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.

• Motion picture business returned to profitability with recent mid-budget films outperforming expectations, though segment revenue and profit declined to $309.2 million and $83.6 million due to tough comps from prior year releases.

• Television business rebounded post-strike, leveraging a diverse content portfolio and cost controls, with revenue surging 63% to $404.6 million and segment profit increasing to $60.9 million.

• Starz saw sequential domestic OTT subscriber growth and expanded its distribution footprint.

• 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; 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.

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

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

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

• Media Networks North American revenue was $342 million, with segment profit at $25.7 million; North American OTT subscribers grew by 170,000 sequentially.

Outlook and guidance

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

• Anticipates a strong, back-end weighted Q4, with significant contributions from film, TV, and Starz.

• Amazon Prime Video deal to impact profits more meaningfully from fiscal 2027 onward.

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

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