Starz Holds 2026 OIBDA Outlook, Targets 20% Margin in 2027

Starz Entertainment Corp. (STRZ) kept its 2026 forecast for mid-single-digit adjusted OIBDA growth and $100 million to $120 million in unlevered free cash flow, while setting margin and leverage targets for 2027.

Year-to-date free cash flow was positive $85 million. The company’s target for the full year is specifically for unlevered free cash flow.

For the second half of 2027, Starz is aiming for a 20% margin and leverage of 2.5 times or lower. Net debt stood at $601 million, and adjusted OIBDA leverage was 2.8 times.

Over-the-top (OTT) revenue increased from a year earlier and from the prior quarter. Starz also cited strong bundle performance, improved retention and early success with Fightland.

Revenue from distributing content it owns is expected to vary. Pressure from the continued decline in traditional video households is weighing on linear revenue.