Lionsgate Studios (LION) Q4 2025 earnings summary

Executive summary

• Completed the separation of Lionsgate and Starz, simplifying the capital structure and trading under the ticker LION, now reporting as a standalone studio focused on Motion Picture and Television Production.

• Achieved a strong quarter driven by mid-budget film successes, record library sales, and disciplined spending.

• TV group secured multiple key renewals and launched new acclaimed series, contributing to robust performance.

• Strategic initiatives include expanding digital content, leveraging IP, and growing 3 Arts into new representation areas.

• Trailing 12-month library revenue reached a record $956 million, up 8% year-over-year, driven by strong licensing sales.

Financial highlights

• Q4 revenue up 22% year-over-year to $1.1 billion; adjusted EBITDA up 49% to $138 million; operating income at $94 million.

• Q4 net cash flow from operations was $256 million; adjusted free cash flow was $395 million.

• Adjusted diluted EPS for the quarter was $0.21, compared to $0.05 in the prior year quarter.

• Full-year revenue up 7% to $3.2 billion; adjusted EBITDA down 8% to $302 million; operating income down 11% to $125 million.

• Full-year reported EPS was a loss of $0.43; adjusted EPS was +$0.10.

Outlook and guidance

• Fiscal 2026 expected to be back-end loaded, with major releases like Ballerina and Now You See Me 3 driving performance.

• Michael Jackson biopic likely delayed to fiscal 2027, strengthening that year's slate.

• Anticipates solid two-year adjusted EBITDA growth from fiscal 2025 through 2027.

• Positive free cash flow expected over the next two years, with cadence more back-end loaded.

• Management expects continued value creation as a standalone studio, leveraging a diversified motion picture business, fiscal discipline, and premium TV programming.