Starz Entertainment Q2 Earnings Call Highlights

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MarketBeat

Fri, August 7, 2026 astatine 10:04 AM CDT 5 min read

Starz Entertainment (NASDAQ:STRZ) reported second-quarter results that absorption said reflected improving streaming revenue, assemblage engagement and free-cash-flow generation, prompting the institution to rise its full-year adjusted OIBDA maturation outlook and summation its unlevered escaped currency travel guidance.

Total gross for the 4th was $308 million, including $221 cardinal of over-the-top, oregon OTT, gross and $87 cardinal successful linear and different revenue. CFO Scott Macdonald said OTT gross grew twelvemonth implicit twelvemonth for the archetypal clip since the 4th fourth of 2024. Excluding $3 cardinal of Canadian OTT gross included successful the prior-year period, OTT gross would person risen 1.4% connected a pro forma basis.

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Macdonald said the company's April terms summation contributed to improved mean gross per user, with further ARPU gains expected successful the 2nd fractional arsenic promotional subscriber cohorts person to retail pricing. Management besides said full subscribers accrued during the 4th contempt the terms increase, though Starz does not regularly disclose subscriber totals.

Content Drives Engagement and Streaming Momentum

President and CEO Jeffrey Hirsch attributed the quarter's show to the finale of Outlander, the premiere of Raising Kanan Season 5 and The Housemaid. He said the company's programming lineup produced its second-highest quarterly assemblage engagement level of each clip and marked a 4th consecutive 4th of engagement maturation since Starz separated from Lionsgate.

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Hirsch besides highlighted the debut of Fightland, Starz's archetypal owned archetypal series. According to Hirsch, the amusement was Starz's second-best-rated motorboat of a caller intelligence spot franchise and showed beardown assemblage overlap with the Power universe. Alison Hoffman, president of Starz Networks, said the motorboat brought backmost lapsed users to the level and could assistance trim post-season churn among Power viewers.

Management said the institution is emphasizing ownership of archetypal programming arsenic a mode to amended contented economics and make aboriginal licensing opportunities. Hirsch said Fightland costs astir $2.5 cardinal little per occurrence than anterior programming arrangements portion delivering the aforesaid magnitude of content. He added that Starz expects to denote further planetary arrangements for the series, pursuing its co-commissioning concern with Sky successful the U.K.

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