Starz Q2 Revenue Drop 8%, Streaming Subs Down After Lionsgate Split

Starz Reports 8% Drop in Revenue, Decrease in Subscribers

Starz, the now-standalone media company, saw an 8% drop in revenue for the April 1-June 30 earnings period, as reported on Thursday. The company also ended the quarter with 12.2 million streaming subscribers in the U.S., a decrease from 13.04 million in the previous quarter before its split from Lionsgate. Total domestic subscribers for Starz fell to 17.6 million, with a decline of 410,000 from the end of March.

When including Canada, the total North American subscribers for Starz were 19.1 million, marking a drop of 520,000 customers. The company noted a decline of 110,000 Canadian subscribers in the quarter, attributed to continued linear declines and lower OTT subscriber additions.

Starz reported a net loss of $42.5 million ($2.54 per share) on revenue of $319.7 million for the quarter.

Starz President and CEO Jeffrey Hirsch commented on the financial performance, stating, “In the three months since becoming a standalone public company, we have made significant progress toward achieving our key financial and operating objectives. Our content strategy continues to resonate with our audience as the subscriber additions from last weekend’s ‘Outlander: Blood of my Blood’ premiere were the third highest for a series premiere in Starz’s history. Looking ahead, our highly compelling slate, coupled with an improved cost structure, puts us on a clear path to achieving our key objectives: returning to revenue growth, improving our margins, and increasing our conversion of Adjusted OIBDA to free cash flow.”

Starz officially completed its separation from Lionsgate on May 7, with the Starz stock now trading on the Nasdaq under the symbol “STRZ.”

Previously, in the Jan. 1-March 31 quarter (Q4 for fiscal 2025), Starz reported total revenue of $330.6 million, down 6.2%, and an operating loss of $136.3 million. The company did not report earnings per share for that quarter but planned to begin EPS reporting with the quarter ending June 30, 2025.

During that same period, Starz gained 470,000 streaming subscribers, reaching 13.04 million overall. However, total subscribers decreased by 330,000 due to the loss of a Starz linear TV carriage agreement in Canada.

(Pictured above: Starz’s “Power Book III: Raising Kanan.”)