Starz Entertainment Q2 Earnings call highlights. August 7, 2026 Key points. * Streaming momentum improved: Q2 OTT revenue grew year over year for the first time since Q4 2024, while subscribers increased despite an April price hike. Audience engagement reached its second-highest quarterly level, driven by titles including Outlander, Raising Kanan and Fightland. * Profit and cash-flow outlook raised: Adjusted OIBDA reached $60 million, prompting Starz to raise its full-year growth outlook to the mid-single digits. The company also lifted unlevered free-cash-flow guidance to the mid-to-upper end of its prior $80 million-$120 million range. * Financial flexibility and distribution expanding: Starz secured commitments to increase credit facilities by $100 million, expected to reduce annual interest costs by about $4 million. New and expanded partnerships with Peacock, Prime Video and Crunchyroll are intended to improve discoverability, reduce churn and broaden subscriber access. * Five stocks we like better than Starz Entertainment. Starz Entertainment NASDAQ: STRZ reported second-quarter results that management said reflected improving streaming revenue, audience engagement and free-cash-flow generation, prompting the company to raise its full-year adjusted OIBDA growth outlook and increase its unlevered free cash flow guidance. Total revenue for the quarter was $308 million, including $221 million of over-the-top, or OTT, revenue and $87 million in linear and other revenue. CFO Scott Macdonald said OTT revenue grew year over year for the first time since the fourth quarter of 2024. Excluding $3 million of Canadian OTT revenue included in the prior-year period, OTT revenue would have risen 1.4% on a pro forma basis. Macdonald said the company's April price increase contributed to improved average revenue per user, with further ARPU gains expected in the second half as promotional subscriber cohorts convert to retail pricing. Management also said total subscribers increased during the quarter despite the price increase, though Starz does not regularly disclose subscriber totals. Content drives engagement and streaming momentum. President and CEO Jeffrey Hirsch attributed the quarter's performance to the finale of Outlander, the premiere of Raising Kanan Season 5 and The Housemaid. He said the company's programming lineup produced its second-highest quarterly audience engagement level of all time and marked a fourth consecutive quarter of engagement growth since Starz separated from Lionsgate. Hirsch also highlighted the debut of Fightland, Starz's first owned original series. According to Hirsch, the show was Starz's second-best-rated launch of a new intellectual property franchise and showed strong audience overlap with the Power universe. Alison Hoffman, president of Starz Networks, said the launch brought back lapsed users to the platform and could help reduce post-season churn among Power viewers. Management said the company is emphasizing ownership of original programming as a way to improve content economics and create future licensing opportunities. Hirsch said Fightland costs approximately $2.5 million less per episode than prior programming arrangements while delivering the same amount of content. He added that Starz expects to announce further international arrangements for the series, following its co-commissioning partnership with Sky in the U.K. Upcoming programming includes the return of P-Valley, Outlander: Blood of My Blood Season 2, the Michael biopic, and additional Power franchise installments. The company said Michael would premiere on the platform Aug. 10 and is expected to serve as a major programming tentpole. Profit outlook raised as cash flow inflection develops. Adjusted OIBDA was $60 million in the second quarter, ahead of management's expectations. Starz raised its full-year adjusted OIBDA growth forecast to the mid-single digits from a previous outlook for low-single-digit growth. Discover more Mathematics Company Earnings Macdonald said adjusted OIBDA is expected to decline to the mid-$30 million range in the third quarter because of higher programming amortization associated with Raising Kanan, Fightland and Blood of My Blood. The company expects fourth-quarter adjusted OIBDA in the mid-$60 million range. Starz reaffirmed its target of reaching a 20% adjusted OIBDA margin in the second half of 2027. Unlevered free cash flow was negative $15 million in the quarter but positive $66 million year to date. Equity free cash flow was negative $33 million for the quarter and positive $35 million year to date. Macdonald said the quarterly outflow reflected the timing of content payments, as management had anticipated, but performance was still better than expected. The company raised its full-year unlevered free cash flow outlook to the mid-to-upper end of its previously stated $80 million to $120 million range. Cash content spending was $182 million in the quarter, and Starz expects full-year cash content spending to be below $600 million following its exit from the Universal Pay-2 agreement. Starz recorded a $147 million restructuring charge in the quarter related to its agreement to exit the Universal Pay-2 arrangement. Macdonald said management expects this to be the final content restructuring charge of that magnitude. He also said 2029 could represent a significant inflection point for free cash flow growth after final cash payments to Universal are completed in 2028. Debt refinancing and distribution expansion. Net debt stood at $566 million as of June 30, while the company's adjusted OIBDA leverage ratio was 2.9x. The revolver was undrawn. Starz obtained commitments to increase its credit facilities by $100 million, including a $67 million increase to its Term Loan A and a $33 million increase to its revolver. The transaction, expected to close in the third quarter, will allow the company to replace remaining programming notes with lower-cost corporate debt. Macdonald said the refinancing is expected to improve annual free cash flow by about $4 million through lower cash interest expense. Even after adding the $67 million of term debt, the company expects to end 2026 with leverage of roughly 2.7x and remains focused on reaching leverage of 2.5x or below. On distribution, Starz renewed a long-term agreement with one of its largest partners and launched an add-on subscription partnership with Peacock. Hirsch said the Peacock arrangement gives Starz access to the platform's 48 million subscribers without additional platform investment. Starz also announced a Crunchyroll bundle on Prime Video. Hoffman said the Peacock rollout is expected to deepen over multiple phases, improving discoverability and the purchase flow. She said the company expects to pursue additional bundling arrangements, arguing that Starz's programming is complementary to broad-based streaming platforms and that bundles can help reduce churn while expanding marketing opportunities. About Starz Entertainment (NASDAQ:STRZ). Starz Entertainment NASDAQ: STRZ is a global media and entertainment company that operates premium subscription video services across linear television and digital streaming platforms. The company's core offering includes the STARZ and STARZ ENCORE linear networks in the United States, alongside its STARZPLAY streaming service, which is available in North America, parts of Europe, Latin America and select Asian markets. Through its multi-platform distribution strategy, Starz delivers a combination of original programming, feature films and licensed series to a broad subscriber base. At the heart of Starz Entertainment's business is its investment in original content production. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. Continue following MarketBeat Before you consider Starz Entertainment, you'll want to hear this. 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Crunchyroll teams with Starz for $16.99 Prime Video bundle. Crunchyroll has stepped into its first U.S. multi-service bundle, pairing with premium drama hub Starz on Amazon's Prime Video Channels for $16.99 a month. The package went live Wednesday and undercuts buying both add-ons separately by roughly 23%, a clear pitch to households already shopping the Amazon streaming storefront. Standalone, Crunchyroll's Fan plan and Starz each run about $11-12 a month; stacking them without a deal pushes past $22. The new combo keeps full access to both libraries while folding the signup into one Prime Video Channels checkout - exactly the kind of friction-cut move that has defined the latest wave of streaming partnerships. The timing tracks Crunchyroll's rapid scale-up under Sony. The anime platform reported 21 million paid members earlier this year, up from about five million when Sony closed the acquisition in 2021. Starz, independent after its Lionsgate split, finished 2025 near 17.6 million subscribers and has been shopping similar add-on and bundle plays across platforms. Execs framed the deal as mutual discovery: Starz wants new eyes on its prestige slate, while Crunchyroll's product leadership called the launch a way to meet fans where they already browse and to widen the door for anime storytelling. Viewing still runs through each service's apps and sites; free trials may not carry over for bundle signups, so longtime Mega Fan members should double-check how the offer stacks against their current tier before switching.

Starz and Crunchyroll launch a new bundle deal on Prime Video. July 29, 2026 Starz and Crunchyroll have announced a new bundle for the two services, available now through Prime Video. Signing up for the bundle costs $16.99 per month, over 23% in savings compared to subscribing to the two services separately. "This offering brings together two services with distinctive programming, giving viewers access to a range of stories and genres," said Alison Hoffman, President of STARZ Networks. "The way households discover and consume television continues to evolve. This bundle with Crunchyroll and Prime Video enables us to broaden our reach and introduce the STARZ slate of premium programming to new viewers." With a subscription, you'll get access to favorite franchises, original programming, and exclusive premieres from Starz, including all titles from the "Power" franchise. Starz has a lineup of new titles coming soon, including "Fightland" (July 31), set in the high-stakes world of British boxing and STARZ's first wholly owned original series; "S.W.A.T. Exiles" (September 25), the high-octane crime drama starring and executive-produced by Shemar Moore; and "Outlander: Blood of My Blood" (September 18), the newest chapter in the globally acclaimed "Outlander" franchise. You can also catch the biopic "Michael" on August 10 and "Beast" coming August 8. Adding Crunchyroll with the new bundle means you'll also get access to iconic Anime series like Dragon Ball, including the the most recent chapter, Dragon Ball DAIMA, along with Naruto, Naruto Shippuden, Afro Samurai, Fullmetal Alchemist: Brotherhood, My Hero Academia, and Cowboy Bebop. In August, Crunchyroll will add a slate of new titles including BLACK TORCH, Jaadugar: A Witch in Mongolia, Mushoku Tensei: Jobless Reincarnation Season 3, Smoking Behind the Supermarket with You, and ONE PIECE HEROINES. "At Crunchyroll, we believe anime is a powerful medium for storytelling and connection, and our goal is to continue bringing it to more audiences in more accessible ways. This launch is a meaningful step in expanding how fans can discover and connect with the series they love, while opening the door for even more viewers to experience the breadth of anime storytelling," said Terry Li, Chief Product Officer and EVP, Emerging Business, Crunchyroll. "The addition of the Crunchyroll and STARZ bundle reflects Prime Video's commitment to delivering value and convenience for customers as we continue to expand the breadth of our bundle offerings," said Matt Huntley, Director of U.S. Channels, Prime Video. "Whether it's premium dramas, blockbuster films, or world-class anime, Prime Video is making it seamless for customers to access the entertainment they want, all in one place." Disclaimer: To address the growing use of ad blockers Cord Cutters News, LLC now use affiliate links to sites like http://Amazon.com, streaming services, and others. Affiliate links help sites like Cord Cutters News, stay open. Affiliate links cost you nothing but help me support my family. Cord Cutters News, LLC do not allow paid reviews on this site. As an Amazon Associate I earn from qualifying purchases.