Starz Entertainment (STRZ) Raymond James 47th Annual Institutional Investors Conference summary

Business positioning and strategy

• Focuses on being a complementary streaming service targeting women and underrepresented audiences, not competing directly with broad-based global streamers.

• Transitioned from 100% linear revenue in 2015 to 70% digital revenue today, leveraging partnerships with Amazon, Hulu, Roku, and its own D2C app.

• Maintains profitability by avoiding overspending on content and adopting an agnostic distribution approach.

• Two-thirds of subscribers come from wholesale channels, one-third from retail.

• Separated from Lionsgate three quarters ago, enabling cost structure optimization and margin improvement.

Financial performance and outlook

• Achieved margin growth from 15% to a projected 16% in 2026, with a target of 20% by 2028.

• Content spend reduced from $720–$725 million to below $650 million by 2026, aiming for $600 million longer term.

• Guides for 1%-3% revenue growth, 20% margin, and 70% free cash flow conversion with minimal CapEx.

• Leverage reduced to 2.9x, targeting 2.5x, with unlevered free cash flow expected at $80–$120 million.

• Capital allocation currently prioritizes deleveraging and content investment, with shareholder returns to be considered after reaching leverage targets.

Content strategy and pipeline

• Focuses on original productions and controlling content costs, with a goal for 50% of content to be owned and monetized internationally.

• Upcoming slate includes the final season of "Outlander," "Blood of My Blood," "Raising Kanan" spinoffs, "P-Valley" season 3, "Fightland," and acquisitions like "Amadeus" and "The Listeners."

• Developing new shows such as "All Fours," "Kingmaker," and "Masquerade" to expand into new audience segments.

• Maintains a consistent content cadence to retain subscribers and drive growth toward an 80 million U.S. household TAM.