Starz Q1 Revenue $306.9M, Unlevered Free Cash Flow $80.7M, Margin Goal Accelerated
STRZ•Starz reported Q1 revenue of $306.9M and an operating loss of $152.8M, while generating $73.2M in operating cash flow and $80.7M in unlevered free cash flow. Management accelerated its 20% adjusted OIBDA margin target to H2 2027, one year ahead, and reiterated 2026 OTT revenue growth outlook.
1. First-Quarter Financial Performance
For the quarter ended March 31, 2026, Starz reported revenue of $306.9 million and an operating loss of $152.8 million, while adjusted OIBDA reached $58.0 million.
2. Cash Flow and Balance Sheet
Net cash provided by operating activities totaled $73.2 million, unlevered free cash flow was $80.7 million and equity free cash flow reached $68.7 million. As of quarter-end, Starz held $102.1 million in cash and cash equivalents against $625.1 million in total debt, resulting in net debt of $523.0 million and a 3.1x leverage ratio.
3. Outlook and Margin Acceleration
Management reaffirmed its 2026 outlook for OTT revenue growth, low-single-digit adjusted OIBDA growth and $80.0–$120.0 million of unlevered free cash flow, while accelerating its target of achieving a 20% adjusted OIBDA margin by the second half of 2027—one year earlier than previously guided.
4. Strategic Position Post-Separation
CEO Jeffrey Hirsch highlighted the one-year anniversary of Starz’s separation and emphasized the company’s structural strength, disciplined execution and confidence in driving OTT revenue growth, margin expansion and sustainable free cash flow.
