Starz Lifts 2026 Outlook as Q2 Revenue Steadies and OTT Growth Resumes
STRZ has more than doubled off its 52-week low of $8.4.
Summary
Starz raised its 2026 Adjusted OIBDA and free cash flow guidance after reporting stabilizing Q2 revenue and a return to OTT growth, signaling a potential inflection in its turnaround.
Key Events · Earnings and Guidance · STRZ
-
Q2 Revenue Stabilizes, OTT Returns to Growth
Total revenue of $307.9M was nearly flat YoY, with OTT revenue up slightly to $221.3M — the first positive YoY OTT growth in recent quarters.
-
2026 Adjusted OIBDA Outlook Raised
Management raised its full-year Adjusted OIBDA growth outlook from low-single-digits to mid-single-digits, citing improved visibility and momentum.
-
Free Cash Flow Guidance Tightened Higher
Unlevered Free Cash Flow guidance was raised to the mid-to-upper end of the prior $80M–$120M range, reflecting better cost control and content spend management.
-
Leverage Target Reaffirmed at 2.7x
The company reiterated its year-end 2026 Adjusted OIBDA leverage ratio target of 2.7x, down from 2.9x currently, supported by expected EBITDA growth.
Analysis · STRZ · Trade & Services
Starz posted Q2 revenue of $307.9 million, essentially flat year-over-year, but OTT revenue edged higher — the first positive year-over-year OTT growth in recent quarters. More importantly, management raised its full-year 2026 Adjusted OIBDA growth outlook from low-single-digits to mid-single-digits and tightened its Unlevered Free Cash Flow guidance to the mid-to-upper end of the prior $80–$120 million range. The company also reaffirmed its year-end leverage target of 2.7x and a 20% Adjusted OIBDA margin target for the second half of 2027. While the quarter included a large non-recurring restructuring charge that drove a GAAP operating loss, the underlying trends — stabilizing revenue, improving OTT trajectory, and raised cash flow guidance — suggest the business is reaching an inflection point. Against a backdrop of recent insider selling and a weak balance sheet with $565.5 million in net debt, the improved outlook provides a measure of relief, but execution risks remain high.
How filings like this one have moved
In the 30 days to Oct 1, 2026, 30.2% of the 1644 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.49%. 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 $26.62 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $432.2M. The 52-week trading range was $8.40 to $32.58. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.