Starz Posts Third-Quarter Revenue of $322.4 Million, Beating Expectations

Key Facts

Starz reported results on Oct. 29 for the third quarter ended Sept. 30, posting revenue of $322.4 million, up 0.5% year over year, according to TheWrap. Revenue topped analysts’ expectations of $319.5 million. The net loss was $34.8 million, or $2.02 per share, compared with an expected loss of $2.96 per share. The results followed the company’s investor call that day at 5 p.m. Eastern time, according to its investor relations page. The figures show revenue above market expectations and a per-share loss below estimates.

Streaming led part of the performance, with revenue rising 1.7% to $226.6 million, according to TheWrap. The report attributed the growth to annual subscribers renewing at higher promotional rates, as well as the continued effect of a price increase the company implemented in April. It cited entertainment titles that contributed to results, including “Fightland” and “Power Book III: Raising Kanan.” By contrast, revenue from linear networks and other sources fell as traditional viewing continued to decline amid subscription cancellations. The report said higher distribution revenue tied to “Fightland” partly offset the decline.

The third-quarter results followed a period in which Starz posted a large operating loss in the second quarter. The company then reported revenue of $307.9 million and an operating loss of $175.5 million, attributing most of the loss to a one-time restructuring charge, according to an investor relations statement. In August, the company raised its 2026 adjusted operating profit growth outlook from the low single digits to the mid-single digits. It also raised its unlevered free cash flow outlook to the upper half of a range of $80 million to $120 million. The company thereby reaffirmed its focus on improving financial performance alongside streaming growth.

In a distribution-related move, Starz announced on Oct. 20 an agreement to restore its channels, Starz On Demand service and app to Verizon Fios, according to a company statement. The move comes as coverage of the results says higher distribution revenue tied to “Fightland” helped partly offset declines in linear networks. This highlights distribution’s role, alongside subscriptions and pricing, in the business’s performance, based on the factors cited in the coverage. Ahead of the results announcement, the company’s shares fell 3.4% to $21.74 on Thursday, according to TheWrap. EL7 data showed the stock closed at $22.50 on Oct. 28, after $21.57 in the previous session.