Lionsgate Studios Corp.

What they do

Lionsgate produces, acquires, markets and distributes motion pictures and television programming worldwide. The Motion Picture segment covers theatrical release, home entertainment (packaged media and digital), linear and pay television licensing, international distribution, and ancillary licensing. The Television Production segment licenses scripted and unscripted series, television movies, mini-series and non-fiction programming to domestic and international markets, and includes the 3 Arts Entertainment talent management and production business.

Revenue drivers

• Motion Picture - Home Entertainment — Largest single revenue line within the segment, at 44.1% of Motion Picture revenue in fiscal 2026; includes packaged media and digital sales/rentals plus revenue-sharing arrangements with digital platforms, including the initial direct-to-platform licensing of certain films.
• Motion Picture - International — 28.3% of Motion Picture revenue in fiscal 2026; territory-by-territory licensing of productions, acquired films and catalog to international distributors, plus direct distribution in the United Kingdom.
• Motion Picture - Theatrical — 10.9% of Motion Picture revenue in fiscal 2026; domestic theatrical releases licensed to exhibitors picture-by-picture on a box office percentage basis, with Canada handled through a sub-distributor.
• Television Production - Television — 49.5% of Television Production revenue in fiscal 2026; licensing of scripted and unscripted series and other programming to domestic linear pay, basic cable, free TV and syndication, and to subscription video-on-demand platforms.

Recent performance

For the quarter ended June 30, 2026 (Q1 fiscal 2027), revenue was $776.6 million, up 48% year-over-year, operating income was $25.6 million and net loss from continuing operations attributable to shareholders was $28.8 million, or $0.10 diluted loss per share. Adjusted net income was $18.9 million, or $0.06 adjusted diluted EPS, and Adjusted OIBDA was $79.3 million. Motion Picture revenue of $587.3 million more than doubled year-over-year with record first-quarter segment profit of $105 million, driven by the worldwide box office of Michael and ancillary performance of The Housemaid. Television Production revenue of $189.3 million and segment profit of $10.2 million declined on episodic delivery timing. Operating cash flow was $54 million and adjusted free cash flow was $128.9 million in the quarter.

Strategy

Management describes a strategy of executing a franchise strategy across a portfolio of branded intellectual property, generating visibility and stability from the film and television library, and benefiting from an improved operating environment. The company reports trailing 12-month library revenue of $987 million and filmed entertainment backlog of $1.5 billion, up 21% year-over-year. It continues to anticipate doubling scripted deliveries in fiscal 2027 relative to fiscal 2026. The 10-K also refers to the Starz Separation in the MD&A overview, indicating the company operates as a standalone content business.

Risks

• Production capital and budget overruns — Content production and distribution require substantial capital with long lags before revenue; budget overruns may require additional financing and may not be recouped.
• Volatile results — Revenue and operating results depend significantly on the commercial success of individual films and television programming and on delivery timing, which cannot be predicted.
• Balance sheet leverage — As of June 30, 2026, total liabilities of $6.39 billion exceeded total assets of $5.33 billion, shareholder equity was negative $1.20 billion, and management cited leverage of 4.3x trailing 12-month adjusted OIBDA.
• Credit facility and notes limits — The company's credit facilities and notes impose limitations that could constrain financing, investment or operating flexibility.

Outlook

CEO Jon Feltheimer said the company is positioned to deliver strong growth in fiscal 2027 and beyond, citing the franchise strategy, library stability and improvement in the operating environment. Management continues to expect scripted deliveries to double in fiscal 2027 versus fiscal 2026. No specific revenue or earnings guidance figures were provided in the earnings release.