Lionsgate Studios (LION) Q1 2027 earnings summary

Executive summary

• Revenue grew 48% year-over-year to $777 million, driven by a 119.7% increase in Motion Picture segment revenue and significant momentum across film and television businesses.

• Net loss attributable to shareholders narrowed to $28.8 million ($0.10 per diluted share), while adjusted net income was $18.9 million ($0.06 per adjusted diluted share).

• Operating income improved to $25.6 million from a loss of $10.6 million year-over-year.

• The quarter reflects the first full year post-Starz Separation, with only Motion Picture and Television Production segments as continuing operations.

• Trailing 12-month library revenue was $987 million, and the filmed entertainment backlog rose 21% year-over-year to $1.5 billion.

Financial highlights

• Adjusted OIBDA reached $79.3 million, up from a loss of $3.7 million in the prior year quarter.

• Free cash flow was $129 million, with adjusted free cash flow at $128.9 million; net cash flows from operating activities were $54 million.

• Diluted adjusted EPS was $0.06; basic and diluted net loss per share improved to $(0.10) from $(0.40) year-over-year.

• Cash and cash equivalents at quarter-end were $425.8 million.

• Debt (excluding film obligations) stood at $1.9 billion, with significant undrawn credit capacity and $800 million available on revolver.

Outlook and guidance

• Management anticipates strong growth in adjusted OIBDA and free cash flow for fiscal 2027 and beyond, supported by new releases and strong library performance.

• Scripted television deliveries are expected to double in fiscal 2027 compared to fiscal 2026.

• Liquidity is expected to be sufficient for operational and debt service needs for the next 12 months and beyond.

• Expect TV segment profit to improve sequentially in Q2 and accelerate in the back half of the year.

• Anticipate continued de-leveraging, targeting leverage of three to three and a half times in fiscal 2028 and below three thereafter.