Starz noticed complete income slide once more within the second quarter of 2026 — however the media firm reported its first year-over-year development in streaming income in 18 months. Firm execs imagine the enterprise is popping round, and so they’ve raised their outlook for adjusted OIBDA (working earnings earlier than depreciation and amortization) development for full-year 2026 from low single-digits to mid single-digits.
Complete income within the second quarter was $307.9 million, down 4% yr over yr. OTT income as reported was $221.3 million, up ever so barely from $221.1 million within the year-earlier interval. Nonetheless, Starz mentioned, streaming income would have elevated 1.4% within the June 2026 quarter excluding $3 million of OTT income associated to Canadian operations that was recorded in Q2 2025. (Starz transitioned its Canadian operations from a distribution partnership with Bell to a content-licensing mannequin on the finish of 2025.)
Web loss ballooned to $189.4 million, in contrast with a lack of $42.5 million in Q2 2025. Starz reported an working lack of $175.5 million (vs. $26.9 million a yr earlier).
Taking a giant chew out of Starz’s earnings: The corporate took a restructuring cost of $147 million within the second quarter of 2026 in affiliation with the termination of its pay-2 movie output settlement with Common Photos in April. The wind-down of the Common deal was beforehand introduced by Starz president and CEO Jeff Hirsch, who cited “decrease viewership than we initially projected.” In ready remarks Friday, Starz CFO Scott Macdonald mentioned, “We proceed to count on this to be the ultimate content material restructuring cost of this magnitude going ahead, which units the corporate up for meaningfully decrease restructuring exercise from right here.” Given the timing of Starz’s ultimate money funds to Common in 2028, Macdonald mentioned, “we imagine 2029 is shaping as much as be a big yr at no cost money move development relative to the trajectory we see throughout 2026 by way of 2028.”
In Q2, Starz’s stop-performing titles have been the finale of “Outlander”; the premiere of “Energy Guide III: Elevating Kanan” Season 5 (pictured above); and “The Housemaid,” Lionsgate’s psychological thriller starring Amanda Seyfried and Sydney Sweeney, which debuted April 1 on Starz.
In ready remarks, Hirsch mentioned “Elevating Kanan” Season 5 grew its viewers from the primary season 5 years in the past, “a uncommon achievement in at this time’s tv panorama.” As well as, he mentioned, the July 31 premiere of “Fightland,” the boxing crime drama collection produced by 50 Cent, was Starz’s No. 2 best-rated authentic IP launch of all time (after the Season 1 premiere of “BMF” in 2021).
“Our second-quarter outcomes replicate the momentum we’re constructing throughout the enterprise and the power of our content material portfolio,” Hirsch mentioned in an announcement. “We delivered one other quarter of robust viewers engagement and OTT income development, and the success of the ‘Fightland’ premiere validates our possession technique.”
Hirsch mentioned the corporate’s improved visibility into the second half of the yr and the early efficiency of “Fightland” have served to “enhance our confidence that 2026 is shaping as much as be a extra important inflection yr for Starz than we initially anticipated.”
In the course of the second quarter, Starz launched a brand new partnership with NBCUniversal’s Peacock that makes Starz obtainable as an add-on subscription to the platform for the primary time. And final week, Starz introduced a brand new discounted bundle with Crunchyroll on Prime Video.
Upcoming programming coming to Starz contains the return of “P-Valley,” the continued growth of the “Outlander” universe by way of “Blood of My Blood” Season 2, and the upcoming biopic “Michael” following its record-breaking theatrical run. Additional out, Hirsch mentioned, “we proceed to construct our owned content material pipeline past ‘Fightland’ with the ‘Untitled Black Rodeo Present,’” which is beginning manufacturing this month. and several other different Starz-owned tasks in improvement.
Adjusted OIBDA was $60 million for the quarter, forward of Starz’s expectations and up from $33.4 million within the year-ago interval. The corporate expects Q3 adjusted OIBDA to be within the mid-$30 million vary. That “will likely be our lowest quarter of the yr on account of larger programming amortization” from the airing of “Elevating Kanan” S5, “Fightland” S1 and “Blood of My Blood” S2 all throughout Q3, in accordance with Macdonald. Starz expects This autumn to “end the yr strongly within the mid-60s.” As such, the corporate is elevating 2026 adjusted OIBDA development steering from low single-digits to mid single digits, “and we stay assured in attaining our 20% adjusted OIBDA margin goal within the again half of 2027,” the CFO mentioned.
Within the second quarter, Starz’s unlevered free money move was destructive $15 million and fairness free money move was destructive $33 million “given the timing of content material funds,” Macdonald mentioned. Free money move nonetheless got here in forward of expectations, he added.
Money content material spend was $182 million for the second quarter. With the exit of the Common settlement, Starz expects to report full-year 2026 money content material spend beneath $600 million.
Web debt was $566 million as of June 30, 2026, and adjusted OIBDA leverage ratio was 2.9 instances. Starz has obtained commitments to extend its credit score amenities by $100 million, comprised of a $67 million enhance to its Time period Mortgage A and a $33 million enhance to its revolving credit score. Even after incorporating the extra $67 million of debt, Starz continues to count on to finish 2026 with adjusted OIBDA leverage of roughly 2.7 instances.