Starz Entertainment (NASDAQ:STRZ) Issues Earnings Results

Starz Entertainment (NASDAQ:STRZ) released its earnings results 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 33.98% and a negative return on equity of 25.64%. The company 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 Stock Performance

Shares of STRZ traded up $0.31 on Friday, reaching $22.05. 273,321 shares of the stock traded hands, compared to its average volume of 196,061. Starz Entertainment has a 12 month low of $8.40 and a 12 month high of $32.58. The company has a debt-to-equity ratio of 2.05, a current ratio of 0.25 and a quick ratio of 0.25. The stock’s 50-day moving average price is $24.81 and its 200-day moving average price is $20.49. The firm has a market cap of $377.64 million, a price-to-earnings ratio of -0.87 and a beta of 2.55.

Starz Entertainment News Roundup

Here are the key news stories impacting Starz Entertainment this week:

• Positive Sentiment: Raymond James upgraded Starz Entertainment from “outperform” to “strong buy” and assigned a $36 price target, implying substantial upside from recent trading levels. Raymond James stock recommendations
• Positive Sentiment: Third-quarter revenue reached approximately $322.4 million, ahead of expectations, while total revenue and OTT revenue increased both sequentially and year over year. Adjusted OIBDA more than doubled from the prior-year period. Starz third-quarter results
• Positive Sentiment: Management said the net loss narrowed to $34.8 million as streaming gains offset declines in the linear television business. Starz also reaffirmed its 2026 and 2027 targets, including OTT growth, leverage reduction, adjusted OIBDA expansion and unlevered free cash flow. Starz narrows net loss
• Neutral Sentiment: Starz is emphasizing greater ownership of original programming to improve long-term content economics. The strategy could create financial upside, but execution remains important in a competitive streaming market. Starz Q3 revenue and ownership strategy
• Negative Sentiment: The company reported a quarterly loss of $2.02 per share, or $2.14 under another measure, missing consensus estimates of losses between $1.33 and $1.63 per share. The earnings shortfall may temper optimism despite stronger revenue and improving operating trends. Starz Q3 loss and revenue report
• Negative Sentiment: Major shareholder Allen Family Capital disclosed multiple stock sales totaling several million dollars across August and September, materially reducing its position. Although the transactions occurred before the latest results, continued insider selling could weigh on sentiment. SEC ownership filing

Analysts Set New Price Targets

Several analysts have recently issued reports on the company. Wall Street Zen downgraded Starz Entertainment from a “hold” rating to a “sell” rating in a research report on Saturday, July 25th. Citigroup began coverage on Starz Entertainment in a report on Monday, September 14th. They issued an “outperform” rating on the stock. Weiss Ratings reissued a “sell (d-)” rating on shares of Starz Entertainment in a research report on Tuesday. Raymond James Financial upgraded Starz Entertainment from an “outperform” rating to a “strong-buy” rating and set a $36.00 target price for the company in a research note on Friday. Finally, Deutsche Bank Aktiengesellschaft reiterated a “hold” rating and issued a $30.00 price objective on shares of Starz Entertainment in a report on Tuesday, August 18th. Two investment analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Starz Entertainment has a consensus rating of “Moderate Buy” and an average 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 Starz Entertainment 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 filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders sold 1,803,786 shares of company stock worth $44,912,698 in the last three months. Corporate insiders own 22.62% of the company’s stock.

Institutional Trading of Starz Entertainment

Several hedge funds and other institutional investors have recently modified their holdings of STRZ. BlackRock Inc. bought a new position in Starz Entertainment in the 2nd quarter valued at approximately $35,599,000. NewEdge Wealth LLC acquired a new stake in Starz Entertainment in the second quarter worth $13,911,000. Ancora Advisors LLC bought a new position in Starz Entertainment in the second quarter worth approximately $11,826,000. Bank of New York Mellon Corp bought a new position in shares of Starz Entertainment in the second quarter valued at $9,018,000. Finally, Jefferies Financial Group Inc. purchased a new position in shares of Starz Entertainment during the second quarter valued at approximately $8,027,000.

Starz Entertainment Company Profile

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.