Starz Entertainment Corp(STRZ) - 2026 Q2 - Quarterly Results

Financial Performance - Third Quarter revenue was $320.9 million, a decrease from $346.9 million in the same quarter last year[4] - Operating loss for the quarter was $(34.8) million, compared to $(17.0) million in the prior year[12] - The company reported a net loss of $(52.6) million for the quarter, with a net loss per share of $(3.15)[4][12] - For the six months ended September 30, 2025, the net loss from continuing operations was $95.1 million, compared to a net loss of $29.5 million for the same period in 2024[13] - The company reported adjusted OIBDA of $83.5 million for the six months ended September 30, 2025, compared to $24.7 million for the same period in 2024, reflecting a significant improvement[15] Subscriber Metrics - U.S. OTT subscriber growth reached 520,000 year-to-date and 670,000 year-over-year, totaling 12.3 million U.S. OTT subscribers[4] - Total North American subscribers increased by 120,000 to 19.2 million, driven by a 250,000 increase in Canadian subscribers[4] - As of September 30, 2025, total subscribers in the United States decreased to 17.46 million from 18.00 million as of March 31, 2025, indicating a decline in subscriber base[22] - The company reported a decrease in linear subscribers in the U.S. to 5.17 million as of September 30, 2025, down from 6.21 million as of September 30, 2024[22] Cash Flow and Debt - The company ended the quarter with total net debt of $588.1 million and an undrawn revolving credit facility of $150 million[4] - The company had cash and cash equivalents of $37.0 million at the end of the period, up from $17.8 million at the beginning of the period[13] - The net cash provided by operating activities for continuing operations was $39.3 million, a turnaround from a net cash used of $17.8 million in the prior year[13] Costs and Expenditures - Programming amortization for the six months ended September 30, 2025, was $319.3 million, slightly down from $331.1 million in the same period of 2024[13] - Total restructuring and other costs for the six months ended September 30, 2025, amounted to $11.4 million, compared to a recovery of $1.7 million in the same period of 2024[18] - The company’s capital expenditures for the six months ended September 30, 2025, were $12.1 million, compared to $9.6 million in the same period of 2024[13] - The adjusted share-based compensation expense for the six months ended September 30, 2025, was $8.9 million, compared to $9.3 million in the same period of 2024[20] Strategic Outlook - STARZ management reiterated its 2025 outlook, focusing on generating new revenue through content licensing[3] - STARZ aims to scale its core audience of women and underrepresented audiences with a strong slate of originals planned for the next year[3] Engagement Metrics - Engagement on the STARZ App reached a 12-month high during the period[1] Adjusted OIBDA - Adjusted OIBDA for the quarter was $21.8 million, with a trailing twelve-month total of $173.2 million[4][6]