Starz Entertainment Reports Revenue Decline and Increased Net Loss in Q2 2026

Starz Entertainment Corp. reported a significant decline in its financial performance for the second quarter of 2026, with total revenue of $307.9 million, down 3.7% from $319.7 million in the same period last year. The decrease was primarily driven by a $12 million drop in linear and other revenue, which fell to $86.6 million, while over-the-top (OTT) revenue saw a slight increase to $221.3 million. For the first half of 2026, total revenue was $614.8 million, down 5.5% from $650.3 million in the prior year. The company also reported a net loss of $189.4 million for the quarter, compared to a loss of $42.5 million in the same quarter of 2025, reflecting a substantial increase in operating expenses.

The company's operating expenses surged to $483.4 million in the second quarter, a 39.5% increase from $346.6 million in the prior year. This rise was largely attributed to restructuring costs, which amounted to $151.2 million, compared to just $6.4 million in the previous year. Programming amortization also decreased significantly, falling to $114.1 million from $162.5 million, indicating a strategic shift in content management. The increase in general and administrative expenses, which rose to $40 million from $29.1 million, further contributed to the overall loss.

Starz has been actively restructuring its content portfolio in response to the evolving media landscape and the challenges of operating as a standalone entity following its separation from Lions Gate Entertainment in May 2025. The company has undertaken measures to rationalize its content costs, including the cancellation of certain programming and the termination of licensing agreements for live-action films. These strategic decisions are part of a broader effort to adapt to declining traditional linear services and to optimize its content offerings.

As of June 30, 2026, Starz reported total assets of $1.67 billion, a decrease from $1.91 billion at the end of 2025. The company’s liabilities also increased, totaling $1.38 billion, up from $1.27 billion. Cash and cash equivalents rose to $59.6 million, compared to $35.7 million at the end of the previous year. The company’s employee headcount remained stable at approximately 16.8 million shares outstanding. Looking ahead, Starz anticipates that its cash flow from operations, along with its available credit facilities, will be sufficient to meet its operational and debt service requirements for the next twelve months. However, the company remains cautious about the potential impacts of market conditions and ongoing restructuring efforts on its future performance.