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Starz reports solid OTT revenue growth, margin gains, and strong cash flow, raising 2026 profit guidance.

Company Fundamentals
03 Nov 2026, 10:39 WIB
Seeking Alpha
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Bullish
Starz reports solid OTT revenue growth, margin gains, and strong cash flow, raising 2026 profit guidance.

Starz delivered a strong quarterly performance with OTT revenue growing 1.7% year-on-year to $322 million, driven by original content and cost controls. The company's shift to owning content like Fightland boosts intellectual property value, subscriber numbers, and international licensing potential. Leverage is manageable at 2.8x, with refinancing reducing interest costs and simplifying capital structure. Starz raised its 2026 operating profit guidance to $220 million, and its valuation appears attractive with a 4.4x 2026 OIBDA multiple and a 15.75% free cash flow yield, signaling potential upside as liquidity improves.

Starz's leverage ratio stands at 2.8x, with a 2026 operating profit guidance raised to $220 million, highlighting its financial positioning. For readers following the Media sector, here is Pluang's market snapshot as of Nov 03, 2026 15:51 WIB: of 57 priced US media stocks, 28 rose and 26 fell. Notable movers include BCE Inc. Common Stock at USD 20.66 (+1.37%, typical hold time 9 days, Pluang order activity balanced 50% Sell / 50% Buy), Pinterest Inc at USD 20.01 (-1.48%, typical hold time 87 days), and New York Times Co at USD 69.33 (-1.21%, typical hold time 84 days).

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