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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.
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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