Lionsgate Studios (LION) Q2 2026 earnings summary

Executive summary

• Q2 FY26 revenue was $475.1M, down 21.3% year over year; operating loss narrowed to $46.0M from $100.7M, and continuing-operations net loss attributable to shareholders was $111.9M.

• Adjusted OIBDA was $14.1M versus a $2.0M loss; adjusted net loss from continuing operations was $56.9M, or $0.20 per diluted share.

• Trailing 12-month library revenue hit a record $1.0B, up 13% year over year; backlog grew 31% sequentially to nearly $1.6B.

Financial highlights

• Q2 revenue was $475.1M versus $604.0M a year earlier; operating loss improved to $46.0M from $100.7M.

• Continuing-operations net loss attributable to shareholders was $111.9M, or $0.39 per diluted share; adjusted net loss was $56.9M, or $0.20 per diluted share.

• Net cash used in continuing operating activities was $104.1M; adjusted free cash flow was negative $128.8M.

• H1 revenue was $1.001B, down 8.2%; operating loss was $56.5M versus $123.3M, and continuing-operations net loss was $203.2M versus $274.4M.

• Restructuring and other costs were $25.7M in Q2 and $30.5M in H1; H1 included $8.6M in development write-downs tied to restructuring.

Outlook and guidance

• Fiscal 2026 is expected to be back-end loaded, with sequential growth in Q3 and Q4; significant growth is anticipated over the next two quarters and through FY27.

• FY27 growth expectations cite tentpole film releases, a strong upcoming film slate, renewed television series and increased scripted deliveries.

• More than 85% of the $1.6B backlog is expected to convert to revenue in the next 18 months; remaining performance obligations were $2.1B, including $837.8M expected in the rest of FY26 and $935.9M in FY27.

• Production cash requirements are expected to remain consistent near term, while FY26 marketing spend is expected to increase versus FY25.

• Cash, operating cash flow, revolver availability, receivable monetization and other financing are expected to cover known operating and debt-service needs for the next 12 months and beyond.