Starz posts 4% revenue dip, cites $147 million charge after ending Universal deal

Starz’s Q2 2026 earnings showed total revenue of $307.9 million, a 4% year-over-year drop, while over-the-top revenue edged up to $221.3 million, the first streaming gain in a year and a half. The company booked a $147 million restructuring charge after ending its pay-2-film output deal with Universal Pictures, a move announced by President and CEO Jeff Hirsch due to lower than expected viewership. CFO Scott Macdonald said this should be the final large restructuring expense and expects free-cash-flow growth to accelerate starting in 2029.

Adjusted OIBDA rose to $60 million, leading Starz to raise its full-year adjusted OIBDA growth outlook from low to mid single-digit and reaffirm a 20% margin target for late 2027. New distribution partnerships were launched with Peacock and a discounted bundle with Crunchyroll on Prime Video, and the company highlighted strong premieres such as “Fightland” and “Power Book III: Raising Kanan” Season 5. Starz projects Q3 adjusted OIBDA in the mid-$30 million range and a year-end adjusted OIBDA in the mid-60s.