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Starz Entertainment Corp
(NASDAQ:STRZ)
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Rating:55Neutral
Price Target:
$30.00
▲(49.33% Upside)
Action:Reiterated
Date:06/27/26
STRZ scores mid-range primarily due to weak underlying financial performance (declining revenue, ongoing losses, and leverage risk) despite a meaningful cash flow improvement. Technicals are notably positive and provide support, while the latest earnings call reinforces a credible near-term free-cash-flow and deleveraging plan, tempered by restructuring charges and execution/timing risks. Valuation is difficult to judge with a negative P/E and no dividend yield provided.
Positive Factors
Improving Free Cash Flow
Meaningful free cash flow improvement creates durable financial flexibility: sustained positive FCF reduces reliance on external financing, supports deleveraging and targeted content reinvestment, and provides a buffer for timing volatility in programming spend if maintained over several quarters.
Negative Factors
Persistent Revenue Decline & Losses
Multi-year revenue contraction and large negative net margins erode scale benefits and limit operating leverage. Sustained top-line weakness constrains ability to invest in content, weakens negotiating position with partners, and makes consistent profitability and margin recovery more difficult.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Free Cash Flow
Meaningful free cash flow improvement creates durable financial flexibility: sustained positive FCF reduces reliance on external financing, supports deleveraging and targeted content reinvestment, and provides a buffer for timing volatility in programming spend if maintained over several quarters.
Read all positive factors
Starz Entertainment Corp (STRZ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$486.72M
Dividend YieldN/A
Average Volume (3M)166.64K
Price to Earnings (P/E)―
Beta (1Y)0.85
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees1,717
SectorGeneral
Sector StrengthN/A
IndustryEntertainment
Share Statistics
EPS (TTM)-16.75
Shares Outstanding16,789,366
10 Day Avg. Volume142,113
30 Day Avg. Volume166,639
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 Cap2.04
Enterprise Value/Revenue0.78
Enterprise Value/Gross Profit1.12
Enterprise Value/Ebitda1.35
Forecast
1Y Price Target
$30.29Price Target Upside50.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)-17.67
Revenue Forecast (FY)$1.26B
Starz Entertainment Corp Business Overview & Revenue Model
Company Description
Starz Entertainment Corp. offers its premium, subscription-based video content to viewers throughout the United States and Canada. The company primarily focuses on delivering its STARZ-branded services, which are accessible directly to consumers v...
Starz Entertainment Corp Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 07, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive outlook: management delivered a strong Q1 performance against internal plans, achieved material free cash flow improvements, made strategic content-cost and ownership moves that accelerated the 20% margin target by a year, and reaffirmed 2026 guidance. Near-term headwinds include a sequential decline in total revenue, a sizable $139M restructuring charge, higher content amortization, and execution/timing risks related to replacing Universal titles and content spend catching up in Q2. Overall, the positives — improved cash generation, disciplined pricing, deleveraging progress, and accelerated margin target — outweigh the near-term lowlights.Positive Updates
OTT Revenue Growth
OTT revenue was $211M in Q1 2026, up from $210M in Q4 2025 (≈+0.5% sequential), driven by pricing discipline, fewer low-priced offers, and higher-share annual/multi-month plans; ARPU grew sequentially and a price increase to $11.99 was implemented April 1.
Negative Updates
Sequential Total Revenue Decline
Total revenue in Q1 2026 was $307M, down from $323M in Q4 2025 (≈-5% sequential), primarily reflecting timing of Canadian licensing revenue.
Read all updates
Q1-2026 Updates
Positive
Negative
OTT Revenue Growth
OTT revenue was $211M in Q1 2026, up from $210M in Q4 2025 (≈+0.5% sequential), driven by pricing discipline, fewer low-priced offers, and higher-share annual/multi-month plans; ARPU grew sequentially and a price increase to $11.99 was implemented April 1.
Read all positive updates
Company Guidance
Starz reaffirmed full‑year 2026 guidance calling for positive OTT revenue growth versus 2025, low single‑digit adjusted OIBDA growth, $80–$120 million of unlevered free cash flow and exit‑year leverage of ~2.7x; in Q1 the company reported OTT revenue of $211M, total revenue $307M, adjusted OIBDA $58M, unlevered FCF $81M (up $147M YoY), equity FCF $69M (up $136M YoY), net debt $523M and leverage of 3.1x with a $150M revolver undrawn. Management said ARPU grew sequentially and a price increase to $11.99 began in Q2, Q1 cash content spend was $113M with full‑year content spend expected below $650M, a $139M restructuring charge was recorded in Q1 (with the Universal Pay‑Two restructuring charge to be recorded in Q2), and rightsizing and reinvestment efforts have moved the 20% adjusted OIBDA margin target up to the back half of 2027.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 (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $172.78B | 15.89 | 10.29% | 1.10% | 4.02% | 27.66% | |
72 Outperform | $326.97B | 24.57 | 49.24% | ― | 18.57% | 45.93% | |
64 Neutral | $450.70M | 8.84 | 5.30% | ― | -3.42% | ― | |
56 Neutral | $11.63B | -18.37 | -4.64% | 1.48% | 1.14% | 93.73% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | $486.72M | -1.73 | -44.91% | ― | ― | ― | |
55 Neutral | $66.39B | -38.38 | -4.94% | ― | -2.78% | 84.26% |
* General Sector Average
STRZ
Starz Entertainment Corp
28.99
13.58
88.12%
AMCX
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10.26
4.31
72.44%
PSKY
Paramount Skydance
10.39
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-15.70%
DIS
Walt Disney
99.50
-21.90
-18.04%
NFLX
Netflix
77.65
-51.31
-39.79%
WBD
Warner Bros
26.48
15.46
140.29%
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.