Starz Reports Fourth Quarter Earnings Post-Lionsgate Split

Starz, now a standalone company following its separation from Lionsgate, reported its fourth-quarter earnings for 2025, indicating a narrowing net loss of $20.7 million compared to $31.8 million in the same quarter of 2024. The company ended the quarter with total revenue of $322.8 million, a decline of 5.6% year-over-year. Starz's U.S. streaming subscriber base grew by 370,000, reaching 12.7 million, while total subscribers across all platforms rose to 17.6 million, an increase of 170,000 from the previous quarter. However, the company lost 200,000 linear TV subscribers, bringing the total to 4.97 million.

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The growth in over-the-top (OTT) subscribers was attributed to popular scripted series, including the third season of "Power Book IV: Force" and the first season of "Spartacus: House of Ashur." Starz's decision to shift its Canadian operations from a joint venture with Bell Media to a content licensing agreement has allowed the company to refocus on the U.S. market. CEO Jeffrey Hirsch noted that the restructuring was part of a strategy to free up capital for original series production.

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In the fourth quarter, Starz's OTT revenue fell to $210.3 million from $239 million in the previous year, while linear and other revenue increased to $112.5 million from $105.5 million. The average revenue per user decreased to $5.74 from $6.32 a year earlier. Despite the overall revenue decline, Starz reported an adjusted operating profit of $55.5 million, up from $25.6 million in the previous year.

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Looking ahead, Starz anticipates 2026 to be a pivotal year for financial growth, with expectations of OTT revenue growth and positive free cash flow between $80 million and $120 million. The company aims to achieve 20% margins by the end of 2028 and plans to stop disclosing subscriber numbers starting with the March 2026 quarter. Hirsch emphasized the importance of a disciplined investment strategy and efficient operating models to drive sustainable revenue growth and profitability.

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While Starz's leadership remains optimistic about future growth, some analysts express caution regarding the company's ability to maintain subscriber growth amid increasing competition in the streaming market. Concerns have been raised about the potential risks associated with ceasing subscriber disclosures, which could limit transparency for investors.

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• “Just nine months after our separation, we are beginning to see the full impact of operating as a standalone company.” — Jeffrey Hirsch, CEO of Starz

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• “We exceeded all our financial guidance in 2025 and expect 2026 to be a positive financial inflection point for the company as we enter the year with record-high OTT subscribers and a balance sheet that outperformed our deleveraging expectations,” — Jeffrey Hirsch, CEO of Starz

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• “ “The success of our originals proves that our bedrock strategy is working.” — Jeffrey Hirsch, CEO of Starz

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Starz's latest earnings report reflects a complex landscape as the company navigates its new identity and strategic direction in the competitive streaming industry.

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