Starz Reports Q1 2026 Loss, Accelerates Profitability Target
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Starz reported a net loss of $164.9 million on $306.9 million in revenue for the first quarter of 2026. The company's leadership stated it is accelerating its target for a 20% adjusted OIBDA margin to the second half of 2027, one year ahead of previous guidance. Starz confirmed it is no longer reporting subscriber numbers.
Facts First
- Reported a net loss of $164.9 million on $306.9 million in revenue for Q1 2026.
- Accelerated its profitability outlook to achieve a 20% adjusted OIBDA margin by the second half of 2027, a year ahead of schedule.
- Confirmed it will no longer report subscriber numbers, with the last reported figure being 17.6 million total subscribers in Q4 2025.
- Generated $68.7 million in equity free cash flow during the quarter.
- Carries $625.1 million in total debt, with a net debt position of $523 million.
What Happened
Starz reported its first-quarter 2026 earnings, showing a net loss of $164.9 million on revenue of $306.9 million. The loss per share was $9.83, and the operating loss was $152.8 million. Over-the-top (OTT) revenue for the quarter was $211.1 million, down from $225.5 million in the same quarter last year. Linear and other revenue totaled $95.8 million, down from $105.1 million a year ago. The company's reported revenue was slightly above the Wall Street consensus forecast, but the loss per share was significantly wider than the forecasted loss of 81 cents.
Why this Matters to You
If you are an investor or follow the media sector, Starz's financial performance and strategic shift away from public subscriber reporting may affect your assessment of the company's value and transparency. The accelerated profitability target could signal confidence in its cost management and revenue strategy, which may influence market sentiment. The company's continued generation of positive equity free cash flow suggests it has liquidity to manage its operations and debt.
What's Next
Starz leadership is now targeting the second half of 2027 to achieve a 20% adjusted OIBDA margin, a goal moved forward by one year from the previous target of the latter half of 2028. The company's future communications to investors... will likely focus on financial metrics like revenue, margins, and cash flow, rather than subscriber growth figures.