Starz Entertainment Corp (STRZ)
NASDAQ:STRZ
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Starz Entertainment Corp
(NASDAQ:STRZ)
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Rating:56Neutral
Price Target:
$22.50
▲(12.00% Upside)
Action:Reiterated
Date:05/15/26
The score is held back primarily by weak financial performance—multi-year revenue contraction, ongoing net losses, and elevated leverage—despite a notable 2026 swing to positive operating and free cash flow. Technicals are a clear positive with strong trend and constructive momentum, and the latest earnings call provided supportive 2026 free-cash-flow and deleveraging guidance, but valuation remains constrained by negative earnings.
Positive Factors
Subscriber Growth (OTT)
Sustained OTT subscriber gains increase recurring revenue scale and reduce churn sensitivity over time. Larger subscriber base supports better content amortization, advertising and bundle economics, and provides a more stable revenue foundation for multi-quarter margin improvement and cash conversion initiatives.
Negative Factors
Multi-year Revenue Contraction
Persistent revenue shrinkage impairs scale economics and puts sustained pressure on margins and content ROI. Shrinking top line limits the firm's ability to invest in owned content and marketing at prior rates, increasing execution risk for the company’s stated multi-year margin recovery targets.
Read all positive and negative factors
Positive Factors
Negative Factors
Subscriber Growth (OTT)
Sustained OTT subscriber gains increase recurring revenue scale and reduce churn sensitivity over time. Larger subscriber base supports better content amortization, advertising and bundle economics, and provides a more stable revenue foundation for multi-quarter margin improvement and cash conversion initiatives.
Read all positive factors
Starz Entertainment Corp (STRZ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$364.50M
Dividend YieldN/A
Average Volume (3M)192.82K
Price to Earnings (P/E)―
Beta (1Y)1.10
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees1,717
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)-16.75
Shares Outstanding16,789,366
10 Day Avg. Volume250,625
30 Day Avg. Volume192,819
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.40
Price to Sales (P/S)0.15
P/FCF Ratio2.41
Enterprise Value/Market Cap2.43
Enterprise Value/Revenue0.70
Enterprise Value/Gross Profit1.00
Enterprise Value/Ebitda1.21
Forecast
1Y Price Target
$26.80Price Target Upside33.40% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)-3
Revenue Forecast (FY)$1.26B
Starz Entertainment Corp Business Overview & Revenue Model
Company Description
Starz Entertainment Corp. provides subscription video programming to consumers in the United States and Canada. Its business consists of the distribution of STARZ-branded premium subscription video services through over-the-top platforms and distr...
Starz Entertainment Corp Earnings Call Summary
Earnings Call Date:May 29, 2025
(Q5-2025)
| % Change Since: |
Next Earnings Date:Aug 13, 2026
Earnings Call Sentiment Positive
The call emphasized strong operating momentum (record OTT subscribers, quarter and full-year adjusted OIBDA beat, sequential revenue improvement), a compelling 2026 content slate, improved unit economics through ownership and co-commission partnerships, and a clear path to meaningful free cash flow and delevering. Notable challenges include ongoing linear declines, prior cash-flow timing volatility, modest near-term OIBDA growth guidance, and the decision to stop disclosing subscriber counts which reduces transparency. On balance, the positive operational and financial indicators and clear multi-year margin/cash-flow targets outweigh the negatives.Positive Updates
OTT Subscriber Growth to Record High
OTT subscribers reached an all-time high of 12.7 million, up 7.6% year-over-year. Starz added 370,000 domestic OTT subscribers in Q4 and total U.S. subscribers grew 170,000 in the quarter to 17.6 million (OTT growth partly offset by linear declines).
Negative Updates
Traditional Linear Declines and Promotional Pressure
Growth in OTT was partially offset by declines in linear customers. Management cited ongoing traditional linear declines and heavy holiday seasonal promotions (including lower-churn multi-month plans) as factors that reduced linear and some OTT revenue.
Read all updates
Q5-2025 Updates
Positive
Negative
OTT Subscriber Growth to Record High
OTT subscribers reached an all-time high of 12.7 million, up 7.6% year-over-year. Starz added 370,000 domestic OTT subscribers in Q4 and total U.S. subscribers grew 170,000 in the quarter to 17.6 million (OTT growth partly offset by linear declines).
Read all positive updates
Company Guidance
Starz guided to OTT revenue growth in 2026 and low‑single‑digit adjusted OIBDA growth versus 2025 (after $204M of adjusted OIBDA in 2025), targeting unlevered free cash flow of $80–$120M (and positive equity free cash flow) and year‑end leverage of ~2.7x (improving from 2.9x at year‑end 2025 and moving toward a 2.5x goal); management also expects content cash spend under ~$650M in 2026, at least $200M of adjusted OIBDA for the year, and is pursuing long‑term targets of 20% margins and converting 70% of adjusted OIBDA to unlevered free cash flow—anchored by 2025 operationals that included 12.7M OTT subscribers (up 7.6% YoY, +370k in Q4), Q4 revenue of $323M, net debt ~$589M, gross debt $625M, cash $36M and an undrawn $150M revolver; note the company will stop disclosing subscriber totals beginning with the March 2026 quarter.Starz Entertainment Corp Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
32
Negative
Cash Flow
45
Neutral
| Breakdown | Mar 2026 | Dec 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.26B | 1.37B | 1.39B | 3.85B | 3.60B |
| Gross Profit | 0.00 | 667.60M | 537.90M | 1.35B | 1.31B |
| EBITDA | -255.00M | 638.20M | -98.00M | 141.20M | 1.73B |
| Net Income | -403.10M | -211.20M | -915.20M | -2.01B | -188.20M |
Balance Sheet | |||||
| Total Assets | 1.79B | 2.17B | 7.09B | 7.43B | 8.99B |
| Cash, Cash Equivalents and Short-Term Investments | 102.10M | 17.80M | 357.70M | 300.00M | 384.60M |
| Total Debt | 614.30M | 1.09B | 3.46B | 4.25B | 4.31B |
| Total Liabilities | 1.31B | 1.41B | 7.28B | 6.30B | 5.99B |
| Stockholders Equity | 478.70M | 766.40M | -312.70M | 784.50M | 2.68B |
Cash Flow | |||||
| Free Cash Flow | 80.20M | -63.60M | -152.20M | -472.60M | -920.30M |
| Operating Cash Flow | 98.90M | -46.00M | -131.80M | -438.30M | -725.80M |
| Investing Cash Flow | -99.60M | -99.20M | -24.80M | -42.50M | -80.50M |
| Financing Cash Flow | 34.20M | 126.00M | 132.00M | 428.10M | 664.30M |
Starz Entertainment Corp Risk Analysis
Starz Entertainment Corp disclosed 34 risk factors in its most recent earnings report. Starz Entertainment Corp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Starz Entertainment Corp Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $370.93B | 19.21 | 49.24% | ― | 18.57% | 45.93% | |
75 Outperform | $179.87B | 18.16 | 10.29% | 1.10% | 4.02% | 27.66% | |
63 Neutral | $395.35M | -3.92 | 5.30% | ― | -3.42% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
56 Neutral | $364.50M | ― | -44.91% | ― | ― | ― | |
55 Neutral | $68.75B | ― | -6.13% | ― | -2.78% | 84.26% | |
53 Neutral | $11.34B | 10.77 | -4.64% | 1.48% | 1.14% | 93.73% |
* Communication Services Sector Average
STRZ
Starz Entertainment Corp
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5.41
32.09%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.