$STRZ Q4 2025 earnings: Cost Discipline Shines While Top-Line Quality Raises Questions
Just nine months post-separation from Lionsgate, STARZ is proving it can manage costs. Adjusted OIBDA surged to $55.5 million and leverage dropped to 2.9x, comfortably beating the ~3.1x target. U.S. OTT subscribers hit an all-time high of 12.7 million. However, the top line reveals a glaring contradiction: despite record subscriber numbers, total revenue dropped 6% year-over-year, and OTT revenue fell 12%. The company’s pivot to licensing in Canada and aggressive amortization cuts are temporarily masking underlying ARPU compression.
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