Starz Entertainment Corp. reported a total revenue of $306.9 million for the three months ended March 31, 2026, a decrease of 7.2% compared to $330.6 million in the same period last year. The decline was primarily driven by a drop in both over-the-top (OTT) revenue, which fell to $211.1 million from $225.5 million, and linear revenue, which decreased from $105.1 million to $95.8 million. The company attributed these reductions to ongoing challenges in the traditional linear services market and a higher mix of discounting on OTT services, including multi-month payment plans. Additionally, the transfer of operations in India and Southeast Asia to New Lionsgate in April 2025 contributed to the revenue decline.
Operating expenses for the quarter totaled $459.7 million, down from $472.9 million a year earlier, reflecting a decrease in restructuring costs and other unusual charges. Notably, programming amortization increased to $138.3 million from $118.4 million, driven by higher costs associated with original series and library content. The company reported an operating loss of $152.8 million, compared to a loss of $142.3 million in the prior year. The net loss from continuing operations was $164.9 million, up from $154.0 million in the same quarter of 2025.
In terms of strategic developments, Starz has been actively restructuring its content portfolio in response to the evolving macroeconomic environment and the decline in traditional linear services. The company has identified and removed programming with limited strategic value from its platform. Additionally, in April 2026, Starz entered into an agreement to terminate certain live-action films under a post pay-one output licensing agreement, which is expected to impact restructuring costs in the upcoming quarter.
As of March 31, 2026, Starz reported total assets of $1.79 billion, down from $1.91 billion at the end of 2025. The company had cash and cash equivalents of $102.1 million, a significant increase from $35.7 million at the end of the previous fiscal year. The total liabilities stood at $1.31 billion, up from $1.27 billion, with current liabilities increasing primarily due to programming-related payables. The company’s equity decreased to $478.7 million from $646.0 million, largely due to the net loss incurred during the quarter.
Looking ahead, Starz anticipates that cash flow from operations, along with its undrawn $150 million revolving credit facility and monetization of trade accounts receivable, will be sufficient to meet its operational cash and debt service requirements for the next twelve months. The company is focused on maintaining its creditworthiness while continuing to evaluate opportunities for content acquisition and strategic investments.
About STARZ ENTERTAINMENT CORP /CN/
Starz is a provider of premium subscription video programming in the U.S. and Canada, offering original series, movies, and library content through direct-to-consumer apps and distributor channels. Its core value lies in high-quality, original content targeting women and underrepresented audiences. The company relies on licensing, distribution agreements, and technological platforms to deliver its services, competing in a highly dynamic and competitive entertainment industry.
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