Starz Financials: Q3 Revenue Beats Estimates, Loss Narrows

Starz reported a narrowed operating loss and higher revenue in its third-quarter financial results, citing a successful shift toward digital streaming services. The company posted $322.4 million in overall revenue for the three months ending Sept. 30, a slight increase from $320.9 million in the same period last year. This figure exceeded the analyst consensus of $319.5 million, indicating stronger-than-expected performance despite industry challenges.

Streaming revenue rose to $226.6 million, driven by higher subscription renewals and a price increase implemented in April 2026. Linear and other revenue declined to $95.8 million for the quarter. The drop in traditional cable revenue was partially offset by gains in distribution deals. Starz launched its first original series since separating from Lionsgate, Fightland, on July 31, which helped drive subscriber acquisition. A second season of the show is currently in development.

The network also debuted the finale of Power Book III: Raising Kanan and the second season of Outlander: Blood of My Blood. In August, Starz released director Antoine Fuqua’s Michael biopic, which became the company’s best-performing Pay 1 title and helped boost engagement.

Jeffrey Hirsch, president and CEO of Starz, stated in a release that the results reflect focused execution on four key financial priorities. “Our portfolio approach to programming is driving a more durable revenue base,” Hirsch said. “We are just beginning to unlock the financial upside of increased ownership.” He added that the company remains confident in its long-term outlook.

During an after-market analyst call, Hirsch reiterated the company’s 2026 financial outlook. He noted that the business is performing ahead of plan despite a difficult operating environment for many media companies.

Starz reported a net loss of $34.8 million for the quarter, down from a $52.6 million loss in the prior year. Adjusted OIBDA stood at $44.2 million. The operating loss included an $8.3 million net benefit from reduced programming contract termination fees and content impairment charges, which offset severance and other costs.

The financial results follow a strategic pivot to digital services since Starz separated from Lionsgate in May 2025. The company is now developing its own intellectual property in-house to lower per-episode content costs. It is also drawing from existing franchises like Power and Outlander to create new series.

Starz recently settled a three-week carriage dispute with Verizon Fios, restoring its channels and app to the service. Hirsch told analysts the company reached a good place with the renewed deal, though he did not specify the financial terms. The resolution allows Starz to maintain its presence in a major cable distribution network.

Alison Hoffman, president of Starz Networks, said the company expects to continue bundling its premium service with other streaming platforms. “We are built to be bundled,” Hoffman said. “We will be in the bundling and ultimately the repackaging of the industry.” She cited recent agreements with Peacock and Crunchyroll as evidence of this strategy.

NBCUniversal announced a deal making the Starz destination for Outlander and Power available to select Peacock subscribers for $11.99 a month. Sony’s Crunchyroll also partnered with Starz on its first traditional streaming bundle to expand its anime service in the U.S. market. Amazon recently launched a five-service bundle on Prime Video that includes Starz, AMC+, BritBox, MGM+, and PBS Masterpiece. Hoffman described this trend as resembling the old days of cable packaging.

Starz is actively seeking new tentpole acquisitions to drive audience engagement and attract new customers. The company recently launched SWAT Exiles, a spinoff of the CBS series SWAT starring Shemar Moore, in September. The move aims to leverage established franchises to expand its subscriber base further.