Starz Narrows Net Loss to $34.8 Million and Beats Q3 Estimates

Starz narrowed its net loss to $34.8 million in the third quarter and beat Wall Street's expectations on both revenue and earnings per share. The company reported its results Thursday for the three-month period ended September 30, its latest quarter as a standalone media business following the May 2025 separation from Lionsgate.

The numbers outperformed analyst forecasts across the board. Wall Street had projected a loss of $2.96 per share on $319.5 million in revenue, according to consensus data from LSEG. Starz delivered a diluted loss of $2.02 per share on $322.4 million in revenue.

The loss also narrowed sharply year over year. Starz posted a $52.6 million net loss in the comparable quarter of 2025.

What drove the quarter?

Lionsgate's "Michael" became the breakout story of the period. The film debuted on Starz on August 10 and has since become the best-performing Pay 1 title in the network's history, the company said.

OTT revenue came in at $226.6 million, up 1.7 percent from $222.8 million a year earlier. Starz chief financial officer Scott Macdonald said the underlying growth was stronger than the headline figure suggests.

"On a pro forma basis, adjusting for the strategic change in our Canadian operations to a content licensing arrangement in Q4 2025, OTT revenue growth for the quarter would have been 3.2%," Macdonald said.

Linear TV and other revenues told a different story. They fell to $95.8 million from $98.1 million last year. Starz said the dip was partially offset by increased distribution revenue, driven by the network's first owned original series, "Fightland."

What did the CEO tell shareholders?

Starz president and CEO Jeffrey Hirsch framed the results as evidence of disciplined execution.

"Our third-quarter results reflect the continued strength of the business and our focused execution against our four key financial priorities," Hirsch said in a letter to shareholders. "Our portfolio approach to programming is driving a more durable revenue base, and we are just beginning to unlock the financial upside of increased ownership. We remain confident in our outlook and in our ability to continue delivering against our plan and create long-term value for our shareholders."

Starz hosted its Q3 earnings call at 5 p.m. ET. Variety confirmed that Hirsch planned to use the briefing to address the company's outlook as it continues to move forward from the Lionsgate separation.

"Starz does not need to own the entire consumer ecosystem to grow," Hirsch's prepared remarks state. "Traditional distribution, add-on subscriptions, strategic partnerships, and new bundles give us multiple ways to reach our audiences wherever they choose to watch. Our priority remains driving the success of the core business. We have set a high bar for any strategic transaction. It must accelerate our strategy and create greater value than we believe Starz can create on its own."

What does this change for Starz?

The quarter strengthens the case that Starz can stand alone after the Lionsgate split. A shrinking loss, an OTT business growing even before adjustments, and record Pay 1 performance from "Michael" give the company leverage as it weighs partnerships or bundles — on Hirsch's stated condition that any deal create more value than Starz can generate by itself.