Executive Summary

Q2 FY26 came in below Street on both revenue and EPS: Revenue $475.1M vs $541.0M* consensus and adjusted diluted EPS -$0.20 vs -$0.17* consensus; management said the quarter was “in line with our financial expectations” with a setup for stronger H2 and into FY27 . Values retrieved from S&P Global.
Library monetization and pipeline visibility strengthened: trailing 12‑month library revenue hit a record $1.0B (+13% YoY) and backlog rose 31% sequentially to nearly $1.6B, supporting forward growth commentary .
Segment mix: Motion Picture revenue fell on fewer theatrical releases YoY, but segment profit improved sharply to $30.5M; TV Production revenue/profit reflected timing of episodic deliveries pushing into H2 .
Non‑GAAP adds were sizable (restructuring $25.7M, adjusted SBC $21.3M, unallocated rent $6.1M), helping bridge operating loss (-$46.0M) to Adjusted OIBDA ($14.1M) .
Promotional tie-ins (e.g., Now You See Me partnership, shozerTV licensing) reinforce franchise/library monetization ahead of a heavier slate, a potential medium‑term catalyst despite near‑term estimate misses .

What Went Well and What Went Wrong

What Went Well
- Record library monetization: trailing 12‑month library revenue reached $1.0B (+13% YoY), fourth straight record quarter .
- Visibility improved: backlog grew 31% sequentially to nearly $1.6B, pointing to stronger delivery/recognition in H2 and beyond .
- Motion Picture profitability: despite lower revenue, segment profit rose to $30.5M on favorable slate comps and lower P&A vs prior year .
- Management tone (CEO): “We reported a quarter in line with our financial expectations with all signs pointing to significant growth over the next two quarters and through fiscal 2027.”
What Went Wrong
- Top‑line pressure: consolidated revenue fell to $475.1M (vs $604.0M prior‑year and $525.9M prior quarter) on fewer theatrical releases and TV delivery timing .
- Estimates miss: revenue and adjusted EPS both missed S&P consensus (Rev $541.0M*, EPS -$0.17*) in Q2 . Values retrieved from S&P Global.
- GAAP profitability and cash: operating loss widened q/q to -$46.0M (from -$10.6M in Q1) and Adjusted FCF was -$128.8M (vs -$111.9M in Q1) as production spend outpaced collections .
- Restructuring/charges: $25.7M in restructuring and other (incl. $9.8M impairments, $13.1M severance), plus $21.3M adjusted SBC and $6.1M unallocated rent weighed on GAAP results .

Financial Results

Metric	Q2 FY2025 (Sep-24)	Q1 FY2026 (Jun-25)	Q2 FY2026 (Sep-25)
Revenue ($USD Millions)	$604.0	$525.9	$475.1
Operating Income (Loss) ($M)	$(100.7)	$(10.6)	$(46.0)
Net Loss from Continuing Ops ($M)	$(183.6)	$(91.7)	$(111.6)
Diluted EPS – Continuing Ops ($)	$(0.68)	$(0.35)	$(0.39)
Adjusted OIBDA ($M)	$(2.0)	$(3.7)	$14.1
Adjusted Diluted EPS – Continuing Ops ($)	$(0.58)	$(0.32)	$(0.20)
Net Cash from Ops – Continuing ($M)	$54.0	$(109.1)	$(104.1)
Adjusted Free Cash Flow ($M)	$(20.8)	$(111.9)	$(128.8)

Q2 FY26 vs S&P Global Consensus (estimates)

Revenue: Actual $475.1M vs $541.0M* consensus (miss ~$65.9M, ~12.2%). Values retrieved from S&P Global.
Adjusted Diluted EPS (S&P “Primary EPS”): Actual $(0.20) vs $(0.17)* consensus (miss ~$0.03). Values retrieved from S&P Global.

Segment performance (Revenues and Segment Profit)

Metric	Q2 FY2025	Q1 FY2026	Q2 FY2026
Motion Picture Revenue ($M)	$409.4	$267.3	$276.4
Motion Picture Segment Profit ($M)	$1.7	$2.4	$30.5
Television Production Revenue ($M)	$416.6	$288.5	$198.7
Television Production Segment Profit ($M)	$24.4	$26.0	$12.5

KPIs and operating indicators

KPI	Q4 FY2025	Q1 FY2026	Q2 FY2026
Trailing 12‑month Library Revenue ($USD Millions)	$956	$989	$1,000
Backlog ($USD Billions)	—	—	Nearly $1.6

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Growth outlook (qualitative)	Next two quarters and through FY2027	Not quantified	Management expects “significant growth” over next two quarters and through FY27	Qualitative positive

No quantified ranges for revenue/margins/OpEx/tax were provided in the Q2 materials. Commentary cited timing of deliveries and a primed film slate to drive H2/FY27 .

Earnings Call Themes & Trends

Transcript for Q2 FY26 was not available in the document set; themes below reflect management commentary from press releases and prior quarters.

Topic	Q4 FY2025 (older)	Q1 FY2026 (recent)	Q2 FY2026 (current)	Trend
Film slate and theatrical pipeline	Highlighted diversified model and strong MP profit (highest in 10 years) on mid‑budget successes; lower P&A	Set three major tentpoles for coming fiscal year	“Readied a film slate primed to deliver strong growth over the next 18 months”	Strengthening slate visibility
TV deliveries and buyers	Substantial episodic deliveries vs strike‑impacted prior year	Expect significant growth in scripted TV deliveries next year	Q2 deliveries timing pushed into H2	Near‑term timing headwind; recover in H2
Library monetization	Record TTM $956M; large licensing deals (Rookie, The Chosen)	Record TTM $989M (+12% YoY)	Record TTM $1.0B (+13% YoY), 4th straight record	Consistent strength, upward trend
Backlog/visibility	—	—	Backlog +31% seq. to nearly $1.6B	Improving forward visibility
Cost/Restructuring	High restructuring in FY25 (integration, severance)	Lower restructuring vs PY	Restructuring $25.7M; SBC and unallocated rent impacts	Ongoing normalization effort, still impactful

Management Commentary

CEO Jon Feltheimer (Q2): “We reported a quarter in line with our financial expectations with all signs pointing to significant growth over the next two quarters and through fiscal 2027… we readied a film slate primed to deliver strong growth over the next 18 months, refilled our television pipeline with key series renewals and breakout new shows, and reported $1 billion in trailing 12‑month library revenue.”
Segment notes (Q2): Motion Picture revenue down on fewer theatrical releases (two wide vs five last year) but segment profit up; TV Production revenue/profit reflect timing of episodic deliveries into H2 .
Non‑GAAP bridge (Q2): Adjusted OIBDA of $14.1M vs operating loss of -$46.0M reflects restructuring ($25.7M), adjusted SBC ($21.3M), unallocated rent ($6.1M), purchase accounting and other adjustments .

Q&A Highlights

Earnings call transcript for Q2 FY26 was not available in the document set; no Q&A details to report.

Estimates Context

Against S&P Global consensus, Lionsgate missed on both revenue and adjusted/“Primary EPS”: Revenue $475.1M vs $541.0M*; Adjusted/Primary EPS -$0.20 vs -$0.17*; Street likely revisits near‑term H2 cadence and slate conversion timing. Values retrieved from S&P Global.

Guidance Changes (Additional Detail)

No formal numeric guidance was provided. Management’s directional outlook calls for significant growth over the next two quarters and through FY27, supported by a primed film slate, replenished TV pipeline, and a larger backlog .

Other Relevant Press Releases (Q2 period)

Now You See Me: Now You Don’t promotional partnership with The Coffee Bean & Tea Leaf (limited‑time beverages and sweepstakes ahead of Nov 14 release), supporting franchise marketing .
New Metric Media launches “shozerTV” YouTube comedy channel; Lionsgate licensing >20 comedy titles initially, underscoring library monetization on digital platforms .

Key Takeaways for Investors

Near term: Consensus misses on revenue and adjusted EPS create headline risk; watch H2 delivery cadence, slate performance, and any updated commentary on backlog conversion to revenues . Values retrieved from S&P Global.
Medium term: Record library revenue and a 31% sequential backlog increase underpin management’s call for stronger H2/FY27 growth, with library strength a durable cash/earnings ballast .
Segment setup: Motion Picture profitability improved on mix/comps; greater H2 slate density should support revenue/Adjusted OIBDA, while TV Production should rebound as delayed episodic deliveries land .
Costs/adjustments: Continued restructuring/SBC/unallocated rent remain GAAP headwinds; investors should focus on Adjusted OIBDA and adjusted EPS trajectory as charges normalize .
Liquidity/FCF: Adjusted FCF remained negative in Q2 amid heavy production spend and timing; monitor working capital (production loans/tax credits) and conversion to positive FCF as deliveries ramp .
Marketing/library: Cross‑platform promotions (e.g., shozerTV, Coffee Bean partnership) and franchise activity reinforce the library monetization opportunity into FY27 .

Footnote: *S&P Global consensus values retrieved via SPGI; Primary EPS refers to S&P’s “Primary EPS Consensus Mean,” which aligns with adjusted EPS in this quarter. Values retrieved from S&P Global.

Lionsgate Studios Corp. (LION)·Q2 2026 Earnings Summary