Starz’s first full quarter as a standalone company showed the strain of cord-cutting even as management reiterated profit targets. On Aug. 14, the streamer reported second-quarter revenue of $319.7 million, down 8% year over year, and a net loss of $42.5 million, or $2.54 per share.
The company ended the period with 12.2 million U.S. streaming subscribers and 17.6 million total U.S. subscribers, reflecting sequential losses of 120,000 OTT customers and 410,000 total domestic subs. Including Canada, North American subscribers fell to 19.1 million after a decline of 110,000. Shares slipped about 4% in after-hours trading.
The results arrive three months after Starz completed its split from its former parent to trade independently under the ticker STRZ. The separation formally closed on May 7, 2025, part of a multi-year plan to give investors a clearer view of the studio and network businesses.
Chief executive Jeff Hirsch said the company has “made significant progress” since the spinoff and pointed to a pipeline intended to stabilize subscriber trends and improve margins. Management reaffirmed guidance for approximately $200 million in adjusted OIBDA in calendar 2025 and said it expects to convert 70% of adjusted OIBDA to free cash flow in 2026.
Subscriber erosion remained centered in linear pay-TV, with a smaller drop on the streaming side. The mixed picture follows a stronger prior quarter for domestic OTT, underscoring the volatility of growth as programming cycles and distribution shifts play through. The company’s detailed filing shows quarterly operating loss of $26.9 million alongside the top-line and subscriber figures reported Thursday.
Variety first reported that Starz’s quarterly revenue fell and its streaming base declined after the separation. Starz, meanwhile, framed the June quarter as a reset after the split, telling investors it expects sequential revenue and OTT subscriber growth in the second half as new originals roll out.
