Starz Entertainment (NASDAQ:STRZ) Announces Quarterly Earnings Results

Starz Entertainment (NASDAQ:STRZ) posted its quarterly earnings data on Thursday. The company reported ($2.02) earnings per share for the quarter, missing the consensus estimate of ($1.63) by ($0.39), FiscalAI reports. Starz Entertainment had a negative net margin of 32.52% and a negative return on equity of 34.04%. The business had revenue of $322.40 million for the quarter.

Here are the key takeaways from Starz Entertainment’s conference call:

• Revenue and profitability improved: Q3 total revenue reached $322 million, while OTT revenue rose 1.7% year over year to $227 million and adjusted OIBDA increased significantly to $44 million. Management reaffirmed its outlook for mid-single-digit adjusted OIBDA growth in 2026.
• Free cash flow and leverage are progressing: Q3 unlevered free cash flow was $19 million and $85 million year to date, with full-year guidance of $100 million-$120 million reaffirmed. Net debt was $601 million and leverage was 2.8x, with management still targeting approximately 2.7x at year-end 2026 and 2.5x or lower in the second half of 2027.
• Owned content is becoming a larger growth and monetization opportunity: Management cited strong performance from “Fightland,” international licensing revenue, and expected additional sales as more owned series enter the portfolio. Starz said “Fightland” cost about $3 million less per hour than comparable prior production, while ownership should support future distribution revenue and greater control over costs.
• Upcoming programming and bundles are supporting engagement: Starz expects the return of “P-Valley” in December and the 18-episode “Power: Origins” in 2027 to drive subscriber acquisition and retention. Management also reported encouraging early results from Peacock, Crunchyroll, and Amazon bundles, including retention above 20% for many bundled offerings and revenue that is accretive versus à la carte sales.
• Traditional distribution remains under pressure: Linear and other revenue was $96 million as secular declines in traditional video households continued, though increased distribution revenue from owned content partly offset the pressure. Starz is also exploring an advertising-supported video-on-demand offering but emphasized that any acquisition or investment would need to preserve leverage discipline and the strength of its core business.

Starz Entertainment Price Performance

Shares of NASDAQ:STRZ traded down $0.05 during trading on Monday, reaching $22.04. The company had a trading volume of 41,462 shares, compared to its average volume of 199,660. Starz Entertainment has a twelve month low of $8.40 and a twelve month high of $32.58. The company has a debt-to-equity ratio of 2.59, a quick ratio of 0.33 and a current ratio of 0.33. The firm has a market capitalization of $377.40 million, a PE ratio of -0.91 and a beta of 2.55. The firm’s fifty day moving average is $24.72 and its 200 day moving average is $20.55.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on STRZ shares. Citizens Jmp began coverage on Starz Entertainment in a research note on Monday, September 14th. They set a “market outperform” rating and a $40.00 price objective on the stock. Raymond James Financial raised Starz Entertainment from an “outperform” rating to a “strong-buy” rating and set a $36.00 price objective on the stock in a research report on Friday. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and set a $30.00 price target on shares of Starz Entertainment in a research report on Tuesday, August 18th. Weiss Ratings restated a “sell (d-)” rating on shares of Starz Entertainment in a research report on Tuesday, October 27th. Finally, Morgan Stanley set a $30.00 target price on Starz Entertainment in a report on Monday, August 10th. Two research analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $33.71.

Insider Transactions at Starz Entertainment

In other Starz Entertainment news, major shareholder Allen Family Capital, Llc sold 363,786 shares of the stock in a transaction on Tuesday, September 29th. The stock was sold at an average price of $21.06, for a total value of $7,661,333.16. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Over the last ninety days, insiders have sold 1,803,786 shares of company stock worth $44,912,698. Company insiders own 22.62% of the company’s stock.

Hedge Funds Weigh In On Starz Entertainment

A number of large investors have recently modified their holdings of STRZ. Legal & General Group Plc bought a new position in shares of Starz Entertainment in the 2nd quarter worth approximately $34,000. Persistent Asset Partners Ltd purchased a new stake in Starz Entertainment during the 2nd quarter worth approximately $196,000. State of Wyoming purchased a new stake in shares of Starz Entertainment during the third quarter worth approximately $184,000. Deutsche Bank AG purchased a new position in Starz Entertainment in the 2nd quarter valued at $342,000. Finally, Ratan Capital Management LP purchased a new position in Starz Entertainment in the 2nd quarter valued at about $368,000.

About Starz Entertainment

Starz Entertainment Corp. is a media and entertainment company that operates premium subscription television and streaming services. Its offerings include the STARZ premium network, related linear television channels and the STARZ streaming platform, which provides original series, feature films and licensed entertainment content.

The company’s programming has included original dramas, comedies and franchises, as well as a selection of theatrical and television movies. STARZ content is distributed through traditional pay-TV providers, digital platforms and direct-to-consumer subscriptions, with availability varying by market and distribution partner.

Starz was established in 1994 as a premium television service and was acquired by Lionsgate in 2016.