Key Financial Data
- Q3 Total revenue: $322.4 million (+0.5% year-over)
- Streaming revenue: $226.6 million (+1.7%)
- Linear and other revenue: $95.8 million (-2.3%)
- Operating loss: $21.2 million (narrowed 39.1%)
- Net loss: $34.8 million (narrowed 33.8%)
- Read more Q3 2026 media earnings coverage
Premium multiplex movie network Starz saw a narrower financial loss and modest revenue growth during the third quarter (Q3) of the year, according to regulatory filings that also showed one of its biggest shareholders sold their stake and abandoned a takeover offer..
During the three-month period that ended in September, Starz generated $322.4 million in revenue, an increase of 0.5 percent compared to the prior year. Its net loss narrowed to $34.8 million from $52.6 million, while the diluted loss per share was $2.02, compared to the $2.96 loss expected by Wall Street analysts.
Stock Price
Revenue from over-the-top streaming services increased 1.7 percent to $226.6 million from $222.8 million. In a statement, Starz Chief Financial Officer Scott Macdonald said streaming revenue would have increased 3.2 percent after accounting for changes to the company’s Canadian business, which shifted to a content licensing arrangement late last year.
Revenue from traditional television distribution and other operations declined to $95.8 million from $98.1 million, although the company benefited from additional distribution revenue associated with “Fightland,” its first wholly owned original series.
Starz also reported strong viewership for the Lionsgate film “Michael,” which debuted on the service August 10 and became the most successful Pay 1 movie release in the network’s history.
In regulatory filings with the U.S. Securities and Exchange Commission (SEC), Starz said media mogul Byron Allen liquidated his entire 10.7 percent ownership stake in the company between early August and late September. The valuation of Allen’s original buy was around $25 million; the sale netted him $45 million, suggesting a net profit of around $20 million.
Allen acquired around 1.8 million shares in March, telling reporters he was interested in making a play for the entire company. Starz subsequently adopted a so-called “poison pill” that would have diluted his holdings and voting power if he increased his stake in the company or made a hostile takeover offer.
In an earlier interview trade publication The Wrap, Allen said the defensive measure would not prevent him from pursuing an acquisition.
“When I’m ready to buy the company, I will buy the entire company,” Allen said at the time.
His decision to sell the shares ends his disclosed ownership position, although the filing did not indicate whether he has abandoned his previous acquisition ambitions.
On Thursday, Starz President and CEO Jeffrey Hirsch said the company’s business strategy remains focused on expanding content ownership, strengthening its existing distribution partnerships and reaching subscribers through traditional television providers, standalone streaming subscriptions and bundled services.
Hirsch also indicated that Starz would remain selective about potential corporate transactions, saying any deal would need to deliver greater value than the company could generate independently.
Starz separated from Lionsgate in mid-2025.
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- Amazon rolls out bundle with five services, including Starz, for $30 per month
