Starz Entertainment (STRZ) Q2 2026 earnings summary

Executive summary

• Delivered strong Q2 2026 results with significant momentum in OTT revenue and audience engagement, highlighted by the 'Fightland' premiere and four consecutive quarters of engagement growth.

• Revenue for Q2 2026 was $308 million, with OTT revenue returning to year-over-year growth, while linear revenue declined due to industry trends.

• Net loss from continuing operations for Q2 2026 was $189.4 million, driven by higher restructuring and contract termination costs.

• Management raised 2026 outlook for Adjusted OIBDA and Unlevered Free Cash Flow, reaffirming leverage targets and expanding distribution partnerships.

• Significant content portfolio rationalization included cancelling programming and terminating film licensing agreements.

Financial highlights

• Total Q2 revenue was $308 million; OTT revenue reached $221 million, growing year-over-year for the first time since Q4 2024.

• Adjusted OIBDA was $60 million, up from $33.4 million in Q2 2025, reflecting lower programming amortization.

• Operating loss for Q2 2026 was $175.5 million, primarily due to non-recurring restructuring charges.

• Unlevered free cash flow was negative $15 million for Q2 but positive $66 million year-to-date.

• Cash and cash equivalents increased to $59.6 million as of June 30, 2026.

Outlook and guidance

• Raised 2026 adjusted OIBDA growth guidance from low to mid-single digits and increased unlevered free cash flow outlook to the mid to upper end of $80 million-$120 million.

• Confident in achieving 20% adjusted OIBDA margin target in the back half of 2027.

• Expect continued sequential OTT revenue growth through the rest of 2026 and into 2027.

• Management expects continued pressure on linear revenue and is focused on cost containment and content portfolio optimization.