBDA financial
"Adjusted OIBDA is defined as operating income (loss) before depreciation and amortization"
Adjusted OIBDA is a company’s core operating profit before subtracting depreciation and amortization, further cleaned up by removing one-time or unusual items so it shows recurring cash-earning power. Think of it like measuring a car’s steady fuel efficiency after ignoring a flat tire or a rare detour—investors use it to compare underlying operational performance across periods and companies without distortion from non-recurring events or accounting timing.
Unlevered Free Cash Flow financial
"Unlevered Free Cash Flow is defined as net cash provided by (used in) operating activities"
Unlevered free cash flow is the cash a company generates from its core business after paying operating costs and reinvesting in the business, but before any interest or debt repayments. It shows how much cash would be available to all providers of capital—owners and lenders alike—and helps investors compare underlying business performance and value companies without the distortion of different debt levels, like judging a car’s fuel efficiency before adding cargo weight.
Equity Free Cash Flow financial
"Equity Free Cash Flow is defined as net cash provided by (used in) operating activities"
Equity free cash flow is the amount of cash a company generates that is available to pay shareholders after it pays operating costs, reinvests in the business, and handles debt-related payments and borrowings. Think of it as the household money left over after paying bills, fixing the house, and settling loans—funds that could be used for dividends, share buybacks, or retained for future needs. Investors use it to judge how much real cash a company can return to owners and to value a stock.
Net Corporate Debt financial
"Net Corporate Debt is defined as total debt, excluding Unamortized Debt Issuance Costs"
Adjusted OIBDA Leverage Ratio financial
"Adjusted OIBDA Leverage Ratio is defined as Net Corporate Debt"
A measure of how much debt a company carries relative to its core cash-generating profit, calculated by dividing net debt by adjusted OIBDA (operating income before depreciation and amortization after company-specific adjustments). It matters to investors because it shows how easily a business can cover its debt with recurring operating earnings—like counting how many years of paycheck-sized profits would be needed to pay off a mortgage—so higher ratios signal greater leverage and risk.
Earnings Snapshot
Total revenue: $322.4 million · Guidance included
Quarter ended September 30, 2026
Total revenue
$322.4 million
Compared with $320.9 million in the third quarter of 2025
Operating loss
$(21.2) million
Compared with $(34.8) million in the third quarter of 2025
Adjusted OIBDA
$44.2 million
Compared with $21.8 million in the third quarter of 2025
Net loss
$(34.8) million
Compared with $(52.6) million in the third quarter of 2025
Guidance
Reiterated 2026 outlook for positive year-over-year OTT revenue growth, mid-single-digit percentage Adjusted OIBDA growth, $100 million to $120 million in Unlevered Free Cash Flow, and an Adjusted OIBDA Leverage Ratio of approximately 2.7x exiting 2026; reiterated a 20% Adjusted OIBDA margin outlook for the second half of 2027.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were STRZ's Q3 2026 revenue and Adjusted OIBDA?
STARZ reported revenue of $322.4 million and Adjusted OIBDA of $44.2 million for the quarter ended September 30, 2026. The comparable 2025-quarter figures were $320.9 million and $21.8 million, respectively.
Why did STRZ not provide GAAP financial guidance?
STARZ said forecasted operating income (loss) and net cash flows provided by operating activities were not reasonably estimable because of variability in restructuring and other costs and adjusted share-based compensation expense. It also said forward-looking non-GAAP reconciliations could not be prepared without unreasonable effort due to future uncertainties and adjusting items it could not control or reasonably predict.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 29, 2026
(Exact name of registrant as specified in its charter)
| N/A | ||||||||||||||
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
(Address of principal executive offices) (Zip Code)
(604) 648-6559
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange (17 CFR 240.14d-2(b)) | ||||||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | ||||||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
| (Nasdaq Global Select Market) | ||||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐
Item 2.02. Results of Operations and Financial Condition.
On October 29, 2026, Starz Entertainment Corp., a corporation organized under the laws of the province of British Columbia, Canada (hereinafter the “Company”), issued a press release announcing its financial results for the quarter ended September 30, 2026. A copy of the Company’s press release is being furnished herewith as Exhibit 99.1 and is incorporated herein by reference in its entirety.
The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit Number | Exhibit Description | ||||
99.1 | Press Release dated October 29, 2026 | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Starz Entertainment Corp. | ||||||||||||||
| Date: | October 29, 2026 | By: | /s/ SCOTT MACDONALD | |||||||||||
| Scott Macdonald | ||||||||||||||
| Chief Financial Officer | ||||||||||||||
Starz Entertainment Corp. Reports Results for the Third Quarter Ended September 30, 2026
STARZ Delivers Sequential and Year-over-Year OTT and Total Revenue Growth
Company Reaffirms All 2026 and 2027 Targets
•OTT Revenue and Total Revenue Grew Sequentially and Year-over-Year
•Adjusted OIBDA More Than Doubled Year-over-Year1
•Reiterating All 2026 Targets for Key Financial Priorities: Adjusted OIBDA Growth, Leverage, OTT Revenue Growth, and Unlevered Free Cash Flow1
•Reiterating 20% Adjusted OIBDA Margin Outlook for the Second Half of 20272
SANTA MONICA, CA, and VANCOUVER, B.C., October 29, 2026 – STARZ (NASDAQ: STRZ) today reported results for the quarter ended September 30, 2026. This press release includes consolidated financial results for STARZ Entertainment Corp.
"Our third-quarter results reflect the continued strength of the business and our focused execution against our four key financial priorities," said STARZ President and CEO Jeffrey Hirsch. "Our portfolio approach to programming is driving a more durable revenue base, and we are just beginning to unlock the financial upside of increased ownership. We remain confident in our outlook and in our ability to continue delivering against our plan and create long-term value for our shareholders."
Summary of Third Quarter 2026 Financial Results
For the quarter ended September 30, 2026, STARZ reported:
•Revenue: $322.4 million
•Operating loss: $(21.2) million
•Adjusted OIBDA1: $44.2 million
•Net cash flows provided by operating activities: $18.9 million
•Unlevered Free Cash Flow1: $18.8 million
•Equity Free Cash Flow1: $13.1 million
As of September 30, 2026, key balance sheet metrics included:
•Cash and cash equivalents: $86.8 million
•Total debt: $687.5 million, including a $362.4 million Term Loan A credit facility and $325.1 million in senior unsecured notes
•Net corporate debt1: $600.7 million
•Adjusted OIBDA Leverage Ratio3: 2.8x (trailing twelve months)
•The Company’s $183.0 million revolving credit facility remained fully undrawn
2026 outlook:
•Reiterating outlook for positive year-over-year OTT revenue growth
•Reiterating Adjusted OIBDA outlook of mid-single-digit percentage growth2
•Reiterating Unlevered Free Cash Flow outlook of $100 million to $120 million2
•Reiterating Adjusted OIBDA Leverage Ratio outlook exiting 2026 to be approximately 2.7x2
1 See "Use of Non-GAAP Financial Measures" for a definition of Adjusted OIBDA, Unlevered Free Cash Flow, Equity Free Cash Flow, and Net Corporate Debt. See "Reconciliation of Operating Loss to Adjusted OIBDA" and "Key Performance Indicators" for the related reconciliations to the most directly comparable GAAP measures.
2 The forecasted Operating Income (Loss) and net cash flows provided by operating activities are not reasonably estimable due to the nature of certain individual items: restructuring and other, and adjusted share-based compensation expense. The variability of these items could have a significant impact on our future GAAP financial results. The Company is not providing any 2026 outlook for GAAP financial measures other than OTT revenue growth, nor can the Company provide quantitative reconciliation to the most directly comparable GAAP measures for its forward-looking non-GAAP financial measures in its 2026 outlook because the GAAP measures cannot be reliably estimated and the reconciliations cannot be performed without unreasonable effort due to their dependence on future uncertainties and adjusting items that the Company cannot control or reasonably predict at this time but which may be material. Please see "Use of Non-GAAP Financial Measures" for additional information.
3 Total Adjusted OIBDA Leverage Ratio of 2.8x is calculated based on total Adjusted OIBDA of $217.6 million for the trailing twelve-month period ended September 30, 2026. Refer to "Reconciliation of Operating Loss to Adjusted OIBDA" section for further detail.
Conference Call
•As previously announced, STARZ senior management will hold its analyst and investor conference call to discuss results for the quarter ended September 30, 2026, today, Thursday, October 29, 2026, 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.
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.
Investor Inquiries – Contact:
Nilay Shah
nilay.shah@starz.com
Press Inquiries – Contact:
Jennifer Minezaki
jennifer.minezaki@starz.com
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 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-KT 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.
2
STARZ ENTERTAINMENT CORP.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
| September 30, | December 31, | ||||||||||
| 2026 | 2025 | ||||||||||
| (Amounts in millions) | |||||||||||
| ASSETS | |||||||||||
| Cash and cash equivalents | $ | 86.8 | $ | 35.7 | |||||||
Accounts receivable, net, including other receivables of $8.3 million and $9.9 million as of September 30, 2026 and December 31, 2025, respectively. | 65.9 | 84.4 | |||||||||
| Prepaid expenses and other | 11.4 | 12.1 | |||||||||
| Total current assets | 164.1 | 132.2 | |||||||||
| Programming content, net | 836.5 | 993.8 | |||||||||
| Property and equipment, net | 47.8 | 49.1 | |||||||||
| Intangible assets, net | 504.4 | 690.9 | |||||||||
| Other assets | 41.6 | 47.2 | |||||||||
| Total assets | $ | 1,594.4 | $ | 1,913.2 | |||||||
| LIABILITIES | |||||||||||
| Current portion of debt | $ | 20.2 | $ | 7.5 | |||||||
| Accounts payable | 68.0 | 60.0 | |||||||||
| Programming related payables | 149.3 | 255.2 | |||||||||
| Other accrued liabilities | 133.0 | 49.1 | |||||||||
| Residuals | 22.7 | 27.1 | |||||||||
| Programming related obligations | 40.6 | 87.7 | |||||||||
| Deferred revenue | 59.1 | 52.8 | |||||||||
| Total current liabilities | 492.9 | 539.4 | |||||||||
| Debt | 657.5 | 605.8 | |||||||||
| Programming related obligations | 38.0 | 41.4 | |||||||||
| Other liabilities | 134.9 | 72.7 | |||||||||
| Deferred tax liabilities | 2.2 | 7.9 | |||||||||
| Total liabilities | 1,325.5 | 1,267.2 | |||||||||
| Contingencies | |||||||||||
| EQUITY | |||||||||||
Common shares, no par value, unlimited authorized, 17.2 million and 16.7 million shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively. | 743.6 | 735.1 | |||||||||
| Accumulated other comprehensive income | 22.9 | 19.4 | |||||||||
| Parent net investment | — | — | |||||||||
| Accumulated deficit | (497.6) | (108.5) | |||||||||
| Total equity | 268.9 | 646.0 | |||||||||
| Total liabilities and equity | $ | 1,594.4 | $ | 1,913.2 | |||||||
3
STARZ ENTERTAINMENT CORP.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (Amounts in millions, except per share amounts) | |||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||
| OTT revenue | $ | 226.6 | $ | 222.8 | $ | 659.0 | $ | 669.4 | |||||||||||||||
| Linear and other revenue | 95.8 | 98.1 | 278.2 | 301.8 | |||||||||||||||||||
| Total revenue | 322.4 | 320.9 | 937.2 | 971.2 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Programming amortization | 141.5 | 156.8 | 393.9 | 437.7 | |||||||||||||||||||
| Other operating | 37.5 | 38.8 | 112.3 | 114.0 | |||||||||||||||||||
| Advertising and marketing | 74.2 | 78.4 | 194.9 | 200.7 | |||||||||||||||||||
| General and administrative | 31.3 | 28.8 | 100.4 | 83.3 | |||||||||||||||||||
| Depreciation and amortization | 67.4 | 47.9 | 203.2 | 144.7 | |||||||||||||||||||
| Restructuring and other | (8.3) | 5.0 | 282.0 | 194.8 | |||||||||||||||||||
| Total expenses | 343.6 | 355.7 | 1,286.7 | 1,175.2 | |||||||||||||||||||
| Operating loss | (21.2) | (34.8) | (349.5) | (204.0) | |||||||||||||||||||
| Interest expense | (14.0) | (15.8) | (41.5) | (39.9) | |||||||||||||||||||
| Interest and other income | 0.1 | 0.2 | 1.0 | 1.9 | |||||||||||||||||||
| Other expense | (1.4) | (1.8) | (5.2) | (6.1) | |||||||||||||||||||
| Loss on extinguishment of debt | — | — | — | (0.7) | |||||||||||||||||||
| Loss from continuing operations | (36.5) | (52.2) | (395.2) | (248.8) | |||||||||||||||||||
| Income tax benefit (expense) | 1.7 | (0.4) | 6.1 | (0.3) | |||||||||||||||||||
| Net loss from continuing operations | (34.8) | (52.6) | (389.1) | (249.1) | |||||||||||||||||||
| Net income from discontinued operations, net of income taxes | — | — | — | 1.0 | |||||||||||||||||||
| Net loss | $ | (34.8) | $ | (52.6) | $ | (389.1) | $ | (248.1) | |||||||||||||||
| Per share information attributable to Starz Entertainment Corp. shareholders: | |||||||||||||||||||||||
Basic and diluted net loss per common share – continuing operations | $ | (2.02) | $ | (3.15) | $ | (22.98) | $ | (14.90) | |||||||||||||||
Basic and diluted net income per common share – discontinued operations | — | — | — | 0.06 | |||||||||||||||||||
| Basic and diluted net loss per common share | $ | (2.02) | $ | (3.15) | $ | (22.98) | $ | (14.84) | |||||||||||||||
| Weighted average number of common shares outstanding: | |||||||||||||||||||||||
| Basic | 17.2 | 16.7 | 16.9 | 16.7 | |||||||||||||||||||
| Diluted | 17.2 | 16.7 | 16.9 | 16.7 | |||||||||||||||||||
4
STARZ ENTERTAINMENT CORP.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| Nine Months Ended | |||||||||||
| September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| (Amounts in millions) | |||||||||||
| Operating activities: | |||||||||||
| Net loss | $ | (389.1) | $ | (248.1) | |||||||
| Less: net income from discontinued operations, net of tax | — | 1.0 | |||||||||
| Net loss from continuing operations, net of tax | (389.1) | (249.1) | |||||||||
| Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 203.2 | 144.7 | |||||||||
| Programming amortization | 393.9 | 437.7 | |||||||||
| Amortization of debt financing costs and other non-cash interest | 3.6 | 3.1 | |||||||||
| Share-based compensation | 27.3 | 15.6 | |||||||||
| Other amortization | 6.4 | 5.8 | |||||||||
| Net content impairment | 126.2 | 167.3 | |||||||||
| Loss on extinguishment of debt | — | 0.7 | |||||||||
| Deferred income taxes | — | 0.2 | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable, net | 17.1 | 49.6 | |||||||||
Cash paid for programming content(1) | (469.4) | (553.9) | |||||||||
| Other assets | (0.4) | (0.2) | |||||||||
| Accounts payable and accrued liabilities | 139.6 | (18.2) | |||||||||
| Residuals | (0.8) | (0.1) | |||||||||
| Deferred revenue | 6.3 | 8.1 | |||||||||
| Due to LG Studios Business | — | (35.5) | |||||||||
| Net cash flows provided by (used in) operating activities | 63.9 | (24.2) | |||||||||
| Investing activities: | |||||||||||
| Capital expenditures | (15.5) | (16.0) | |||||||||
| Deferred purchase price of receivables sold | 1.2 | 1.2 | |||||||||
| New Lionsgate revolving credit facility – increases | — | 455.5 | |||||||||
| New Lionsgate revolving credit facility – decreases | — | (321.5) | |||||||||
| Net cash flows (used in) provided by investing activities | (14.3) | 119.2 | |||||||||
| Financing activities: | |||||||||||
| Debt – borrowings, net of debt issuance and redemption costs | 232.3 | 491.3 | |||||||||
| Debt – repayments | (173.4) | (199.5) | |||||||||
| Programming related obligations – borrowings | 269.4 | 412.9 | |||||||||
| Programming related obligations – repayments | (321.5) | (385.0) | |||||||||
| Exercise of stock options | 0.8 | — | |||||||||
| Tax withholding on equity awards | (6.1) | — | |||||||||
| Distribution of Exchange Notes to New Lionsgate upon Separation | — | (389.9) | |||||||||
| Parent net investment | — | (2.0) | |||||||||
| Net cash flows provided by (used in) financing activities | 1.5 | (72.2) | |||||||||
| Net change in cash and cash equivalents | 51.1 | 22.8 | |||||||||
| Cash and cash equivalents – beginning of period | 35.7 | 14.2 | |||||||||
| Cash and cash equivalents – end of period | $ | 86.8 | $ | 37.0 | |||||||
__________________________________
(1)Cash paid for programming content for the nine months ended September 30, 2025 includes $157.1 million from the licensing of program rights from the LG Studios Business.
5
STARZ ENTERTAINMENT CORP.
RECONCILIATION OF OPERATING LOSS TO ADJUSTED OIBDA
| Three Months Ended | Trailing Twelve Months | ||||||||||||||||||||||||||||||||||
| September 30, | December 31, | March 31, | June 30, | September 30, | September 30, | ||||||||||||||||||||||||||||||
| 2025 | 2025 | 2026 | 2026 | 2026 | 2026 | ||||||||||||||||||||||||||||||
| (Amounts in millions) | |||||||||||||||||||||||||||||||||||
| Operating loss | $ | (34.8) | $ | (4.7) | $ | (152.8) | $ | (175.5) | $ | (21.2) | $ | (354.2) | |||||||||||||||||||||||
| Depreciation and amortization | 47.9 | 47.3 | 68.5 | 67.3 | 67.4 | 250.5 | |||||||||||||||||||||||||||||
Restructuring and other(1) | 5.0 | 9.4 | 139.1 | 151.2 | (8.3) | 291.4 | |||||||||||||||||||||||||||||
Adjusted share-based compensation expense(2) | 3.7 | 3.5 | 3.2 | 16.9 | 6.3 | 29.9 | |||||||||||||||||||||||||||||
Adjusted OIBDA(3) | $ | 21.8 | $ | 55.5 | $ | 58.0 | $ | 59.9 | $ | 44.2 | $ | 217.6 | |||||||||||||||||||||||
_______________
(1)Restructuring and other includes restructuring costs, certain transaction-related and other expenses, and unusual items, when applicable, as shown in the table below:
| Three Months Ended | Trailing Twelve Months | ||||||||||||||||||||||||||||||||||
| September 30, | December 31, | March 31, | June 30, | September 30, | September 30, | ||||||||||||||||||||||||||||||
| 2025 | 2025 | 2026 | 2026 | 2026 | 2026 | ||||||||||||||||||||||||||||||
| (Amounts in millions) | |||||||||||||||||||||||||||||||||||
Contract termination fees(a) | $ | — | $ | — | $ | — | $ | 147.2 | $ | (11.1) | $ | 136.1 | |||||||||||||||||||||||
Content impairments(b) | — | 7.1 | 128.1 | 1.7 | (3.6) | 133.3 | |||||||||||||||||||||||||||||
Transaction and other costs(c) | 4.8 | 2.1 | 5.1 | 1.7 | 1.2 | 10.1 | |||||||||||||||||||||||||||||
Severance(d) | — | 0.2 | 5.9 | 0.5 | 4.4 | 11.0 | |||||||||||||||||||||||||||||
Share-based compensation(e) | 0.2 | — | — | 0.1 | 0.8 | 0.9 | |||||||||||||||||||||||||||||
| Total restructuring and other | $ | 5.0 | $ | 9.4 | $ | 139.1 | $ | 151.2 | $ | (8.3) | $ | 291.4 | |||||||||||||||||||||||
_______________
(a)In April 2026, Starz entered into an agreement to terminate certain live-action films under a post-pay-one output licensing agreement. As a result, Starz recognized programming contract termination fees, which were recorded within Restructuring and other costs during the three and nine months ended September 30, 2026.
The termination cost is based on an agreed fee schedule that includes a measure of theatrical box office performance. During the three months ended September 30, 2026, the Company updated its estimate of the termination liability based on revised assumptions, including expected theatrical performance for certain underlying films, resulting in a reduction of previously accrued termination fees and a corresponding credit recognized during the quarter.
(b)During 2025 and 2026, Starz undertook actions to rationalize its content portfolio as part of its ongoing efforts to right‑size its content cost structure in response to the evolving macroeconomic and industry environment, including continued declines in traditional linear services, impairments associated with changes in the Canadian operating model and in connection with becoming and operating as a standalone company following the Separation. These actions included evaluating programming on the Starz Platform, cancelling certain previously ordered programming, and removing and abandoning content determined to have limited strategic value.
Content recoveries during the three months ended September 30, 2026 primarily relate to revisions of estimated license fees for certain programming agreements. As a result of updated assumptions and estimated contractual costs, the Company reduced previously recorded programming liabilities and recognized a recovery during the period.
(c)Transaction and other costs reflect costs associated with certain potential strategic transactions, costs associated with certain legal matters, and transaction, integration and legal costs associated with the Separation.
(d)Severance costs represent a reduction in our workforce due to cost-saving initiatives and the continued decline in traditional linear services.
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STARZ ENTERTAINMENT CORP.
(e)Share-based compensation represents equity award modifications in July and August 2025 in connection with the Separation from Lionsgate and share-based compensation expense resulting from the acceleration of vesting of certain equity awards in July and August 2026.
(2)The following table reconciles total share-based compensation expense to adjusted share-based compensation expense:
| Three Months Ended | Trailing Twelve Months | ||||||||||||||||||||||||||||||||||
| September 30, | December 31, | March 31, | June 30, | September 30, | September 30, | ||||||||||||||||||||||||||||||
| 2025 | 2025 | 2026 | 2026 | 2026 | 2026 | ||||||||||||||||||||||||||||||
| (Amounts in millions) | |||||||||||||||||||||||||||||||||||
| Total share-based compensation expense | $ | 3.9 | $ | 3.5 | $ | 3.2 | $ | 17.0 | $ | 7.1 | $ | 30.8 | |||||||||||||||||||||||
Less: Amount included in restructuring and other(a) | (0.2) | — | — | (0.1) | (0.8) | (0.9) | |||||||||||||||||||||||||||||
| Adjusted share-based compensation expense | $ | 3.7 | $ | 3.5 | $ | 3.2 | $ | 16.9 | $ | 6.3 | $ | 29.9 | |||||||||||||||||||||||
_______________
(a)Includes the impact of equity award modifications in connection with the Separation and share-based compensation expense resulting from the acceleration of vesting for certain equity awards included in restructuring and other expenses. Refer to note (1)(e).
(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.
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STARZ ENTERTAINMENT CORP.
KEY PERFORMANCE INDICATORS (KPIs)
| Three Months Ended | |||||||||||||||||||||||||||||
| September 30, | December 31, | March 31, | June 30, | September 30, | |||||||||||||||||||||||||
| 2025 | 2025 | 2026 | 2026 | 2026 | |||||||||||||||||||||||||
| (Amounts in millions) | |||||||||||||||||||||||||||||
| Equity and Unlevered Free Cash Flow | |||||||||||||||||||||||||||||
| Net cash (used in) provided by operating activities | $ | (26.0) | $ | (21.4) | $ | 73.2 | $ | (28.2) | $ | 18.9 | |||||||||||||||||||
| Less: capital expenditures | (5.2) | (4.5) | (4.5) | (5.2) | (5.8) | ||||||||||||||||||||||||
| Total Equity Free Cash Flow | (31.2) | (25.9) | 68.7 | (33.4) | 13.1 | ||||||||||||||||||||||||
| Plus: cash paid for interest | 9.2 | 19.1 | 11.6 | 18.4 | 5.6 | ||||||||||||||||||||||||
| Plus: cash paid for income taxes | 0.4 | 0.2 | 0.4 | 0.3 | 0.1 | ||||||||||||||||||||||||
| Total Unlevered Free Cash Flow | $ | (21.6) | $ | (6.6) | $ | 80.7 | $ | (14.7) | $ | 18.8 | |||||||||||||||||||
| Cash paid for programming content | |||||||||||||||||||||||||||||
| Starz Networks | $ | (157.0) | $ | (158.6) | $ | (85.5) | $ | (147.6) | $ | (170.2) | |||||||||||||||||||
Programming content restructuring(1) | (2.7) | (4.0) | (27.9) | (34.0) | (4.2) | ||||||||||||||||||||||||
| Total cash paid for programming content | $ | (159.7) | $ | (162.6) | $ | (113.4) | $ | (181.6) | $ | (174.4) | |||||||||||||||||||
| Net corporate debt | |||||||||||||||||||||||||||||
Debt(2) | $ | 625.1 | $ | 625.1 | $ | 625.1 | $ | 625.1 | $ | 687.5 | |||||||||||||||||||
| Less: cash and cash equivalents | 37.0 | 35.7 | 102.1 | 59.6 | 86.8 | ||||||||||||||||||||||||
| Net corporate debt | $ | 588.1 | $ | 589.4 | $ | 523.0 | $ | 565.5 | $ | 600.7 | |||||||||||||||||||
| Adjusted OIBDA - trailing twelve months | $ | 173.2 | $ | 204.0 | $ | 168.7 | $ | 195.2 | $ | 217.6 | |||||||||||||||||||
Adjusted OIBDA leverage ratio(3) | 3.4x | 2.9x | 3.1x | 2.9x | 2.8x | ||||||||||||||||||||||||
_______________
(1)Represents cash used in operating activities for programming content paid subsequent to the final shutdown of the LIONSGATE+ business in May 2024 and the Starz Networks Strategic Content Review and International Restructuring. Such cash flows are included in continuing operations in the consolidated statements of cash flow.
(2)Debt represents total debt, excluding unamortized debt issuance costs.
(3)Adjusted OIBDA leverage ratio is defined as Net Corporate Debt (represents total debt, excluding Unamortized Debt Issuance Costs, minus Cash and Cash Equivalents), divided by Adjusted OIBDA for the trailing twelve-months.
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STARZ ENTERTAINMENT CORP.
USE OF NON-GAAP FINANCIAL MEASURES
This earnings release presents the following important financial measures utilized by Starz Entertainment Corp. (the "Company," "Starz," "we," "us" or "our") that are not financial measures defined by U.S. generally accepted accounting principles ("GAAP"). These non-GAAP financial measures are in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.
Adjusted OIBDA: Adjusted OIBDA is defined as operating income (loss) before depreciation and amortization ("OIBDA"), adjusted for share-based compensation, 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 consolidated statement of operations.
•Adjusted share-based compensation expense 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 costs, certain transaction-related and other expenses, and unusual items, when applicable.
•Goodwill impairment and intangible asset impairment, when applicable.
Adjusted OIBDA Leverage Ratio: Adjusted OIBDA Leverage Ratio is defined as Net Corporate Debt (represents total debt, excluding Unamortized Debt Issuance Costs, minus Cash and Cash Equivalents), divided by Adjusted OIBDA for the trailing twelve-months.
Unlevered Free Cash Flow: Unlevered Free Cash Flow is defined as net cash provided by (used in) operating activities, less capital expenditures, plus cash paid for interest and taxes.
Equity Free Cash Flow: Equity Free Cash Flow is defined as net cash provided by (used in) operating activities, less capital expenditures.
Net Corporate Debt: Net Corporate Debt is defined as total debt, excluding Unamortized Debt Issuance Costs, minus Cash and Cash Equivalents.
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 financial 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. Unlevered Free Cash Flow and Equity Free Cash Flow are considered important measures of the Company’s liquidity because they provide information about the ability of the Company to reduce Net Corporate Debt and make strategic investments. Net Corporate Debt is used by management to evaluate the Company’s overall indebtedness and capital structure by reflecting debt levels net of available liquidity, and is an important measure in assessing leverage, financial risk, and the Company’s capacity to service and reduce debt over time. The Company utilizes these measures, among others, to evaluate the performance of its business relative to its peers and the broader market.
These non-GAAP financial 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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