Starz Entertainment (STRZ) FY 2025 earnings snapshot

Starz Entertainment (STRZ) has just reported FY 2025 results with fourth quarter revenue of US$330.6 million and a basic EPS loss of US$9.21, alongside net income from continuing operations of a US$154 million loss. Over the past few reported fourth quarters, the company has seen revenue shift from US$344.5 million in FY 2024 to US$330.6 million in FY 2025. Basic EPS moved from a loss of US$1.90 to a loss of US$9.21, framing a period where the top line has held in the low US$300 million range while losses have remained substantial. For investors, this latest print keeps the focus on whether management can improve margins and narrow those losses from here.

See our full analysis for Starz Entertainment.

With the headline numbers on the table, the next step is to see how these results line up with the widely shared narratives around Starz, highlighting where the data supports the story and where it pushes back.

Losses of US$215 million over the last year

• On a trailing twelve month basis to FY 2025, Starz reported US$1.3b in revenue and a net loss from continuing operations of US$215.3 million, so the business is still clearly in loss making territory.
• What stands out for the bullish narrative is that this loss sits against a story of shrinking losses over five years, yet analysts still do not forecast profitability within three years, which means:
  • Bulls point to the target of roughly 20% margins helped by owning more originals such as Fightland, but the latest trailing loss of US$215.3 million shows that margin reset is still a work in progress.
  • At the same time, consensus expects revenue to edge down about 0.5% per year, so higher margin expectations are working against a slightly softer top line rather than growth doing the heavy lifting.

Over the past year, bulls argue that a leaner content slate and more owned IP could eventually convert this US$215.3 million loss into earnings, but the current figures show how much work is still ahead before that story plays out in the income statement. 🐂 Starz Entertainment Bull Case

Valuation gap versus DCF fair value

• The stock trades at a P/S of 0.3x versus peer and US Entertainment averages of 2.1x and 1.5x, and the current share price of US$20.10 is far below the DCF fair value of about US$140.11, indicating a very large gap between price and that cash flow based estimate.
• Critics focusing on the bearish narrative point out that this valuation gap sits alongside forecasts for ongoing losses, which leads to a few tensions to keep in mind:
  • Bears highlight that even with this apparent discount, analysts still expect Starz to remain loss making over the next three years, so a low P/S multiple is paired with no clear profit in sight in the provided forecasts.
  • On the other hand, the same bearish framework assumes revenue could decline by around 3.6% a year, which is steeper than the modest 0.5% decline referenced elsewhere, so investors need to decide which revenue path feels more realistic when thinking about that US$140.11 DCF fair value.

Skeptics warn that a low 0.3x P/S and a very large discount to DCF fair value only matter if Starz eventually converts its model into positive earnings that support those valuations. 🐻 Starz Entertainment Bear Case

TTM revenue at US$1.4b with soft outlook

• Trailing twelve month revenue across the FY 2025 data set sits between US$1.3b and US$1.4b, with the FY 2025 Q4 snapshot at US$1.37b and the Q2 figure at US$1.40b, while forward expectations call for roughly a 0.5% annual revenue decline rather than growth.
• Analysts consensus narrative leans on franchise strength in series such as Outlander, Power, Spartacus and P Valley to support engagement, yet the revenue trend in the data and the forecast decline mean:
  • The focus on longer seasons and owned franchises is meant to help reduce churn and support recurring revenue, but the TTM revenue line moving around the US$1.3b to US$1.4b range with a projected 0.5% annual decline suggests the top line is currently more about stability than expansion.
  • Shifting international markets to output style licensing, like the Canadian move to a licensing model, is expected to bring more predictable revenue, yet it can also cap upside from direct international subscriber growth, which fits with the modest decline baked into the multi year revenue outlook.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Starz Entertainment on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With both risks and rewards in play, the story around Starz is clearly mixed. Check the numbers for yourself and see what stands out. To help frame that view, take a closer look at the 2 key rewards and 1 important warning sign.

See What Else Is Out There

Starz is still reporting sizeable losses with no profitability in the provided forecasts and a soft revenue outlook, so earnings quality remains a key concern.

If you want ideas with potentially stronger fundamentals and less earnings pressure, check out the 72 resilient stocks with low risk scores today and see what stands out.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.