- STRZ
-3.38%
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Total Revenue: $322 million in Q3 2026, strongest quarter of 2026, driven by OTT and distribution revenue growth; returned to year-over-year growth.
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OTT Revenue: $227 million, up 1.7% year-over-year and 2.4% sequentially; pro forma growth of 3.2% adjusting for Canadian operations shift to content licensing.
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Linear and Other Revenue: $96 million, with secular pressure on traditional video households partially offset by increased distribution revenue from owned content (e.g., Fightland).
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Adjusted OIBDA: $44 million, ahead of expectations and up significantly year-over-year; full-year 2026 growth reiterated at mid-single digits.
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Adjusted OIBDA Margin: 20% margin target reaffirmed for back half of 2027.
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Unlevered Free Cash Flow: Positive $19 million in Q3; positive $85 million year-to-date; full-year 2026 target of $100 million to $120 million.
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Equity Free Cash Flow: Positive $13 million in Q3; positive $48 million year-to-date.
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Cash Content Spend: $174 million in Q3; full-year 2026 expected below $600 million.
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Net Debt: $601 million as of September 30, 2026; revolver undrawn.
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Leverage Ratio: 2.8x adjusted OIBDA leverage; expected ~2.7x at end of 2026 and 2.5x or lower in back half of 2027.
Release Date: October 29, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Starz Entertainment Corp (NASDAQ:STRZ) delivered its strongest quarter of 2026 with total revenue of $322 million, driven by OTT and distribution revenue growth.
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OTT revenue grew 1.7% year-over-year and 2.4% sequentially, marking the second consecutive quarter of year-over-year growth.
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Adjusted OIBDA was $44 million, ahead of expectations and up significantly year-over-year, with the company reaffirming mid-single-digit adjusted OIBDA growth for the full year.
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Unlevered free cash flow was positive $19 million in Q3 and $85 million year-to-date, with confidence in achieving the 2026 target of $100 million to $120 million.
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Leverage ratio improved to 2.8 times, with a clear path to 2.5 times or lower by the back half of 2027, supported by a $100 million credit facility increase and repayment of higher-cost programming notes.
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The company is successfully executing its strategy to own more content, with Fightland generating international revenue and cost savings of about $3 million per hour compared to prior production costs.
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Bundling initiatives, including the Amazon <a href="https://comicvibe.com/7-new-korean-ott-releases-in-november-2026-possible-love-the-blue-road-and-more-on-netflix-disney-prime-video-sbs/" title="7 new Korean OTT releases in November 2026: 'Possible Love', 'The Blue Road' and more on Netflix, Disney+, Prime Video, SBS”>Prime Video super bundle and partnerships with Peacock and Crunchyroll, are showing improved retention north of 20% and are accretive to revenue.
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Upcoming content slate is strong, including the return of P-Valley, the 18-episode first season of Power Origins, and the Untitled Black Rodeo series, which are expected to drive subscriber growth and engagement.
