Starz Q1 – Starz marks its one-year separation anniversary but reports a wider loss as revenue declines across streaming and linear.
Starz is ringing in its one-year post-separation anniversary with a tough financial snapshot: the premium cable network and streamer reported a wider net loss in the latest quarter as revenue declined.
In its first-quarter results. Misryoum reports Starz generated $306.9 million in revenue alongside a net loss of $164.9 million. compared with a loss of $153 million a year earlier.. The company’s results also tracked below what Wall Street expected for revenue. adding pressure to a period that was supposed to signal momentum.
Misryoum notes that the topline softness comes as streaming and linear both moved in the wrong direction.. Streaming revenue fell year over year to $211.1 million, while linear and other revenue dropped to $95.8 million.. Starz’s Starz Networks segment also saw operating income decline, and the company’s total operating loss widened.
This matters because Starz’s strategy leans heavily on growing its over-the-top business, so even incremental dips in streaming performance can shape investor confidence about near-term turnaround timelines.
Part of the story is also operational.. Misryoum reports that Starz has restructured its Canada operations into a licensing revenue stream. and the company is no longer sharing subscriber counts on a quarterly basis.. In the most recent prior disclosure. Starz reported 12.7 million over-the-top subscribers and 5 million linear TV subscribers. but that figure is now off the quarterly scoreboard.
Meanwhile. Starz positioned the quarter within the broader context of its separation from Lionsgate. describing the company as structurally stronger and pointing to content momentum.. CEO Jeff Hirsch said Misryoum’s reporting reflects confidence in driving OTT revenue growth. reducing leverage. expanding margins. and generating sustainable free cash flow over time.
Looking ahead. Misryoum reports Starz maintained guidance calling for positive year over year streaming revenue growth and low single-digit adjusted operating income growth.. The company also expects unlevered free cash flow between $80 million and $120 million, with a leverage ratio exiting 2026 of about 2.7 times.
At this stage, the key question for viewers and investors alike is whether Starz’s programming and platform strategy can translate into steadier streaming growth, offsetting declines elsewhere and turning losses into progress.
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