In the fast-evolving landscape of the “streaming wars,” even established players face significant headwinds. Starz, the premium cable and streaming provider, recently released its financial results for the first quarter of 2026, revealing a complex picture of a company navigating its first full year as a standalone entity following its high-profile separation from Lionsgate.
Widening Losses and Revenue Pressure
For the quarter ending March 31, 2026, Starz reported a net loss of $164.9 million. This figure represents a 7% widening from the $153 million loss recorded in the same period the previous year. On a per-share basis, the net loss amounted to $9.83, a figure that significantly overshot Wall Street’s expectations of an 81-cent loss per share.
The financial strain was exacerbated by a decline in overall revenue, which fell 7% year-over-year to $306.9 million. This downturn was felt across both of the company’s primary delivery methods:
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Streaming (OTT) Revenue: Decreased 5.5% to $211.1 million.
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Linear and Other Revenue: Dropped 6.8% to $95.8 million.
The Starz Networks segment, the core of the company’s business, saw its operating income tumble by 37.8% to $58 million. Simultaneously, the company’s total operating loss widened to $152.8 million.
The Post-Lionsgate Landscape
These results are particularly noteworthy as they mark the one-year anniversary of Starz’s split from Lionsgate. The restructuring was designed to allow Starz to operate with greater agility and focus on its core demographic—primarily women and underrepresented audiences. Part of the current financial fluctuation also stems from a strategic shift in international operations, specifically the restructuring of its Canadian business into a licensing-based revenue stream rather than a direct-to-consumer model.
In another major policy shift, Starz has decided to stop disclosing its subscriber figures on a quarterly basis. This move aligns the company with industry giants like Netflix, Disney, and Warner Bros. Discovery, which have shifted focus away from “subscriber counting” as the primary metric of success, opting instead to focus on revenue growth and profitability. Before this change, Starz most recently reported 12.7 million OTT (over-the-top) subscribers and 5 million linear TV subscribers.
Strategic Optimism and Content Strength
Despite the widening losses, Starz CEO Jeffrey Hirsch remains steadfast in the company’s long-term trajectory. Hirsch emphasized that the company is “structurally stronger” than it was a year ago.
“Over the past year, we have executed with discipline against our strategic and financial priorities to position the company for long-term value creation,” Hirsch stated. He attributed much of his confidence to what he described as one of the “strongest content lineups” in years, which includes the continued expansion of the Power Universe and other original prestige dramas.
Future Outlook: The Path to Profitability
Looking ahead, the company is maintaining its financial guidance for 2026. Management expects positive year-over-year growth in streaming revenue and low single-digit growth in adjusted operating income.
The company is also focusing heavily on its “unlevered free cash flow,” which it projects will fall between $80 million and $120 million for the year. Furthermore, Starz is working toward a target leverage ratio of approximately 2.7 times by the end of 2026, suggesting an aggressive plan to pay down debt and stabilize the balance sheet.
While the first-quarter numbers highlight the persistent challenges of the linear TV decline and the high costs of streaming content, the leadership at Starz is betting that their niche-focused strategy and disciplined financial management will eventually lead the company toward sustainable profitability in a crowded marketplace.
