Lionsgate Studios Q1 Earnings Call Highlights

Lionsgate Studios’ fiscal first-quarter revenue rose 48% year over year to $777 million, driven by motion-picture results. Free cash flow reached $129 million, while motion-picture segment profit hit a record $105 million, led by Michael and The Housemaid . Management anticipates significant adjusted OIBDA and free-cash-flow growth in fiscal 2027, supported by upcoming releases such as The Hunger Games: Sunrise on the Reaping , doubled scripted-episode deliveries and a new international Netflix licensing agreement for the Power franchise. Net debt declined by $121 million to approximately $1.5 billion, reducing leverage to 4.3 times. Lionsgate said it has not held substantive M&A discussions despite market speculation, but emphasized the strategic value of its franchise portfolio and intellectual property. Lionsgate Studios NYSE: LION reported fiscal first-quarter revenue growth of 48% year over year to $777 million, driven by strong motion-picture performance and contributions from recent releases, while management said it expects significant adjusted OIBDA and free-cash-flow growth for fiscal 2027. The company posted adjusted OIBDA of $79 million and operating income of $26 million for the quarter. Reported diluted loss per share was $0.10, while diluted adjusted earnings per share was $0.06. Free cash flow totaled $129 million, which Chief Financial Officer Jimmy Barge said reflected operating performance including the April release of Michael . “Our pure-play content strategy is working,” Chief Executive Officer Jon Feltheimer said, citing a strengthening balance sheet, expanding franchise portfolio and continuing library monetization. He said Lionsgate ended the first half of the calendar year with domestic box-office market share above 10% after launching Michael and The Housemaid . Motion-picture revenue more than doubled from the prior-year period to $587 million, while segment profit reached $105 million, the highest first-quarter motion-picture segment profit in Lionsgate’s history. Barge said results were driven primarily by Michael and continued ancillary revenue from The Housemaid . The company said it expects further downstream revenue from both films during the remainder of fiscal 2027. Barge noted that Michael made a major contribution in the first quarter and has additional revenue expected over the following three quarters. Lionsgate also expects the third-quarter release of The Hunger Games: Sunrise on the Reaping to support results later in the year. Feltheimer said Lionsgate has more than a dozen branded and repeatable properties planned over the next three years, with four films already wrapped and preparing for release. He said early indicators suggest The Hunger Games: Sunrise on the Reaping could become one of the biggest films in the franchise. The studio also said production has wrapped on John Rambo , directed by Jalmari Helander and starring Noah Centineo, with a release planned for next June. Production has also concluded on Caine , directed by and starring Donnie Yen and centered on a character from the John Wick universe. The company is also preparing projects including The Housemaid Secrets , a new Blair Witch installment with Blumhouse and Atomic Monster, and an adaptation of Naruto .