Starz 10-Q: $389.1M Nine-Month Loss, C$156.2M CRA Tax Reassessment Disclosed
STRZ has more than doubled off its 52-week low of $8.4.
Summary
Starz's Q3 10-Q confirms the $322.4M revenue and $44.2M Adjusted OIBDA already reported, and adds a C$156.2M (~US$111.3M) CRA tax reassessment plus a $389.1M nine-month net loss driven by content write-downs.
Key Events · Earnings and Guidance · STRZ
-
Q3 Revenue Returns to Growth
Total revenue was $322.4M versus $320.9M a year ago, with OTT revenue of $226.6M versus $222.8M and linear and other revenue of $95.8M versus $98.1M.
-
Nine-Month Loss Widens Sharply
Net loss for the nine months ended September 30, 2026 was $389.1M versus $249.1M a year ago, driven by $136.1M of contract termination fees and $126.2M of content impairments.
-
C$156.2M CRA Tax Reassessment
On October 13, 2026 Starz received a Canada Revenue Agency reassessment totaling C$156.2 million (~US$111.3 million) for fiscal 2019 and 2022; Lionsgate Studios Corp. must indemnify Starz under a May 9, 2024 Tax Matters Agreement and intends to dispute it.
-
Cash Builds, Leverage Manageable
Cash rose to $86.8M from $35.7M at December 31, 2025, nine-month operating cash flow was $63.9M versus $(24.2)M, and the $183.0M revolver was undrawn with all covenants met.
Analysis · STRZ · Trade & Services
The headline Q3 numbers were already out this evening via the 8-K — revenue of $322.4M and Adjusted OIBDA of $44.2M — but the full 10-Q carries two things the press release did not. First, a C$156.2 million (~US$111.3 million) Canada Revenue Agency reassessment received October 13, 2026 covering fiscal 2019 and 2022; Lionsgate Studios Corp. is contractually required to indemnify Starz under the May 2024 Tax Matters Agreement and says it will dispute it, so the near-term cash risk is contained but the dispute is now public. Second, the nine-month picture is much uglier than the quarter: a $389.1 million net loss versus $249.1 million a year ago, driven by $136.1 million of contract termination fees and $126.2 million of content impairments. Against that, cash more than doubled to $86.8 million and nine-month operating cash flow swung to positive $63.9 million from negative $24.2 million, with the $183.0 million revolver undrawn and all covenants met. The quarter is the stabilization story; the nine-month loss and the tax dispute are the parts that need reading.
How filings like this one have moved
In the 30 days to Oct 30, 2026, 30.6% of the 1584 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.02%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, STRZ was trading at $21.74 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $372.3M. The 52-week trading range was $8.40 to $32.58. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.