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Lionsgate Studios Corp. (LION)·Q4 2025 Earnings Summary

Executive Summary

  • Lionsgate Studios delivered Q4 FY2025 revenue of $1.07B (+22% YoY), operating income of $94.2M, GAAP diluted EPS of $0.10, and adjusted diluted EPS of $0.21; Adjusted OIBDA rose 49% YoY to $138.3M, with record quarterly library monetization and the Motion Picture segment posting its highest profit in a decade .
  • Versus S&P Global consensus, revenue beat ($1.07B vs $1.01B*), while EPS missed ($0.21 adjusted vs $0.36*); EBITDA (per S&P) was above consensus (actual $204.4M* vs $163.2M*) .
  • Segment results: Motion Picture revenue $526.4M and segment profit $135.3M (+65% YoY), driven by mid-budget film box office, non-theatrical deliveries, robust library demand, and lower P&A; Television Production revenue $543.3M with segment profit $40.6M, reflecting a tough comp to a prior-year library sale .
  • Strategic backdrop: separation from STARZ completed May 6, 2025; new $800M senior secured revolver, 6.000% notes due 2030, and pay-window strategy enhanced by extensions with Starz and a new Amazon Prime Video deal (discussed on prior call), supporting multi-year monetization .

S&P Global disclaimer: Consensus values marked with * are retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well

  • Motion Picture segment profit reached $135.3M, the highest quarterly level in 10 years, supported by box office success (Den of Thieves 2: Pantera, Flight Risk), increased non-theatrical deliveries, and lower P&A .
  • Adjusted OIBDA rose 49% YoY to $138.3M, and trailing 12-month library revenue hit a record $956M (+8% YoY), underscoring strong IP monetization in Q4 .
  • CEO tone was confident: “The same strengths that drove the quarter… will continue to be the catalysts of our success as a standalone studio with the ability to create significant incremental value for our shareholders.” .

What Went Wrong

  • EPS miss versus consensus: adjusted diluted EPS of $0.21 vs S&P primary EPS consensus of $0.36*, reflecting restructuring/severance costs and elevated interest expense .
  • Television Production segment profit fell to $40.6M due to a difficult prior-year comparison that included a library sale; segment mix and comps remain an execution focal point .
  • Restructuring and other expenses remained elevated at $26.8M in Q4 (severance, transaction costs), partially diluting profitability, while interest expense was $62.4M in the quarter .

Financial Results

Quarterly results vs prior periods

MetricQ3 2025Q4 2025Q1 2026Q2 2026
Total Revenues ($USD Millions)$713.8 $1,069.7 $525.9 $475.1
Operating Income (Loss) ($USD Millions)$49.6 $94.2 $(10.6) $(46.0)
Net Income (Loss) Attrib. to Shareholders ($USD Millions)$6.4 $21.9 $(94.0) (cont. ops) $(111.9) (cont. ops)
Diluted EPS (GAAP) ($USD)$0.02 $0.10 $(0.35) $(0.39)
Adjusted OIBDA ($USD Millions)$112.0 $138.3 $(3.7) $14.1
Adjusted Diluted EPS ($USD)$0.22 $0.21 $(0.32) $(0.20)

Q4 FY2025 results vs S&P Global consensus

MetricQ4 2025 ActualQ4 2025 ConsensusDifference
Revenue ($USD Millions)$1,069.7 $1,012.5*+$57.2
Adjusted Diluted EPS ($USD)$0.21 $0.36* (Primary EPS)−$0.15
EBITDA ($USD Millions)N/A (company reports Adjusted OIBDA)$163.2*N/A
S&P Global disclaimer: Consensus values marked with * are retrieved from S&P Global.

Segment breakdown

Segment MetricQ3 2025Q4 2025Q1 2026Q2 2026
Motion Picture Revenues ($USD Millions)$309.2 $526.4 $267.3 $276.4
Motion Picture Segment Profit ($USD Millions)$83.6 $135.3 $2.4 $30.5
Television Production Revenues ($USD Millions)$404.6 $543.3 $288.5 $198.7
Television Production Segment Profit ($USD Millions)$60.9 $40.6 $26.0 $12.5

KPIs and cash flow

KPIQ3 2025Q4 2025Q1 2026Q2 2026
Trailing 12‑Month Library Revenue ($USD Millions)$954 $956 $989 $1,000
Net Cash from Operating Activities ($USD Millions)$(163.0) (Studios) $255.9 $(109.1) (cont. ops) $(104.1) (cont. ops)
Adjusted Free Cash Flow ($USD Millions)$(46.0) (Studios) $395.3 $(111.9) $(128.8)
Backlog ($USD Billions)N/AN/AN/A~$1.6

Guidance Changes

MetricPeriodPrevious GuidanceCurrent/ActualChange
Adjusted OIBDA (Studios)FY2025$300–$320M (guide reiterated in Q3) $302.3M actual (FY2025) Maintained/Achieved
Separation timingFY2025 Q4Mid–late April shareholder meeting & immediate separation Separation completed May 6, 2025 Slight delay; Completed
Pay-window strategyMulti-yearExtended Starz Pay‑1; new Amazon Prime Video pay window starting CY25 (multi-year) Continuing execution (Q4 results reflect strong library monetization) Maintained
BacklogFY2026 Q2Not disclosed priorBacklog nearly $1.6B Raised/Expanded pipeline

Earnings Call Themes & Trends

TopicPrevious Mentions (Q‑2 and Q‑1)Current Period (Q4 FY2025)Trend
Mid-budget film performanceQ3: “last three mid-budget films to significant profitability… steady execution” Q4: Den of Thieves 2 and Flight Risk cited as drivers; highest motion picture segment profit in 10 years Improving
Pay‑TV/streaming windowsQ3: extended Starz Pay‑1 and new Amazon Prime Video window (win‑win‑win) Q4: continued strong library monetization; platform deals underpin record TTM library revenue Stable/Accretive
Library monetizationQ3: record $954M TTM (+22% YoY) Q4: record $956M TTM (+8% YoY) Improving
Separation & financingQ3: bank commitments for $800M asset‑backed revolver; timing update Q4: separation completed; new revolver; 6.000% notes due 2030 Achieved
TV deliveries post‑strikeQ3: strong episodic deliveries (The Studio, The Rookie, Ghosts) Q4: episodic deliveries increased; TV revenue up, but profit down on tough comp Improving deliveries; mixed profitability

Note: A Q4 FY2025 earnings call transcript is available online; see Marketscreener and Yahoo links .

Management Commentary

  • CEO perspective: “We are pleased to report a strong quarter despite a difficult operating environment… catalysts of our success as a standalone studio…” .
  • Q3 (pre‑Q4) CFO preview on Q4 cadence: expected back‑end weighted year with strength across film and TV; highlighted carryover from mid‑sized films and episodic deliveries (e.g., The Rookie, Ghosts) .
  • Strategic “win‑win‑win” on Amazon Pay‑window deal (Starz, Studios, Amazon), positioning films closer to theatrical and improving long‑term contribution .

Q&A Highlights

  • Q4 setup (from Q3 Q&A): Wells Fargo asked about the expected step‑up in Q4 segment profit—CFO pointed to film carryover, stronger TV deliveries, and OTT momentum at Starz (pre‑separation), framing the strong quarter that followed .
  • Morgan Stanley on separation timing—CFO detailed remaining SEC comments and the timeline (ultimately completed May 6, 2025), indicating readiness of financing and operational separation .
  • Rosenblatt on Amazon relationship—management emphasized earlier windows for Starz and incremental partner monetization, improving economics across the window stack .
  • Raymond James on digital platform capabilities—Starz’s bundling/data stack described as a capability for broader partnerships, implying portfolio‑level stability post-separation .

Note: Q4 FY2025 call transcript links for reference .

Estimates Context

  • Revenue beat S&P Global consensus ($1.07B actual vs $1.01B*), driven by motion picture profitability, non-theatrical deliveries, and record library sales .
  • EPS missed S&P Global consensus (adjusted diluted $0.21 actual vs $0.36*), weighed by restructuring/severance and elevated interest expense; company reported GAAP diluted EPS of $0.10 .
  • Post‑quarter, recurring library monetization and segment mix suggest estimates may adjust toward stronger film/library contribution and more measured TV profitability given prior-year comps .

S&P Global disclaimer: Consensus values marked with * are retrieved from S&P Global.

Key Takeaways for Investors

  • Q4 FY2025 was a quality print: revenue and Adjusted OIBDA strength, 10‑year high Motion Picture segment profit, and record library monetization—key catalysts for sentiment and multiple support .
  • The EPS miss vs consensus was largely tied to restructuring and interest costs; the achieved FY2025 Adjusted OIBDA ($302.3M) aligned with guidance, indicating operational execution despite transitional headwinds .
  • Mid‑budget film strategy is working: box‑office success plus disciplined P&A and diversified non‑theatrical revenues underpin film profitability resilience into FY2026 .
  • Library monetization is a durable engine: successive record TTM library revenue (now ~$1.0B in Q2 FY2026) evidences IP breadth and improved windowing/partner strategy .
  • Separation completed and capital structure reset (new revolver; 6.000% notes) reduces complexity and supports Studio‑only focus; expect more transparent KPIs (backlog ~$1.6B) and multi‑year slate monetization .
  • Near‑term trading: revenue beat + strong film/library narrative are positives; watch for continued restructuring spend and interest pressure vs consensus EPS; medium‑term, slate execution and backlog conversion are the key drivers .
  • Ongoing pay‑window optimization (Starz/Prime Video) and ancillary initiatives (experiences, stage plays, AAA game) diversify cash flows, potentially lifting margin quality and reducing volatility through cycles .

View Q4 press release (PublicNow):

Sources: Q4 FY2025 8‑K and press release ; Q3 FY2025 8‑K and call ; Q1 FY2026 and Q2 FY2026 press releases .