Observed Signal · Oct 29, 2026 · earnings · Source: SEC API · Impact: 3.7/5
10-Q Financial Filing Analysis for Lionsgate (2026-10-29)
Starz Entertainment Corp. (formerly the Media Networks segment of Lionsgate prior to the May 2025 spin-off) reported its financial results for the third quarter ended September 30, 2026. Consolidated revenue reached $322.4 million, up 0.5% year-over-year, supported by a 1.7% expansion in OTT streaming revenue to $226.6 million, which offset a 2.3% decline in linear subscription revenues. The company recorded an operating loss of $21.2 million and a net loss of $34.8 million ($2.02 per share), marking an improvement from a net loss of $52.6 million in Q3 2025. Profitability benefited from a $13.3 million reduction in restructuring costs (including an $11.1 million downward revision to post-pay-one film contract termination liabilities) and lower programming amortization, while depreciation and amortization rose to $67.4 million due to shortening the useful life of traditional MVPD affiliate relationship intangibles.
Demonstrates the standalone operational transition of Starz following its separation from Lionsgate Studios, highlighting content portfolio rationalization, debt restructuring, and the secular transition from traditional linear cable networks to streaming OTT platforms.
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Key Takeaways & Evidence Grounding
- Total Q3 2026 revenue was $322.4 million ($226.6 million OTT, $95.8 million linear/other), yielding an operating loss of $21.2 million and net loss of $34.8 million ($2.02 per diluted share).
- On August 12, 2026, Starz amended its credit facility to increase Term Loan A principal from $300.0 million to $367.0 million (carrying balance $357.0 million as of September 30, 2026) and expanded undrawn revolver commitments to $183.0 million.
- Cash and cash equivalents stood at $86.8 million as of September 30, 2026, with nine-month operating cash flow turning positive at $63.9 million compared to negative $24.2 million in the prior-year period.
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Starz Q3 Revenue Up, Loss Narrows as Streaming Offsets Linear
Starz reported Q3 financial results with revenue of $322.4 million, up 0.5% year-over-year, as streaming revenue grew 1.7% to $226.6 million, offsetting declines in traditional TV distribution. The net loss narrowed to $34.8 million from $52.6 million, beating Wall Street expectations. Streaming gains were partly due to strong performance of Lionsgate's film 'Michael,' the most successful Pay-1 release in Starz history. Additionally, regulatory filings revealed that media mogul Byron Allen sold his entire 10.7% stake in Starz, netting a profit of around $20 million after the company adopted a poison pill defense. CEO Jeffrey Hirsch emphasized a focus on content ownership and distribution partnerships while remaining selective on M&A.
STARZ Reports Q3 2026 Results, Reaffirms Targets
STARZ Entertainment Corp. reported its third quarter 2026 financial results, showing sequential and year-over-year growth in OTT and total revenue. Total revenue reached $322.4 million, with OTT revenue at $226.6 million. Adjusted OIBDA more than doubled year-over-year to $44.2 million, and the company reaffirmed all 2026 and 2027 targets, including positive OTT revenue growth, mid-single-digit Adjusted OIBDA growth, and unlevered free cash flow of $100-120 million. The company also reiterated its 20% Adjusted OIBDA margin outlook for the second half of 2027. STARZ continues to execute its portfolio approach to programming and remains confident in its long-term value creation.
Lionsgate Q3: Revenue Up, Net Loss Due to Marketing
Lionsgate reported third-quarter fiscal 2026 revenue of more than $724 million but posted a net loss exceeding $46 million, as adjusted earnings fell short of analyst expectations. The Motion Picture division drove growth with sales up 35% to $421 million, while TV production revenue declined 25% to $303 million due to timing of show deliveries. The studio’s content library remains a strong cash generator, with trailing 12-month revenue rising 10% to over $1 billion. Lionsgate also signaled potential openness to deals by allowing its poison pill takeover defense to expire in May, highlighting its attractiveness for consolidation despite mixed quarterly results.
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