Starz Raises 2026 Profit Outlook Despite Quarterly Operating Loss

The quarterly loss was primarily driven by non-recurring restructuring charges, which the company has been using to rationalize its content portfolio and right-size costs. Despite these accounting hits, management expressed increased confidence in 2026 as a pivotal year for the business. The company is raising its outlook for adjusted OIBDA from low-single-digits to mid-single-digits and expects unlevered free cash flow to reach the mid-to-upper end of its previously stated range.

Starz reaffirmed its year-end leverage target of 2.7x, maintaining a stable debt profile with $625.1 million in total debt against $59.6 million in cash. Revenue for the quarter reached $307.9 million, supported by positive year-over-year growth in its OTT segment. President and CEO Jeffrey Hirsch stated that the business is seeing clear visibility into the latter half of the year, providing the foundation for the company's improved financial projections.