STARZ Q4 Revenue of $322.8M Exceeds Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 26 2026
0mins
Should l Buy STRZ?
Reports Q4 revenue $322.8M, consensus $322.16M. STARZ ended the quarter with 12.7 million U.S. Over-The-Top subscribers, representing a sequential increase of 370,000. Total U.S. subscribers were 17.6 million, an increase of 170,000 from the prior quarter. This increase was driven by interest in our scripted originals in the quarter, including Season 3 of Power Book IV: Force and Season 1 of Spartacus: House of Ashur. "Just nine months after our separation, we are beginning to see the full impact of operating as a standalone company. We exceeded all our financial guidance in 2025 and expect 2026 to be a positive financial inflection point for the company as we enter the year with record-high OTT subscribers and a balance sheet that outperformed our deleveraging expectations," said STARZ President and CEO Jeffrey Hirsch. "With a disciplined investment strategy, a more efficient operating model, and one of our strongest programming slates to date, we are poised to drive sustainable OTT revenue growth, expand profitability, and improve free cash flow as we execute against our long-term targets."
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Analyst Views on STRZ
Wall Street analysts forecast STRZ stock price to rise
4 Analyst Rating
1 Buy
3 Hold
0 Sell
Hold
Current: 14.910
Low
13.00
Averages
20.00
High
39.00
Current: 14.910
Low
13.00
Averages
20.00
High
39.00
About STRZ
Starz Entertainment Corp. is the premium entertainment destination for women and underrepresented audiences, and home to some of the popular franchises and series on television. The Company offers a programming mix for discerning adult audiences, including originals and an expansive lineup of movies, and is embodied by its brand positioning We're All Adults Here. Complementary to any platform or service, it is available across a range of digital over-the-top (OTT) platforms and multichannel video distributors and is a bundling partner of choice. The Company operates primarily in the United States and Canada and distributes the STARZ branded premium subscription video services on a direct-to-consumer OTT basis through the Starz App and through wholesale OTT and multichannel video programming distributors (MVPDs), including cable operators, satellite television providers and telecommunications companies (in the aggregate the Starz Platform).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
STARZ Implements Shareholder Rights Plan to Enhance Value
- Shareholder Protection: STARZ's Board unanimously adopted a limited-duration shareholder rights plan effective immediately, expiring on March 10, 2027, aimed at safeguarding long-term shareholder interests and enhancing the company's competitive position in the market.
- Rights Plan Details: Under the plan, one right will be issued for each common share, with rights distributed as dividends to existing shareholders as of the record date of March 20, 2026, ensuring equitable participation in future value appreciation for all shareholders.
- Control Prevention: The plan is designed to reduce the likelihood that any individual or group could gain control of the company without appropriately compensating shareholders, thereby maintaining stability in corporate governance and protecting the value of shareholder investments.
- Market Reaction Expectations: While the plan does not deter the Board from considering fair acquisition offers, its implementation is expected to bolster investor confidence, potentially leading to a positive impact on the company's stock price and facilitating the realization of long-term shareholder value.
See More
STARZ Unveils Limited-Duration Shareholder Rights Plan
- Shareholder Protection Measure: STARZ's Board unanimously adopted a limited-duration shareholder rights plan effective immediately, set to expire on March 10, 2027, aimed at safeguarding the company's long-term strategy and maximizing shareholder value.
- Rights Plan Details: The plan issues one right for each outstanding common share, with rights paid as a dividend to shareholders as of the record date of March 20, 2026, ensuring equity for all current and future shareholders.
- Control Prevention: The plan is designed to reduce the likelihood of any person or group gaining control of the company without appropriately compensating shareholders, thereby maintaining governance stability.
- Market Reaction Expectations: While the plan does not intend to deter fair acquisition offers, its implementation may enhance investor confidence in STARZ, promoting stock price stability and potential growth.
See More
Allen Family Capital Acquires Stake in Starz Entertainment
- Share Acquisition: Allen Family Capital has acquired over 1.8 million shares of Starz Entertainment for $25 million, resulting in a 10.7% equity stake, reflecting strong confidence in the premium pay-TV network and OTT platform.
- Change of Seller: The seller of this transaction was Hollywood producer Steven Mnuchin's Liberty 77 Capital, which no longer holds any stake in Starz post-sale, indicating a significant shift in its investment strategy.
- Future Cash Flow Expectations: Starz anticipates free cash flow between $80 million and $120 million in 2026, targeting a leverage ratio of 2.7x and aiming for OTT revenue growth, showcasing the potential for its business transformation.
- Market Reaction: This acquisition may enhance Starz's market position, particularly as it focuses on U.S. subscriber growth, thereby strengthening its competitiveness in the fiercely contested streaming market.
See More
Starz (STRZ) Q4 2025 Earnings Call Transcript
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Starz Entertainment Corp. Reports Strong Q4 2025 Earnings and Subscriber Growth
- Significant Subscriber Growth: Starz added 370,000 OTT subscribers in Q4 2025, bringing the total to 12.7 million, which represents a 7.6% year-over-year increase, enhancing the company's competitive position in the streaming industry.
- Financial Performance Exceeds Expectations: The company reported an adjusted OIBDA of $204 million for the year, surpassing the $200 million outlook, indicating strong profitability and effective cost management that will support future investments and expansion.
- Strategic Transformation and Content Investment: Starz restructured its Canadian business into a licensing revenue stream and plans to launch several original series in 2026, demonstrating a commitment to content creation that is expected to drive future user retention and revenue growth.
- Cash Flow and Leverage Improvement: The company anticipates generating between $80 million to $120 million in positive free cash flow in 2026, with leverage expected to decrease to 2.7x, reflecting positive progress in financial health and sustainable growth.
See More
Starz Entertainment Corp Q4 Earnings Analysis
- Earnings Performance: Starz Entertainment Corp reported a Q4 GAAP EPS of -$1.24, missing expectations by $0.09, indicating challenges in profitability that may affect investor confidence.
- Revenue Growth: Despite the EPS miss, Starz's revenue reached $322.8 million, beating market expectations by $0.64 million, suggesting the company retains some competitive strength in revenue generation.
- Rating Upgrade: Seeking Alpha's Quant Rating has upgraded Starz Entertainment Corp, indicating potential market confidence in its future turnaround, which may attract more investor interest.
- Historical Financial Data: The historical financial data provided by Starz offers a foundation for analyzing its long-term performance, assisting investors in assessing the company's future growth potential and risks.
See More
STARZ Implements Shareholder Rights Plan to Enhance Value
- Shareholder Protection: STARZ's Board unanimously adopted a limited-duration shareholder rights plan effective immediately, expiring on March 10, 2027, aimed at safeguarding long-term shareholder interests and enhancing the company's competitive position in the market.
- Rights Plan Details: Under the plan, one right will be issued for each common share, with rights distributed as dividends to existing shareholders as of the record date of March 20, 2026, ensuring equitable participation in future value appreciation for all shareholders.
- Control Prevention: The plan is designed to reduce the likelihood that any individual or group could gain control of the company without appropriately compensating shareholders, thereby maintaining stability in corporate governance and protecting the value of shareholder investments.
- Market Reaction Expectations: While the plan does not deter the Board from considering fair acquisition offers, its implementation is expected to bolster investor confidence, potentially leading to a positive impact on the company's stock price and facilitating the realization of long-term shareholder value.
See More
STARZ Unveils Limited-Duration Shareholder Rights Plan
- Shareholder Protection Measure: STARZ's Board unanimously adopted a limited-duration shareholder rights plan effective immediately, set to expire on March 10, 2027, aimed at safeguarding the company's long-term strategy and maximizing shareholder value.
- Rights Plan Details: The plan issues one right for each outstanding common share, with rights paid as a dividend to shareholders as of the record date of March 20, 2026, ensuring equity for all current and future shareholders.
- Control Prevention: The plan is designed to reduce the likelihood of any person or group gaining control of the company without appropriately compensating shareholders, thereby maintaining governance stability.
- Market Reaction Expectations: While the plan does not intend to deter fair acquisition offers, its implementation may enhance investor confidence in STARZ, promoting stock price stability and potential growth.
See More
Allen Family Capital Acquires Stake in Starz Entertainment
- Share Acquisition: Allen Family Capital has acquired over 1.8 million shares of Starz Entertainment for $25 million, resulting in a 10.7% equity stake, reflecting strong confidence in the premium pay-TV network and OTT platform.
- Change of Seller: The seller of this transaction was Hollywood producer Steven Mnuchin's Liberty 77 Capital, which no longer holds any stake in Starz post-sale, indicating a significant shift in its investment strategy.
- Future Cash Flow Expectations: Starz anticipates free cash flow between $80 million and $120 million in 2026, targeting a leverage ratio of 2.7x and aiming for OTT revenue growth, showcasing the potential for its business transformation.
- Market Reaction: This acquisition may enhance Starz's market position, particularly as it focuses on U.S. subscriber growth, thereby strengthening its competitiveness in the fiercely contested streaming market.
See More
Starz (STRZ) Q4 2025 Earnings Call Transcript
See More
Starz Entertainment Corp. Reports Strong Q4 2025 Earnings and Subscriber Growth
- Significant Subscriber Growth: Starz added 370,000 OTT subscribers in Q4 2025, bringing the total to 12.7 million, which represents a 7.6% year-over-year increase, enhancing the company's competitive position in the streaming industry.
- Financial Performance Exceeds Expectations: The company reported an adjusted OIBDA of $204 million for the year, surpassing the $200 million outlook, indicating strong profitability and effective cost management that will support future investments and expansion.
- Strategic Transformation and Content Investment: Starz restructured its Canadian business into a licensing revenue stream and plans to launch several original series in 2026, demonstrating a commitment to content creation that is expected to drive future user retention and revenue growth.
- Cash Flow and Leverage Improvement: The company anticipates generating between $80 million to $120 million in positive free cash flow in 2026, with leverage expected to decrease to 2.7x, reflecting positive progress in financial health and sustainable growth.
See More
Starz Entertainment Corp Q4 Earnings Analysis
- Earnings Performance: Starz Entertainment Corp reported a Q4 GAAP EPS of -$1.24, missing expectations by $0.09, indicating challenges in profitability that may affect investor confidence.
- Revenue Growth: Despite the EPS miss, Starz's revenue reached $322.8 million, beating market expectations by $0.64 million, suggesting the company retains some competitive strength in revenue generation.
- Rating Upgrade: Seeking Alpha's Quant Rating has upgraded Starz Entertainment Corp, indicating potential market confidence in its future turnaround, which may attract more investor interest.
- Historical Financial Data: The historical financial data provided by Starz offers a foundation for analyzing its long-term performance, assisting investors in assessing the company's future growth potential and risks.
See More
