Starz Enters Inflection Year with Record-Breaking Quarter
The second quarter of 2026 has been a defining moment for Starz Entertainment, as the company reported another strong earnings call. The momentum across the business is undeniable, and the future looks brighter than ever.
President and CEO Jeffrey Hirsch kicked off the conference call by highlighting the success of "Raising Kanan" Season 5, which has grown its audience from the first season five years ago – a rare achievement in today's television landscape. The penultimate episode delivered the strongest episode of the season, with significant audience overlap with the Power Universe expected to reduce subscriber churn.
The content portfolio for the quarter generated the second-highest audience engagement quarter of all time, marking the fourth consecutive quarter of engagement growth since Starz separated from its parent company. Consumer demand for the content coupled with a rate increase delivered significant sequential OTT revenue growth, returning the company to year-over-year OTT revenue growth in the quarter.
Total revenue also increased sequentially in the quarter, despite a difficult comparison to the first quarter. The strength of the quarter, improved visibility into the second half of the year, and early performance of the new original series "Fightland" have increased confidence that 2026 is shaping up to be a more significant inflection year for Starz than initially anticipated.
With this newfound momentum, Starz has raised its Adjusted OIBDA growth forecast and unlevered free cash flow guidance. The company continues to see a clear path toward its leverage target and 20% margin target, supported by improved OTT economics, greater scale in owned content, and continued operating discipline.
The highly anticipated return of "P-Valley," the continued expansion of the "Outlander" universe through "Blood of My Blood" Season 2, and the upcoming Michael biopic following its impressive theatrical run position Starz well for an updated outlook. The company is also building its own content pipeline beyond "Fightland" with several other Starz-owned projects in development.
As Starz continues to push forward into this new era of growth, it's clear that the future looks bright for the entertainment company. With a strong slate of content and increasing momentum across the business, investors can expect significant returns in the coming years.
