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Lionsgate Studios Corp. (LION)·Q1 2026 Earnings Summary

Executive Summary

  • Q1 FY26 reported total revenues of $525.9M, operating loss of $10.6M, Adjusted OIBDA loss of $3.7M, and diluted EPS of $(0.40) (continuing ops diluted EPS $(0.35)) .
  • Versus S&P Global consensus, revenue missed ($564.7M est. vs $525.9M actual), EPS missed (−$0.19 est. vs −$0.32 adjusted actual), while EBITDA was modestly better than expected (−$11.0M est. vs +$4.0M actual). Values retrieved from S&P Global*.
  • Segment mix was the bright spot: Television Production revenue +20% YoY to $288.5M with segment profit up nearly 150% to $26.0M; Motion Picture segment profit fell to $2.4M on tough comps .
  • Trailing 12‑month library revenue hit a record $989M (+12% YoY), marking the third straight quarterly record and underscoring durable catalog monetization .
  • Management framed FY26 as a transition year, pointing to three tentpole releases and a significant increase in scripted TV deliveries next year, with a pathway to “solid growth” by FY27 .

What Went Well and What Went Wrong

What Went Well

  • Television Production strength: revenue rose 20% to $288.5M; segment profit nearly 150% to $26.0M on higher episodic deliveries, higher‑margin new series, and lower G&A .
  • Library monetization: trailing 12‑month library revenue reached a record $989M (+12% YoY), the third consecutive record quarter .
  • Strategic positioning: “We are taking a number of important steps toward returning to solid growth in fiscal 2027…three major film tentpoles…[and] significantly grow our scripted television series deliveries next year,” said CEO Jon Feltheimer .

What Went Wrong

  • Motion Picture segment compressed: segment profit fell to $2.4M from $85.2M in the prior‑year quarter, reflecting tough comps after strong FY24 film carryover .
  • Cash flow and leverage pressure: Adjusted Free Cash Flow was $(111.9)M; net cash flows used in operating activities (continuing ops) were $(109.1)M .
  • Interest burden and losses: interest expense was $68.7M; net loss attributable to shareholders was $(108.9)M in Q1 .

Financial Results

Summary Results vs Prior Two Quarters

MetricQ3 FY2025Q4 FY2025Q1 FY2026
Total Revenues ($USD Millions)$713.8 $1,069.7 $525.9
Operating Income (Loss) ($USD Millions)$49.6 $94.2 $(10.6)
Adjusted OIBDA ($USD Millions)$144.2 $138.3 $(3.7)
Net Income (Loss) Attributable to Shareholders ($USD Millions)$6.4 $21.9 $(108.9)
Diluted EPS ($USD)$0.02 $0.10 $(0.40) (Total); $(0.35) Continuing Ops

Segment Breakdown

Segment MetricQ3 FY2025Q4 FY2025Q1 FY2026
Motion Picture Revenue ($USD Millions)$309.2 $526.4 $267.3
Motion Picture Segment Profit ($USD Millions)$83.6 $135.3 $2.4
Television Production Revenue ($USD Millions)$404.6 $543.3 $288.5
Television Production Segment Profit ($USD Millions)$60.9 $40.6 $26.0

KPIs

KPIQ3 FY2025Q4 FY2025Q1 FY2026
Trailing 12‑Month Library Revenue ($USD Millions)$954 $956 $989
Adjusted Free Cash Flow ($USD Millions)$(46.0) $395.3 $(111.9)
Weighted Avg Diluted Shares (Millions)288.7 288.7 272.3

Performance vs Wall Street Consensus (S&P Global)

MetricQ1 FY2026 EstimateQ1 FY2026 Actual
Revenue ($USD)564.7M*525.9M*
Primary EPS Consensus Mean ($USD)−0.1912*−0.32 (Adjusted)*
EBITDA ($USD)−11.0M*+4.0M*

Values retrieved from S&P Global*.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Studio Adjusted OIBDAFY26/FY27 trajectoryNot quantified in Q4 FY25; FY26 framed as transition yearNo numeric guidance; mgmt points to three tentpoles and significantly higher scripted TV deliveries next year; aiming for solid growth by FY27 Maintained qualitative outlook
TV Episodic DeliveriesFY27Not previously quantified“Expect to significantly grow our scripted television series deliveries next year” Raised (qualitative)
Film Slate (tentpoles)FY27 windowNot specified“Three major film tentpoles set for release in the coming fiscal year” Introduced (qualitative)

Note: Q1 FY26 materials did not include formal quantitative ranges for revenue, margins, OpEx, OI&E, tax, or segment guidance .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 FY25 and Q4 FY25)Current Period (Q1 FY26)Trend
FY26 setup/back‑end loadingQ3: Strong quarter; record library; midbudget film profitability; TV rebound from strikes . Q4: Highest motion picture segment profit in 10 years; record library quarter; diversified slate .Mgmt reaffirmed FY26 as a transition, back‑end loaded, with FY27 growth on tentpoles and TV deliveries Improving by FY27
Library monetizationQ3: Record $954M trailing TTM . Q4: Record $956M TTM driven by licensing (The Rookie, The Chosen) .New record $989M TTM; third consecutive record quarter Strengthening
Motion Picture profitabilityQ3: $83.6M segment profit; comps tough vs prior year’s tentpoles . Q4: $135.3M segment profit; 10‑year high .$2.4M segment profit; difficult YoY comp Weaker short‑term
TV Production deliveries/marginsQ3: $404.6M revenue; $60.9M profit; rebound from strikes . Q4: $543.3M revenue; profit lower YoY on library sale comp .$288.5M revenue (+20% YoY) and $26.0M profit (+~150% YoY), higher margin new series, lower G&A Improving
Corporate/structureQ3/Q4: Separation preparations and shared services updates .Post‑separation framing and continued Starz commercial agreements Stable

Sources include external call pages where the transcript/webcast is hosted: MarketScreener/Yahoo Finance/Q4 IR webcast link .

Management Commentary

  • “In a transition year for the studio, we are taking a number of important steps toward returning to solid growth in fiscal 2027.”
  • “We have set the release of three major film tentpoles in the coming fiscal year [and] expect to significantly grow our scripted television series deliveries next year…”
  • “We are also continuing to create fresh revenue streams for our film and television library, contributing to another record trailing 12‑month revenue performance…” .

Q&A Highlights

  • Management reaffirmed FY26 as back‑end loaded and reiterated confidence in stronger Adjusted OIBDA by FY27, driven by three tentpoles and more scripted TV deliveries .
  • Investor relations directed listeners to non‑GAAP reconciliations and forward‑looking measure discussions on the IR site .
  • MarketScreener hosting indicates a full transcript was made available on 8/7/2025 .

Estimates Context

  • Revenue missed consensus by ~$38.8M (est. $564.7M vs actual $525.9M). EPS also missed (−$0.19 est. vs −$0.32 adjusted actual). Values retrieved from S&P Global*.
  • EBITDA outperformed modestly (est. −$11.0M vs actual +$4.0M), reflecting lower‑than‑expected losses at the EBITDA level*.
  • Estimate revisions likely to skew lower for near‑term quarters on Motion Picture profit compression and negative free cash flow, partially offset by the improving TV deliveries narrative*.

Values retrieved from S&P Global*.

Key Takeaways for Investors

  • Near‑term profitability headwinds: Motion Picture segment profit compression and negative Adjusted FCF (−$111.9M) constrain flexibility until slate normalizes .
  • TV Production is a relative outperformer: volume/mix, margin improvements, and lower segment G&A support earnings quality .
  • Library monetization remains a core asset: consecutive records in trailing 12‑month library revenue underpin recurring cash generation potential across platforms .
  • FY26 is a bridge year: stock narrative hinges on execution of three tentpoles and scaled scripted TV deliveries into FY27 .
  • Watch leverage and interest expense: $68.7M interest in Q1 signals sensitivity to financing costs; monitor covenant headroom and facility usage .
  • Trading lens: Expect estimates to drift lower post‑miss on revenue/EPS, but any slate/episodic delivery updates and continued library licensing could be positive catalysts for sentiment*.
  • Risk factors: industry volatility, strike aftershocks, and separation‑related complexities continue to influence results and outlook .

Footnote: Values retrieved from S&P Global*.