#USA #Santa Monica #Starz Entertainment #Adjusted OIBDA #OTT Revenue

Starz Entertainment Reports Second Quarter Results for 2026

Starz Entertainment Corp. has released its financial results for the second quarter, ending June 30, 2026, showcasing a trajectory of growth that positions the company for a promising future. The company reported total revenues of $307.9 million, coupled with a notable increase in over-the-top (OTT) revenue, marking a year-over-year growth that reflects the robust audience engagement driven by its diverse content portfolio.

The financial report presents a consolidated operating loss of $175.5 million, largely attributed to a non-recurring restructuring charge. Despite this loss, the company noted an Adjusted OIBDA of $59.9 million, which is a key indicator of operational profitability, demonstrating the company's capability to generate earnings before interest, taxes, depreciation, and amortization.

Starz's President and CEO, Jeffrey Hirsch, expressed satisfaction with the quarter's results, highlighting them as evidence of the momentum gained within the business and the success of their content-driven strategies. “This quarter showcases our ability to engage audiences meaningfully, alongside a strategic emphasis on expanding our OTT presence. The success of 'Fightland' underlines the effectiveness of our ownership model,” he stated.

Financial Highlights

• - Revenue: The company achieved revenues of $307.9 million, relatively stable compared to $319.7 million in the same quarter the previous year.
• - Operating Loss: The operating loss occurred primarily due to the restructuring efforts, revealing a loss of $175.5 million compared to $26.9 million in Q2 2025.
• - Adjusted OIBDA: The company recorded $59.9 million, showcasing an improving trend in profitability metrics that paint a brighter picture for the remainder of the year.
• - Cash Flow: Net cash used in operating activities was $(28.2 million), with an unlevered free cash flow of $(14.7 million), which again hints at the company's transitional phase amidst restructuring endeavors.

Future Outlook

Starz is optimistic about the road ahead in 2026, raising the outlook for both adjusted OIBDA and unlevered free cash flow. The anticipated adjusted OIBDA growth is now projected to rise from low-single to mid-single digits. Furthermore, the company's outlook for OTT revenue growth remains positive, which is crucial as digital content consumption continues to surge.

Starz reaffirms its target for adjusted OIBDA leverage ratio, maintaining a 2.7x goal by the end of the year, which lays out a sensible framework for solid financial health as the company sidesteps the challenges posed by a changing media landscape.

Conclusion

As Starz navigates potential hurdles stemming from restructuring and shifts in viewership behavior, its commitment to content quality and audience focus may indeed allow it to gain stable ground. The second quarter results and the revised forecasts show that the company is headed toward more fruitful operations, aiming to enhance its value proposition in an increasingly competitive space.

Investors and stakeholders can look forward to the details discussed in the upcoming conference call, where senior management is expected to delve deeper into these results and offer insights into strategic plans moving forward. As noted by Hirsch, the second half of 2026 holds promise to be more impactful than initially predicted, indicating a pivotal moment in Starz's evolution as a premier entertainment choice.