STARZ ENTERTAINMENT CORP /CN/

Previous wording

Prior to the Separation, as further discussed below, the business of Starz Entertainment Corp. (the "Company", "we", "us" or "our"), substantially consisted of the Starz Business of Old Lionsgate’s, Media Networks segment, consisting of (i) Starz Networks, which includes the domestic distribution of STARZ branded premium subscription video services through over-the-top (“OTT”) streaming platforms and distributors, on a direct to- consumer basis through the Starz App and through wholesale U.S. and Canada OTT and multichannel video programming distributors (“MVPDs”), including cable operators, satellite television providers and telecommunications companies (in the aggregate the “Starz Platform”), and (ii) International, which consists of the OTT distribution of subscription video services outside the U.S. and Canada.

Current wording

Prior to the Separation, as further discussed below, the business of Starz Entertainment Corp. (the "Company", "we", "us" or "our"), substantially consisted of the Starz Business of Old Lionsgate’s Media Networks segment, consisting of (i) Starz Networks, which includes the distribution in the U.S. and Canada of STARZ branded premium subscription video services through over-the-top (“OTT”) streaming platforms and distributors, on a direct-to-consumer basis through the Starz App and through wholesale U.S. and Canada multichannel video programming distributors (“MVPDs”), including cable operators, satellite television providers and telecommunications companies (in the aggregate the “Starz Platform”), and (ii) International, which consisted of the OTT distribution of subscription video services outside the U.S. and Canada.

Previous wording

To complete the Separation, pre-transaction shareholders of Old Lionsgate’s Class A common shares received one and twelve one-hundredths (1.12) New Lionsgate common shares and one and twelve one-hundredths (1.12) Starz Entertainment Corp. common shares while Old Lionsgate’s Class B common shares received one share of New Lionsgate common shares and one share of Starz Entertainment Corp.’s common shares. As a result of the steps described above, each of New Lionsgate and Starz have a single class of “one share, one vote” common shares. Starz Entertainment Corp.’s common shares were then consolidated on a 15-to-1 basis, such that every fifteen (15) Starz common shares were consolidated into one (1) Starz common share (the “Reverse Stock Split”). See Note 8 Capital Stock, for further details.

Current wording

To complete the Separation, pre-transaction shareholders of Old Lionsgate’s Class A common shares received one and twelve one-hundredths (1.12) New Lionsgate common shares and one and twelve one-hundredths (1.12) Starz Entertainment Corp. common shares while Old Lionsgate’s Class B common shares received one share of New Lionsgate common shares and one share of Starz Entertainment Corp.’s common shares. As a result of the steps described above, each of New Lionsgate and Starz have a single class of “one share, one vote” common shares. Starz Entertainment Corp.’s common shares were then consolidated on a 15-to-1 basis, such that every fifteen (15) Starz common shares were consolidated into one (1) Starz common share (the “Reverse Stock Split”).

Previous wording

In 2022 and 2023, in connection with its ongoing restructuring activities, Starz performed a strategic review of content performance across the Starz Platform, resulting in certain programming being removed from those platforms and written down to fair value. During 2024 and 2025, Starz continued its evaluation of the programming on the Starz Platform and cancelled certain ordered programming, and identified certain other programming with limited strategic purpose, which was removed from the Starz Platform and abandoned by the Company.

Current wording

During 2024 and 2025, in preparation for the Separation, Starz evaluated the programming on the Starz Platform and cancelled certain ordered programming, and identified certain other programming with limited strategic purpose, which was removed from the Starz Platform and abandoned by the Company.

Previous wording

In 2023 and 2024, Old Lionsgate began a plan to restructure and shut down its international LIONSGATE+ business. During the quarters ended June 30, 2025 and June 30, 2024, Old Lionsgate continued executing the restructuring plan, which included exiting all international territories except Canada (included in the Starz Networks segment) and India and Southeast Asia (included in the International segment), which was completed in May 2024. The historical results of operations of international territories that were shut down are presented as discontinued operations in these financial statements for all periods presented.

Current wording

In 2023 and 2024, Old Lionsgate began a plan to restructure and shut down its international LIONSGATE+ business. During the six months ended September 30, 2024, Old Lionsgate continued executing the restructuring plan, which included exiting all international territories except Canada (included in the Starz Networks segment) and India and Southeast Asia (included in the International segment), which was completed in May 2024. The historical results of operations of international territories that were shut down are presented as discontinued operations for all periods presented.

Previous wording

Prior to the Studio Separation, Old Lionsgate utilized a centralized approach to cash management. Cash generated by the Starz Business was managed by Old Lionsgate’s centralized treasury function and cash was routinely transferred to the Starz Business or to the LG Studios Business to fund operating activities when needed. Cash and cash equivalents of the Company are reflected in the accompanying balance sheets. Payables to and receivables from Old Lionsgate related to the Starz Business, were often settled through movement to the intercompany accounts between Old Lionsgate, the Starz Business and the LG Studios Business. Other than certain specific balances related to unsettled payables or receivables, the intercompany balances between the Starz Business and LG Studios Business were accounted for as parent net investment. See Note 15, Due To/From LG Studios Business, for further details.

Current wording

Prior to the Studio Separation, Old Lionsgate utilized a centralized approach to cash management. Cash generated by the Starz Business was managed by Old Lionsgate’s centralized treasury function and cash was routinely transferred to the Starz Business or to the LG Studios Business to fund operating activities when needed. Cash and cash equivalents of the Company are reflected in the accompanying unaudited condensed consolidated balance sheets. Payables to and receivables from Old Lionsgate related to the Starz Business, were often settled through movement to the intercompany accounts between Old Lionsgate, the Starz Business and the LG Studios Business. Other than certain specific balances related to unsettled payables or receivables, the intercompany balances between the Starz Business and LG Studios Business were accounted for as parent net investment. See Note 15, Due To/From LG Studios Business, for further details.

Previous wording

Additional indebtedness directly related to the Company, including programming notes, are reflected in the Company's consolidated financial statements. See Note 5, Programming Related Obligations, for further details.

Current wording

Additional indebtedness directly related to the Company, including programming notes and production loans, are reflected in the Company's consolidated financial statements. See Note 5, Programming Related Obligations, for further details.

Previous wording

Following the Separation, Starz manages and reports its operating results through one reportable segment, Starz Networks, which includes our Domestic and Canadian operations. The continuing operations outside the U.S. and Canada, which primarily consists of our operations in India and Southeast Asia, is reported as International. Effective April 1, 2025, we transferred our operations in India and Southeast Asia to New Lionsgate. Given that Starz and New Lionsgate were under common control at the time of the transfer, no gain or loss was recorded related to the transfer.

Current wording

Following the Separation, Starz manages and reports its operating results through one reportable segment, Starz Networks, which includes our United States and Canadian operations. The continuing operations outside the U.S. and Canada, which primarily consists of our operations in India and Southeast Asia, is reported as International. Effective April 1, 2025, we transferred our operations in India and Southeast Asia to New Lionsgate. Given that Starz and New Lionsgate were under common control at the time of the transfer, no gain or loss was recorded related to the transfer.

Previous wording

Other operating expenses include programming related salaries, residual expenses, development costs, provision for doubtful accounts, and foreign exchange gains and losses.

Current wording

Other operating expenses include programming related salaries, residual expenses, development costs, provision for credit losses on accounts receivable, operating costs for the direct-to-consumer service, transponder expenses, maintenance and repairs, and foreign exchange gains and losses.

Previous wording

Advertising and marketing expenses primarily include the costs of advertising, consumer marketing, distributor marketing support and other marketing costs, and operating costs for the direct-to-consumer service, transponder expenses and maintenance and repairs.

Current wording

Advertising and marketing expenses primarily include the costs of advertising, consumer marketing, distributor marketing support and other marketing costs.

Previous wording

General and administrative expenses include salaries and other overhead and include allocations for certain general and administrative expenses from Old Lionsgate to the Starz Business related to certain corporate and shared service functions historically provided by Old Lionsgate to the Starz Business, including, but not limited to, executive oversight, accounting, tax, legal, human resources, occupancy, and other shared services. See “Basis of Presentation” above and Note 1 and Note 15 for further details on our methodology for allocating these costs. As described in “Basis of Presentation” above, in connection with the Studio Separation, during the quarter ended June 30, 2025, Old Lionsgate and Legacy Lionsgate Studios entered into a shared services and overhead sharing agreement (the “Shared Services Agreement”). The Shared Services Agreement allocates to the LG Studios Business all of corporate general and administrative expenses of Old Lionsgate, except for an amount of $10.0 million to be charged annually to the Company. The $10.0 million charge of Old Lionsgate’s corporate general and administrative expenses to the Company pursuant to the Shared Services Agreement is designed to reflect the portion of corporate expenses expended and reflective of the level of effort and costs incurred related to management oversight and services provided for the Company post Studio Separation with consideration of the then-anticipated completion of the Separation.

Current wording

General and administrative expenses include salaries and other overhead and include allocations for certain general and administrative expenses from Old Lionsgate to the Starz Business related to certain corporate and shared service functions historically provided by Old Lionsgate to the Starz Business, including, but not limited to, executive oversight, accounting, tax, legal, human resources, occupancy, and other shared services. See “Basis of Presentation” above and Note 1 and Note 15 for further details on our methodology for allocating these costs. As described in “Basis of Presentation” above, in connection with the Studio Separation, Old Lionsgate and Legacy Lionsgate Studios entered into a shared services and overhead sharing agreement (the “Shared Services Agreement”). The Shared Services Agreement allocates to the LG Studios Business all of corporate general and administrative expenses of Old Lionsgate, except for an amount of $10.0 million to be charged annually to the Company.

Previous wording

The following table sets forth our consolidated results of operations for the quarters ended June 30, 2025 and June 30, 2024.

Current wording

The following table sets forth our consolidated results of operations for the three months ended September 30, 2025 and September 30, 2024.

Previous wording

Subscriber Data. The number of period-end service subscribers is a key metric which management uses to evaluate a non-ad supported subscription video service. We believe this key metric provides useful information to investors as a growing or decreasing subscriber base is a key indicator of the health of the overall business. Service subscribers may impact revenue differently depending on specific distribution agreements we have with our distributors which may include a rate per STARZ subscriber, rates per basic video household or fixed fees. The table below sets forth, for the periods presented, subscriptions to our Starz Networks and International services.

Current wording

Subscriber Data. The number of period-end service subscribers is a key metric which management uses to evaluate a non-ad supported subscription video service. We believe this key metric may provide useful information to investors as a growing or decreasing subscriber base can be a key indicator of the health of the overall business. Service subscribers may impact revenue differently depending on specific distribution agreements we have with our distributors which may include a rate per STARZ subscriber, rates per basic video household. The table below sets forth, for the periods presented, subscriptions to our Starz Networks and International services.

Previous wording

Revenue. Consolidated revenue decreased $27.9 million. The decrease in Starz Networks revenue reflects declines in revenue of $14.6 million from traditional linear services and OTT revenue of $13.3 million. These decreases resulted from lower subscribers. International declined due to the transfer of our operations in India and Southeast Asia to New Lionsgate effective April 1, 2025.

Current wording

Revenue. Consolidated revenue decreased $26.0 million. The decrease in Starz Networks revenue reflects declines in revenue of $16.6 million from traditional linear services and OTT revenue of $9.4 million. These decreases resulted from the continued decline in revenue from traditional linear services and a higher mix of discounting on the OTT services. International declined due to the transfer of our operations in India and Southeast Asia to New Lionsgate effective April 1, 2025.

Previous wording

During the quarter ended June 30, 2025 and the quarter ended June 30, 2024, the following original series premiered on STARZ:

Current wording

During the three months ended September 30, 2025 and the three months ended September 30, 2024, the following original series premiered on STARZ:

Previous wording

Other Operating Expenses and Advertising and Marketing Expenses. Other operating expenses include programming related salaries, residual expenses, development costs, provision for doubtful accounts, and foreign exchange gains and losses. The level of other operating expenses and advertising and marketing costs can fluctuate from period to period depending on the number of new original series and first-run output theatrical movies premiering on the network during the period. Advertising and Marketing costs generally increase in periods where new original series premiere.

Current wording

Other Operating Expenses and Advertising and Marketing Expenses. Other operating expenses include programming related salaries, residual expenses, development costs, credit losses on accounts receivable, and foreign exchange gains and losses. The level of other operating expenses and advertising and marketing costs can fluctuate from period to period depending on the number of new original series and first-run output theatrical movies premiering on the Starz Platform during such period. Advertising and marketing costs generally increase in periods where new original series premiere.

Previous wording

Other Operating Expenses. Other operating expenses by segment and share-based compensation expense which is not allocated to our segments were as follows for the quarters ended June 30, 2025 and 2024:

Current wording

Other Operating Expenses. Other operating expenses by segment and share-based compensation expense which is not allocated to our segments were as follows for the three months ended September 30, 2025 and 2024:

Previous wording

Other operating expenses decreased in the quarter ended June 30, 2025 due to decreases at Starz Networks of $2.4 million, resulting from a decrease in app store revenue share costs due to lower OTT revenue. International declined due to the transfer of our operations in India and Southeast Asia to New Lionsgate effective April 1, 2025.

Current wording

Other operating expenses decreased in the three months ended September 30, 2025 due to decreases at Starz Networks of $0.5 million, resulting from a decrease in app commissions due to lower OTT revenue. International declined due to the transfer of our operations in India and Southeast Asia to New Lionsgate effective April 1, 2025.

Previous wording

Advertising and Marketing Expenses. Advertising and marketing expenses by segment were as follows for the quarters ended June 30, 2025 and June 30, 2024:

Current wording

Advertising and Marketing Expenses. Advertising and marketing expenses by segment were as follows for the three months ended September 30, 2025 and September 30, 2024:

Previous wording

General and Administrative Expenses. General and administrative expenses by segment and share-based compensation which is not allocated to our segments were as follows for the quarters ended June 30, 2025 and 2024:

Current wording

General and Administrative Expenses. General and administrative expenses by segment and share-based compensation which is not allocated to our segments were as follows for the three months ended September 30, 2025 and 2024:

Previous wording

During the quarter ended June 30, 2025, Starz Networks' general and administrative expenses increased $2.5 million in the quarter ended June 30, 2025, as compared to the quarter ended June 30, 2024, Such increase resulted from additional expenses for, among other things, directors’ and officers’ and other insurance, director fees, and additional internal and external accounting, legal and administrative resources and fees due to Starz becoming an independent public company. International declined due to the transfer of our operations in India and Southeast Asia to New Lionsgate effective April 1, 2025.

Current wording

During the three months ended September 30, 2025, Starz Networks' general and administrative expenses increased $3.0 million as compared to the three months ended September 30, 2024. Such increase resulted from additional expenses for, among other things, directors’ and officers’ and other insurance, director fees, additional internal and external accounting, legal and administrative resources and certain other costs due to Starz becoming an independent public company. International declined due to the transfer of our operations in India and Southeast Asia to New Lionsgate effective April 1, 2025.

Previous wording

Depreciation and Amortization Expense. Depreciation and amortization of $48.7 million for the quarter ended June 30, 2025 increased $7.1 million from $41.6 million in the quarter ended June 30, 2024, due primarily to the reduction in the useful life of our Starz Traditional Affiliate customer relationships finite-lived intangible asset from 16 years to 14 years effective January 1, 2025.

Current wording

Depreciation and Amortization Expense. Depreciation and amortization of $47.9 million for the three months ended September 30, 2025 increased $6.7 million from $41.2 million in the three months ended September 30, 2024, due primarily to the reduction in the useful life of our Starz Traditional Affiliate customer relationship finite-lived intangible asset from 16 years to 14 years effective January 1, 2025.

Previous wording

Restructuring and Other. Restructuring and other increased $7.0 million in the quarter ended June 30, 2025 as compared to the quarter ended June 30, 2024, and includes restructuring costs, and certain transaction and other costs, when applicable. The increase is primarily the result of legal and other costs incurred to complete the Separation. See Note 10, Restructuring and Other, for further details.

Current wording

Restructuring and Other. Restructuring and other increased $6.1 million in the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, and includes restructuring costs, certain transaction-related and other expenses, and unusual charges or benefits, as applicable. The increase is primarily the result of legal and other costs incurred related to transaction-related expenses. See Note 9, Restructuring and Other, for further details.

Previous wording

Interest Expense. Interest expense of $13.2 million in the quarter ended June 30, 2025 increased $2.4 million from quarter ended June 30, 2024 due primarily to an increase in our programming related obligations, which represent individual unsecured loans for the licensing of film and television programs.

Current wording

Interest Expense. Interest expense of $15.8 million in the three months ended September 30, 2025 increased $3.5 million from three months ended September 30, 2024 due primarily to an increase in our programming related obligations.

Previous wording

Income Tax Benefit. We had an income tax benefit of $0.1 million in the quarter ended June 30, 2025, compared to an income tax benefit of $7.6 million in the quarter ended June 30, 2024. Our income tax provision differs from the U.S. federal statutory rate multiplied by pre-tax income (loss) due to the income tax effects of state income taxes, and changes in the valuation allowance against our deferred tax assets. Our income tax provisions for the quarter ended June 30, 2024 was also impacted by the change in uncertain tax benefits due to the expiration of statutes of limitations and additional settlements with tax authorities.

Current wording

Income Tax Benefit. We had an income tax expense of $(0.4) million in the three months ended September 30, 2025, compared to an income tax benefit of $(0.4) million in the quarter ended September 30, 2024. Our income tax provision differs from the U.S. federal statutory rate multiplied by pre-tax income (loss) due to the income tax effects of state income taxes, and changes in the valuation allowance against our deferred tax assets.

Previous wording

Net (Loss) Income from Continuing Operations. Net loss continuing operations for the quarter ended June 30, 2025 was $(42.5) million. This compares to net income from continuing operations for the quarter ended June 30, 2024 of $1.1 million.

Current wording

Net (Loss) Income from Continuing Operations. Net loss from continuing operations for the three months ended September 30, 2025 was $52.6 million. This compares to net loss from continuing operations for the three months ended September 30, 2024 of $30.6 million.

Previous wording

•Share-based compensation represents share-based compensation excluding the impact of the acceleration of certain vesting schedules for equity awards pursuant to certain severance arrangements, which are included in restructuring and other expenses, when applicable.

Current wording

•Adjusted share-based compensation represents share-based compensation excluding the impact of the acceleration of certain vesting schedules for equity awards pursuant to certain severance arrangements, which are included in restructuring and other expenses, when applicable.

Previous wording

•Restructuring and other includes restructuring and severance costs, certain transaction and other costs, and certain unusual items, when applicable.

Current wording

•Restructuring and other includes restructuring costs, certain transaction-related and other expenses, and unusual items, when applicable.

Previous wording

(1)Share-based compensation expense for the quarter ended June 30, 2025 excludes $2.2 million of share-based compensation expense, which is included within restructuring and other. See Note 8, Share-Based Compensation, for further details.

Current wording

(1)Share-based compensation expense for the three months ended September 30, 2025 excludes $0.2 million of share-based compensation expense, which is included within restructuring and other. See Note 7, Capital Stock, for further details.

Previous wording

(1)Share-based compensation expense excluded from Adjusted OIBDA for the quarters ended June 30, 2025 and June 30, 2024 includes $0.9 million and $0.8 million, respectively, in other operating expenses, and $4.3 million and $4.4 million, respectively, in advertising and marketing expenses. See Note 11, Share-Based Compensation, to our audited combined financial statements for further details.

Current wording

(1)Share-based compensation expense excluded from Adjusted OIBDA for the three months ended September 30, 2025 and September 30, 2024 includes $0.7 million and $1.1 million, respectively, in other operating expenses, and $3.0 million and $3.0 million, respectively, in general and administrative expenses. See Note 7, Capital Stock, for further details.

Previous wording

Advertising and marketing expenses decreased in the quarter ended June 30, 2025 primarily due to a decrease in direct response and originals advertising and marketing costs as compared to the quarter ended June 30, 2024 due to lower overall spend resulting from increased efficiency in our marketing operations in the quarter ended June 30, 2025.

Current wording

Advertising and marketing expenses decreased in the six months ended September 30, 2025 primarily due to a decrease in direct response and originals advertising and marketing costs as compared to the six months ended September 30, 2024 from lower overall spend resulting from fewer original series airing in the current year period along with increased efficiency in our marketing operations in 2025 as compared to the prior year.

Previous wording

Loss on Extinguishment of Debt. The loss on extinguishment of debt of $4.9 million for quarter ended June 30, 2024 was related to the write-off of debt issuance costs associated with the 5.5% Senior Note exchange.

Current wording

Loss on Extinguishment of Debt. The loss on extinguishment of debt of $4.9 million for six months ended September 30, 2024 was related to the write-off of debt issuance costs associated with the Exchange Transaction.

Previous wording

Starz Networks Adjusted OIBDA of $33.4 million for the quarter ended June 30, 2025, decreased by $23.9 million from the quarter ended June 30, 2024. Such decrease resulted from lower revenue due to lower subscribers and higher programming amortization from the premiere of two original series, Power Book III: Raising Kanan Season 4 (premiered March 7, 2025) and Black Mafia Family Season 4 (premiered June 6, 2025) on the Starz Platform either shortly before or during the quarter ended June 30, 2025. Lower advertising and marketing expenses offset the lower revenue and increased programming amortization due to reduced spend from increased efficiency in our marketing operations.

Current wording

Starz Networks Adjusted OIBDA of $55.2 million for the six months ended September 30, 2025, decreased by $29.0 million from the six months ended September 30, 2024. Such decrease resulted from lower revenue due to lower subscribers partially offset by a decrease in programming amortization from fewer original series premiering on the Starz Platform either shortly before or during the six months ended September 30, 2025. Lower advertising and marketing expenses also offset the lower revenue due to fewer original series premiering in the 2025 period as well as increased efficiency in our marketing operations in 2025.

Previous wording

Our liquidity and capital resources for the three months ended June 30, 2025, were provided principally through cash generated from operations, our programming related obligations, the monetization of trade accounts receivable, parent net investments and following the Studio Separation, the Intercompany Revolver and the Old Lionsgate Revolving Credit Facility (each defined below). As of June 30, 2025 and June 30, 2024 we had cash and cash equivalents of $51.6 million and $17.8 million, respectively.

Current wording

Our liquidity and capital resources for the three months ended September 30, 2025 were provided principally through cash generated from operations, our new $150 million revolving credit facility, programming related obligations, and the monetization of trade accounts receivable (each defined above).

Previous wording

As of June 30, 2025 and June 30, 2024, we had $300.0 million and $325.1 million, respectively, outstanding of 5.5% senior notes due 2029 (the “5.5% Senior Notes”) and Term Loan A due in 2030.

Current wording

As of September 30, 2025, we had $300.0 million and $325.1 million, respectively, outstanding under our new Term Loan A and 5.5% Senior Notes due 2029. No amounts were outstanding under our new $150.0 million revolving credit facility. As of March 31, 2025, we had $715.0 million outstanding of the 5.5% Senior Notes which included $389.9 million of the Exchange Notes which were assumed by New Lionsgate at the Separation.

Previous wording

We utilize our programming related obligations to fund certain of our film and television productions or licenses during production through the time the program airs on the STARZ app and STARZ branded linear networks. Our programming related obligations as of March 31, 2025 include programming notes. Programming notes represent individual loans for the license of certain of our film and television programs. The Company had $88.2 million of programming notes outstanding at June 30, 2025 with repayment dates in July 2025 through August 2025.

Current wording

We utilize programming related obligations to fund certain of our film and television productions or licenses during production through the time the program airs on the Starz Platform. Our programming related obligations include unsecured programming notes and a secured production loan. Programming notes and production loans represent individual loans for the license of certain of our film and television programs. The Company had $88.2 million of programming notes outstanding with repayment dates in October 2025 through November 2025 and $16.2 million of the production loan outstanding at September 30, 2025 due in 2027.

Previous wording

As a stand-alone company, our principal uses of cash include payments forlicensing, acquisition, and production ofour programming content, advertising and marketing expenditures and general and administrative expenses. We also use cash for debt service (i.e. principal and interest payments) requirements, and capital expenditure.

Current wording

As a stand-alone company, our principal uses of cash include payments forlicensing, acquisition, and production ofour programming content, advertising and marketing expenditures and general and administrative expenses. We also use cash for debt service (i.e. principal and interest payments) requirements, and capital expenditures.

Previous wording

Anticipated Cash Requirements. The nature of our business is such that significant initial expenditures are required to acquire, and market our programming content, while revenue from the exhibition of our programming content is earned over an extended period of time after their acquisition.

Current wording

Anticipated Cash Requirements. The nature of our business is such that significant initial expenditures are required to acquire, produce, and market our programming content, while revenue from the exhibition of our programming content is earned over an extended period of time after their acquisition.

Previous wording

Under the Starz Networks Restructuring plan, the net future cash outlay from continuing operations, for impairment charges recorded through June 30, 2025 is estimated to be approximately $45.0 million for contractual commitments on content in territories exited and payments on the remaining amounts payable for content removed from our services, net of estimated recoveries. The Company has substantially completed its current restructuring plan; however, additional content impairment charges may be incurred and recorded as part of ongoing business activities. See, Note 1, Description of Business, Basis of Presentation and Significant Accounting Policies, and Management's Discussion and Analysis of Financial Condition and Results of Operations, Separation, for further details.

Current wording

Under the Starz Networks Strategic Content Review and International Restructuring, the net future cash outlay for impairment charges recorded through September 30, 2025 is estimated to be approximately $32.0 million for contractual commitments on content in territories exited and payments on the remaining amounts payable for content removed from our services, net of estimated recoveries. As the Company continues its current strategic review in relation to the current micro and macroeconomic environment, including further review of content strategy and performance, we may decide to remove certain content off the Starz Platform in the future. Accordingly, the Company may incur additional content impairment charges in the future. See, Note 1, Description of Business, Basis of Presentation and Significant Accounting Policies, and Management's Discussion and Analysis of Financial Condition and Results of Operations, Starz Networks Strategic Content Review, for further details.

Previous wording

However, we currently believe that cash flow from operations, cash on hand, borrowings under our $150 million senior secured revolving credit facility, monetization of trade accounts receivable and available production loans or programming related obligations will be adequate to meet known operational cash and debt service (i.e. principal and interest payments) requirements for the next twelve months and beyond, including the funding of programming content including amounts under our originals licensing and production agreements, programming output and library agreements, and future equity method or other investment funding requirements, if any. We monitor our cash flow liquidity, availability, capital base, content spending, capital expenditures debt service and leverage ratios with the long-term goal of maintaining our credit worthiness.

Current wording

We currently believe that cash flow from operations, cash on hand, availability under our $150 million senior secured revolving credit facility which is undrawn at September 30, 2025, monetization of trade accounts receivable and available programming related obligations will be adequate to meet known operational cash and debt service (i.e. principal and interest payments) requirements for the next twelve months and beyond, including the funding of programming content including amounts under our originals licensing and production agreements, and programming output and library agreements. We monitor our cash flow, liquidity, availability, capital base, content spending, capital expenditures, debt service and leverage ratios with the long-term goal of maintaining our credit worthiness.

Previous wording

Our current financing strategy is to fund operations and to leverage investments in programming content in the short-term and long-term through our cash flow from operations, our production related obligations, the monetization of trade accounts receivable, and borrowings from our $150.0 million revolving credit facility which is undrawn at June 30, 2025. In addition, we may acquire businesses or assets, including individual films or libraries that are complementary to our business. Any such transaction could be financed through our cash flow from operations, credit facilities, and/or equity or debt financing. If additional financing beyond our existing cash flows from operations and credit facilities cannot fund such transactions, there is no assurance that such financing will be available on terms acceptable to us. Our ability to obtain any additional financing will depend on, among other things, our business plans, operating performance, the condition of the capital markets at the time we seek financing, and debt ratings assigned by independent rating agencies. Additionally, circumstances related to inflation and rising interest rates have caused disruption in the capital markets, which could make financing more difficult and/or expensive, and we may not be able to obtain such financing. We may also dispose assets and use the net proceeds from such dispositions to fund operations or such acquisitions, or to repay debt.

Current wording

Our current financing strategy is to fund operations and to leverage investments in programming content in the short-term and long-term through our cash flow from operations, our production related loans, the monetization of trade accounts receivable, borrowings from our $150.0 million revolving credit facility which is undrawn at September 30, 2025, and available programming related obligations. In addition, we may acquire businesses or assets, including individual films or libraries that are complementary to our business. Any such transaction could be financed through our cash flow from operations, credit facilities, and/or equity or debt financing. If additional financing beyond our existing sources cannot fund such transactions, there is no assurance that such financing will be available on terms acceptable to us. Our ability to obtain any additional financing will depend on, among other things, our business plans, operating performance, the condition of the capital markets at the time we seek financing, and debt ratings assigned by independent rating agencies. Additionally, circumstances related to inflation and rising interest rates have caused disruption in the capital markets, which could make financing more difficult and/or expensive, and we may not be able to obtain such financing. We may also dispose assets and use the net proceeds from such dispositions to fund operations or such acquisitions, or to repay debt.