$STRZ

STARZ ENTERTAINMENT CORP /CN/

CIK:0000929351|SEC Filings

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Total revenue	$ 307.9	$ 319.7	$ 614.8	$ 650.3
Operating expenses:
Programming amortization	114.1	162.5	252.4	280.9
Other operating	40.5	36.5	74.8	75.2
Advertising and marketing	70.3	63.4	120.7	122.3
General and administrative	40.0	29.1	69.1	54.5
Depreciation and amortization	67.3	48.7	135.8	96.8
Restructuring and other	151.2	6.4	290.3	189.8
Total expenses	483.4	346.6	943.1	819.5
Operating loss	(175.5)	(26.9)	(328.3)	(169.2)
Interest expense	(13.6)	(13.2)	(27.5)	(24.1)
Interest and other income	0.5	0.0	0.9	1.7
Other expense	(2.0)	(2.5)	(3.8)	(4.3)
Loss on extinguishment of debt	0.0	0.0	0.0	(0.7)
Loss from continuing operations	(190.6)	(42.6)	(358.7)	(196.6)
Income tax benefit	1.2	0.1	4.4	0.1
Net loss from continuing operations	(189.4)	(42.5)	(354.3)	(196.5)
Net income from discontinued operations, net of income taxes	0.0	0.0	0.0	1.0
Net loss	$ (189.4)	$ (42.5)	$ (354.3)	$ (195.5)
Per share information attributable to Starz Entertainment Corp. shareholders:
Basic net loss per common share - continuing operations (in USD per share)	$ (11.27)	$ (2.54)	$ (21.12)	$ (11.75)
Basic net income per common share - discontinued operations (in USD per share)	0	0	0	0.06
Basic net loss per common share (in USD per share)	(11.27)	(2.54)	(21.12)	(11.69)
Diluted net loss per common share - continuing operations (in USD per share)	(11.27)	(2.54)	(21.12)	(11.75)
Diluted net income per common share - discontinued operations (in USD per share)	0	0	0	0.06
Diluted net loss per common share (in USD per share)	$ (11.27)	$ (2.54)	$ (21.12)	$ (11.69)
Weighted average number of common shares outstanding:
Weighted average number of common shares outstanding, basic (in shares)	16.8	16.7	16.8	16.7
Weighted average number of common shares outstanding, diluted (in shares)	16.8	16.7	16.8	16.7
OTT revenue
Total revenue	$ 221.3	$ 221.1	$ 432.4	$ 446.6
Linear and other revenue
Total revenue	$ 86.6	$ 98.6	$ 182.4	$ 203.7

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions

6 Months Ended

Jun. 30, 2026

Jun. 30, 2025

Operating Activities:

Net loss

$ (354.3)

$ (195.5)

Less: net income from discontinued operations, net of tax

0.0

1.0

Net loss from continuing operations, net of tax

(354.3)

(196.5)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization

135.8

96.8

Programming amortization

252.4

280.9

Net content impairment

129.2

167.3

Amortization of debt financing costs and other non-cash interest

2.3

2.0

Share-based compensation

20.2

11.7

Other amortization

4.2

3.5

Loss on extinguishment of debt

0.0

0.7

Deferred income taxes

0.0

0.2

Changes in operating assets and liabilities:

Accounts receivable, net

2.6

60.1

Cash paid for programming content

^[1]

(294.9)

(394.3)

Other assets

2.8

(5.5)

Accounts payable and accrued liabilities

145.4

4.2

Residuals

(1.3)

(0.1)

Deferred revenue

0.6

6.4

Due to LG Studios Business

0.0

(35.5)

Net cash flows provided by operating activities

45.0

1.9

Investing activities:

Capital expenditures

(9.7)

(10.8)

Deferred purchase price of receivables sold

1.2

0.5

New Lionsgate revolving credit facility – increases

0.0

455.5

New Lionsgate revolving credit facility – decreases

0.0

(321.5)

Net cash flows (used in) provided by investing activities

(8.5)

123.7

Financing activities:

238.2

290.6

(251.0)

(278.7)

Exercise of stock options

0.2

0.0

Distribution of Exchange Notes to New Lionsgate upon Separation

0.0

(389.9)

Debt – borrowings, net of debt issuance and redemption costs

0.0

388.3

Debt repayments

0.0

(96.5)

Parent net investment

0.0

(2.0)

Net cash flows used in financing activities

(12.6)

(88.2)

Net change in cash and cash equivalents

23.9

37.4

Cash and cash equivalents – beginning of period

35.7

14.2

Cash and cash equivalents – end of period

$ 59.6

$ 51.6

[1]	Cash paid for programming content for the six months ended June 30, 2026 includes $157.1 million for the licensing of program rights from the LG Studios Business (as defined below).

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
ASSETS
Cash and cash equivalents	$ 59.6	$ 35.7
Accounts receivable, net, including other receivables of $17.5 million and $9.9 million as of June 30, 2026 and December 31, 2025, respectively.	80.4	84.4
Prepaid expenses and other	10.6	12.1
Total current assets	150.6	132.2
Programming content, net	866.0	993.8
Property and equipment, net	47.8	49.1
Intangible assets, net	566.1	690.9
Other assets	41.3	47.2
Total assets	1,671.8	1,913.2
LIABILITIES
Current portion of debt	15.0	7.5
Accounts payable	60.8	60.0
Programming related payables	212.9	255.2
Other accrued liabilities	120.9	49.1
Residuals	22.2	27.1
Programming related obligations	110.8	87.7
Deferred revenue	53.4	52.8
Total current liabilities	596.0	539.4
Debt	600.1	605.8
Programming related obligations	6.8	41.4
Other liabilities	170.0	72.7
Deferred tax liabilities	3.0	7.9
Total liabilities	1,375.9	1,267.2
Contingencies (Note 15)
EQUITY
Common shares, no par value, unlimited authorized, 16.8 million and 16.7 million shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively.	737.3	735.1
Accumulated other comprehensive income	21.4	19.4
Accumulated deficit	(462.8)	(108.5)
Total equity	295.9	646.0
Total liabilities and equity	$ 1,671.8	$ 1,913.2