Starz Reports Increased Losses in First Quarter After Lionsgate Separation

Starz experienced a more significant net loss during the initial quarter of 2026, as detailed in its recent financial disclosure. This announcement comes roughly one year following its structural detachment from Lionsgate. Despite the reported increase in losses, the company is demonstrating signs of an improved financial stance, Variety reports. Over-the-top (OTT) revenue for the period spanning January through March reached $211.1 million. This figure represents a decline when compared to the $225.5 million generated in the corresponding quarter of the previous year. Concurrently, income derived from linear television and other diverse streams amounted to $95.8 million, a decrease from $107.5 million in the same prior-year quarter. Total revenue for Starz during this quarter was recorded at $306.9 million, marking a reduction from $333 million in the first quarter of the preceding year. The company's net loss widened to $28.3 million, a significant change from the $17.3 million loss reported in the initial quarter of the prior year. The adjusted OIBDA (Operating Income Before Depreciation and Amortization) saw a decrease, registering at $21.2 million, down from $45.4 million year-over-year. However, the company's adjusted free cash flow presented a more positive trend, moving from a deficit of $30.8 million in the first quarter of last year to a positive $11.7 million in the current period. Starz concluded the quarter with 29.6 million global subscribers. This total comprises 12.8 million domestic subscribers and 16.8 million international subscribers. While the total global subscriber count saw a decrease from 30.5 million in the previous year's first quarter, the international subscriber base grew from 16.1 million. Jeffrey Hirsch, Starz’s CEO, conveyed optimism regarding the company's trajectory, highlighting progress on key strategic initiatives including reducing general and administrative expenses and enhancing customer engagement. These efforts are intended to fortify the company’s position and market competitiveness in the evolving media landscape.