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Starz Entertainment (STRZ) investor relations material

Starz Entertainment Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary14 Aug, 2025

Executive summary

  • Completed separation from Lionsgate Studios, now operating as a standalone public company focused on premium subscription video services in the U.S. and Canada, with a digital-first, distribution-agnostic model targeting women and underrepresented audiences.

  • Restructuring initiatives led to significant content write-downs, international business exits, and ongoing evaluation of programming strategy.

  • Maintains a strategy of modest top-line and OTT subscriber growth with lower content spend to drive higher margins and free cash flow.

  • Recent content launches, especially the Outlander prequel, have exceeded expectations, driving strong subscriber additions.

  • Focused on returning to revenue growth, margin improvement, and higher free cash flow conversion.

Financial highlights

  • Q2 2025 revenue was $319.7 million, down 8% from $347.6 million year-over-year, with a net loss of $42.5 million and operating loss of $26.9 million.

  • Adjusted OIBDA was $33.4 million, down from $56.3 million in Q2 2024, mainly due to higher content amortization.

  • Programming amortization increased 9.9% to $162.5 million due to new original series premieres.

  • Cash and cash equivalents at quarter-end were $51.6 million, up from $17.8 million a year ago.

  • Net loss per share for continuing operations was $(2.54); weighted average shares outstanding were 16.7 million.

Outlook and guidance

  • Management expects sequential revenue and OTT subscriber growth in Q3 and Q4 2025, with continued revenue growth into 2026.

  • Targeting approximately $200 million in adjusted OIBDA for calendar 2025 and converting 70% of adjusted OIBDA to unlevered free cash flow in 2026.

  • Aims for a 20% margin run rate by 2028, driven by content cost improvements and slate ownership.

  • Cash flow from operations, available credit, and receivables monetization expected to meet operational and debt service needs for the next twelve months and beyond.

  • Ongoing restructuring may result in further content impairment charges.

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