STARZ ENTERTAINMENT CORP /CN/ 10-Q

ITEM 1. FINANCIAL STATEMENTS UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS June 30, 2026 December 31, 2025 (Amounts in millions) ASSETS Cash and cash equivalents $ 59.6 $ 35.7 Accounts receivable, net, including other receivables of $ 17.5 million and $ 9.9 million as of June 30, 2026 and December 31, 2025, respectively. 80.4 84.4 Prepaid expenses and other 10.6 12.1 Total current assets 150.6 132.2 Programming content, net 866.0 993.8 Property and equipment, net 47.8 49.1 Intangible assets, net 566.1 690.9 Other assets 41.3 47.2 Total assets $ 1,671.8 $ 1,913.2 LIABILITIES Current portion of debt $ 15.0 $ 7.5 Accounts payable 60.8 60.0 Programming related payables 212.9 255.2 Other accrued liabilities 120.9 49.1 Residuals 22.2 27.1 Programming related obligations 110.8 87.7 Deferred revenue 53.4 52.8 Total current liabilities 596.0 539.4 Debt 600.1 605.8 Programming related obligations 6.8 41.4 Other liabilities 170.0 72.7 Deferred tax liabilities 3.0 7.9 Total liabilities 1,375.9 1,267.2 Contingencies (Note 15) EQUITY Common shares, no par value, unlimited authorized, 16.8 million and 16.7 million shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively. 737.3 735.1 Accumulated other comprehensive income 21.4 19.4 Accumulated deficit ( 462.8 ) ( 108.5 ) Total equity 295.9 646.0 Total liabilities and equity $ 1,671.8 $ 1,913.2 See accompanying notes. 4 Table of Contents STARZ ENTERTAINMENT CORP. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 (Amounts in millions, except per share amounts) Revenue OTT revenue $ 221.3 $ 221.1 $ 432.4 $ 446.6 Linear and other revenue 86.6 98.6 182.4 203.7 Total revenue 307.9 319.7 614.8 650.3 Operating expenses: Programming amortization 114.1 162.5 252.4 280.9 Other operating 40.5 36.5 74.8 75.2 Advertising and marketing 70.3 63.4 120.7 122.3 General and administrative 40.0 29.1 69.1 54.5 Depreciation and amortization 67.3 48.7 135.8 96.8 Restructuring and other 151.2 6.4 290.3 189.8 Total expenses 483.4 346.6 943.1 819.5 Operating loss ( 175.5 ) ( 26.9 ) ( 328.3 ) ( 169.2 ) Interest expense ( 13.6 ) ( 13.2 ) ( 27.5 ) ( 24.1 ) Interest and other income 0.5 — 0.9 1.7 Other expense ( 2.0 ) ( 2.5 ) ( 3.8 ) ( 4.3 ) Loss on extinguishment of debt — — — ( 0.7 ) Loss from continuing operations ( 190.6 ) ( 42.6 ) ( 358.7 ) ( 196.6 ) Income tax benefit 1.2 0.1 4.4 0.1 Net loss from continuing operations ( 189.4 ) ( 42.5 ) ( 354.3 ) ( 196.5 ) Net income from discontinued operations, net of income taxes — — — 1.0 Net loss $ ( 189.4 ) $ ( 42.5 ) $ ( 354.3 ) $ ( 195.5 ) Per share information attributable to Starz Entertainment Corp. shareholders: Basic and diluted net loss per common share - continuing operations $ ( 11.27 ) $ ( 2.54 ) $ ( 21.12 ) $ ( 11.75 ) Basic and diluted net income per common share - discontinued operations — — — 0.06 Basic and diluted net loss per common share $ ( 11.27 ) $ ( 2.54 ) $ ( 21.12 ) $ ( 11.69 ) Weighted average number of common shares outstanding: Basic 16.8 16.7 16.8 16.7 Diluted 16.8 16.7 16.8 16.7 See accompanying notes. 5 Table of Contents STARZ ENTERTAINMENT CORP. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 (Amounts in millions) Net loss from continuing operations $ ( 189.4 ) $ ( 42.5 ) $ ( 354.3 ) $ ( 196.5 ) Net unrealized gain on cash flow hedges, net of tax 0.9 — 2.0 — Comprehensive loss from continuing operations, net of tax ( 188.5 ) ( 42.5 ) ( 352.3 ) ( 196.5 ) Net income from discontinued operations — — — 1.0 Comprehensive loss $ ( 188.5 ) $ ( 42.5 ) $ ( 352.3 ) $ ( 195.5 ) See accompanying notes. 6 Table of Contents STARZ ENTERTAINMENT CORP. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF EQUITY Starz Common Shares Accumulated Deficit Parent (1) Net Investment Accumulated Other Comprehensive Income Total Equity Number Amount (Amounts in millions) Balance as of December 31, 2024 — $ — $ — $ 892.1 $ 19.2 $ 911.3 Net loss — — — ( 153.0 ) — ( 153.0 ) Net transfers from Parent — — — 8.1 — 8.1 Balance as of March 31, 2025 — $ — $ — $ 747.2 $ 19.2 $ 766.4 Distribution from Old Lionsgate upon Separation — — — 0.1 0.1 Net loss prior to Separation — — — ( 7.3 ) — ( 7.3 ) Issuance of Starz common shares to holders of Old Lionsgate Class A Voting and Class B Non-Voting Common Shares and Separation from Old Lionsgate 16.7 740.0 — ( 740.0 ) — — Net loss after Separation — — ( 35.2 ) — — ( 35.2 ) Share-based compensation after Separation — 5.9 — — — 5.9 Share-based liability for modified July Vesting awards — ( 17.6 ) — — — ( 17.6 ) Balance at June 30, 2025 16.7 $ 728.3 $ ( 35.2 ) $ — $ 19.2 $ 712.3 Balance as of December 31, 2025 16.7 $ 735.1 $ ( 108.5 ) $ — $ 19.4 $ 646.0 Net loss — — ( 164.9 ) — — ( 164.9 ) Share-based compensation 0.1 3.2 — — — 3.2 Reclassification of unvested pre-spin award expense from equity to liability — ( 6.7 ) — — — ( 6.7 ) Other comprehensive gain — — — — 1.1 1.1 Balance as of March 31, 2026 16.8 $ 731.6 $ ( 273.4 ) $ — $ 20.5 $ 478.7 Net loss ( 189.4 ) ( 189.4 ) Share-based compensation — 5.3 5.3 Exercise of stock options — 0.4 0.4 Other comprehensive gain 0.9 0.9 Balance as of June 30, 2026 16.8 $ 737.3 $ ( 462.8 ) $ — $ 21.4 $ 295.9 __________________________________ (1) Unless otherwise indicated or as the context requires, references to the “Parent” refer to Lions Gate Entertainment Corp., prior to the Separation. See accompanying notes. 7 Table of Contents STARZ ENTERTAINMENT CORP. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Six Months Ended June 30, 2026 2025 (Amounts in millions) Operating Activities: Net loss $ ( 354.3 ) $ ( 195.5 ) Less: net income from discontinued operations, net of tax — 1.0 Net loss from continuing operations, net of tax ( 354.3 ) ( 196.5 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 135.8 96.8 Programming amortization 252.4 280.9 Net content impairment 129.2 167.3 Amortization of debt financing costs and other non-cash interest 2.3 2.0 Share-based compensation 20.2 11.7 Other amortization 4.2 3.5 Loss on extinguishment of debt — 0.7 Deferred income taxes — 0.2 Changes in operating assets and liabilities: Accounts receivable, net 2.6 60.1 Cash paid for programming content (1) ( 294.9 ) ( 394.3 ) Other assets 2.8 ( 5.5 ) Accounts payable and accrued liabilities 145.4 4.2 Residuals ( 1.3 ) ( 0.1 ) Deferred revenue 0.6 6.4 Due to LG Studios Business — ( 35.5 ) Net cash flows provided by operating activities 45.0 1.9 Investing activities: Capital expenditures ( 9.7 ) ( 10.8 ) Deferred purchase price of receivables sold 1.2 0.5 New Lionsgate revolving credit facility – increases — 455.5 New Lionsgate revolving credit facility – decreases — ( 321.5 ) Net cash flows (used in) provided by investing activities ( 8.5 ) 123.7 Financing activities: Programming related obligations – borrowings 238.2 290.6 Programming related obligations – repayments ( 251.0 ) ( 278.7 ) Exercise of stock options 0.2 — Distribution of Exchange Notes to New Lionsgate upon Separation — ( 389.9 ) Debt – borrowings, net of debt issuance and redemption costs — 388.3 Debt repayments — ( 96.5 ) Parent net investment — ( 2.0 ) Net cash flows used in financing activities ( 12.6 ) ( 88.2 ) Net change in cash and cash equivalents 23.9 37.4 Cash and cash equivalents – beginning of period 35.7 14.2 Cash and cash equivalents – end of period $ 59.6 $ 51.6 __________________________________ (1) Cash paid for programming content for the six months ended June 30, 2026 includes $ 157.1 million for the licensing of program rights from the LG Studios Business (as defined below). See accompanying notes. 8 Table of Contents STARZ ENTERTAINMENT CORP. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1. Description of Business, Basis of Presentation and Significant Accounting Policies Description of Business Starz Entertainment Corp. (the "Company", "Starz", "we", "us", or "our") operates primarily in the U.S. and distributes the STARZ branded premium subscription video services on a direct-to-consumer over-the-top (“OTT”) basis through the Starz App and through wholesale OTT and multichannel video programming distributors (“MVPDs”), including cable operators, satellite television providers and telecommunications companies (in the aggregate the “Starz Platform”, and if referring to the Company prior to October 2025, inclusive of Starz's Canadian operations at that time). In October 2025, Starz changed its operations in Canada resulting in its partner assuming all operational oversight of the service and Starz moving to a content licensing arrangement. Separation On May 6, 2025, Lions Gate Entertainment Corp. (“Old Lionsgate” or “Parent”) completed the separation of its studio operations (the “LG Studios Business”) from its media networks operations (the “Starz Business”) pursuant to an arrangement agreement, resulting in two independent publicly traded companies: Lionsgate Studios Corp. (“New Lionsgate”), which now holds the LG Studios Business, and Starz Entertainment Corp., which now holds the Starz Business (the "Separation"). As part of the distribution, Old Lionsgate shareholders received shares in both companies, and Starz Entertainment Corp. subsequently executed a 15‑for‑1 reverse stock split, such that every fifteen (15) Starz common shares were consolidated into one (1) Starz common share. For accounting purposes under U.S. GAAP, New Lionsgate is considered the accounting spinnor or divesting entity and Starz is considered the accounting spinnee or divested entity, and the historical results of the Starz Business prior to the transaction have been prepared on a carve‑out basis. Refer to our Transition Report on Form 10‑KT for the nine months ended December 31, 2025 for a full description of the Separation. International Restructuring During 2023, Old Lionsgate began a plan to restructure and shut down its international LIONSGATE+ business, which was finalized with the shutdown of the United Kingdom territory in May 2024. Refer to our Transition Report on Form 10‑KT for the nine months ended December 31, 2025, Note 19, Discontinued Operations , for a full description of the International Restructuring. The international restructuring is included in discontinued operations in the accompanying financial statements. Starz Networks Strategic Content Review During the three and six months ended June 30, 2026, Starz undertook actions to rationalize its content portfolio as part of its ongoing efforts to right-size its content cost structure in response to the evolving macroeconomic and industry environment, including continued declines in traditional linear services and operating as a standalone company following the Separation. These actions included evaluating programming on the Starz Platform, cancelling certain previously ordered programming, and removing and abandoning content determined to have limited strategic value. In April 2026, Starz entered into an agreement to terminate certain live-action films under a post pay-one output licensing agreement. As a result, Starz recognized programming contract termination fees, which were recorded within Restructuring and other costs during the three and six months ended June 30, 2026. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. GAAP for interim reporting and the instructions to the quarterly report on Form 10-Q under the Securities Exchange Act of 1934, as amended, and Article 10 of Regulation S-X on the same basis as the Company’s annual financial statements. Prior to the Separation, the Starz Business operated as a segment of Old Lionsgate, and the historical financial information for those periods was prepared on a carve‑out basis derived from Old Lionsgate’s consolidated records. Following the Separation, the Company’s financial statements are presented on a consolidated basis and include Starz Entertainment Corp. and its majority‑owned subsidiaries. 9 Table of Contents STARZ ENTERTAINMENT CORP. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued) In the opinion of the Company’s management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been reflected in these unaudited condensed consolidated financial statements. Management believes the assumptions underlying our financial statements, including the assumptions regarding the allocation of general and administrative expenses from Old Lionsgate, are reasonable. However, such allocations from Old Lionsgate may not include all the actual expenses that would have been incurred by Starz had we been a standalone company during the periods presented. It is not practicable to estimate actual costs that would have been incurred had we been a standalone company and operated as an unaffiliated entity during the pre-separation periods presented. Actual costs that might have been incurred had we been a standalone company during those pre-separation periods would depend on a number of factors, including the organizational structure, what corporate functions we might have performed directly or outsourced and strategic decisions we might have made in areas such as executive management, legal and other professional services, and certain corporate overhead functions. These unaudited condensed consolidated financial statements do not include all disclosures required for annual financial statements and should be read together with the Company’s audited financial statements included in our Form 10‑KT for the nine months ended December 31, 2025, which contains a full description of the Separation, historical allocations, intercompany arrangements, and related accounting policies. Certain amounts presented in prior periods have been reclassified to conform to the current period presentation. Change in Fiscal Year End On May 8, 2025, the Company's Board of Directors approved a change in Starz’s fiscal year end from March 31 to December 31. As a result of the change, the Company filed a Transition Report on Form 10-KT for the nine-month transition period from April 1, 2025 to December 31, 2025. Generally Accepted Accounting Principles These financial statements have been prepared in accordance with U.S. GAAP. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions, that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. The most significant estimates made by management in the preparation of the accompanying financial statements relate to the intangible asset associated with the customer relationships with U.S. MVPDs ("Starz Traditional Affiliates"), which is amortized in the proportion that current period revenue bears to management’s estimate of future revenue over the remaining estimated useful life of the asset; estimates of future viewership used for the amortization of programming content; income taxes including the assessment of valuation allowances for deferred tax assets; and impairment assessments for licensed program rights and intangible assets. Actual results could differ from such estimates. Segments Following the Separation, Starz manages and reports its operating results through one reportable segment, Starz Networks, which includes our consolidated operations. During the six months ended June 30, 2026, International included our operations in India and Southeast Asia. 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. Significant Accounting Policies There have been no material changes to our significant accounting policies as described in our Transition Report on Form 10-KT for the nine months ended December 31, 2025. 10 Table of Contents STARZ ENTERTAINMENT CORP. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Recent Accounting Pronouncements Internal-Use Software : In September 2025, the FASB issued Accounting Standards Update (ASU) 2025-06, which modernizes the accounting guidance for internal-use software under ASC 350-40. The update eliminates the previous “project stage” model and introduces a principles-based framework that better aligns with contemporary software development practices. Under the new guidance, entities may begin capitalizing internal-use software costs when two conditions are met: (1) management has authorized and committed to funding the software project, and (2) it is probable that the project will be completed and the software will be used for its intended purpose (the “probable-to-complete” threshold). The ASU also consolidates website development cost guidance into ASC 350-40 and clarifies disclosure requirements for capitalized software costs. This guidance is effective for annual reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements and disclosures. Income Statement: In November 2024, the FASB issued guidance requiring public business entities to disclose additional information about specific expense categories in the notes to financial statements for interim and annual reporting periods. This guidance is effective for fiscal years beginning after December 15, 2026, and therefore will be effective beginning with the Company’s financial statements issued for the fiscal year ending December 31, 2027 and interim reporting periods beginning in fiscal 2029, with early adoption permitted. The disclosures required under the guidance can be applied either prospectively to financial statements issued for reporting periods after the effective date or retrospectively to any or all periods presented in the financial statements. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements and disclosures. 2. Programming Content The predominant monetization strategy for the Company's programming content (which includes licensed program rights and owned and produced films and television programs) is as a group. Total programming content is as follows: June 30, 2026 December 31, 2025 (Amounts in millions) Licensed program rights, net of accumulated amortization $ 794.7 $ 941.2 Owned and produced films and television programs: Released, net of accumulated amortization 4.6 5.1 Complete and not released 45.0 — In progress 6.9 36.6 In development 14.8 10.9 71.3 52.6 Programming content, net $ 866.0 $ 993.8 Amortization of programming content is as follows and is included in programming amortization in the accompanying unaudited condensed consolidated statements of operations: Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 (Amounts in millions) Programming amortization expense: Licensed program rights $ 112.3 $ 161.5 $ 249.4 $ 280.2 Owned and produced films and television programs 1.8 1.0 3.0 0.7 $ 114.1 $ 162.5 $ 252.4 $ 280.9 11 Table of Contents STARZ ENTERTAINMENT CORP. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued) 3. Debt Debt is summarized as follows: June 30, 2026 December 31, 2025 (Amounts in millions) Corporate debt: Term Loan A $ 300.0 $ 300.0 5.5 % Senior Notes 325.1 325.1 Unamortized debt issuance costs ( 10.0 ) ( 11.8 ) Total debt, net 615.1 613.3 Less current portion of debt (1) ( 15.0 ) ( 7.5 ) Non-current portion of debt $ 600.1 $ 605.8 _______________ (1) Amount includes the current portion of the $ 300.0 million senior secured term loan credit facility ("Term Loan A") as of June 30, 2026 and December 31, 2025, respectively. Starz Credit Agreement On May 6, 2025, in connection with the consummation of the Separation, Starz entered into a new credit agreement with Starz Capital Holdings LLC, as borrower (the “Borrower”), the guarantors referred to therein, the lenders referred to therein and JPMorgan Chase Bank, N.A., as administrative agent. The Starz Credit Agreement provides for (i) a $ 300.0 million senior secured term loan credit facility ("Term Loan A") and (ii) a $ 150.0 million senior secured revolving credit facility. The Starz Credit Agreement and commitments thereunder will mature on the date that is the earlier of five years after the closing date of the facility and 135 days prior to the 5.5 % Senior Notes maturity date. Borrowings bear interest at a rate per annum equal to, at the Borrower’s option, either Term SOFR or a base rate, in each case plus an applicable margin initially of 3 % for Term SOFR loans and 2 % for base rate loans. From and after September 30, 2025, the applicable margin varies based on the Borrower’s Net Total Leverage Ratio (as defined in the Credit Agreement). Repayments under the Term Loan A assume a maturity date of December 1, 2028 (135 days prior to the 5.5 % Senior Notes maturity date). Starz pays a commitment fee ranging from 0.25 % to 0.375 % per annum based on the Borrower’s Net Total Leverage Ratio (as defined in the Credit Agreement), in respect of unutilized commitments thereunder. Borrowings may be used for working capital needs and other general corporate purposes, including the financing of permitted acquisitions and investments. Starz’s obligations under the Starz Credit Agreement are guaranteed by Starz and substantially all of its wholly owned restricted subsidiaries and secured by substantially all assets of the Borrower and the guarantors, in each case subject to certain customary exceptions. The Starz Credit Agreement contains certain customary affirmative and negative covenants that limit the ability of the Borrower and its restricted subsidiaries, among other things and subject to certain significant exceptions, to incur debt or liens, make investments, enter into certain mergers, consolidations, asset sales and acquisitions, pay dividends and make other restricted payments and enter into transactions with affiliates. The Starz Credit Agreement also contains events of default customary for financings of this type, including relating to a change of control. In addition, the Starz Credit Agreement contains financial covenants requiring the Borrower to maintain (A) a Net Total Leverage Ratio, as of the last day of each fiscal quarter ending on and after (i) June 30, 2025, no greater than 4.50 to 1.00; (ii) March 31, 2026, no greater than 4.25 to 1.00; (iii) March 31, 2027, no greater than 4.00 to 1.00; and (iv) March 31, 2028, no greater than 3.50 to 1.00; (B) a Net First Lien Leverage Ratio (as defined in the Starz Credit Agreement) no greater than 3.00 to 1.00; and (C) an Interest Coverage Ratio (as defined in the Starz Credit Agreement) no less than 2.50 to 1.00. As of June 30, 2026, the Company was in compliance with all applicable covenants. 12 Table of Contents STARZ ENTERTAINMENT CORP. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued) 5.5 % Senior Notes Interest: The 5.5 % Senior Notes bear interest at 5.5 % annually (payable semi-annually in arrears on April 15 and October 15 of each year, commencing on October 15, 2021). Maturity Date: April 15, 2029. Optional Redemption: On or after April 15, 2024, the issuer may redeem the 5.5 % Senior Notes in whole at any time, or in part from time to time, at certain specified redemption prices, plus accrued and unpaid interest, if any, to, but not including, the redemption date. Such redemption prices are as follows (as a percentage of the principal amount redeemed): (i) on or after April 15, 2024 - 102.750 %; (ii) on or after April 15, 2025 - 101.375 %; and (iii) on or after April 15, 2026 - 100 %. Security. The 5.5 % Senior Notes are unsecured obligations of the Company. Issuer. Starz Capital Holdings LLC, a wholly owned subsidiary of the Company. Guarantors. The Company and its other subsidiaries are guarantors under the 5.5 % Senior Notes. Covenants. As of June 30, 2026, the issuer was in compliance with all applicable covenants. 4. Programming Related Obligations Programming related obligations include programming notes, which represent individual unsecured loans for the licensing of film and television programs. As of June 30, 2026, outstanding programming notes had a balance of $ 62.1 million and had contractual repayment dates ranging from July 2026 through August 2026, and incurred SOFR-based interest at a weighted average rate of 8.1 %. There were $ 87.7 million of programming notes outstanding as of December 31, 2025. In addition to programming notes, current and non-current Programming related obligations include secured production loans with outstanding balances of $ 48.7 million due in January 2027 and $ 6.8 million due in May 2028, in each case as of June 30, 2026. As of December 31, 2025, the production loans had an outstanding balance of $ 41.4 million and were included in non-current Programming related obligations as they were not current liabilities at that time. The production loans each incurred SOFR-based interest of 6.0 %. Production loans represent financing arrangements for individual original series produced by the Company. These loans are secured by collateral consisting of the underlying intellectual property rights (e.g., the related film or television program). 13 Table of Contents STARZ ENTERTAINMENT CORP. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued) 5. Fair Value Measurements Fair Value Accounting guidance and standards about fair value define fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair Value Hierarchy Fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The accounting guidance and standards establish three levels of inputs that may be used to measure fair value: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 — Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. The following table sets forth the carrying values and fair values of the Company’s outstanding debt, programming notes, production loans and derivatives: June 30, 2026 December 31, 2025 (Amounts in millions) Carrying Value Fair Value (1) Carrying Value Fair Value (1) (Level 2) (Level 2) Liabilities: Term Loan A $ 294.9 $ 300.0 $ 293.9 $ 300.0 5.5 % Senior Notes 320.2 294.2 319.4 264.1 Programming Notes 62.1 62.1 87.7 87.7 Production Loans 55.5 55.5 41.4 41.4 Interest rate exchange swaps (2) 1.0 1.0 ( 0.9 ) ( 0.9 ) Foreign currency forward exchange contracts (2) 0.2 0.2 nil nil ________________ (1) The Company measures the fair value of its outstanding debt using discounted cash flow techniques that use observable market inputs, such as SOFR-based yield curves, swap rates, and credit ratings (Level 2 measurements). (2) Represents the fair value measurements of the Company’s derivative instruments, specifically forward exchange contracts and interest rate swaps, as of June 30, 2026. These instruments are classified within the fair value hierarchy in accordance with ASC 820. Refer to Note 12, Derivative Instruments and Hedging Activities , for further detail. The Company’s financial instruments also include cash and cash equivalents, accounts receivable, accounts payable, programming related payables, other accrued liabilities and other liabilities. The carrying values of these financial instruments approximated the fair values of these financial instruments as of June 30, 2026 and December 31, 2025. The Company recorded material, non-recurring fair value adjustments of $ 129.8 million and $ 167.4 million during the six months ended June 30, 2026 and June 30, 2025, respectively, related to content impairments. Refer to Note 8, Restructuring and other , for further detail. 14 Table of Contents STARZ ENTERTAINMENT CORP. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued) 6. Capital Stock Common Shares The Company has an unlimited number of authorized common shares as of June 30, 2026. Share-based compensation expense from continuing operations, by expense category, consisted of the following: Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 (Amounts in millions) Share-based compensation expense: Other operating expense $ 3.4 $ 0.9 $ 3.9 $ 1.7 General and administrative 13.5 4.3 16.2 7.6 Restructuring and other 0.1 2.2 0.1 2.4 $ 17.0 $ 7.4 $ 20.2 $ 11.7 Rights Agreement On March 10, 2026, the Board adopted a Shareholder Protection Rights Agreement and declared a dividend of one right per common share, issued to shareholders of record on March 20, 2026. The rights become exercisable upon the acquisition of 17.5 % or more of the Company’s common shares, and generally entitle holders to purchase one common share at an exercise price of $ 93.00 , subject to adjustment. Refer to the Company’s March 10, 2026 Form 8‑K for additional information. 15 Table of Contents STARZ ENTERTAINMENT CORP. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued) 7. Revenue Revenue by segment is as follows: Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 (Amounts in millions) Revenue Starz Networks $ 307.9 $ 319.7 $ 614.8 $ 645.9 International (1) — — — 4.4 $ 307.9 $ 319.7 $ 614.8 $ 650.3 _____________________ (1) Includes the operations in India and Southeast Asia for the three and six months ended June 30, 2025. Remaining Revenue Performance Obligations Remaining revenue performance obligations represent deferred revenue included on the balance sheet. Revenue totaling $ 53.4 million is expected to be recognized in the next twelve months, in relation to performance obligations that are unsatisfied as of June 30, 2026. Accounts Receivable and Deferred Revenue The timing of revenue recognition, billings and cash collections affects the recognition of accounts receivable and deferred revenue. See the accompanying unaudited condensed consolidated balance sheets for accounts receivable and deferred revenue balances at June 30, 2026 and December 31, 2025. Accounts Receivable. Accounts receivable is presented net of a provision for credit losses. The Company estimates provisions for accounts receivable based on historical experience for the respective risk categories and current and future expected economic conditions. To assess collectability, the Company analyzes market trends, economic conditions, the aging of receivables and customer specific risks, and records a provision for estimated credit losses expected over the lifetime of the receivables in direct operating expense. The Company monitors its credit exposure through active review of customers' financial condition, aging of receivable balances, historical collection trends, and expectations about relevant future events that may significantly affect collectability. The Company generally does not require collateral for its trade accounts receivable. Credit Risk. Concentration of credit risk with the Company’s customers is limited due to the Company’s customer base and the diversity of its sales throughout the U.S. and Canada. The Company performs ongoing credit evaluations and maintains a provision for potential credit losses. Deferred Revenue. Deferred revenue relates primarily to subscribers to the Starz App, who are billed in advance of the start of their monthly or multi-month membership. Revenue is recognized ratably over each applicable membership period when the Company satisfies the corresponding performance obligation. Deferred revenue consists primarily of customer cash advances or deposits received prior to when the Company satisfies the corresponding performance obligation. Revenue of $ 11.8 million and $ 43.4 million was recognized during the three and six months ended June 30, 2026, respectively, related to the balance of deferred revenue at December 31, 2025. 16 Table of Contents STARZ ENTERTAINMENT CORP. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued) 8. Restructuring and Other Restructuring and other includes restructuring costs, and certain transaction-related and other expenses. During the three and six months ended June 30, 2026 and June 30, 2025, the Company also incurred certain other unusual charges and benefits. The following table sets forth restructuring and other and these other unusual charges: Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 (Amounts in millions) Contract termination fees (1) $ 147.2 $ — $ 147.2 $ — Content impairments (recoveries) (2) 1.7 ( 0.3 ) 129.8 167.4 Transaction and other costs (3) 1.7 4.5 6.8 18.5 Severance (4) 0.5 — 6.4 1.5 Share-based compensation 0.1 2.2 0.1 2.4 $ 151.2 $ 6.4 $ 290.3 $ 189.8 _____________________ (1) In April 2026, Starz entered into an agreement to terminate certain live-action films under a post pay-one output licensing agreement. As a result, Starz recognized programming contract termination fees, which were recorded within Restructuring and other costs during the three and six months ended June 30, 2026. The termination cost is based on an agreed fee schedule which includes a measure of theatrical box office performance. Some of the underlying films have not yet been released theatrically, therefore the liability is an estimate, and the final termination cost may differ. The reconciliation of the beginning and ending contract termination liability balance showing activity during the year is as follows: Contract termination liability balance as of January 1, 2026 $ — Accrued contract termination liability (a) 143.9 Contract termination liability accretion 3.3 Contract termination liability balance as of June 30, 2026 $ 147.2 (a) The Company measures the present value of its contract liability termination fee using discounted cash flow techniques. This fair value measurement is classified within Level 2 of the fair value hierarchy as it utilizes observable market inputs, including market-based corporate yield curves, estimated timing of expected cash flows, and credit risk assumptions derived from comparable rated debt instruments. (2) During the three and six months ended June 30, 2026 and June 30, 2025, Starz undertook actions to rationalize its content portfolio as part of its ongoing efforts to right-size its content cost structure in response to the evolving macroeconomic and industry environment, including continued declines in traditional linear services and operating as a standalone company following the Separation. These actions included evaluating programming on the Starz Platform, cancelling certain previously ordered programming, and removing and abandoning content determined to have limited strategic value. (3) Transaction and other costs during the three and six months ended June 30, 2026 and June 30, 2025 reflect costs associated with certain potential strategic transactions, costs associated with certain legal matters, and transaction, integration, and legal costs associated with the Separation. (4) Severance costs for the three and six months ended June 30, 2026 and June 30, 2025, represent a reduction in our work force due to cost-saving initiatives and the continued decline in traditional linear services. 17 Table of Contents STARZ ENTERTAINMENT CORP. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued) 9. Income Taxes The income tax provision for the six months ended June 30, 2026 was calculated by estimating the Company’s annual effective tax rate (estimated annual tax provision divided by estimated annual income before income taxes), and then applying the effective tax rate to income (loss) before income taxes for the period, plus or minus the tax effects of items that relate discretely to the period, if any. The Starz Business’s U.S. operations and certain of its non-U.S. operations were historically included in the income tax returns of Old Lionsgate or its subsidiaries. For the three months ended June 30, 2025, income taxes were calculated as if the Starz Business filed income tax returns on a standalone basis, including assumptions regarding the allocation of consolidated tax attributes. The Company’s income tax provision differs from the federal statutory income tax rate applied to income (loss) before taxes due to the level and geographic mix of earnings, changes in tax laws and regulations, changes in uncertain tax positions, as well as changes in valuation allowances on deferred tax assets. The Company’s income tax provision for the six months ended June 30, 2026 and June 30, 2025 were impacted by changes in the valuation allowances against certain U.S. and foreign deferred tax assets, net of applicable deferred tax liabilities. There were no material discrete income tax items or significant changes in uncertain tax positions during the six months ended June 30, 2026. 18 Table of Contents STARZ ENTERTAINMENT CORP. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued) 10. Net Loss Per Share Basic and diluted net loss per share is calculated based on the weighted average common shares outstanding for the period. For the three and six months ended June 30, 2026 and June 30, 2025, the Company reported a net loss, and therefore all potentially dilutive common shares were excluded from the calculation of diluted net loss per common share because their inclusion would have been anti‑dilutive. As a result, diluted net loss per common share is the same as basic net loss per common share. For the three and six months ended June 30, 2026 and June 30, 2025, the following common shares issuable were excluded from net loss per common share because their inclusion would have had an anti-dilutive effect: Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 (Amounts in millions) Stock options and share appreciation rights (SARs) 1.1 0.8 1.1 0.8 Restricted share units 2.4 2.5 2.4 2.5 Total anti-dilutive shares issuable excluded from diluted net loss per common share 3.5 3.3 3.5 3.3 19 Table of Contents STARZ ENTERTAINMENT CORP. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued) 11. Segment Information The Company’s reportable segments have been determined based on the distinct nature of their operations, the Company's internal management structure, and the financial information that is evaluated regularly by the Company's chief operating decision maker ("CODM") in deciding how to allocate resources to an individual segment and in assessing performance. Our Chief Executive Officer ("CEO") is the CODM. As described in Note 1, Description of Business, Basis of Presentation and Significant Accounting Policies, as of June 30, 2026, the Company has one reportable segment: Starz Networks, which includes our operations in the U.S. and Canada. During the six months ended June 30, 2025, International included operations in India and Southeast Asia. As described in Note 1, Description of Business, Basis of Presentation and Significant Accounting Policies, and effective April 1, 2025, we transferred our operations in India and Southeast Asia to New Lionsgate. Segment information is presented in the table below: Three Months Ended June 30, 2026 2025 Starz Networks Starz Networks (Amounts in millions) Revenue OTT revenue $ 221.3 $ 221.1 Linear and other revenue 86.6 98.6 Total revenue 307.9 319.7 Operating expenses: Programming amortization 114.1 162.5 Payroll (1) 35.6 29.7 Advertising and marketing 70.3 63.4 Other (2) 44.9 35.9 Depreciation and amortization 67.3 48.7 Restructuring and other 151.2 6.4 Total expenses 483.4 346.6 Operating loss ( 175.5 ) ( 26.9 ) Interest expense ( 13.6 ) ( 13.2 ) Interest and other income 0.5 — Other expense ( 2.0 ) ( 2.5 ) Loss from continuing operations before income taxes ( 190.6 ) ( 42.6 ) Income tax benefit 1.2 0.1 Net loss from continuing operations $ ( 189.4 ) $ ( 42.5 ) 20 Table of Contents STARZ ENTERTAINMENT CORP. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Six Months Ended June 30, 2026 2025 Starz Networks Starz Networks International Total (Amounts in millions) Revenue OTT revenue $ 432.4 $ 444.6 $ 2.0 $ 446.6 Linear and other revenue 182.4 201.3 2.4 203.7 Total revenue 614.8 645.9 4.4 650.3 Operating expenses: Programming amortization 252.4 278.6 2.3 280.9 Payroll (1) 69.9 60.2 0.6 60.8 Advertising and marketing 120.7 122.1 0.2 122.3 Other (2) 74.0 68.9 — 68.9 Depreciation and amortization 135.8 96.8 — 96.8 Restructuring and other 290.3 183.1 6.7 189.8 Total expenses 943.1 809.7 9.8 819.5 Operating loss ( 328.3 ) ( 163.8 ) ( 5.4 ) ( 169.2 ) Interest expense ( 27.5 ) ( 24.1 ) — ( 24.1 ) Interest and other income 0.9 1.7 — 1.7 Other expense ( 3.8 ) ( 4.3 ) — ( 4.3 ) Loss on extinguishment of debt — ( 0.7 ) — ( 0.7 ) Loss from continuing operations before income taxes ( 358.7 ) ( 191.2 ) ( 5.4 ) ( 196.6 ) Income tax benefit 4.4 0.1 — 0.1 Net loss from continuing operations $ ( 354.3 ) $ ( 191.1 ) $ ( 5.4 ) $ ( 196.5 ) ______________________________________ (1) Payroll expense by segment, which includes salaries and employee benefits, is reviewed by the CODM on a quarterly basis. (2) Includes total other operating and general and administrative expenses from the accompanying unaudited condensed consolidated statements of operations, less payroll expense per note (1). The reconciliation of total segment assets to the Company’s total consolidated assets is as follows: June 30, 2026 December 31, 2025 (Amounts in millions) Assets Starz Networks $ 1,560.3 $ 1,818.2 Other unallocated assets (1) 111.5 95.0 $ 1,671.8 $ 1,913.2 _____________________ (1) Other unallocated assets primarily consist of cash and other assets. 21 Table of Contents STARZ ENTERTAINMENT CORP. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Long-lived assets by geographic location are as follows: June 30, 2026 December 31, 2025 (Amounts in millions) Long-lived assets (1) United States $ 952.6 $ 1,084.6 _____________ (1) Long-lived assets primarily represent programming content, net, property and equipment, net, and right-of-use assets. 12. Derivative Instruments and Hedging Activities As of June 30, 2026, the Company had outstanding pay-fixed interest rate exchange swaps with a total notional amount of $ 150.0 million, converting SOFR-based floating-rate debt to fixed-rate obligations. These effective swaps carry fixed interest rates ranging from 3.58 % to 3.62 %. The Company also had forward foreign exchange contracts outstanding with maturities of less than 24 months, totaling British £ 6.6 million (equivalent to US$ 8.9 million), used to hedge foreign currency exposure related to production tax credit receivables. These contracts are designated as cash flow hedges. 13. Additional Financial Information The following tables present supplemental information related to the accompanying financial statements. Accounts Receivable Monetization Under the Company's accounts receivable monetization programs, the Company has entered into an agreement to monetize certain of its trade accounts receivable directly with a third-party purchaser (historically, the Company entered into individual agreements), as further described below. Under the accounts receivable monetization programs, the Company transfers receivables to purchasers in exchange for cash proceeds, and the Company continues to service the receivables for the purchasers. The third-party purchasers have no recourse to other assets of the Company in the event of non-payment by the customers. The Company accounts for the transfers of these receivables as a sale, removes (derecognizes) the carrying amount of the receivables from its balance sheets and classifies the proceeds received as cash provided by operating activities in the unaudited condensed consolidated statements of cash flows. The Company records a loss on the sale of these receivables reflecting the net proceeds received (net of any costs incurred), less the carrying amount of the receivables transferred. The loss is reflected in other expense on the accompanying unaudited condensed consolidated statements of operations. The following table sets forth a summary of the receivables transferred: Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 (Amounts in millions) Carrying value of receivables transferred and derecognized $ 199.7 $ 211.4 $ 397.8 $ 415.8 Net cash proceeds received from third party purchasers 198.3 209.4 395.0 412.2 Loss recorded related to transfers of receivables 1.4 1.8 2.8 3.4 At June 30, 2026, receivables totaling $ 133.4 million had been derecognized from the Company’s accompanying unaudited condensed consolidated balance sheets but continued to be serviced by the Company. The comparable amount at December 31, 2025 was $ 132.9 million. 22 Table of Contents STARZ ENTERTAINMENT CORP. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Other Assets The composition of the Company’s other assets is as follows: June 30, 2026 December 31, 2025 (Amounts in millions) Other non-current assets Operating lease right-of-use assets $ 38.8 $ 41.7 Debt issuance costs 2.5 3.0 Accounts receivable — 2.5 $ 41.3 $ 47.2 Other Accrued Liabilities and Other Liabilities The composition of the Company’s other accrued liabilities (current) and other liabilities (non-current) is as follows: June 30, 2026 December 31, 2025 (Amounts in millions) Other accrued liabilities (current) Contract termination liability (1) $ 48.0 $ — Employee related liabilities 42.7 23.5 Operating lease liabilities 11.4 11.1 Other accrued expenses and short-term liabilities 18.8 14.5 $ 120.9 $ 49.1 Other liabilities (non-current) Contract termination liability (1) $ 99.2 $ — Operating lease liabilities 43.1 48.3 Programming related payables 23.1 19.7 Other long-term liabilities 4.6 4.7 $ 170.0 $ 72.7 _____________________ (1) Represents contract termination fees accrued in connection with the April 2026 termination of certain live-action films under a post-pay-one output licensing arrangement. Supplemental Cash Flow Information Refer to Note 14, Activity with the LG Studios Business , for further details regarding non-cash activity with Parent. 23 Table of Contents STARZ ENTERTAINMENT CORP. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued) 14. Activity with the LG Studios Business Certain Transactions with Old Lionsgate Net parent investment is presented in the accompanying unaudited condensed consolidated statements of equity. Settlements of amounts receivable and accounts payable when due through the net parent investment account are reflected as cash payments or receipts for the applicable operating transaction within operating activities in the accompanying unaudited condensed consolidated statements of cash flows, with the net change in parent net investment included within financing activities in the accompanying unaudited condensed consolidated statements of cash flows. Intercompany Revolver: On May 13, 2024, LGAC International LLC, a Delaware limited liability company and wholly owned subsidiary of Lionsgate Studios (“LGAC International”) and Lions Gate Capital Holdings 1, Inc., a Delaware corporation and wholly owned subsidiary of the Company (“LGCH1”) (which was renamed Starz Capital Holdings 1, Inc. at Separation), entered into a revolving credit agreement (the “Intercompany Revolver”), pursuant to which LGAC International and LGCH1 agreed to make revolving loans to each other from time to time, provided that the net amount owing by one party to the other at any particular time may not exceed $ 150.0 million. Amounts advanced by one party were used to repay existing indebtedness owed to the other party thereunder, if any, such that at no time will amounts be owed in both directions. The net amount outstanding under the Intercompany Revolver, at any time, bore interest on the outstanding principal amount at a rate equal to adjusted term SOFR plus 1.75 %. In connection with the Separation, all outstanding obligations under the Intercompany Revolver were repaid in full and all commitments thereunder were terminated. The cash flows related to the intercompany revolver are presented as increases and decreases in the New Lionsgate revolving credit facility on the accompanying unaudited condensed consolidated statements of cash flows. Prior to the Separation, in the normal course of business, the Starz Business entered into transactions with Old Lionsgate and the LG Studios Business which included the following: Operating expense reimbursement: For the periods prior to the Separation, the LG Studios Business paid certain expenses on behalf of the Company such as certain rent expense, employee benefits, insurance and other administrative operating costs. The Company also paid certain expenses on behalf of the LG Studios Business such as legal expenses, software development costs and severance. Those expenditures were reflected in the unaudited condensed consolidated financial statements of the Company and the LG Studios Business as applicable. Share-based compensation: For the periods prior to the Separation, Old Lionsgate allocated to the Company share-based compensation related to the Company's employees. In addition, prior to Separation, Old Lionsgate allocated a proportionate amount of its share-based compensation related to the corporate functions provided by Old Lionsgate to the Company. Parent Net Investment Six Months Ended June 30, 2025 (Amounts in millions) Cash pooling and general financing activities $ ( 2.0 ) Net transfers from Parent included on unaudited condensed consolidated statements of cash flows ( 2.0 ) Share-based compensation (including allocation of share-based compensation) 2.9 Other non-cash transfer 7.3 Net transfers from Parent included on unaudited condensed consolidated statements of equity $ 8.2 24 Table of Contents STARZ ENTERTAINMENT CORP. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued) 15. Contingencies From time to time, the Company is involved in certain claims and legal proceedings arising in the normal course of business. The Company establishes an accrued liability for claims and legal proceedings when the Company determines that a loss is both probable and the amount of the loss can be reasonably estimated. Once established, accruals are adjusted from time to time, as appropriate, in light of additional information. The amount of any loss ultimately incurred in relation to matters for which an accrual has been established may be higher or lower than the amounts accrued for such matters. The Company expenses legal fees as incurred. Claims and legal proceedings may be brought against the Company without merit, are inherently uncertain, are difficult to predict, and the Company’s view on these matters may change as events unfold. Reasonably possible losses, if any, are not estimable, however, based on our current understanding and evaluation of the relevant facts and circumstances, as of June 30, 2026, the Company is not a party to any pending claims or legal proceedings for which management believes the resolution would have a material adverse effect on the Company’s financial position, results of operations or cash flows, and is not aware of any other claims that it believes could, individually or in the aggregate, have a material adverse effect on the Company's financial position, results of operations or cash flows. For additional detail regarding certain legal proceedings in which Starz is involved, Starz provides the following information: On August 27, 2024, purported holders of 5.5 % Senior Notes (prior to the Separation) filed a complaint in New York State court asserting claims for breach of certain contractual provisions and breach of the implied covenant of good faith and fair dealing in connection with the Exchange Transaction and Supplemental Indenture No. 10 to the indenture governing the 5.5 % Senior Notes (the “Indenture”). On September 13, 2024, another purported holder sought to intervene as a plaintiff in the same suit asserting nearly identical claims, which intervention was granted on October 11, 2024. The second holder subsequently added additional theories and brought claims against other parties. Starz filed a motion to dismiss the claims. On March 17, 2026, the Court issued a decision on the motion to dismiss, dismissing the majority of the asserted claims and narrowing the case to a single declaratory judgment claim. On June 24, 2026, the parties entered into a global stipulation of discontinuance with prejudice, dismissing all claims asserted in the litigation. The Company recorded an accrual for related obligations in connection with the resolution of this matter. Insurance has reimbursed the Company for substantially all such amounts, and the Company's remaining net exposure is not material to the Company's consolidated financial statements. The Company is party to certain consolidated arbitration claims arising from alleged violation of the federal Video Privacy Protection Act (the “VPPA”) and analogous state laws relating to the Company’s alleged use of a third-party pixel on the website for its subscription video service. Although the outcome of this consolidated matter cannot be predicted with certainty, management does not presently believe that the resolution of this matter will have a material adverse effect on the Company’s financial position, results of operations or cash flows. Legal proceedings can be expensive and disruptive to normal business operations. Even if Starz is successful in defending against such claims, it may expend significant management time and attention and funds to defend against such claims. The Company is involved in other legal proceedings not described herein; however, it does not presently consider that any such matters to be material either individually or in the aggregate at this time. The Company’s view of the matters not listed may change in the future as the proceedings unfold. 16. Subsequent Events There were no subsequent events that occurred after June 30, 2026, through the date of this filing that would require disclosure in the unaudited condensed consolidated financial statements. 25 Table of Contents STARZ ENTERTAINMENT CORP.