Observed Signal · Oct 29, 2026 · earnings · Source: SEC API · Impact: 3.6/5
10-Q Financial Filing Analysis for STARZ (2026-10-29)
Starz Entertainment Corp. reported its third-quarter 2026 financial results for the period ended September 30, 2026, delivering consolidated revenue of $322.4 million, up 0.5% year-over-year. Operating loss improved to $(21.2) million compared to $(34.8) million in Q3 2025, driven by lower programming amortization and a favorable net reduction in restructuring and contract termination liabilities. Over-the-top (OTT) revenue rose 1.7% to $226.6 million, supported by subscription price increases, while linear subscription revenue continued its secular decline, falling 2.3% to $95.8 million. Net loss for the quarter reached $(34.8) million, or $(2.02) per diluted share, an improvement from $(52.6) million in the prior-year period. For the nine-month period, revenue fell 3.5% to $937.2 million, resulting in a net loss of $(389.1) million due to $282.0 million in restructuring and other charges, including $136.1 million in contract termination fees for live-action films under a post-pay-one output licensing agreement and $126.2 million in content impairments. Following its May 2025 separation from Lionsgate, Starz amended its credit facility in August 2026, upsizing Term Loan A to $367.0 million to maintain liquidity, ending Q3 with $86.8 million in cash.
Reflects Starz's standalone operational restructuring and content portfolio rationalization post-Lionsgate separation, highlighting cost-containment measures against secular linear TV declines.
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Key Takeaways & Evidence Grounding
- Q3 2026 revenue totaled $322.4M (OTT: $226.6M, Linear/other: $95.8M) with an operating loss of $(21.2)M and a net loss of $(34.8)M, or $(2.02) per share.
- Nine-month restructuring and other expenses rose to $282.0M, driven by $136.1M in output agreement contract termination fees and $126.2M in strategic content impairments.
- On August 12, 2026, Starz amended its credit agreement, increasing Term Loan A commitments by $67.0M to $367.0M and revolving facility commitments by $33.0M to $183.0M, ending Q3 with $86.8M in cash and cash equivalents.
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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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