Revenue contraction has accelerated to a 68.4% year-over-year decline by 2026Q4, while operating margins have deteriorated into negative territory at -4.5%.
| Metric | Mar'26 | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 | Mar'20 | Mar'19 | Mar'18 | Mar'17 | Mar'16 | Mar'15 | Mar'14 | Mar'13 | Mar'12 | Mar'11 | Mar'10 | Mar'09 | Mar'08 | Mar'07 | Mar'06 | Mar'05 |
|---|
| Sales/Revenue | 1.26B | 1.37B | 1.39B | 3.85B | 3.6B | 3.27B | 3.89B | 3.68B | 4.13B | 3.2B | 2.35B | 2.4B | 2.63B | 2.71B | 1.59B | 1.58B | 1.58B | 1.47B | 1.36B | 976.74M | 945.38M | 842.59M |
| Revenue Growth % | -8.18% | -1.64% | -63.88% | 6.95% | 10.17% | -15.9% | 5.69% | -10.86% | 28.97% | 36.38% | -2.18% | -8.77% | -2.88% | 70.58% | 0.31% | -0.06% | 8% | 7.74% | 39.35% | 3.32% | 12.2% | - |
| Cost of Goods Sold | 0 | 702M | 854.5M | 2.51B | 2.29B | 1.87B | 2.37B | 2.17B | 2.43B | 1.95B | 1.41B | 1.31B | 1.36B | 1.4B | 907.55M | 800.56M | 835.38M | 801.47M | 666.42M | 439.6M | 460.81M | 359.08M |
| COGS % of Revenue | - | 51.26% | 61.37% | 65.02% | 63.53% | 57.06% | 61.01% | 58.87% | 58.95% | 61.06% | 60.06% | 54.4% | 51.62% | 51.65% | 57.17% | 50.58% | 52.75% | 54.66% | 48.96% | 45.01% | 48.74% | 42.62% |
| Gross Profit | 0 | 667.6M | 537.9M | 1.35B | 1.31B | 1.4B | 1.52B | 1.51B | 1.7B | 1.25B | 937.5M | 1.09B | 1.27B | 1.31B | 680.02M | 782.16M | 748.34M | 664.9M | 694.62M | 537.14M | 484.58M | 483.5M |
| Gross Margin % | - | 48.74% | 38.63% | 34.98% | 36.47% | 42.94% | 38.99% | 41.13% | 41.05% | 38.94% | 39.94% | 45.6% | 48.38% | 48.35% | 42.83% | 49.42% | 47.25% | 45.34% | 51.04% | 54.99% | 51.26% | 57.38% |
| Gross Profit Growth % | -100% | 24.11% | -60.11% | 2.59% | -6.43% | -7.38% | 0.19% | -10.69% | 35.95% | 32.99% | -14.32% | -14.01% | -2.81% | 92.54% | -13.06% | 4.52% | 12.55% | -4.28% | 29.32% | 10.85% | 0.22% | - |
| Operating Expenses | 363M | 653.9M | 552.8M | 1.33B | 1.29B | 1.19B | 1.44B | 1.28B | 1.35B | 1.16B | 922.3M | 844.3M | 995.23M | 1.03B | 653.99M | 718.13M | 696.3M | 806.12M | 754.75M | 495.19M | 469.24M | 433.74M |
| OpEx % of Revenue | 28.87% | 47.74% | 39.7% | 34.52% | 35.84% | 36.27% | 37.03% | 34.86% | 32.77% | 36.31% | 39.29% | 35.18% | 37.84% | 38.17% | 41.19% | 45.37% | 43.97% | 54.97% | 55.45% | 50.7% | 49.63% | 51.48% |
| Selling, General & Admin | 363M | 391.7M | 552.8M | 1.33B | 1.29B | 1.19B | 1.44B | 1.28B | 1.35B | 1.16B | 922.3M | 844.3M | 995.23M | 1.03B | 653.99M | 718.13M | 696.3M | 806.12M | 754.75M | 495.19M | 469.24M | 433.74M |
| SG&A % of Revenue | 28.87% | 28.6% | 39.7% | 34.52% | 35.84% | 36.27% | 37.03% | 34.86% | 32.77% | 36.31% | 39.29% | 35.18% | 37.84% | 38.17% | 41.19% | 45.37% | 43.97% | 54.97% | 55.45% | 50.7% | 49.63% | 51.48% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 262.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -424.8M | 13.7M | -14.9M | 17.9M | 22.6M | 218.2M | 76.1M | 230.9M | 342M | 84.4M | 15.2M | 249.88M | 277.25M | 275.65M | 26.04M | 64.03M | 52.05M | -141.22M | -60.13M | 41.94M | 15.34M | 49.76M |
| Operating Margin % | -33.78% | 1% | -1.07% | 0.46% | 0.63% | 6.67% | 1.96% | 6.27% | 8.28% | 2.64% | 0.65% | 10.41% | 10.54% | 10.18% | 1.64% | 4.05% | 3.29% | -9.63% | -4.42% | 4.29% | 1.62% | 5.91% |
| Operating Income Growth % | -3200.73% | 191.95% | -183.24% | -20.8% | -89.64% | 186.73% | -67.04% | -32.49% | 305.21% | 455.26% | -93.92% | -9.87% | 0.58% | 958.78% | -59.34% | 23.03% | 136.85% | -134.85% | -243.36% | 173.38% | -69.17% | - |
| EBITDA | -192.6M | 830.2M | 773.4M | 1.86B | 1.77B | 1.6B | 1.98B | 1.91B | 2.14B | 1.56B | 1.06B | 1.14B | 1.21B | 1.25B | 30.31M | 69.84M | 109.9M | -129.37M | -51.05M | 49.37M | 22.97M | 55.12M |
| EBITDA Margin % | -15.32% | 60.62% | 55.54% | 48.34% | 49.06% | 48.8% | 50.91% | 51.92% | 51.89% | 48.77% | 45.05% | 47.47% | 45.82% | 46.16% | 1.91% | 4.41% | 6.94% | -8.82% | -3.75% | 5.05% | 2.43% | 6.54% |
| EBITDA Growth % | -123.2% | 7.34% | -58.5% | 5.39% | 10.75% | -19.39% | 3.65% | -10.82% | 37.22% | 47.67% | -7.17% | -5.47% | -3.59% | 4023.82% | -56.6% | -36.45% | 184.95% | -153.41% | -203.4% | 114.95% | -58.33% | - |
| D&A (Non-Cash Add-back) | 232.2M | 816.5M | 788.3M | 1.85B | 1.75B | 1.38B | 1.9B | 1.68B | 1.8B | 1.48B | 1.04B | 889.24M | 927.83M | 974.32M | 4.28M | 5.81M | 57.85M | 11.85M | 9.08M | 7.43M | 7.63M | 5.35M |
| EBIT | 0 | -178.3M | -886.3M | -1.7B | -16.8M | 108.6M | -8.9M | -74M | 342.4M | -19.2M | 21.1M | 265.88M | 251.13M | 249.95M | 43.69M | 5.84M | 31.14M | -137.38M | -53.51M | 52.99M | 19.45M | 52.48M |
| Net Interest Income | 84.2M | -40.7M | -282.3M | -287.2M | -129.1M | -114.1M | -168.2M | -179.2M | -183.3M | -108.8M | -53M | -49.69M | -60.14M | -89.54M | -75.36M | -53.44M | -56.49M | -13.54M | -5.16M | -5.9M | -14.56M | -23.14M |
| Interest Income | 0 | 4.9M | 22.1M | 6.4M | 28.1M | 5.8M | 8.8M | 12M | 10.4M | 6.4M | 1.9M | 2.79M | 6.03M | 4.04M | 2.75M | 1.74M | 1.57M | 5.79M | 11.28M | 11.93M | 4.3M | 0 |
| Interest Expense | -84.2M | 45.6M | 304.4M | 293.6M | 157.2M | 119.9M | 177M | 191.2M | 193.7M | 115.2M | 54.9M | 52.48M | 66.17M | 93.58M | 78.11M | 55.18M | 58.06M | 19.33M | 16.43M | 17.83M | 18.86M | 23.14M |
| Other Income/Expense | 21.8M | -237.6M | -918.6M | -2.02B | -199.6M | -235.6M | -279.2M | -539M | -193.3M | -218.8M | -49M | -36.47M | -92.29M | -119.28M | -60.46M | -113.37M | -78.96M | -19.04M | -9.81M | -6.79M | -14.75M | -20.43M |
| Pretax Income | -403M | -223.9M | -933.5M | -2B | -177M | -17.4M | -203.1M | -308.1M | 148.7M | -134.4M | -33.8M | 213.41M | 184.96M | 156.37M | -34.42M | -49.34M | -26.92M | -160.26M | -69.94M | 35.16M | 590K | 29.34M |
| Pretax Margin % | -32.05% | -16.35% | -67.04% | -51.82% | -4.91% | -0.53% | -5.22% | -8.37% | 3.6% | -4.2% | -1.44% | 8.89% | 7.03% | 5.77% | -2.17% | -3.12% | -1.7% | -10.93% | -5.14% | 3.6% | 0.06% | 3.48% |
| Income Tax | 100K | -8.6M | -128.9M | 21.3M | 28.4M | 17.1M | 3.3M | -8.5M | -319.4M | -148.9M | -76.5M | 31.63M | 32.92M | -75.76M | 4.7M | 4.26M | 1.23M | 2.72M | 4.03M | 7.68M | -1.03M | 8.95M |
| Effective Tax Rate % | -0.02% | 3.84% | 13.81% | -1.07% | -16.05% | -98.28% | -1.62% | 2.76% | -214.79% | 110.79% | 226.33% | 14.82% | 17.8% | -48.45% | -13.64% | -8.63% | -4.57% | -1.7% | -5.76% | 21.84% | -174.58% | 30.5% |
| Net Income | -403.1M | -211.2M | -915.2M | -2.01B | -188.2M | -18.9M | -188.4M | -284.2M | 473.6M | 14.8M | 50.2M | 181.78M | 152.04M | 232.13M | -39.12M | -53.6M | -19.48M | -162.98M | -73.97M | 27.48M | 1.62M | 20.28M |
| Net Margin % | -32.06% | -15.42% | -65.73% | -52.15% | -5.22% | -0.58% | -4.84% | -7.72% | 11.47% | 0.46% | 2.14% | 7.58% | 5.78% | 8.57% | -2.46% | -3.39% | -1.23% | -11.11% | -5.43% | 2.81% | 0.17% | 2.41% |
| Net Income Growth % | -90.86% | 76.92% | 54.47% | -968.12% | -895.77% | 89.97% | 33.71% | -160.01% | 3100% | -70.52% | -72.38% | 19.56% | -34.5% | 693.4% | 27.02% | -175.18% | 88.05% | -120.34% | -369.18% | 1596.23% | -92.01% | - |
| Net Income (Continuing) | 42.5M | -215.3M | -804.6M | -2.02B | -205.4M | -34.5M | -206.4M | -299.6M | 468.1M | 14.5M | 42.7M | 181.78M | 152.04M | 232.13M | -39.12M | -53.6M | -28.15M | -162.98M | -73.97M | 27.48M | 1.62M | 20.39M |
| Discontinued Operations | 0 | 4.1M | -110.6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 125.5M | 345.1M | 323M | 220.7M | 169.8M | 130.8M | 102.8M | 93.8M | 90.5M | 0 | 0 | 0 | 0 | 0 | 29.98M | 0 | 0 | 0 | 0 | 259K |
| EPS (Diluted) | -24.05 | -12.64 | -54.77 | -111.97 | -16.80 | -1.71 | -17.20 | -26.60 | 43.00 | 1.80 | 13.20 | 49.20 | 41.60 | 64.40 | -12.00 | -16.40 | -6.80 | -56.00 | -24.80 | 10.00 | 0.80 | 8.00 |
| EPS Growth % | -90.27% | 76.92% | 51.09% | -566.49% | -880.16% | 90.03% | 35.34% | -161.86% | 2288.89% | -86.36% | -73.17% | 18.27% | -35.4% | 636.67% | 26.83% | -141.18% | 87.86% | -125.81% | -348% | 1150% | -90% | - |
| EPS (Basic) | -24.05 | -12.64 | -54.77 | -111.97 | -16.80 | -1.71 | -17.20 | -26.60 | 45.40 | 1.80 | 13.60 | 52.40 | 44.40 | 69.20 | -12.00 | -16.40 | -6.80 | -56.00 | -24.80 | 10.00 | 0.80 | 8.40 |
| Diluted Shares Outstanding | 16.8M | 16.71M | 16.71M | 16.71M | 11.21M | 11.03M | 10.89M | 10.69M | 11.02M | 8.61M | 3.85M | 3.79M | 3.86M | 3.73M | 3.31M | 3.28M | 2.94M | 2.92M | 2.96M | 2.78M | 2.65M | 2.58M |
| Basic Shares Outstanding | 16.8M | 16.71M | 16.71M | 16.71M | 11.21M | 11.03M | 10.89M | 10.69M | 10.42M | 8.25M | 3.71M | 3.48M | 3.44M | 3.36M | 3.31M | 3.28M | 2.94M | 2.92M | 2.96M | 2.71M | 2.58M | 2.44M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | 181.08% | 94.62% | 18.35% | 4.54% | - | - | - | - | - | - | - | - | - |
Structural subscriber base erosion
As reported in recent financial filings, Starz's revenue has experienced a severe decline, culminating in a 68.4% year-over-year drop by 2026Q4, which highlights the accelerating erosion of the company's legacy wholesale distribution channels and the failure of the DTC segment to offset these losses.
The consistent downward trajectory in top-line performance suggests that the company is struggling to maintain relevance in a saturated streaming market. Investors should monitor whether this contraction is a result of intentional churn of low-value subscribers or a broader, irreversible loss of market share to larger, more diversified competitors.
Based on the provided income statement data, Starz has faced extreme margin volatility, with operating margins swinging from positive territory in 2025 to a deeply negative -4.5% by 2026Q4, reflecting the high fixed-cost burden of content production against a rapidly shrinking revenue base.
The inability to maintain positive operating margins indicates that the current content-to-subscriber ratio is fundamentally misaligned with the company's scale. This suggests that without a significant pivot in content strategy or a reduction in fixed overhead, the business may continue to consume capital at an unsustainable rate.
According to the company's recent income statements, the lack of operating leverage is evident as SG&A expenses remain stubbornly high relative to revenue, preventing the firm from achieving the necessary scale to cover its substantial content amortization costs and reach consistent profitability.
The persistence of high SG&A costs despite declining revenue suggests that management has yet to successfully right-size the organization for its current operational reality. This lack of efficiency warrants further investigation into whether the company's cost structure is inherently too rigid for a standalone, mid-tier streaming entity.
While the current financial data points to a business in decline, the market may be mispricing the terminal value of the Starz library, as the company's niche demographic focus could represent a high-value, bolt-on acquisition target for a larger platform seeking to reduce churn.
Short-sellers would likely focus on the negative net income and the rapid revenue decay as evidence of a terminal decline. However, an alternative interpretation is that the company is being positioned for a sale, where the elimination of redundant corporate overhead could immediately improve the underlying economics of the content assets.
Quick answers to the most common questions about buying STRZ stock.
For fiscal year 2026, Starz Entertainment Corp. (STRZ) reported total revenue of $1.26B. This represents a 49.2% increase compared to $842.6M in 2005.
Starz Entertainment Corp. (STRZ) reported a net loss of $403.1M for the fiscal year ending 2026.
Starz Entertainment Corp. (STRZ) reported an operating income of $-424.8M, resulting in an operating profit margin of -33.8%. This margin reflects the operational efficiency of the business before interest and taxes.