Lionsgate Studios Corp. — First Quarter Fiscal 2027 Earnings Summary

Financial Performance

• Revenue was $776.6 million, up 48% year-over-year from $525.9 million.
• Operating income was $25.6 million, compared to an operating loss of $10.6 million in the prior year quarter.
• Net loss from continuing operations attributable to shareholders was $28.8 million ($0.10 diluted net loss per share), compared to a net loss of $94.0 million ($0.35 diluted net loss per share) in the prior year.
• Adjusted net income from continuing operations attributable to shareholders was $18.9 million ($0.06 adjusted diluted net income per share), compared to an adjusted net loss of $88.1 million in the prior year.
• Adjusted OIBDA was $79.3 million, compared to an adjusted OIBDA loss of $3.7 million in the prior year.
• Net cash flows provided by operating activities were $54.1 million, compared to a net cash usage of $31.0 million in the prior year.
• Adjusted free cash flow was $128.9 million, compared to a negative $111.9 million in the prior year.
• Leverage improved to 4.3x trailing 12-month adjusted OIBDA, down nearly two turns from the March quarter.
• Total assets were $5,333.0 million as of June 30, 2026, compared to $5,327.1 million as of March 31, 2026.
• Cash and cash equivalents were $425.8 million as of June 30, 2026, up from $341.5 million as of March 31, 2026.
• Total debt (current and noncurrent) was $1,902.2 million as of June 30, 2026, down from $1,940.2 million as of March 31, 2026.
• Deferred revenue (current and noncurrent) was $456.6 million as of June 30, 2026, down from $458.0 million as of March 31, 2026.

Guidance and Future Outlook

• Management anticipates doubling scripted deliveries in fiscal 2027 relative to fiscal 2026.
• CEO Jon Feltheimer stated the company is positioned to deliver strong growth in fiscal 2027 and beyond.
• The company expects continued improvement in the operating environment and increased visibility and stability from its film and television library.

Business Segments and Product Lines

• Motion Picture segment revenue was $587.3 million, more than doubling from the prior year quarter, with segment profit of $105 million, a record for the first quarter.
• Motion Picture results were driven by the billion-dollar worldwide box office performance of "Michael," the highest-grossing biopic of all time, and the strong ancillary performance of "The Housemaid."
• Television Production segment revenue was $189.3 million, down from $288.5 million in the prior year quarter, with segment profit of $10.2 million, down from $26.0 million.
• The decline in Television Production was due to the timing of episodic deliveries.
• Trailing 12-month library revenue was $987 million.
• Filmed entertainment backlog (contractual future revenue not yet recognized) increased 21% year-over-year to $1.5 billion.

Market and Competitive Landscape

• Lionsgate is described as one of the world's leading standalone, pure play content companies with a portfolio of valuable brands and franchises.
• The company operates a more than 20,000-title film and television library.
• The company includes 3 Arts Entertainment, a premier talent management and production powerhouse, within its Television Production segment.
• Following the Starz Separation on May 6, 2025, licensing transactions between Lionsgate and Starz are no longer eliminated in consolidation and are reflected in consolidated results.

Risks and Challenges

• Risks include substantial capital investment requirements for film and television production, budget overruns, and the unpredictability of commercial success.
• Potential risks involve limitations imposed by credit facilities and notes, risks related to acquisitions and integrations, and the effects of asset dispositions.
• External factors include technological changes, labor disruptions, strikes, global economic weakness, wars, terrorism, and international conflicts.
• Risks also include volatility in currency exchange rates, the ability to manage growth, and the impact of competition and governmental regulations.

Management Commentary and Tone

• CEO Jon Feltheimer expressed pleasure with "another quarter of strong financial results and growing momentum across our business."
• Management highlighted the execution of a franchise strategy across a deep portfolio of branded intellectual properties.
• The tone was confident regarding the company's ability to generate increased visibility and stability from its library and benefit from an improving operating environment.

Other Key Points

• The company held an analyst and investor conference call on August 6, 2026, at 5:00 PM ET to discuss the results.
• The Starz Separation occurred on May 6, 2025, altering the consolidation of licensing transactions.
• Non-GAAP financial measures such as Adjusted OIBDA, Adjusted Free Cash Flow, and Adjusted Net Income are presented alongside GAAP measures to evaluate operating performance.
• Share-based compensation expense was $41.1 million for the quarter, with $40.3 million classified as adjusted share-based compensation.
• Restructuring and other costs were $2.9 million, including $2.3 million in severance costs and $0.6 million in transaction and other costs.
• Capital expenditures were $2.9 million for the quarter.
• The company reported a net loss from discontinued operations of $0 in the current quarter, compared to $14.9 million in the prior year quarter.