Lionsgate Studios (LION) Q2 2025 earnings summary

Executive summary

• Second quarter results were impacted by industry disruption, lingering strike effects, and underperformance in theatrical releases, notably Borderlands, which faced multiple production and financial challenges.

• Revenue for the quarter was $948.6 million, with a net loss attributable to shareholders of $163.3 million, or $0.68 per diluted share; adjusted net loss was $102.5 million, or $0.43 per share.

• Despite setbacks, the diversified business model, strong library, and risk-mitigated approach continue to provide stability, with trailing 12-month library revenue reaching $892 million, up 3% year over year.

• STARZ remains on track for $200 million adjusted OIBDA for the fiscal year, supported by successful rate increases and strong programming performance, and is preparing for the separation of Studio and STARZ businesses.

• Approximately 8% of eligible U.S. employees opted for voluntary severance or early retirement post-quarter as part of ongoing cost-saving initiatives.

Financial highlights

• Consolidated revenue for the quarter was $949 million; adjusted OIBDA was a loss of $18 million; operating income was a loss of $89 million.

• Net loss attributable to shareholders was $163.3 million, or $0.68 per diluted share; adjusted net loss was $102.5 million, or $0.43 per share.

• Net cash used in operating activities was $82 million; adjusted free cash flow used was $132 million.

• Studio revenue grew 4.3% year over year to $824 million; studio adjusted OIBDA was a loss of $6 million.

• Motion Picture revenue increased 2.8% year over year to $407 million; segment profit was $2.6 million.

• Television revenue rose 5.8% year over year to $417 million; segment profit was $24 million.

• Media networks revenue was $347 million; segment profit was $27 million.

Outlook and guidance

• Fiscal 2025 adjusted OIBDA for the studio is forecast at $300–$320 million, revised downward due to film underperformance and slower TV recovery.

• STARZ North America is expected to generate $200 million or more in adjusted OIBDA for fiscal 2025.

• The company remains on track to complete the separation of Studio and STARZ businesses by year-end, pending regulatory approvals.

• Management anticipates a return to sequential OTT subscriber growth in North America in the December quarter.

• Second-half weighted performance is anticipated, driven by increased TV deliveries, post-theatrical cash flows, STARZ price increases, and a return to OTT subscriber growth.