Starz Entertainment Corp (STRZ) delivered a mixed QQ4 2025 performance. Revenue came in at $970.5 million, with gross profit of $364.0 million and EBITDA of $533.5 million, yielding an EBITDA margin of 55.0%. Operating income expanded to $83.3 million, yet the company recorded a net loss of $22.2 million and earnings per diluted share of -$0.0924. The discrepancy between strong operating profitability and a negative bottom line was driven by a high depreciation and amortization burden ($475.5 million), meaningful other expenses net (-$97.8 million), and interest expense ($72.5 million), amidst an interest and tax environment that kept net income negative despite operating leverage. Free cash flow remained negative at -$117.28 million as operating cash flow was -$112.31 million, with a modest capital expenditure outlay (~$4.97 million). The balance sheet shows a leveraged position: total debt of $4.50 billion, net debt of about $4.26 billion, cash and cash equivalents of $243.3 million, and negative reported equity of about -$168.3 million. Liquidity metrics are tight (current ratio 0.315) and the firm relies on financing activity to fund ongoing operations and debt service. Year-over-year and quarter-over-quarter signals point to improving operating profitability (operating income up ~17.8% YoY and ~208% QoQ; net income and EPS turning less negative), but the company faces meaningful leverage and working capital headwinds that could pressure near-term liquidity and refinancing risk absent stronger cash flow generation or balance-sheet optimization.