Lionsgate Studios (LION) Q2 2027 earnings summary

Executive summary

• Q2 revenue was $668.8M, up 40.8% YoY; operating income was $29.1M and Adjusted OIBDA was $72.0M.

• Net loss attributable to shareholders narrowed to $15.5M, or $0.05 diluted EPS; adjusted net income was $20.3M, or $0.07 adjusted diluted EPS.

• FY2027 growth confidence is supported by branded franchises, library monetization, new distribution partners, and expanding IP into live and interactive formats.

Financial highlights

• H1 revenue rose 44.4% to $1,445.4M; operating income was $54.7M versus a $56.5M loss a year earlier.

• Adjusted total segment profit increased to $110.3M in Q2 from $43.0M and to $225.6M in H1 from $84.3M.

• Q2 Adjusted Free Cash Flow use was $8.2M; H1 continuing-operations operating cash flow was $1.4M versus $213.1M used in the prior-year period.

Outlook and guidance

• Management expects significant FY2027 Adjusted OIBDA and free cash flow growth, with growth visibility extending into FY2028–FY2029; scripted deliveries are expected to double in FY2027 versus FY2026.

• Positive TTM free cash flow is expected through the rest of FY2027, accelerating in FY2028–FY2029; leverage target is below 3x in 2029.

• Q3 is expected to be the peak quarter, partly on Power licensing; Q4 faces a large prior-year comparison, P&A for two theatrical releases, and advance spending on Resurrection.

• By end-FY2028, global products and experiences are expected to include at least eight stage plays, four concert tours, 10 live experiences, and nine interactive games.

• Live and experiences is targeted to reach a $50M revenue run rate and contribution above $30M by end-2028.