Lionsgate Studios (LION) Q3 2025 earnings summary

Executive summary

• Achieved a solid quarter with strong performance in motion picture and television segments despite a challenging environment.

• Revenue for the quarter was $971 million; net loss attributable to shareholders was $21.9 million, or $0.09 per diluted share; adjusted net income was $68.4 million, or $0.28 per adjusted diluted share.

• Motion picture business returned to profitability with recent mid-budget films outperforming expectations.

• Television business rebounded post-strike, leveraging a diverse content portfolio and cost controls.

• Record $954 million in trailing 12-month library revenue, up 22% year-over-year, driven by new buyers and innovative windowing.

Financial highlights

• Consolidated revenue for the quarter was $971 million.

• Adjusted EBITDA/OIBDA reached $144 million; operating income was $36 million.

• Reported fully diluted EPS was a loss of $0.09; adjusted EPS was a profit of $0.28.

• Net cash flow used in operating activities was $119 million; adjusted free cash flow was $4.3 million.

• Studio revenue grew 3.2% year-over-year to $714 million; studio adjusted EBITDA/OIBDA up 45% to $112 million.

• Television revenue up 63% year-over-year to $405 million; segment profit up significantly.

• Media networks revenue was $345 million; segment profit $25 million.

Outlook and guidance

• Fiscal 2025 outlook reiterated: Lionsgate Studios expected to generate $300–$320 million adjusted EBITDA; Starz North America to generate ~$200 million adjusted EBITDA.

• Fourth quarter expected to be particularly strong, driven by film, TV, and Starz performance.

• Studio leverage expected to decline to around 5.5x at separation, with further deleveraging in fiscal 2026.

• Starz net debt to be about $600 million at separation, with leverage around 3x and further improvement expected.

• Management expects continued momentum as the company approaches the separation of the studio and Starz businesses.