Key Highlights

  • Total Revenue rose 0.5% to $322.4 million in the third quarter, from $320.9 million.
  • OTT revenue increased 1.7% to $226.6 million, while linear and other revenue fell 2.3% to $95.8 million.
  • The net loss narrowed to $34.8 million, from $52.6 million a year earlier.
  • Adjusted OIBDA, a non-GAAP measure, rose to $44.2 million from $21.8 million.
  • Cash and cash equivalents were $86.8 million at September 30, 2026, with the $183.0 million revolver undrawn.

Subscription price increases lift OTT revenue by 1.7%

Starz Entertainment (NASDAQ:STRZ) distributes STARZ branded premium subscription video services in the U.S. through its own Starz App and through wholesale streaming and traditional distributors such as cable, satellite and telecommunications providers. It filed its third quarter 2026 report on October 29, 2026, after separating from its former parent and becoming a standalone public company.

Total revenue was $322.4 million, up $1.5 million from $320.9 million. OTT revenue rose to $226.6 million from $222.8 million on subscription price increases, while linear and other revenue slipped to $95.8 million from $98.1 million as traditional linear households continued to decline. International ancillary sales of Fightland Season 1 and a shift in Canada to a content licensing arrangement also supported revenue.

Lower programming amortization drives the improvement

Programming amortization fell 9.8% to $141.5 million, or 43.9% of revenue against 48.9% a year earlier. The company linked the decline to fewer output title premieres after it terminated certain live-action films under a post-pay-one output licensing agreement in April 2026.

Advertising and Marketing expense dropped 5.4% to $74.2 million on lower direct-to-consumer marketing spend, and other operating expenses eased 3.4% to $37.5 million. General and administrative expenses rose 8.7% to $31.3 million, mainly on higher share-based compensation.

Adjusted OIBDA doubles while the operating loss narrows

Adjusted OIBDA was $44.2 million against $21.8 million, which works out to a Margin of about 13.7% versus 6.8% on a calculated basis. Operating loss narrowed to $21.2 million from $34.8 million.

The gap between the two measures reflects Depreciation and amortization of $67.4 million, up 40.7%. The increase stems largely from the customer relationship intangible tied to traditional distributors, whose useful life was cut from 14 years to 12 years in the first quarter because of continued linear revenue decline.

A contract termination Reversal and severance shape the bottom line

Restructuring and other was a net benefit of $8.3 million, compared with a $5.0 million charge a year earlier. It included an $11.1 million reduction in estimated contract termination fees, a $3.6 million content recovery and $4.4 million of severance for workforce reductions.

Interest expense fell to $14.0 million from $15.8 million after programming notes were paid down in August 2026. With an income tax benefit of $1.7 million, the net loss was $34.8 million. Over nine months, revenue was $937.2 million, down 3.5%, and the net loss widened to $389.1 million from $249.1 million, including $136.1 million of contract termination fees.

Liquidity and what to watch

Cash and cash equivalents were $86.8 million, against $37.0 million a year earlier. Outstanding Debt included $362.4 million under a Term Loan A and $325.1 million of 5.5% senior notes due 2029, with no amounts drawn on the $183.0 million revolver.

The contract termination Liability stood at $128.6 million, and the company estimated about $178.0 million of remaining cash outlays under its content review and restructuring programs. Readers tracking the name will likely follow linear revenue erosion, OTT pricing and how quickly those restructuring payments are made.