Observed Signal · Oct 30, 2026 · Earnings Report · Source: State of Streaming · Impact: 4/5 · Sentiment: Neutral
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 is a major premium streaming platform; its earnings report reflects the health of the streaming industry and tactics against activist investors.
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Key Takeaways & Evidence Grounding
- Starz Q3 revenue: $322.4M, up 0.5% YoY
- Net loss narrowed to $34.8M from $52.6M
- Streaming revenue increased 1.7% to $226.6M
- Byron Allen sold his 10.7% stake, netting ~$20M profit
- CEO Jeffrey Hirsch prioritizes content ownership and distribution partnerships
Connected Companies & Entities
2 Entities mapped“Starz reported Q3 financial results with revenue growth and narrowed losses.”
“Lionsgate's film 'Michael' became the most successful Pay-1 release in Starz history.”
Ontology Mapping & Concepts
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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.
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.
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.
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