Lionsgate Revenue Rises to $668.8 Million as It Returns to Operating Profit
Key Facts
Lionsgate Studios reported results for the second quarter of fiscal 2027, ended September 30, 2026, with revenue of $668.8 million, compared with $475.1 million in the year-earlier period. The company swung to operating income of $29.1 million from an operating loss of $46.0 million a year earlier. Adjusted EBITDA was $72.0 million, up from $14.1 million in the comparable quarter. The company said growth in television production, the strength of its content library and contributions from the film Michael supported results. The figures point to improved operating performance alongside continued cash use in operations.
Television production was among the quarter’s main drivers, with revenue rising 56% year over year to $309.5 million. Segment profit increased 73% to $21.6 million, according to company data. Lionsgate attributed the performance to a significant increase in scripted episode deliveries, including Power: Origins and the second seasons of The Studio and The Hunting Wives. The increase gives television a greater role in the improvement in quarterly results, with performance tied to specific deliveries during the period. The company expects to double scripted television deliveries in fiscal 2027 compared with fiscal 2026.
In the film segment, revenue rose 30% to $359.3 million, while segment profit was $88.7 million. The company said results benefited from continued contributions from the film Michael and the strength of its content library. Library revenue for the 12 months ended in the quarter was $1.04 billion, the second-highest level in the studio’s history. Unrecognized future commitments also reached $1.5 billion. These figures indicate the scale of accumulated library revenue and contracted work for which revenue has not yet been recognized.
On cash, net cash used in continuing operating activities was $52.7 million, compared with $104.1 million in the same quarter of the previous fiscal year. Adjusted free cash flow used narrowed to $8.2 million from $128.8 million. Free cash flow remained negative, despite the lower amount used compared with the year-earlier period. This comes as the company reported improvement in operating profitability metrics, highlighting a divergence between earnings performance and cash flows during the quarter. On leverage, the ratio improved by 0.6 times from the June quarter to 3.7 times, which the company said was driven by continued growth in adjusted EBITDA over the 12 months.
For the first half of the fiscal year, revenue rose to $1,445.4 million for the six months ended September 30, 2026, compared with $1,001.0 million in the comparable period ended September 30, 2025. Lionsgate Studios is returning to an independent studio structure following its separation from Starz in May 2025, which also ended the dual-class share structure, according to the annual report filed with the U.S. Securities and Exchange Commission. Commenting on the outlook, Feltheimer said the company continues to prepare major films for the next three years and that its view of the growth trajectory in fiscal 2028 and 2029 has become clearer. He added that the company sees positive momentum. In the session before the results were published, LION shares closed at $12.56 on November 5, 2026.