Starz reported mixed financial results for the second quarter of 2026, with overall revenue declining 4% to $307.9 million. However, the streaming division showed signs of recovery, marking the first year-over-year growth in subscription revenue the company has achieved in approximately 18 months. Despite the overall revenue contraction, company leadership expressed optimism about the trajectory of the business and upgraded its financial guidance for the full year.
A significant portion of the company’s reported losses stemmed from a $147 million restructuring charge related to the termination of its film output agreement with Universal Pictures. The deal, which concluded in April, had underperformed expectations. Linear television and other revenue segments continued to struggle, declining 14% as traditional pay-TV households continued their downward trend. The company’s net loss reached $189.4 million, substantially higher than the prior-year period.
Management pointed to strong content performance as evidence of business momentum. The fifth season premiere of “Power Book III: Raising Kanan” attracted expanded viewership compared to the show’s debut, while the boxing drama “Fightland” achieved the second-highest viewership for an original series launch in company history. Starz also expanded its distribution reach through new partnerships with Peacock and Crunchyroll, positioning itself across multiple streaming platforms.
Leadership upgraded its adjusted operating income guidance from low single-digit to mid single-digit growth for 2026, citing improved visibility into the second half of the year and early content performance. Executives indicated they anticipate significantly reduced restructuring charges moving forward.
Originally reported by Variety →
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