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STRZBullishEarningsShort Term

High materiality8/10

Starz Entertainment Corp. Reports Results for the Second Quarter Ended June 30, 2026

StockNews.AIAug 7, 7:00 AM EDT1 source

Trading thesisImportance 8/10

Bullish over 6–12 months as higher 2026 guidance and a 2.7x leverage target underpin valuation upside.

AI summary

What happened and why it matters

STARZ reported Q2 2026 revenue of $307.9 million and Adjusted OIBDA of $59.9 million, with a $(175.5) million GAAP operating loss largely due to restructuring. The company raised its 2026 targets for Adjusted OIBDA and Unlevered Free Cash Flow, reaffirmed a 2.7x year-end leverage goal, and cited positive OTT revenue growth, suggesting 2026 could be a meaningful inflection year despite ongoing restructuring costs.

Guidance uplift for Adjusted OIBDA and Unlevered FCF drives sentiment.
OTT revenue growth positive YoY supports longer-term profitability.
Leverage target reaffirmed at 2.7x, with 2.9x trailing OIBDA leverage.
Liquidity remains solid: revolver available, cash and debt levels disclosed.

Sentiment rationale

The raised 2026 targets and maintained leverage goal could attract buyers and re-rate the stock on improved profitability and liquidity, provided OTT momentum persists and restructuring costs moderate relative to gains. Historical precedent shows equity upside when non-GAAP targets are raised and leverage remains within a favorable range, even after a period of losses tied to one-time charges.

Key facts

01
STARZ raises 2026 Adjusted OIBDA and Unlevered FCF outlook; reaffirms 2.7x leverage.
02
Q2 2026 revenue $307.9m; Adjusted OIBDA $59.9m; operating loss driven by restructuring.
03
OTT revenue growth positive YoY; Fightland premiere supports ownership strategy.
04
Balance sheet liquidity: cash $59.6m; revolver undrawn; total debt $625.1m; net debt $565.5m.
05
Outlook: mid-single-digit Adjusted OIBDA growth; mid-to-upper end Unlevered FCF $80–$120m.

Earnings

Earnings; STARZ's release centers on quarterly results and non-GAAP metrics with forward-looking guidance. The emphasis on Adjusted OIBDA, Unlevered FCF, OTT growth, and a levered balance sheet aligns with typical earnings-release positioning for a standalone premium-OTT content player.