Starz (STRZ) Q2 2026 Earnings Call Transcript
Starz (STRZ) reported Q2 2026 revenue of $307.9M, with OTT revenue $221.3M and first YoY OTT growth since Q4 2024. Adjusted OIBDA was $59.9M, and 2026 guidance for adjusted OIBDA (mid-single digits) and unlevered free cash flow (raised to mid-to-upper $80M-$120M) increased. Net debt was $565.5M.
How this was made
The 30-second read
Why it matters
The key tradable items are the raised 2026 adjusted OIBDA growth outlook, raised 2026 unlevered free cash flow range, and a credit facility upsizing, all alongside near-term OIBDA pressure in Q3 and negative Q2 free cash flow.
Market read
Traders can update 2026 profitability and cash-flow expectations based on raised guidance and financing capacity, while monitoring Q3 amortization-driven OIBDA pressure.
What to watch
The Universal Pay-2 exit charge is nonrecurring, but ongoing content spend and leverage path (2.9x vs 2.7x target) could reintroduce volatility if subscriber engagement or ARPU trends soften.
Background
This is a transcript-style summary of STARZ’s Q2 2026 earnings call, covering OTT vs linear trends, restructuring, leverage, and updated 2026 guidance.
Ticker impact
STARZ reported Q2 2026 results and raised 2026 adjusted OIBDA growth to mid-single digits plus lifted unlevered free cash flow guidance.
Moderate positive bias for the next few sessions as traders reprice 2026 OIBDA and 2026 FCF range, tempered by Q3 amortization and Q2 negative FCF.
The article discloses multiple forward-looking datapoints (raised OIBDA growth, raised 2026 unlevered FCF range, credit facility upsized) alongside near-term headwinds (Q3 OIBDA pressure from amortization, Q2 negative FCF, Universal exit charge).
Market effects
Signals continued shift from linear to OTT and the importance of owned IP economics and distribution partnerships for streaming profitability.
Canadian operations transition to a licensing model may affect regional revenue mix and margin structure.
Universal licensing exit and franchise monetization strategy are relevant to global content licensing and streaming bundling trends.
Counterpoint
Raised 2026 FCF guidance may rely on timing and completion of Universal termination payments, while Q3 OIBDA is pressured by higher programming amortization.
Key entities
- companySTARZ Entertainment Corp.
Reported Q2 2026 results and updated 2026 guidance, including raised adjusted OIBDA growth and unlevered free cash flow range.
- executiveJeffrey Hirsch
CEO who discussed owned IP economics and franchise strategy on the call.
- executiveScott MacDonald
CFO who provided guidance updates, leverage metrics, and restructuring context.
- distribution partnerPeacock
New partnership described as expanding STARZ availability to additional subscribers as an add-on.
- content licensing counterpartyUniversal
Legacy film licensing agreement termination tied to a large restructuring charge and future cash-flow timing.
