Lionsgate Turns Operating Profit After Year-Earlier Loss

The Tip Desk · November 11, 2026 · 3 min read

Second-quarter revenue was $668.8 million as operating income reached $29.1 million and adjusted OIBDA was $72.0 million.

Lionsgate Studios Corp. (LION) reported second-quarter revenue of $668.8 million for the period ended September 30, 2026, up 41% from a year earlier, and swung to operating income of $29.1 million from an operating loss of $46.0 million in the year-ago quarter.

Adjusted OIBDA was $72.0 million, versus $14.1 million a year earlier. The company said net loss from continuing operations attributable to shareholders was $15.5 million, or $0.05 a share, compared with a $111.9 million loss, or $0.39 a share, a year earlier. Adjusted net income from continuing operations attributable to shareholders was $20.3 million, or $0.07 a share, versus a $56.9 million adjusted loss, or $0.20 a share, a year earlier.

Chief executive Jon Feltheimer said the quarter reflected “all of the pieces of our fiscal 2027 plan coming together” and that the company was reaffirming its forecast of significant adjusted OIBDA growth this year. He said the company had “very positive momentum” as it set film tentpoles for the next three years, and pointed to library performance and a broader operating environment as sources of visibility into growth in fiscals 2028 and 2029.

Motion Picture revenue increased 30% year-over-year to $359.3 million, and segment profit rose to $88.7 million from $30.5 million. The company said the results were driven by the ongoing contribution of Michael and continued library strength. Television Production revenue increased 56% year-over-year to $309.5 million, and segment profit increased 73% to $21.6 million from $12.5 million. The company attributed the television result to a significant increase in scripted episodic deliveries, including Power: Origins and the second seasons of The Studio and The Hunting Wives.

On a sequential footing, revenue declined from $776.6 million in the June quarter. Motion Picture revenue fell to $359.3 million from $587.3 million, and Motion Picture segment profit declined to $88.7 million from $105 million. Television Production revenue rose to $309.5 million from $189.3 million, and Television Production segment profit rose to $21.6 million from $10.2 million. Operating income rose sequentially to $29.1 million from $25.6 million. Adjusted OIBDA declined sequentially to $72.0 million from $79.3 million. The net loss from continuing operations attributable to shareholders narrowed sequentially to $15.5 million from $28.8 million. Adjusted net income from continuing operations attributable to shareholders rose sequentially to $20.3 million from $18.9 million.

Trailing 12-month library revenue was $1.04 billion, which the company described as the second highest ever, up from $987 million in the June quarter. 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, after improving by nearly two turns from the March quarter to 4.3x in the prior quarter. The company said the latest improvement was driven by continued growth in trailing 12-month adjusted OIBDA.

Restructuring and other expenses were $9.7 million in the quarter, versus $25.7 million a year earlier. Operating cash flows from continuing operations were a $52.7 million use, versus $54 million provided in the June quarter. Adjusted free cash flow was an $8.2 million use, versus $128.9 million provided in the prior quarter. Cash and cash equivalents were $358.5 million at September 30, 2026. Current film-related obligations were $1,607.8 million.

The company anticipates doubling scripted deliveries in fiscal 2027 relative to fiscal 2026.