Lionsgate Studios — Q2 Fiscal 2027 Earnings Summary

Financial Performance

• Total revenue was $668.8 million, a 41% increase year-over-year compared to $475.1 million in the prior year quarter.
• Operating income was $29.1 million, a significant improvement from a $46.0 million operating loss in the prior year quarter.
• Net loss from continuing operations attributable to shareholders was $15.5 million ($0.05 diluted loss per share), compared to a $111.9 million loss ($0.39 diluted loss per share) in the prior year quarter.
• Adjusted OIBDA was $72.0 million, up from $14.1 million in the prior year quarter.
• Adjusted net income from continuing operations attributable to shareholders was $20.3 million ($0.07 adjusted diluted income per share), compared to a $56.9 million adjusted loss in the prior year quarter.
• Trailing 12-month library revenue was $1.04 billion, the second highest ever recorded.
• Leverage improved by 0.6x from the June quarter to 3.7x.
• Cash and cash equivalents were $358.5 million as of September 30, 2026, compared to $341.5 million as of March 31, 2026.
• Total debt (current and noncurrent) was $1,856.7 million as of September 30, 2026, compared to $1,940.2 million as of March 31, 2026.
• Deferred revenue (current and noncurrent) totaled $440.4 million as of September 30, 2026, compared to $458.0 million as of March 31, 2026.
• Net cash flows provided by operating activities for the six months ended September 30, 2026, were $1.4 million, compared to a $213.1 million use of cash in the prior year period.
• Adjusted Free Cash Flow for the six months ended September 30, 2026, was $120.7 million, compared to a $240.6 million use of cash in the prior year period.

Guidance and Future Outlook

• Management reaffirmed confidence in the fiscal 2027 forecast of significant adjusted OIBDA growth.
• CEO Jon Feltheimer stated the company has growing visibility into its continued growth trajectory for fiscal years 2028 and 2029.
• The company anticipates doubling scripted deliveries in fiscal 2027 relative to fiscal 2026.
• The company continues to set in place film tentpoles for the next three years.

Business Segments and Product Lines

• Motion Picture Segment: Revenue increased 30% year-over-year to $359.3 million; segment profit increased significantly to $88.7 million. Results were driven by the ongoing contribution of "Michael" and library strength.
• Television Production Segment: Revenue increased 56% year-over-year to $309.5 million; segment profit increased 73% to $21.6 million. Results were driven by a significant increase in scripted episodic deliveries, including Power: Origins and the second seasons of The Studio and The Hunting Wives.
• Filmed entertainment backlog (contractual future revenue not yet recognized) was $1.5 billion.
• The Television Production segment includes the results of operations of 3 Arts Entertainment.

Market and Competitive Landscape

• The company operates as one of the world's leading standalone, pure play content companies with a portfolio of over 20,000 titles.
• Trailing 12-month library revenue performance was the studio's second highest ever.
• The broader operating environment showed continued encouraging signs.

Risks and Challenges

• Forward-looking statements are subject to risks including budget overruns, limitations imposed by credit facilities and notes, and the unpredictability of commercial success of motion pictures and television programming.
• Risks include acquisition and integration of acquired businesses, costs of defending intellectual property, technological changes, labor disruptions and strikes, and volatility of currency exchange rates.
• External factors such as weakness in the global economy, bank failures, wars, terrorism, and changes in governmental regulations or tax laws could adversely affect the business.

Management Commentary and Tone

• CEO Jon Feltheimer described the quarter's performance as strong, reflecting all pieces of the fiscal 2027 plan coming together.
• Management expressed very positive momentum and confidence in the year's forecast.
• The tone indicated growing visibility into future growth trajectories for fiscal 2028 and 2029.

Other Key Points

• The Starz Separation is complete; licensing transactions between the Company and Starz are no longer eliminated in consolidation and are reflected in consolidated results from continuing operations.
• The company held an analyst and investor conference call on November 5, 2026, to discuss the results.
• The company has a more than 20,000-title film and television library.
• The company is a standalone, pure play content company with a world-class portfolio of valuable brands and franchises.