Nasdaq:STRZ
STARZ ENTERTAINMENT CORP /CN/
A media conglomerate specializing in premium TV series distribution and streaming content monetization across global platforms.
Key Metrics
Investment Thesis
Bull Case
Investors might consider STRZ if they believe the company can successfully monetize its extensive content library through new streaming partnerships and international licensing deals to reverse its negative earnings trend. The deep asset base offers potential for a turnaround story where disciplined cost management could eventually align operations with the growing $1.37B revenue baseline.
Bear Case
The stock faces severe headwinds due to massive operating losses of $211.2M and high debt levels, making it vulnerable to interest rate fluctuations and covenant breaches. With revenues collapsing from a peak of $4.02B to current levels and continued negative cash flow from operations, the business model appears unsustainable without significant capital injection or strategic restructuring.
About STARZ ENTERTAINMENT CORP /CN/
STARZ Entertainment Corp (STRZ) is a global media and entertainment company providing premium television series, documentaries, and lifestyle content across streaming platforms, linear TV, and home video markets. The company leverages its extensive library of acquired assets to generate revenue through licensing deals, advertising-supported tiers, and subscription services while navigating significant debt obligations. Operating primarily in the United States and international markets, STARZ focuses on delivering high-quality scripted content that drives subscriber growth and licensing income.
Analysis
Management Discussion
The company reported a substantial net loss of $211.2M for the latest period, reflecting heavy amortization charges of $150.1M and elevated marketing spend of $381.8M against revenues that contracted sharply to $1.37B. While cash flow from financing activities provided $126.0M in liquidity, operational burn remains a critical challenge as the business attempts to stabilize its bottom line amidst declining traditional TV revenue.
Industry Overview
The media streaming industry is characterized by intense competition for subscriber attention, rapid technological shifts toward ad-supported models, and high content acquisition costs that pressure profit margins. Companies must balance expensive production budgets with declining linear TV viewership to maintain growth in a saturated market dominated by major tech platforms.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $3.85B | $4.02B | $1.37B |
| Cost of Revenue | $0 | $0 | $0 |
| Gross Profit | $3.85B | $4.02B | $1.37B |
| Operating Expenses | $5.71B | $4.96B | $1.54B |
| Operating Income | $-1.86B | $-938.8M | $-170.4M |
| G&A | $531.1M | $490.5M | $101.8M |
| Marketing | — | — | $381.8M |
| Stock-Based Comp | $102.0M | $90.6M | $18.0M |
| D&A | $180.3M | $192.2M | $170.3M |
| Depreciation | $40.1M | $49.9M | $20.2M |
| Amortization | $140.2M | $142.3M | $150.1M |
| Other OpEx | $5.18B | $4.47B | $1.06B |
| Non-Operating Income | $-139.8M | $-242.5M | $-53.5M |
| Interest Expense | $221.2M | $269.8M | — |
| Pre-Tax Income | $-2.00B | $-1.18B | $-223.9M |
| Income Tax | $21.3M | $-65.0M | $-8.6M |
| Continuing Ops | $-2.02B | $-1.12B | $-215.3M |
| Discontinued Ops | $0 | $0 | $4.1M |
| Net Income | $-2.02B | $-1.12B | $-211.2M |
| Minority Interest | $-8.6M | $-13.4M | $0 |
| Net to Common | $-2.01B | $-1.10B | $-211.2M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $1.12B | $1.46B | $170.5M |
| Cash & Equivalents | $272.1M | $314.0M | $17.8M |
| Accounts Receivable | $582.1M | $753.0M | $52.7M |
| Prepaid Expenses | $43.3M | $58.2M | $18.4M |
| Other Current Assets | $220.9M | $338.3M | $81.6M |
| Long-Term Assets | $6.31B | $5.63B | $2.00B |
| PP&E (Net) | — | — | $48.6M |
| Intangibles | $1.30B | $991.8M | — |
| Goodwill | $1.29B | $811.2M | $0 |
| Operating Leases | $169.0M | $388.8M | $37.3M |
| Other LT Assets | $3.55B | $3.44B | $1.92B |
| Total Assets | $7.43B | $7.09B | $2.17B |
| Current Liabilities | $2.57B | $3.99B | $622.5M |
| Accounts Payable | $368.1M | $327.6M | $64.5M |
| Current Debt | $41.4M | $860.3M | — |
| Current Leases | $47.4M | $53.4M | $9.9M |
| Deferred Revenue | $147.2M | $187.6M | $39.4M |
| Other Current Liab | $1.69B | $2.21B | $444.2M |
| Long-Term Liabilities | $3.73B | $3.29B | $784.3M |
| Long-Term Debt | $1.98B | $1.62B | — |
| LT Operating Leases | $159.2M | $385.1M | $45.6M |
| Other LT Liab | $1.54B | $1.16B | $506.6M |
| Total Liabilities | $6.30B | $7.28B | $1.41B |
| Shareholders' Equity | $1.13B | $-187.2M | $766.4M |
| Retained Earnings | $-2.44B | $-3.58B | — |
| AOCI | $120.9M | $116.0M | $19.2M |
| Total L&E | $7.43B | $7.09B | $2.17B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $-2.02B | $-1.12B | $-211.2M |
| Non-Cash Adjustments | $1.75B | $1.73B | $-6.0M |
| Working Capital Changes | $159.5M | $-212.5M | $171.2M |
| Cash from Operations | $-114.3M | $396.8M | $-46.0M |
| Capital Expenditures | $49.0M | $34.7M | $17.6M |
| Cash from Investing | $-18.3M | $-376.8M | $-99.2M |
| Share Buybacks | $0 | — | — |
| Cash from Financing | $63.8M | $39.6M | $126.0M |
| FX Effect | $-2.8M | $-1.2M | $0 |
| Net Change in Cash | $-68.8M | $59.6M | $-19.2M |
| Beginning Cash | $384.6M | $313.0M | $37.0M |
| Ending Cash | $313.0M | $371.4M | $17.8M |
Frequently Asked Questions
How does STARZ ENTERTAINMENT CORP /CN/ make money?
Content Production and Licensing (acquired IP monetization), Streaming Platform Subscriptions (ad-supported and SVOD tiers), Linear Television Distribution (cable and satellite carriage fees), and Home Entertainment Sales (physical and digital rentals).
What are the main risks for STRZ?
Significant leverage with total liabilities exceeding $1.4 billion creating refinancing pressure, persistent operating losses driven by high marketing and amortization expenses, sensitivity to cord-cutting trends affecting linear TV carriage fees, and potential dilution from equity issuances to service debt.
What is STRZ's competitive advantage?
Ownership of a deep, high-quality library of acclaimed scripted series that drives long-term licensing value, an established brand reputation for premium content in the adult drama genre, and diversified revenue streams reducing reliance on a single distribution channel.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.