Starz Entertainment Corp.

Good day, everyone, and welcome to the STAR's second quarter 2025 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To participate, you will need to press STAR-1-1 on your telephone. You will then hear a message advising your hand is raised. To withdraw your question, simply press STAR-1-1 again. Please note, this conference is being recorded. Now it's my pleasure to turn the call over to Neelay Shah with Starz Investor Relations. Please go ahead.

Good afternoon. Thank you for joining us for Starz Entertainment's fiscal 2025 second quarter earnings call. We'll begin with opening remarks from our president and CEO, Jeffrey Hirsch, followed by remarks from our CFO, Scott McDonald. Also joining us on the call today is Allison Hoffman, president of Starz Networks. After our opening remarks, we'll open the call for questions. The matters discussed on the call include forward-looking statements, including those regarding expected future performance. Such statements are subject to a number of risks and uncertainties. Actual results could differ materially and adversely from those described in the forward-looking statements as a result of various factors. This includes the risk factors set forth in our most recently filed 10-K for STARS Entertainment Court. STARS undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances. The matters discussed today will also include non-GAAP measures. The reconciliation for these and additional required information is available in the 8K we filed this afternoon, which is available on the STARS Investor Relations website at investors.stars.com. I'll now turn the call over to Jeff. Thank you, Neelay.

Thank you, everyone, for joining us today. Before getting into the details behind the quarter, I want to give everyone an update on how I see STARS is positioned in the ever-changing media landscape. As I laid out last quarter, STARS is a highly profitable digital-first network that is able to punch above its weight class because it has remained focused on catering to two valuable demos of women and underrepresented audiences. Unlike our peers, Starz took a distribution agnostic approach to streaming. This resulted in a profitable transition and a business that has delivered consistently strong, adjusted a wee bit of performance. We believe this decision not to follow the herd has positioned Starz to be a very straightforward and predictable investment story. The investment case hinges on modest top line and domestic OTT subscriber growth, coupled with lower content spend. We believe this combination should drive three key outputs. One, higher adjusted OEBIDA margins. Two, higher free cash flow. And three, lower leverage. Given these business drivers, combined with our outlook of generating approximately $200 million of adjusted OEBIDA in calendar 25 and converting 70% of adjusted OEBIDA to unleveraged free cash flow during calendar 26, we see our current valuation of approximately four times adjusted OEBIDA as very attractive. We believe this valuation disconnect will become more apparent in the coming quarters when several large media companies spin off their linear networks into standalone public companies. It's worth noting that even though these linear networks are heavily dependent on linear advertising and have immaterial digital revenue, most Wall Street analysts are valuing these businesses at similar or higher multiples than stars, making us a great value. Turning to the operating fundamentals, we delivered adjusted OEBDA and revenue results inside our expectations, despite some underperformance of BMF Season 4. While the season still drew a large audience, it didn't maintain the expected scale relative to our anticipated performance for the series. This resulted in modest sequential declines in OTT subscribers and revenue, which Scott will go into detail momentarily. Now more than ever, our priority continues to be laser focused on making great stories that also drive the business. And we are thrilled to report that our highly anticipated and critically acclaimed Outlander prequel, Blood of My Blood, is already exceeding expectations. It has generated the third highest number of subscriber additions for a series premiere and stars history. And viewership has exceeded the last episode of Outlander Season 7 by 40%. This impressive performance out of the gate has resulted in strong subscriber growth, and importantly, we are adding these subscribers with higher price promotions than the prior season of Outlander. Based on this momentum, we remain confident in our expectations of sequential revenue growth and OTT subscriber growth in the September and December quarters. Following Blood of My Blood, the slate features high-performing returning temples, such as Force and Raising Canaan, alongside the premiere of Spartacus, which is returning to the service after 12 years. With this temple-heavy slate combined with strong film lineup that includes Ballerina and Oppenheimer, we expect to finish the year from a position of strength, setting us up for continued revenue growth in calendar 26. Looking forward, we will bring audiences several long-awaited premieres, including the final season of Outlander, P-Valley Season 3, as well as the launch of new power prequel series, Origins, which will have a supersized 18-episode premiere season. We are also excited to bring our first S.T.A.R.S.-owned and produced show, Fightland, to our viewers. In short, this is one of the most compelling content slates that S.T.A.R.S. has had in several years. Most importantly, the slate is being delivered at superior economics on a per-episode basis relative to prior years. We expect the structural improvement in our content costs will build over the next several quarters. This is a key tenant to our investment case and bolsters our confidence that we can reach our 20% margin target run rate coming out of calendar 28. Given the strength of our slate we outlined, the stability of our streaming-first operating model, and our improving content cost structure, we are excited about the outlook of our business and believe STARS is the most misunderstood and undervalued stock in our sector. Now, Scott will take you through our key metrics and financial results. Scott?