Starz Entertainment Reports $320.9M Revenue Decline and Increased Operating Loss in Q3 2025

Starz Entertainment Corp. reported a total revenue of $320.9 million for the three months ended September 30, 2025, a decrease of 7.5% compared to $346.9 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 $222.8 million from $232.2 million, and linear revenue, which decreased from $114.7 million to $98.1 million. For the six-month period ending September 30, 2025, total revenue also decreased by 7.8% to $640.6 million from $694.5 million in the prior year, reflecting similar trends in both OTT and linear revenue streams.

The company's operating loss for the quarter was $34.8 million, significantly higher than the $17.0 million loss reported in the same quarter of 2024. This increase in operating loss was attributed to higher programming amortization costs, which decreased to $156.8 million from $182.1 million, but were offset by increased general and administrative expenses and restructuring costs. The net loss from continuing operations for the quarter was $52.6 million, compared to a loss of $30.6 million in the prior year, marking a 71.9% increase in losses.

In terms of operational metrics, Starz reported a total of 19.20 million subscribers as of September 30, 2025, down from 23.20 million a year earlier. This decline was primarily due to a decrease in linear subscribers, which fell from 7.75 million to 6.23 million, while OTT subscribers increased slightly from 12.40 million to 12.97 million. The company has also undergone significant organizational changes, including the separation from Lionsgate, which was completed on May 6, 2025. This strategic move has allowed Starz to focus on its core business, although it has also led to increased costs associated with becoming an independent entity.

Starz's financial position showed a total asset value of $1.97 billion as of September 30, 2025, down from $2.17 billion at the end of the previous fiscal period. The company reported cash and cash equivalents of $37.0 million, a notable increase from $17.8 million at the end of March 2025. The company’s debt levels have also changed, with total debt reported at $612.5 million, down from $699.9 million. Looking ahead, Starz anticipates that 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. The company continues to evaluate its content strategy and performance in light of the current economic environment, which may lead to further adjustments in its programming and operational focus.