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olivLaw · US equity research

Starz Entertainment Corp. STRZ

Services-Motion Picture & Video Tape Production · SIC 7812 · Vertical: Services-Motion Picture & Video Tape Production (SIC 7812)

25.38USD+8.65% · 1 dayClose 04 Nov 2026

Starz Entertainment Corp. is a premium subscription video provider for adult audiences in the U.S. and Canada, spun off from Lionsgate less than a year ago. Its second quarter of 2026 shows OTT revenue growth but large operating losses driven by restructuring charges, as the company resets its content cost structure. Quarterly revenue of $307.9 million and total debt of $625.1 million are the central figures for understanding its current position.

The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).

At the close of 04 Nov 2026, Starz Entertainment Corp. (STRZ) stock was 25.38 USD (+8.65% on the day), with market capitalisation 438.0 m USD, dividend yield 0.00%, beta 1.31, 52-week range 8.65–30.21 USD. Latest reported quarter (Q2 2027): revenue of 322.4 m USD (+0.5% YoY), net income of -34.8 m USD, diluted EPS -2.02 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
438.0 m USD
shares as of 28 Oct 2026
P/E (TTM)
unavailable
Diluted EPS TTM -24.36 · TTM to 30 Sept 2026
E/P (TTM)
-95.98%
TTM to 30 Sept 2026
Dividend yield
0.00%
DPS 12m 0.00
Beta (2y)
1.31
Volatility (1y) 68%
52-week range
8.6530.21

Price history

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Technical reading

RSI (14)
58.5
strong (55–70)
Bollinger (20, 2)
20.55 – 26.25
in the upper half of the band · %B 0.85 · band width 24.4%
SMA 50 / 200
24.43 / 20.77
uptrend (price > SMA50 > SMA200)
MACD (12, 26, 9)
-0.33 / -0.55
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month+10.2%−1.1%+11.3 pp—
3 months−3.4%−0.5%−2.9 pp—
6 months+26.0%+4.4%+21.6 pp—
Year to date+116.9%+12.3%+104.6 pp—
1 year+135.2%+13.5%+121.7 pp−44.7%
3 yearsunavailable+76.4%unavailable−60.2%
5 yearsunavailable+63.7%unavailable—
Max drawdown (1y)
−31.0%
11 Dec 2025 → 05 Feb 2026
Max drawdown (5y)
−58.7%
30 May 2025 → 05 Feb 2026
Compound annual growth (5y)
unavailable
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q2 2027 · 30 Sept 2026

Revenue
322.4 m USD
+0.5% YoY
Net income
-34.8 m USD
unavailable YoY
Diluted EPS
-2.02
unavailable YoY
net / operating
-10.8% / -6.6%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ3 '25Q4 '25Q1 '26Q2 '26Q3 '26Q4 '26Q1 '27Q2 '27
Revenue970.5 m330.6 m319.7 m320.9 m322.8 m ≈306.9 m307.9 m322.4 m
Operating income35.8 m-142.3 m-26.9 m-34.8 m-4.7 m ≈-152.8 m-175.5 m-21.2 m
Depreciation & amortisation43.8 m48.1 m48.7 m47.9 m47.3 m ≈68.5 m67.3 m67.4 m
Interest expense69.1 m10.9 m13.2 m15.8 m14.2 m ≈13.9 m13.6 m14.0 m
Pre-tax income-14.5 m-154.0 m-42.6 m-52.2 m-20.7 m ≈-168.1 m-190.6 m-36.5 m
Income tax4.0 m0-100.0 k400.0 k0 ≈-3.2 m-1.2 m-1.7 m
Net income-21.9 m-153.0 m-42.5 m-52.6 m-20.7 m ≈-164.9 m-189.4 m-34.8 m
Diluted EPS-0.09-9.15-2.54-3.15-1.24 ≈-9.83-11.27-2.02
Operating cash flow-335.3 m ≈-63.5 m65.4 m-26.1 m ≈-21.4 m ≈73.2 m——
Capex14.0 m ≈3.9 m6.9 m5.2 m ≈4.5 m ≈4.5 m——

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Fiscal years

Fiscal year20182019202020212022⚠ 202320242025
Revenue4.1 bn3.7 bn3.9 bn3.3 bn3.6 bn1.4 bn1.4 bn1.4 bn
Revenue YoY+29.0%−10.9%+5.7%−15.9%+10.2%—−2.1%−1.6%
Net income473.6 m-284.2 m-188.4 m-18.9 m-188.2 m-1.9 bn-915.2 m-211.2 m
Net income YoY+3,100.0%−160.0%unavailableunavailableunavailable—unavailableunavailable
Diluted EPS2.15-1.33-0.86-0.09-0.84-8.82-54.73-12.63
Diluted EPS YoY+2,288.9%−161.9%unavailableunavailableunavailable—unavailableunavailable
net %11.5%-7.7%-4.8%-0.6%-5.2%-131.5%-65.7%-15.4%
Free cash flow340.5 m383.7 m583.5 m-35.5 m-694.0 m-472.6 m-152.2 m-63.6 m

The series breaks before 2023: earlier years come from the original reports of the issuer of that time, later years from a subsequent filing that restated the perimeter (a separation, discontinued operations). The year-on-year change across the break is not shown.

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Mar 2025

Cash
17.8 m USD
Financial debt
699.9 m USD
Net debt
682.1 m USD
Equity
766.4 m USD
Total assets
2.2 bn USD
Debt / equity
0.91x
Current ratio
0.27x
ROE
unavailable
ROA
-9.8%
FCF margin
-4.6%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
1.4 bn
2024
1.4 bn
2025
1.4 bn

SEC (XBRL)· 26 Jun 2025verified

Operating income
2023
-1.3 bn
2024
-903.5 m
2025
-170.4 m

SEC (XBRL)· 26 Jun 2025verified

Depreciation & amortisation
2023
155.7 m
2024
161.8 m
2025
170.3 m

SEC (XBRL)· 26 Jun 2025verified

EBITDA
2023
-1.2 bn ≈
2024
-741.7 m ≈
2025
-100.0 k ≈

SEC (XBRL)· 26 Jun 2025derived

Interest expense
2023
221.2 m
2024
269.8 m
2025
45.6 m

SEC (XBRL)· 26 Jun 2025verified

Pre-tax income
2023
-1.4 bn
2024
-933.5 m
2025
-223.9 m

SEC (XBRL)· 26 Jun 2025verified

Income tax
2023
-18.3 m
2024
-128.9 m
2025
-8.6 m

SEC (XBRL)· 26 Jun 2025verified

Net income
2023
-1.9 bn
2024
-915.2 m
2025
-211.2 m

SEC (XBRL)· 26 Jun 2025verified

Diluted EPS
2023
-8.82
2024
-54.73
2025
-12.63

SEC (XBRL)· 26 Feb 2026verified

Weighted average diluted shares
2023
227.9 m
2024
16.7 m
2025
16.7 m

SEC (XBRL)· 26 Feb 2026verified

Dividend per share
2023
—
2024
—
2025
—

SEC (XBRL)· 28 May 2021verified

Balance sheet · USD

Cash
2023
272.1 m
2024
23.0 m
2025
17.8 m

SEC (XBRL)· 26 Jun 2025verified

Receivables
2023
582.1 m
2024
52.9 m
2025
52.7 m

SEC (XBRL)· 26 Jun 2025verified

Current assets
2023
1.1 bn
2024
126.8 m
2025
170.5 m

SEC (XBRL)· 26 Jun 2025verified

Property, plant & equipment, net
2023
—
2024
51.1 m
2025
48.6 m

SEC (XBRL)· 26 Jun 2025verified

Goodwill
2023
494.0 m
2024
0
2025
0

SEC (XBRL)· 26 Jun 2025verified

Intangibles (excl. goodwill)
2023
1.3 bn
2024
991.8 m
2025
816.0 m

SEC (XBRL)· 26 Jun 2025verified

Total assets
2023
7.4 bn
2024
2.1 bn
2025
2.2 bn

SEC (XBRL)· 26 Jun 2025verified

Accounts payable
2023
368.1 m
2024
80.3 m
2025
64.5 m

SEC (XBRL)· 26 Jun 2025verified

Short-term debt
2023
41.4 m
2024
860.3 m
2025
0

SEC (XBRL)· 13 Nov 2025verified

Long-term debt
2023
2.0 bn
2024
1.6 bn
2025
699.9 m

SEC (XBRL)· 14 Aug 2025verified

Current liabilities
2023
2.6 bn
2024
408.4 m
2025
622.5 m

SEC (XBRL)· 26 Jun 2025verified

Total liabilities
2023
6.3 bn
2024
1.2 bn
2025
1.4 bn

SEC (XBRL)· 26 Jun 2025verified

Equity
2023
786.0 m
2024
-310.5 m
2025
766.4 m †

SEC (XBRL)· 26 Jun 2025verified

Cash flow · USD

Operating cash flow
2023
-438.3 m
2024
-131.8 m
2025
-46.0 m

SEC (XBRL)· 26 Jun 2025verified

Capex
2023
34.3 m
2024
20.4 m
2025
17.6 m

SEC (XBRL)· 26 Jun 2025verified

Free cash flow
2023
-472.6 m ≈
2024
-152.2 m ≈
2025
-63.6 m ≈

SEC (XBRL)· 26 Jun 2025derived

Investing cash flow
2023
-42.5 m
2024
-24.8 m
2025
-99.2 m

SEC (XBRL)· 26 Jun 2025verified

Financing cash flow
2023
428.1 m
2024
132.0 m
2025
126.0 m

SEC (XBRL)· 26 Jun 2025verified

Dividends paid
2023
—
2024
—
2025
—

SEC (XBRL)· 28 May 2021verified

Share repurchases
2023
0
2024
—
2025
—

SEC (XBRL)· 25 May 2023verified

Computed indicators

Growth

Revenue growth (YoY)
-1.6%
computed by olivLawFY 2025
Revenue CAGR 3Y
-27.6%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
-18.8%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
unavailable
the base of the ratio is not positive
Net income growth (YoY)
unavailable
the base of the ratio is not positive
Net income CAGR 3Y
unavailable
the base of the ratio is not positive
Net income CAGR 5Y
unavailable
the base of the ratio is not positive
EPS growth (YoY)
unavailable
the base of the ratio is not positive
EPS CAGR 3Y
unavailable
the base of the ratio is not positive
EPS CAGR 5Y
unavailable
the base of the ratio is not positive
FCF growth (YoY)
unavailable
the base of the ratio is not positive

Profitability

Gross margin
unavailable
input data missing
EBITDA margin
-8.2%
computed by olivLawTTM to 30 Sept 2026
EBIT margin
-28.1%
computed by olivLawTTM to 30 Sept 2026
Net margin
-32.5%
computed by olivLawTTM to 30 Sept 2026
FCF margin
5.6%
computed by olivLawTTM to 30 Sept 2026

Returns

ROE
-87.9%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROA
-23.0%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROIC
-28.4%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROCE
-32.2%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
590.9 m USD
computed by olivLawbalance sheet at 30 Sept 2026
Net debt / EBITDA
unavailable
insufficient data
Debt / equity
2.5x
computed by olivLawbalance sheet at 30 Sept 2026
Interest coverage
-6.4x
computed by olivLawTTM to 30 Sept 2026

Liquidity

Current ratio
0.3x
computed by olivLawbalance sheet at 30 Sept 2026
Quick ratio
unavailable
input data missing
Cash ratio
0.2x
computed by olivLawbalance sheet at 30 Sept 2026

Cash

Operating cash flow
91.1 m USD
computed by olivLawTTM to 31 Mar 2026
Capital expenditure
21.1 m USD
computed by olivLawTTM to 31 Mar 2026
Free cash flow
70.0 m USD
computed by olivLawTTM to 30 Sept 2026
FCF conversion
unavailable
insufficient data
Cash conversion
unavailable
insufficient data

Efficiency

Days sales outstanding
19 days
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Days inventory outstanding
unavailable
input data missing
Days payables outstanding
unavailable
input data missing
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
438.0 m USD
computed by olivLawbalance sheet at 30 Sept 2026
Enterprise value
1.0 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Market cap / net income TTM
unavailable
insufficient data
P/E (TTM)
unavailable
insufficient data
Earnings yield
-96.0%
computed by olivLawTTM to 30 Sept 2026
P/B
1.6x
computed by olivLawbalance sheet at 30 Sept 2026
P/S
0.3x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
EV/EBITDA
unavailable
insufficient data
EV/EBIT
unavailable
insufficient data
EV/Sales
0.8x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
P/FCF
6.3x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
FCF yield
16.0%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Dividend yield
0.0%
computed by olivLawTTM to 30 Sept 2026
Shareholder yield (distributions)
unavailable
input data missing

1 indicators that do not apply to the sector.

Valuation

olivLaw classification

Insufficient data
What is missing
  • score weight coverage: 43.8% of at least 60%

A scoring methodology on indicators and valuation, not investment advice.

Closing price

25.38 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 438.0 m USD

Key indicators

Market capitalisation
438.0 m USD
computed by olivLawbalance sheet at 30 Sept 2026
P/E (TTM)
unavailable
insufficient data
P/B
1.6x
computed by olivLawbalance sheet at 30 Sept 2026
EV/EBITDA
unavailable
insufficient data
ROE
-87.9%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Net margin
-32.5%
computed by olivLawTTM to 30 Sept 2026
Revenue growth (YoY)
-1.6%
computed by olivLawFY 2025
Dividend yield
0.0%
computed by olivLawTTM to 30 Sept 2026

Coverage and freshness

31/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Sept 2026
Latest balance sheet date: 30 Sept 2026
Share count (cover of the latest filing), as of: 28 Oct 2026
Source: SEC (XBRL)published 29 Oct 2026
verified 2321derived 155

Score by group

44% · Insufficient data

Estimated value range

Low
69.11
USD per share
Mid
103.21
USD per share
High
174.83
USD per share
Price: 25.38 USD
The price is below the range
Potential to the central value: 306.6% (value / price − 1)
Margin of safety: 75.4% (1 − price / value)
Agreement between methods: single method · 1 methods used · 1 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 69.11 – 174.83 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)69.11 – 174.83 (Mid 103.21)
    WACC 6.7% · starting FCFF 116.8 m USD · terminal value share of EV 81%
    The WACC × g sensitivity gives the method's bounds; these are not probabilities.
    Reverse DCF: no growth between −30% and +40% justifies the price
  • Peers: EV/EBITDAunavailable · the base of the ratio is not positive
  • Peers: P/Eunavailable · the base of the ratio is not positive
  • Dividend discount (DDM)unavailable · the base of the ratio is not positive
Multiple comparisons use the SIC vertical: Services-Motion Picture & Video Tape Production (SIC 7812)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: score weight coverage: 43.8% of at least 60%

FactorValueScoreWeight used
ROIC · Quality-28.4%0 (on a fixed band)24%
Net margin · Quality-32.5%43 (vs peers)14%
FCF conversion · Qualityunavailableunavailable—
Revenue CAGR 3Y · Growth-27.6%0 (on a fixed band)19%
EPS CAGR 3Y · Growthunavailableunavailable—
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheet-6.4x0 (on a fixed band)14%
Current ratio · Balance sheet0.3x0 (on a fixed band)10%
P/E (TTM) · Valuationunavailableunavailable—
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuation16.0%100 (on a fixed band)19%
Shareholder yield (distributions) · Returnsunavailableunavailable—
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet0/100 · 2/3 factors with a value
  • Growth· partial0/100 · 1/2 factors with a value
  • Quality16/100 · 2/3 factors with a value
  • Returns· partialunavailable · 0/2 factors with a value
  • Valuation· partial100/100 · 1/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

Starz Entertainment Corp. (STRZ). Latest full fiscal year: 2025; data up to 2026-09-30.

Figures computed from the financial statements: revenue 1.4 bn USD in 2025; YoY growth -1.6%; net margin -32.5%; ROE -87.9%.

The estimated value range is 69.11–174.83 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 103.21 USD, the price of 25.38 USD leaves a potential of 306.6% (value / price − 1) and a margin of safety of 75.4% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

Insufficient data for a verdict (score weight coverage: 43.8% of at least 60%).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • FCF yield: 16.0%
  • The price is below the estimated value range

What contradicts it

  • ROIC: -28.4%
  • Revenue CAGR 3Y: -27.6%
  • Interest coverage: -6.4x
  • Current ratio: 0.3x

Not assessed (insufficient data or a ratio without meaning): FCF conversion, EPS CAGR 3Y, Net debt / EBITDA, P/E (TTM), EV/EBITDA, Shareholder yield (distributions), Payout ratio (FCF).

Versus the vertical median

Services-Motion Picture & Video Tape Production (SIC 7812) · same industry (4-digit SIC) · compared with 7 companies

Multiples and returns vs the median

P/E
—
vertical median —
EV/EBITDA
—
vertical median —
P/S
0.3x
vertical median 1.5x
below median (−76.6%)
P/B
1.6x
vertical median 3.1x
below median (−47.9%)
ROE
-87.9%
vertical median -5.8%
below median
Net margin
-32.5%
vertical median -4.1%
below median
EBIT margin
-28.1%
vertical median -31.5%
above median
Revenue YoY
-1.6%
vertical median 20.7%
below median (−107.9%)
Net debt/EBITDA
—
vertical median —
Dividend yield
0.0%
vertical median —

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
LIONLionsgate Studios Corp.3.8 bn——-4.1%+1.8%+71% / +20%
FUBOFuboTV Inc.2.8 bn—-5.8%-0.7%+18.6%−77% / −79%
ANGXAngel Studios, Inc.684.5 m——-37.5%+233.2%−25% / unavailable
STRZStarz Entertainment Corp.438.0 m—-87.9%-32.5%−1.6%+135% / unavailable
CURICuriositystream Inc.157.8 m511.10.1%0.0%+40.1%−45% / +286%
MPUMega Matrix Inc50.4 m—-213.2%-131.4%−27.9%−95% / −94%
TOONKartoon Studios, Inc.32.3 m10.521.7%26.9%+20.7%−30% / −68%
GAIAGaia, Inc——-9.3%-1,090.3%+55.2%−67% / −52%

1- and 3-year price returns: for STRZ from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
3 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
5 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
What moves the 3-year price the most

    AI analysis

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    Possibly outdated: the newest document it read is from 07 Aug 2026; since then the company filed 8-K (29 Oct 2026 · results), 10-Q (29 Oct 2026).

    In brief

    Starz Entertainment Corp. is a premium subscription video provider for adult audiences in the U.S. and Canada, spun off from Lionsgate less than a year ago. Its second quarter of 2026 shows OTT revenue growth but large operating losses driven by restructuring charges, as the company resets its content cost structure 23. Quarterly revenue of $307.9 million 3 and total debt of $625.1 million 3 are the central figures for understanding its current position.

    SWOT

    Strengths

    • A catalog of theatrically released films and original series with a loyal audience gives the company a clear identity in the market 1.
    • Exclusive airing window agreements protect part of the content against other services 1.
    • OTT revenue held steady in the second quarter of 2026, pointing to a resilient subscriber base 23.

    Weaknesses

    • The company is smaller and less diversified than its former parent, which makes results more volatile 1.
    • Large operating losses in the second quarter of 2026 were driven mainly by restructuring costs 3.
    • Total debt remains high, and the leverage ratio sits near management's targets 3.

    Opportunities

    • If OTT revenue keeps growing, the company could offset linear decline and reduce its dependence on distributors 3.
    • Meeting cash flow targets could support debt reduction and renewal of distributor agreements 3.
    • Success of original premieres such as 'Fightland' could attract new subscribers and justify content investment 3.

    Threats

    • Continued decline of linear television could reduce revenue from cable and satellite packages 2.
    • Strong competition from better-resourced services could raise content costs and reduce market share 1.
    • Regulatory changes on user data or subscription cancellation could raise compliance costs 1.

    Risks

    • Dependence on distributorshigh

      Revenue depends on distribution agreements that may not be renewed on favorable terms 1.

    • Restructuring and impairmenthigh

      Recent restructuring and content reduction have generated large charges and asset write-downs 23.

    • Debt and liquiditymedium

      High total debt and limited cash could make additional financing more expensive or difficult 3.

    • Viewer preferencesmedium

      Success depends on audience tastes, which are hard to predict and can quickly affect subscriptions 1.

    • Regulationlow

      Rules on data use, subscription cancellation and net neutrality could raise costs or reduce demand 1.

    Investment thesis

    What would need to be true (bull case)

    • If OTT revenue keeps growing and restructuring lowers costs, margins could recover toward healthier levels 3.
    • A catalog of films and original series with a loyal audience could support long-term subscriber retention 1.
    • If leverage and cash flow targets are reached, financial pressure could ease 3.

    What would break the thesis

    • Linear decline and large operating losses could continue if OTT revenue does not offset the drop 23.
    • High content costs and strong competition could limit margins even after restructuring 1.
    • High debt could restrict financial flexibility if results fall short of forecasts 3.

    What to watch

    • Trend in OTT revenue and subscriber countQ3 2026
    • Achievement of the Adjusted OIBDA leverage target by year-end2026
    • Impact of restructuring costs and termination fees on resultsQ3 2026
    • Renewal of major distributor agreementsnext 10-K

    Products, market & competition

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    Possibly outdated: the newest document it read is from 07 Aug 2026; since then the company filed 8-K (29 Oct 2026 · results), 10-Q (29 Oct 2026).

    The business

    The company distributes the premium STARZ service, which had about 19.6 million subscribers as of March 31, 2025 1, through OTT platforms such as Amazon, Apple, Google and Hulu, and through MVPD distributors such as Comcast, Charter, DIRECTV and DISH Network 1. Its model relies on recurring fees from subscribers or rates tied to subscriber counts, and it also sells directly to consumers through its app 12.

    Its content is mostly theatrically released movies, which make up about 80% of available content 1, complemented by original series such as 'Outlander' and 'Power' that are treated as franchises. Exclusive output licensing deals with Lionsgate and Universal give Starz protected airing windows 1.

    Since the separation from Lionsgate Studios in May 2025, the company changed its fiscal year end to December 31 12. Its structure is smaller and less diversified than its former parent, which makes results more sensitive to market shifts 1.

    Segments

    International operations

    Operations outside the U.S. and Canada were largely shut down in a restructuring that began in 2023 12. India and Southeast Asia were transferred to Lionsgate Studios from April 1, 2025, so the international segment no longer represents a significant share 2.

    Market context

    The premium video subscription market is described in the source as highly competitive and rapidly changing, with growing attention to streaming and free ad-supported services 1. Starz revenue depends on distributor subscriber counts and on audience preferences, which are hard to predict 1.

    The shift from linear television to OTT is a persistent trend, and linear revenue is declining 12. The company has responded by cutting content costs, cancelling programming and abandoning content of limited strategic value 2.

    Trends

    • Shift to direct streamingtailwind

      OTT consumption and direct-to-consumer subscriptions are growing, and OTT revenue held roughly flat in the second quarter of 2026 23. If this trend continues, it could support the company's recurring revenue.

    • Decline of linear televisionheadwind

      Linear and other revenue fell in the second quarter of 2026 compared with the prior year 2. Pressure on cable and satellite packages makes the traditional side of the business harder.

    • Content rationalizationmixed

      The company cancelled programs, abandoned some content and paid termination fees on live-action films to reduce content costs 2. This could improve margins in the short term but may limit offerings for subscribers.

    • Pressure on content costsheadwind

      Competition can raise talent and production costs, and recent union renegotiations added to those costs 1. If these costs grow faster than revenue, margins could be affected.

    Competitive position

    Starz competes with cable television, national broadcast television and digital streaming services for subscribers and for desired programming 1. Larger competitors have greater financial resources and can offer more content or bid more aggressively for projects and talent 1.

    Free ad-supported FAST services add pressure because they change consumer expectations about price and content availability 1. The company's success therefore depends not only on programming quality but also on retaining subscribers in this competition 1.

    • NetflixNFLX

      Subscription streaming service that competes directly for adult viewers' attention and subscriptions, named in the general streaming category of the source.

    • Cable and satellite distributors (Comcast, Charter, DISH)

      Distributors that carry Starz as an important channel, but also compete for viewer attention through their own television packages.

    • Lionsgate Studios Corp.

      Former parent, separated in May 2025, which produces content and continues to supply films and series to Starz under licensing agreements 12.

    • Free FAST services

      Ad-supported linear channels that change viewing habits and compete with subscription services 1.

    News & filings

    In the press

    The latest news item in our archive is from 11 May 2026; the newest SEC filing is from 29 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.

    SEC filings

    Sources

    1. [1] Form 10-K, fiscal year ended 2025-03-31 · SEC / Starz Entertainment Corp. · 26 Jun 2025
    2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Starz Entertainment Corp. · 07 Aug 2026
    3. [3] Form 8-K, results release (exhibit 99.1) · SEC / Starz Entertainment Corp. · 07 Aug 2026

    Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.