LIONSGATE REPORTS RESULTS FOR SECOND QUARTER FISCAL 2027
Lionsgate Studios Corp. (LION) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 LIONSGATE REPORTS RESULTS FOR SECOND QUARTER FISCAL 2027 Revenue was $668.8 Million, Up 41% Year-over-Year Operating Income was $29.1 Million Adjusted OIBDA was $72.0 Million Net Loss from Continuing Operations Attributable to Shareholders was $15.5 Million, or $0.05
How this was made
The 30-second read
Why it matters
The earnings release offers fresh data on revenue growth, profitability, and library performance, shaping investor sentiment.
Market read
Strong earnings may trigger buying in Lionsgate and lift related media stocks.
What to watch
Potential headwinds from higher content production costs and credit facility constraints could limit upside.
Revenue was $668.8 million, up 41% year-over-year; operating income was $29.1 million and Adjusted OIBDA was $72.0 million.
Revenue grew 41% year-over-year, both reportable segments expanded, operating income turned positive from a prior-year loss, and Adjusted OIBDA increased to $72.0 million from $14.1 million.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended September 30GAAP | $668.8M | – | 41% |
| Direct operating expenses, three months ended September 30GAAP | $428.4M | – | – |
| Distribution and marketing expenses, three months ended September 30GAAP | $86.9M | – | – |
| General and administration expenses, three months ended September 30GAAP | $110.3M | – | – |
| Depreciation and amortization, three months ended September 30GAAP | $4.4M | – | – |
| Restructuring and other, three months ended September 30GAAP | $9.7M | – | – |
| Total expenses, three months ended September 30GAAP | $639.7M | – | – |
| Operating income (loss), three months ended September 30GAAP | $29.1M | – | – |
| Interest expense, three months ended September 30GAAP | −$57.8M | – | – |
| Interest and other income, three months ended September 30GAAP | $17.5M | – | – |
| Other gain (loss), net, three months ended September 30GAAP | −$1.7M | – | – |
| Gain on investments, net, three months ended September 30GAAP | $200K | – | – |
| Equity interests loss, net, three months ended September 30GAAP | −$400K | – | – |
| Loss from continuing operations before income taxes, three months ended September 30GAAP | −$13.1M | – | – |
| Income tax provision, three months ended September 30GAAP | −$2.5M | – | – |
| Net loss from continuing operations attributable to Lionsgate Studios Corp. shareholders, three months ended September 30GAAP | −$15.5M | – | – |
| Diluted net loss per common share from continuing operations, three months ended September 30GAAP | $(0.05) | – | – |
| Adjusted OIBDA, three months ended September 30non-GAAP | $72M | – | – |
| Total Studio Business segment profit, three months ended September 30non-GAAP | $110.3M | – | – |
| Adjusted net income (loss) from continuing operations attributable to Lionsgate Studios Corp. shareholders, three months ended September 30non-GAAP | $20.3M | – | – |
| Adjusted diluted EPS from continuing operations, three months ended September 30non-GAAP | $0.07 | – | – |
| Net cash flows used in operating activities from continuing operations, three months ended September 30GAAP | −$52.7M | – | – |
| Capital expenditures, three months ended September 30GAAP | −$3.7M | – | – |
| Adjusted Free Cash Flow, three months ended September 30non-GAAP | −$8.2M | – | – |
| Revenue, six months ended September 30GAAP | $1.45B | – | – |
| Operating income (loss), six months ended September 30GAAP | $54.7M | – | – |
| Net loss from continuing operations attributable to Lionsgate Studios Corp. shareholders, six months ended September 30GAAP | −$44.3M | – | – |
| Adjusted OIBDA, six months ended September 30non-GAAP | $151.4M | – | – |
| Adjusted net income (loss) from continuing operations attributable to Lionsgate Studios Corp. shareholders, six months ended September 30non-GAAP | $39.2M | – | – |
| Adjusted diluted EPS from continuing operations, six months ended September 30non-GAAP | $0.13 | – | – |
| Net cash flows provided by operating activities from continuing operations, six months ended September 30GAAP | $1.4M | – | – |
| Adjusted Free Cash Flow, six months ended September 30non-GAAP | $120.7M | – | – |
| Trailing 12-month library revenueother | $1.04B | – | – |
| Filmed entertainment backlogother | $1.5B | – | – |
| Leverageother | 3.7x | improved by 0.6x from the June quarter | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Motion PictureThe ongoing contribution of Michael and continued library strength. | $359.3M | – | 30% |
| Television ProductionA significant increase in scripted episodic deliveries, including Power: Origins and the second seasons of The Studio and The Hunting Wives. | $309.5M | – | 56% |
fiscal 2027 outlook
- NoteThe Company reaffirmed confidence in its forecast of significant adjusted OIBDA growth.
- NoteThe Company anticipates doubling scripted deliveries in fiscal 2027 relative to fiscal 2026.
What drove it
- Motion Picture results reflected the ongoing contribution of Michael and continued library strength.
- Television Production benefited from increased scripted episodic deliveries, including Power: Origins and the second seasons of The Studio and The Hunting Wives.
- Trailing 12-month library revenue was the studio’s second highest ever.
- Leverage improved by 0.6x from the June quarter, driven by continued growth in trailing 12-month Adjusted OIBDA.
Concerns
- GAAP net loss from continuing operations attributable to shareholders was $(15.5) million.
- Net cash flows used in operating activities from continuing operations were $(52.7) million in the quarter.
- Adjusted Free Cash Flow was $(8.2) million in the quarter.
- Total Lionsgate Studios Corp. shareholders’ equity (deficit) was $(1,244.1) million as of September 30, 2026.
- Film related obligations - current increased to $1,607.8 million as of September 30, 2026 from $1,293.4 million as of March 31, 2026.
What to watch
- Execution against the Company’s expectation to double scripted deliveries in fiscal 2027 relative to fiscal 2026.
- Conversion of the $1.5 billion filmed entertainment backlog into recognized revenue.
- Sustainability of library revenue following $1.04 billion of trailing 12-month library revenue.
- Adjusted OIBDA growth and further leverage improvement.
- Cash flow from operations and Adjusted Free Cash Flow following the quarter’s negative results.
Balance sheet and cash flow
- Cash and cash equivalents were $358.5 million as of September 30, 2026, compared with $341.5 million as of March 31, 2026.
- Debt - current was $162.1 million as of September 30, 2026, compared with $162.1 million as of March 31, 2026.
- Debt - noncurrent was $1,694.6 million as of September 30, 2026, compared with $1,778.1 million as of March 31, 2026.
- Film related obligations - current were $1,607.8 million as of September 30, 2026, compared with $1,293.4 million as of March 31, 2026.
- Film related obligations - noncurrent were $523.6 million as of September 30, 2026, compared with $656.5 million as of March 31, 2026.
- Total assets were $5,280.1 million as of September 30, 2026, compared with $5,327.1 million as of March 31, 2026.
- Total liabilities were $6,472.3 million as of September 30, 2026, compared with $6,376.5 million as of March 31, 2026.
- Total Lionsgate Studios Corp. shareholders’ equity (deficit) was $(1,244.1) million as of September 30, 2026, compared with $(1,192.9) million as of March 31, 2026.
- Cash, cash equivalents and restricted cash were $435.1 million at September 30, 2026.
Analysis
Lionsgate Studios reported a material improvement in its second fiscal quarter. Revenue was $668.8 million, up 41% year-over-year from $475.1 million. Operating income was $29.1 million compared with an operating loss of $(46.0) million in the prior-year quarter. The GAAP loss from continuing operations attributable to shareholders narrowed to $(15.5) million from $(111.9) million, while Adjusted OIBDA rose to $72.0 million from $14.1 million and adjusted net income from continuing operations was $20.3 million versus an adjusted loss of $(56.9) million.
Both operating segments contributed to the growth. Motion Picture revenue increased 30% to $359.3 million, supported by the ongoing contribution of Michael and continued library strength. Television Production revenue increased 56% to $309.5 million, driven by increased scripted episodic deliveries. Motion Picture segment profit was $88.7 million compared with $30.5 million, while Television Production segment profit was $21.6 million compared with $12.5 million. Total Studio Business segment profit rose to $110.3 million from $43.0 million.
Library and backlog metrics support the operating narrative. Trailing 12-month library revenue was $1.04 billion, described as the studio’s second highest ever, and filmed entertainment backlog was $1.5 billion. The company said it anticipates doubling scripted deliveries in fiscal 2027 relative to fiscal 2026. Management also reaffirmed confidence in its forecast of significant adjusted OIBDA growth, but did not provide a numerical revenue, margin, expense or tax-rate outlook in the release.
Cash generation improved year over year but remained negative in the quarter. Net cash flows used in operating activities from continuing operations were $(52.7) million compared with $(104.1) million, and Adjusted Free Cash Flow was $(8.2) million compared with $(128.8) million. For the six months ended September 30, net cash flows provided by operating activities from continuing operations were $1.4 million and Adjusted Free Cash Flow was $120.7 million. Cash and cash equivalents were $358.5 million, while current and noncurrent debt were $162.1 million and $1,694.6 million, respectively.
The balance sheet remains an important focus. Total liabilities were $6,472.3 million and shareholders’ equity was a deficit of $(1,244.1) million as of September 30, 2026. Film related obligations totaled $1,607.8 million current and $523.6 million noncurrent. Management reported leverage of 3.7x, an improvement of 0.6x from the June quarter, attributed to continued growth in trailing 12-month Adjusted OIBDA. The key execution points are delivery growth, backlog conversion, recurring library performance, and whether improved operating earnings translate into sustained operating cash flow.
Management, verbatim
Our strong performance in the quarter reflects all of the pieces of our fiscal 2027 plan coming together, reaffirming our confidence in this year's forecast of significant adjusted OIBDA growth.
Jon Feltheimer, Lionsgate CEO
We had very positive momentum in the quarter as we continued to set in place our film tentpoles for the next three years. Combined with another great library performance and continued encouraging signs in our broader operating environment, we have growing visibility into our continued growth trajectory in fiscals 2028 and 2029.
Jon Feltheimer, Lionsgate CEO
Not in the filing
stated, not guessed- Gross profit and gross margin
- Numerical revenue guidance
- Numerical Adjusted OIBDA guidance
- Operating expense guidance
- Tax-rate guidance
- Prior-quarter revenue, operating income, net income, EPS and segment comparisons
- Dividend declaration or payment
- Share repurchase authorization or repurchase activity
- Previous-period outlook for comparison
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Lionsgate's Q2 FY2027 filing provides the first public disclosure of its quarterly performance.
Ticker impact
Lionsgate reported Q2 FY2027 results with revenue up 41% YoY to $668.8M and adjusted OIBDA of $72.0M.
likely upward pressure as the market prices in the strong revenue growth and profit improvement.
The fresh earnings numbers and guidance reaffirm the company's growth trajectory, providing a clear catalyst for buying interest.
Market effects
Boosts outlook for the media and entertainment sector as Lionsgate's library revenue hits a record high.
Positive for U.S. entertainment stocks, may lift peers in the same industry.
Limited to media sector; no broad macro effect.
Counterpoint
If the market has already priced in the earnings beat, the stock may face short-term profit taking.
Key entities
- ExecutiveJon Feltheimer
CEO of Lionsgate, provided commentary on the results.
