Starz Reports Q1 2026 Financial Results: Progress Amidst Losses and Strategic Growth
Starz announced its first-quarter 2026 financial results, showing a wider loss compared to the previous year but also indicating progress in improving its financial standing since its spinoff from Lionsgate. The company reported OTT revenue of $211.1 million for the January-March quarter, down from $225.5 million in the same period last year. Linear and other revenue totaled $95.8 million, a decrease from $105.1 million.
Analysts had predicted a loss of earnings per share (EPS) of 81 cents on revenue of $305.7 million, lower than the $330.6 million reported in Q1 2025. However, Starz reported a loss per share of $9.83 and a net loss of $164.9 million on revenue of $306.9 million, with an operating loss of $152.8 million. The company generated equity free cash flow of $68.7 million during the quarter.
Starz's current debt stands at $625.1 million, comprising a Term Loan A credit facility and $325.1 million in senior unsecured notes, resulting in a net debt of $523 million. Starz President and CEO Jeffrey Hirsch highlighted the company's progress since the separation, stating that Starz is now a stronger entity. He emphasized the strategic and financial priorities executed over the past year, leading to a strong start to 2026 and meeting or exceeding key financial targets.
Looking ahead, Starz aims to drive OTT revenue growth, reduce leverage, expand margins, and generate sustainable free cash flow in the coming years. Hirsch expressed confidence in the company's ability to achieve these goals, supported by a robust content lineup. The company's focus on long-term value creation and financial stability positions it well for future success.
Stay tuned for more updates on Starz's performance and strategic initiatives.