Starz Revenue Declines 4% in Q2 as Streaming Stabilizes, Company Takes $147 Million Charge Related to Ending Universal Output Deal
Starz’s second-quarter revenue fell 4% year on year to $307.9 million, although its streaming business returned to year-on-year growth for the first time in 18 months. The company sees this as evidence that its turnaround is gaining traction and has raised its full-year adjusted OIBDA growth forecast from low to mid-single digits.
Streaming revenue was $221.3 million, broadly flat on a reported basis but up 1.4% excluding a Canadian accounting change, while linear TV and other revenue dropped 14% to $86.6 million as traditional television households declined. Net loss widened to $189.4 million, largely because Starz recorded a $147 million restructuring charge after ending its Universal Pictures output agreement; it expects lower restructuring costs ahead and says 2029 could bring stronger free-cash-flow growth.
- Streaming stabilised despite a 4% overall revenue fall.
- Universal deal termination drove a $147 million charge.
- Starz raised its 2026 profit-growth outlook.
New here? Start with this
Starz is a US entertainment company that sells films and television programmes through its streaming service and traditional television channels. Its streaming business has been growing in importance as the number of households paying for conventional TV falls.
Universal Pictures is a major film studio whose output agreement gave Starz access to its films. Ending that deal prompted Starz to record a restructuring charge, a one-off cost linked to changing its business arrangements. Such costs can widen a company’s reported loss even when they do not reflect its routine operating performance.
Starz’s results matter because they show how it is adapting to audiences moving from traditional TV to streaming. Investors and viewers will be watching whether streaming growth can offset declining channel revenue and support the company’s longer-term finances.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Starz's streaming segment returning to growth after 18 months represents a significant inflection point that validates the company's turnaround strategy, and the $147 million charge to exit an unfavourable Universal deal demonstrates management taking decisive action to improve long-term profitability. The raised guidance for full-year adjusted EBITDA growth and expectations for stronger free-cash-flow in 2029 suggest the restructuring is working as intended, even as the company manages the transition from traditional linear television.
The case against
Starz's overall revenue continued to decline 4% year-on-year, with streaming growth of just 1.4% excluding accounting adjustments representing modest progress that fails to offset the steep 14% collapse in linear TV revenue. The $147 million restructuring charge raises questions about judgment in signing unfavourable long-term content deals, and whilst presented as a one-time cost, persistent net losses and the need for major restructuring suggest deeper operational challenges than management's optimistic guidance implies.