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STRZ · 10-Q filed May 7, 2026

STRZ earnings analysis

What we found in STRZ's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.

Our reading of the filing · Free to read, no account needed

Starz reported Q1 2026 revenue of $306.9 million, a decrease of 7.2% from the prior year, and a diluted EPS loss of $2.54, larger than the expected loss of $0.81. Operating loss increased by 7.4% compared to the previous year, alongside notable growth in cash flow from operations. The company reiterated its outlook for positive OTT revenue growth despite various challenges.

What stood out

The parts that mattered.

Pulled out of the filing itself, with the figures the company reported.

Revenue Decline
Total revenue fell to $306.9 million, down 7.2% from $330.6 million in the prior year.
Increased Loss Per Share
Diluted EPS reported at -$2.54, compared to -$3.15 in the previous quarter.
Operating Cash Flow Improvement
Cash flows from operations improved to $73.2 million from -$63.5 million year over year.
Significant Debt Levels
Total debt at March 31, 2026 was $625.1 million, reflecting ongoing financial obligations.
Free Cash Flow Contribution
Q1 2026 free cash flow was reported at $59 million, indicating a healthy cash generation despite losses.
Strong Programming Content Spend,
Programming amortization increased to $138.3 million, driving content costs upward.
What to watch

And the other side of it.

The offsets in the same document — the things a summary that only listed the good news would have left out.

High Operating Loss
Operating loss increased to $152.8 million in Q1 2026, from $142.3 million a year earlier.
Rising Debt Levels
Outstanding debt increased to $625.1 million, which may impact financial stability.
Declining OTT Revenues
OTT revenues declined by $14.4 million (6.4%) amidst increased competition and discounting.
The numbers

What they reported.

What the company itself reported, taken out of the document.

What survived to operating profit
Of every $100 of revenue Cost of sales $11 Operating expenses $97 Left as operating profit $-8
Percentages of revenue, taken from the filing. Drawn this way because it holds whatever scale the company reports in.
Earnings per share
$-2.54
Gross margin
88.6%
Operating margin
-8.4%
Segment
Starz Networks
Guidance

What they said about what is next.

2026 outlook reiterated, including positive OTT revenue growth and anticipated unlevered free cash flow of between $80 million to $120 million.

How we read the filing overall

The filing reads worse than the one before it.

One reading of one document. It is not advice, and it is not a forecast.
Earlier filings

What came before.

10-Q · November 13, 2025
Starz reported Q3 total revenue of $320.9 million, down from $346.9 million in the year-ago quarter, and a widening net loss of $52.6 million (GAAP EPS of $(3.15)). Liquidity signals improved modestly with cash of $37.0…
10-K · June 26, 2025
Starz completed the Separation from Lionsgate on May 6, 2025 and is positioned as a focused premium subscription-video business with 19.60 million North American subscribers (as of March 31, 2025). The company…
10-Q · August 8, 2024
Lionsgate reported quarterly revenue of $834.7 million, down $73.9 million (8.1%) versus $908.6 million a year ago, while operating income turned positive at $18.8 million versus an operating loss of $16.8 million in…
10-K · May 30, 2024
The 10-K describes a strategic separation and repositioning of the Studio Business following the business combination consummated on May 13, 2024 and the launch of Lionsgate Studios (common shares began trading as…

This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.

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