Lionsgate Studios — Q2 Fiscal 2027 Earnings Summary

Financial Performance:

• Revenue for the quarter ended September 30, 2026, was $668.8 million, representing a 41% increase year-over-year compared to $475.1 million in the prior year period.
• Operating income was $29.1 million for the quarter, a significant improvement from an operating loss of $46.0 million in the prior year; year-to-date operating income was $54.7 million versus a loss of $56.5 million in the prior year.
• Adjusted OIBDA was $72.0 million for the quarter, up from $14.1 million in the prior year; year-to-date Adjusted OIBDA was $151.4 million versus $10.5 million in the prior year.
• Net loss from continuing operations attributable to shareholders was $15.5 million ($0.05 diluted loss per share) for the quarter, compared to a loss of $111.9 million ($0.39 loss per share) in the prior year; year-to-date loss was $44.3 million ($0.15 loss per share) versus $205.9 million ($0.73 loss per share).
• Adjusted net income from continuing operations attributable to shareholders was $20.3 million ($0.07 adjusted diluted income per share) for the quarter, compared to a loss of $56.9 million ($0.20 loss per share) in the prior year; year-to-date adjusted net income was $39.2 million ($0.13 adjusted EPS) versus a loss of $144.9 million ($0.52 adjusted loss per share).
• Trailing 12-month library revenue was $1.04 billion, the second highest ever recorded.
• Filmed entertainment backlog (contractual future revenue not yet recognized) was $1.5 billion.
• 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 was $440.4 million total ($348.3 million current, $92.1 million noncurrent) as of September 30, 2026.
• Adjusted Free Cash Flow was $(8.2) million for the quarter and $120.7 million for the six months ended September 30, 2026.

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 noted continued positive momentum and the setting of 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, 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, driven by a significant increase in scripted episodic deliveries including "Power: Origins" and the second seasons of "The Studio" and "The Hunting Wives."
• The Television Production segment includes the results of operations of 3 Arts Entertainment.
• Prior to the Starz Separation, licensing transactions between the Company and Starz were eliminated in consolidation; following the separation, these transactions are reflected in consolidated results from continuing operations.

Market and Competitive Landscape:

• The company operates as a standalone, pure-play content company with a portfolio of over 20,000 titles.
• The company noted encouraging signs in the broader operating environment.
• The press release does not provide specific market share data or direct competitor comparisons.

Risks and Challenges:

• Risks include substantial capital investment requirements, budget overruns, limitations imposed by credit facilities and notes, and the unpredictability of commercial success.
• Potential risks involve acquisition and integration of businesses, costs of defending intellectual property, technological changes, labor disruptions, strikes, and economic uncertainty.
• The company faces risks related to wars, terrorism, international conflicts, currency exchange rate volatility, and changes in government regulations or tax laws.
• Specific risks mentioned include the effects of dispositions of businesses or assets, including individual films or libraries.

Management Commentary and Tone:

• CEO Jon Feltheimer described the quarter's performance as strong, reflecting the convergence of all pieces of the fiscal 2027 plan.
• Management expressed confidence in the year's forecast and noted positive momentum in setting film tentpoles for the next three years.
• The tone was optimistic regarding the library performance and the broader operating environment.

Other Key Points:

• The company held an analyst and investor conference call on November 5, 2026, at 5:00 PM ET to discuss results.
• The Starz Separation has resulted in licensing transactions between Lionsgate and Starz being included in consolidated results from continuing operations rather than eliminated.
• The company reported a net loss from discontinued operations of $1.6 million in the prior year quarter, with no such loss in the current quarter.
• Non-GAAP financial measures including Adjusted OIBDA, Adjusted Free Cash Flow, and Adjusted Net Income are provided to evaluate operating performance and liquidity.
• The company has a total of 297.7 million common shares issued as of September 30, 2026.