Starz Q4 OIBDA More Than Doubles to $56M as Revenue Reaches $323M
Starz reported Q4 adjusted OIBDA of $56 million, a sequential increase of over 100% driven by lower programming amortization and reduced marketing costs, while quarterly revenue rose to $323 million, up 0.6%. Full-year adjusted OIBDA reached $204 million, beating guidance and resulting in 2.9x leverage on net debt of $589 million.
1. Q4 Financial Results
Starz posted Q4 adjusted OIBDA of $56 million, more than doubling sequentially on lower programming amortization and marketing expenses, while revenue climbed to $323 million, up 0.6% sequentially driven by higher distribution revenue from the Canadian transition.
2. Subscriber Trends
Total U.S. subscribers reached 17.6 million, with OTT subscribers hitting an all-time high of 12.7 million, up 7.6% year-over-year and adding 370,000 in Q4, partially offsetting declines in traditional linear customers.
3. Balance Sheet and Leverage
Starz ended fiscal 2025 with net debt of $589 million and gross debt of $625 million, maintaining leverage at 2.9x versus prior expectations of 3.1x, supported by $36 million in cash and an undrawn $150 million revolver.
4. 2026 Outlook and Strategy
Management forecasts 2026 OTT revenue growth, low single-digit adjusted OIBDA expansion, $80–120 million of positive unlevered free cash flow and year-end leverage of approximately 2.7x, as content spend falls below $650 million and the Canadian business transitions to licensing.