Lionsgate Studios (LION) Q3 2026 earnings summary

Executive summary

• Fiscal Q3 2026 revenue reached $724.3 million, with operating income of $36 million and a net loss attributable to shareholders of $46.2 million, or $0.16 diluted net loss per share; adjusted net income was $3.9 million, or $0.01 per share.

• Adjusted OIBDA was $85.3 million; trailing 12-month library revenue grew 10% year-over-year to a record $1.05 billion, marking the fifth consecutive record quarter.

• Completed the Starz Separation, resulting in two independent public companies and reflecting Starz as discontinued operations in financials.

• The company remains on track for fiscal 2026 targets and anticipates significant growth in fiscal 2027, driven by investments in IP, franchise expansion, and a robust content pipeline.

• Strategic cost reductions, business restructuring, and governance changes, including board additions and share structure simplification, position the company for agility amid industry disruption.

Financial highlights

• Quarterly revenue rose to $724.3 million from $628.2 million year-over-year, a 15% increase.

• Operating income was $36 million, up from $27.7 million in the prior year.

• Net loss from continuing operations attributable to shareholders was $46.2 million, compared to $23.1 million in the prior-year quarter.

• Adjusted OIBDA was $85.3 million, down from $115.2 million in the prior-year quarter.

• Adjusted net income from continuing operations was $3.9 million, or $0.01 per share.

Outlook and guidance

• Management reiterated confidence in meeting fiscal 2026 targets and expects significant growth in fiscal 2027, citing strong IP investments, a tentpole-heavy film slate, and doubled scripted episodic deliveries.

• Q4 adjusted OIBDA projected to improve materially from Q3, driven by theatrical carryover and Pay-1 window monetization.

• Leverage expected to decline from 7.4x to mid-4x by mid-Fiscal 2027 and to 3–3.5x by Fiscal 2028 as OIBDA and free cash flow improve.

• Cash flow from operations, available credit, and receivables monetization expected to cover operational and debt service needs for the next 12 months and beyond.