Lionsgate Studios (LION) Q2 2025 earnings summary

Executive summary

• Q2 revenue was $948.6M; net loss attributable to shareholders was $163.3M, or $0.68 per diluted share, and adjusted OIBDA loss was $17.7M.

• Industry disruption, lingering strike effects, weak theatrical results and Borderlands underperformance pressured results.

• Library revenue reached $892M for the trailing 12 months, up 2.5% year over year, supporting a diversified, risk-mitigated business model.

• STARZ remains on track for $200M adjusted OIBDA in FY25; Studio and STARZ separation preparations continue.

Financial highlights

• Consolidated revenue declined 7% year over year to $948.6M; operating loss was $88.6M, compared with $76.0M operating income in the prior-year quarter.

• Net loss attributable to shareholders was $163.3M, versus $886.2M in the prior-year quarter, which included a $663.9M goodwill and intangible asset impairment; adjusted net loss was $102.5M.

• Adjusted diluted loss per share was $0.43; adjusted free cash flow use was $132.4M, compared with $133.4M generated in the prior-year quarter.

• Studio revenue rose 4.3% to $823.7M; operating loss was $34.8M and adjusted OIBDA loss was $6.3M.

• Q2 interest expense rose $11.3M year over year to $63.0M, primarily due to higher average rates and variable-rate debt balances.

Outlook and guidance

• FY2025 Studio adjusted OIBDA forecast was revised to $300–$320M amid film underperformance and the pace of TV recovery.

• STARZ North America is expected to generate $200M+ adjusted OIBDA in FY25; OTT revenue is projected to reach 70% of total by year-end.

• Second-half-weighted results are anticipated, supported by TV deliveries, post-theatrical cash flows, a STARZ price increase and OTT subscriber growth.

• Separation is targeted by year-end, pending regulatory approvals; expected FY25 trailing 12-month leverage is ~4.5x for Studio and 3x for STARZ.