Starz Entertainment (STRZ) Q2 2026 earnings summary

Executive summary

• Delivered strong Q2 2026 results in OTT with high-performing original content and increased engagement, highlighted by the 'Fightland' premiere.

• Revenue for Q2 2026 was $307.9 million, down 3.7% year-over-year, with OTT revenue returning to growth and linear revenue declining due to industry trends.

• Net loss from continuing operations for Q2 2026 was $189.4 million, driven by significant restructuring and contract termination costs.

• Expanded distribution through new partnerships (Peacock, Crunchyroll), increasing reach and marketing opportunities.

• Strategic focus remains on organic growth, disciplined capital allocation, and selective M&A.

Financial highlights

• Adjusted OIBDA for Q2 2026 was $59.9 million, up from $33.4 million in Q2 2025, reflecting lower programming amortization.

• Operating loss for Q2 2026 was $175.5 million, primarily due to non-recurring restructuring charges.

• Unlevered free cash flow was negative $14.7 million for Q2 but positive $66 million year to date.

• Cash and cash equivalents increased to $59.6 million as of June 30, 2026.

• Cash content spend for the quarter was $182 million, with full-year spend expected below $600 million.

Outlook and guidance

• Raised 2026 adjusted OIBDA growth guidance from low to mid-single digits.

• Unlevered free cash flow outlook increased to the mid to upper end of $80 million-$120 million.

• Confident in achieving 20% adjusted OIBDA margin target in the back half of 2027.

• Management expects continued pressure on linear revenue and is focused on cost containment and content portfolio optimization.

• Cash flow from operations, cash on hand, and undrawn credit facilities are expected to be sufficient for operational and debt service needs for the next twelve months and beyond.