Starz Entertainment (STRZ) investor relations material

Executive summary

• Achieved an all-time high of 12.7 million U.S. OTT subscribers, up 7.6% year-over-year, with 370,000 added in Q4 and total U.S. subscribers reaching 17.6 million.

• Exceeded all 2025 financial guidance, delivering $204 million adjusted OIBDA, 2% above outlook, and improved operating loss to $(4.7) million in Q4.

• Transitioned Canadian business to licensing, focusing on U.S. market and content ownership.

• Strong programming slate and franchise expansion drove subscriber and revenue growth.

• Positioned for continued growth in 2026 with robust original content pipeline and disciplined investment strategy.

Financial highlights

• Q4 2025 consolidated revenue reached $323 million, up 60 basis points sequentially but down from $344.5 million in Q4 2024.

• Adjusted OIBDA for Q4 was $56 million, more than doubling sequentially, with trailing twelve-month Adjusted OIBDA at $204 million.

• Net loss for Q4 2025 was $(20.7) million, or $(1.24) per share; operating loss improved to $(4.7) million.

• Net debt at year-end was $589 million; gross debt $625 million; cash $36 million.

• Leverage ended at 2.9x, better than 3.1x guidance.

Outlook and guidance

• 2026 expected to deliver low single-digit adjusted OIBDA growth over 2025, with projected unlevered free cash flow of $80–$120 million.

• Leverage targeted to decline to approximately 2.7x by end of 2026.

• Focus shifting from quarterly subscriber reporting to OTT revenue, profitability, and cash flow.

• Long-term margin target of 20% by 2028, with most improvement in 2027–2028.

• Management expects further OIBDA and OTT revenue growth, deleveraging, and improved free cash flow in 2026.