Starz Entertainment Corp.

Good day and thank you for standing by. Welcome to the STARS Q4 2025 earnings call. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded. After the speaker's presentation, there will be a question and answer session. To ask a question, please press star 1-1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1-1 again. I would now like to hand the conference over to your speaker today, Nealey from Investor Relations.

Good afternoon. Thank you for joining us for Stars Entertainment's fiscal 2025 fourth 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 Stars 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 forward-looking statements as a result of various factors. This includes the risk factors set forth in our most recently filed 10-Q for STARS Entertainment Corp. 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 eight-day 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, Nealey, and thank you, everyone, for joining us today. It's only been nine months since our separation, and I'm pleased to report that STARS delivered another strong quarter, both financially and operationally. Before I get into the highlights of the quarter, I want to give everyone an update on how we are executing in our core operations and how we are positioned for 2026 and beyond. 2025 was a very successful year, one in which we exceeded all of our financial guidance. It's a feat we're especially proud of amidst the pressures you see happening across the industry. We ended the year at an all-time high of 12.7 million OTT subscribers, growing year-over-year by 7.6%. We grew OTT subscribers in three out of four quarters, including adding 370,000 in the fourth quarter alone. This resulted in 170,000 total subscriber growth in quarter four. We grew total revenue on a sequential basis in both quarter three and quarter four. We exceeded our 200 million outlook for 2025 by 2%, delivering 204 million and grew adjusted EBITDA year over year. And we exceeded our leverage target and in the year lower than anticipated at 2.9 times versus a 3.1 times guide. The successful 2025 was aided by an exceptionally strong December quarter. Our substantial subscriber growth in the quarter was fueled by the stellar reception to our programming slate. We premiered the highly anticipated Spartacus revival to critical acclaim, and PowerBook 4 Force Season 3 delivered impressive in-season viewership growth of 57%. The momentum from Quarter 4 has continued into 2026, resulting in a strong start to the year. The success of our originals prove that our bedrock strategy is working. We deliver edgy, premium content for women and underrepresented audiences that broad-based streamers don't address. Content remains core to everything we do, and as we look at the rest of 2026, it's clear we have one of our most compelling lineups of originals. The slate includes the highly anticipated conclusion of Outlander and Power Book 3 Raising Cannon, the premiere of S.T.A.R.' 's own Fightland, the return of Blood of My Blood, and the long-awaited return of one of our biggest hits, P-Valley, from Pulitzer Prize-winning showrunner Katori Hall. These 2026 originals, our pay-one movies from Lionsgate, including films like The Housemaid and The Michael Biopic, and our robust development pipeline make it clear that STARS has never been better positioned to keep our audience engaged, entertained, and growing. Before I get into our key financial targets for 2026, I want to recap our operational milestones in 2025. We restructured our Canadian business into a licensing revenue stream, prioritizing our focus on the U.S. market. We greenlit and completed production on our first wholly owned series, Fightland, advancing our strategy of rebuilding our content library through ownership. And this morning, we announced that Sky will come on board as our co-commission partner for Fightland, further improving the already superior unit economics we get from owning the series. We've also made significant strides in de-aging our content slate this year, while still expanding our network-defining franchises, Outlander and the Power Universe. More specifically, we successfully launched the Outlander prequel, Blood of My Blood, and have greenlit a new Power Universe series. Power Origins, which has a supersized 18-episode order, is currently in production and will give fans an action-packed origin story of fan-favorite characters Ghost and Tommy as ambitious young entrepreneurs. These shifts are critical in achieving our long-term targets of increasing margins to 20%, converting 70% of adjusted OEBDA to unlevered free cash flow, and delevering to 2.5 times as quickly as possible. The changes fortify our long-term path and set us up to continue the growth we delivered in 2025 through 2026. Our outlook for 2026 is strong. We expect OTT revenue to grow. We expect to deliver low single-digit percentage adjusted OEBDA growth versus 2025. We anticipate generating between $80 million to $120 million of positive unleveraged free cash flow, converting the business to positive equity free cash flow. And we expect to end the year at approximately 2.7 times leverage, an improvement from our current 2.9 times leverage and well on our way to reaching our stated goal of 2.5 times leverage. As we stated, we've spent several quarters unwinding some of the legacy constraints of operating within a studio. We believe this has set up the business to drive strong cash flow generation going forward, with 2026 functioning as an inflection point. With the long-term growth of the business as our North Star, we are de-emphasizing the need to manage the business around quarterly subscriber levels. As a result, we will not be disclosing subscribers starting with the March 2026 quarter. We remain laser-focused on OTT revenue growth, profitability, converting adjusted EBITDA to free cash flow, and delivery. We believe this decision is in the best interest of our shareholders as it puts us on a path to achieving the targets we outlined. Before I hand the call over to Scott, I want to reiterate that we continue to believe that there's an opportunity to scale our two core demos and grow our business as a result of the increased consolidation across the media landscape. Given our track record of profitably converting our business from linear to digital and our industry-leading tech stack, we believe we are uniquely positioned to capitalize on potential M&A opportunities. We are poised to increase our scale as assets that are strategically valuable to STARS become available. Now let me hand it over to Scott to take you through the financials.