Starz reported first-quarter 2026 earnings Thursday revealing wider losses, largely due to content-impairment charges — but the media company gave indications it’s improving its financial position one year out from its spinoff from Lionsgate.

Total revenue dropped 7.2%, to $306.9 million, and Starz posted an operating loss of -$152.8 million versus -$142.3 million in the year-earlier period.

Over-the-top streaming revenue for the January-March quarter was $211.1 million, down from $225.5 million in the year-ago quarter. Linear and “other revenue” came to $95.8 million vs. $105.1 million.

Starz has confirmed it is no longer reporting subscriber numbers, with last quarter’s results being the most recent data: The premium TV media company closed Q4 2025 with 12.7 million U.S. streaming subscribers, an addition of 370,000 customers from the previous period. Total subscribers across Starz platforms reached 17.6 million, up 170,000 subs.

Starz reported a net loss of $164.9 million (versus a net loss of $153.0 million in Q1 2025), translating to a loss per share of $9.83. The most recent quarter included $139.1 million in restructuring charges, including $128.1 million in content impairment write-downs. Excluding depreciation, amortization and the restructuring charges, Starz said its adjusted OIBDA for Q1 was $58.0 million — a 38% decline from $93.3 million a year ago.

But it sounded an optimistic note going forward: In announcing its Q1 financial results, Starz leadership said it accelerated its target for 20% adjusted operating income before depreciation and amortization (OIBDA) margin to the second half of 2027, one year ahead of its prior guidance of the back half of 2028. The company also pointed out that its OTT revenue increased ever-so-slightly sequentially — from $210.3 million in Q4 to $211.1 million in the most recent period.

Equity free cash flow stood at $68.7 million for the quarter. Starz’s current debt totaled $625.1 million, which includes a Term Loan A credit facility and $325.1 million in senior unsecured notes. Net debt was $523 million at the end of the quarter.

“As we mark the one-year anniversary of our separation today, I’m proud to report that Starz is a structurally stronger company than when we separated,” Starz president and CEO Jeffrey Hirsch said in a letter to shareholders. “Over the past year, we have executed with discipline against our strategic and financial priorities to position the company for long-term value creation, and we delivered a strong start to the year, meeting or exceeding all of our key financial targets. Given our progress and one of our strongest content lineups we’ve had in years, we are increasingly confident in our ability to drive OTT revenue growth, reduce leverage, expand margins, and generate sustainable free cash flow in the years ahead.”

More to come…