#United States #Santa Monica #Starz Entertainment #OTT Subscriber #Adjusted OIBDA

Starz Entertainment's Fourth Quarter 2025 Results

Starz Entertainment Corp. has recently shared its financial results for the fourth quarter ended December 31, 2025, showcasing significant achievement and growth potential. The company's financial performance indicates a robust recovery, and its future outlook is promising.

Strong Revenue Growth

During the fourth quarter, Starz registered a sequential revenue increase to $322.8 million. This accomplishment is notable considering the prior year's challenges, reflecting the company's resilience and market adaptability. The reported operating loss improved considerably to $(4.7) million, which is a reduction compared to earlier periods. The adjusted Operating Income Before Depreciation and Amortization (OIBDA) also saw growth, reaching $55.5 million, showcasing effective cost management and revenue-generating strategies.

Importantly, the annual trailing twelve-month adjusted OIBDA totaled $204.0 million. This figure demonstrates the company’s ability to maintain profitability through strategic investments and expanded customer engagement, especially as they leverage their strong content library and original programming.

Subscriber Base Growth

Starz witnessed a significant uptick in both Over-The-Top (OTT) and total subscribers. The company gained 370,000 new OTT subscribers in the fourth quarter, reaching a record high of 12.7 million domestic OTT subscribers—a 7.6% year-over-year increase. This surge can be attributed to the popularity of their scripted originals, including series such as Season 3 of Power Book IV: Force and Spartacus: House of Ashur, which continue to captivate audiences.

Total U.S. subscribers increased to 17.6 million, marking a sequential rise of 170,000. This growth trajectory suggests that the company’s customer acquisition strategies are effectively resonating with viewers, contributing positively to revenue.

2026 Outlook

Looking forward, Starz's management is optimistic about 2026, anticipating further growth in adjusted OIBDA and OTT revenue. The strategic plan focuses on deleveraging to approximately 2.7 times while boosting free cash flow. CEO Jeffrey Hirsch stated, “With a disciplined investment strategy and a robust programming slate, we are poised to enhance our market position and financial performance.” This indicates a commitment to sustainable growth and operational efficiency.

Financial Health

On the financial health front, Starz ended the fourth quarter with $300 million outstanding on its Term Loan A credit facility and $325.1 million in senior unsecured notes, resulting in a total net debt of $589.4 million. The company's financial position allows for strategic flexibility, positioning it well for future investment opportunities and growth.

Moreover, the undrawn $150 million revolving credit facility provides an additional safety net, ensuring that Starz can navigate any unforeseen challenges in a volatile entertainment landscape.

Conclusion

In conclusion, Starz Entertainment Corp.'s fourth quarter results not only highlight a strong recovery from prior adversities but also showcase a strategic vision that looks to harness the growing demand for premium entertainment. With their innovative content offerings and commitment to financial prudence, Starz is well-positioned for continued success in the rapidly evolving media environment. Investors and stakeholders can look forward to engaging with a company poised for sustained growth and profitability in the years to come.

As Starz continues to engage audiences through diverse programming and strategic expansions in the OTT space, it remains a major player in the entertainment industry landscape. The strong performance indicators from the fourth quarter of 2025 set a strong groundwork for what appears to be an exciting year ahead in 2026.