Overview

• Starz reported a second-quarter net loss of $42.5 million on $319.7 million in revenue, falling short of analyst expectations.
• North American subscribers declined by 520,000 to 19.1 million, including a 410,000 drop in U.S. linear and streaming customers and a 110,000 fall in Canada.
• Management forecasts subscriber and revenue growth in the third and fourth quarters, citing the strong debuts of Outlander: Blood of My Blood and Power Book III: Raising Kanan as catalysts.
• Adjusted operating income before depreciation and amortization reached $33.4 million, in line with Street forecasts, and Starz reaffirmed its 2025 target of about $200 million in adjusted OIBDA with plans to convert 70% into free cash flow in 2026.
• With net debt of $573.5 million (roughly 3.2 times trailing adjusted OIBDA), Starz’s stock slipped about 4% in after-hours trading as investors weigh near-term subscriber losses and leverage.