Lionsgate Reduces Quarterly Loss Following Starz Spinoff
Lionsgate, following its spinoff from Starz, has reported a reduced net loss for the second quarter of fiscal 2026. The film and television studio, led by CEO Jon Feltheimer, disclosed a loss of $113.5 million for the quarter, down from $163.3 million a year earlier.
Lionsgate Financial Overview
Despite the reduction in losses, overall revenue for the studio fell sharply. Total studio revenues decreased to $475.1 million from $604 million in the previous year.
- Net Loss: $113.5 million (Q2 fiscal 2026)
- Previous Year Loss: $163.3 million
- Overall Revenue: $475.1 million
- Previous Year Revenue: $604 million
- Earnings Per Share Loss: 39 cents
- Adjusted OIBDA: $14.1 million
Business Segment Performance
The studio’s performance across segments varied significantly. The Motion Picture segment brought in $276.4 million, a substantial decline from $409.4 million in the same period last year. This drop was attributed to a lower number of wide releases, with only two major films in the recent quarter compared to five the previous year.
Similarly, revenue from television production decreased to $198.7 million from $416 million, largely due to the timing of episodic deliveries, with several shows pushed to the latter half of the fiscal year.
- Motion Picture Revenue: $276.4 million
- Previous Year Motion Picture Revenue: $409.4 million
- TV Production Revenue: $198.7 million
- Previous Year TV Production Revenue: $416 million
Despite the challenges, the Motion Picture division reported a segment profit of $30.5 million, a significant rebound from the prior year’s $1.7 million loss. On the other hand, the TV production segment saw a profit decrease, from $24.4 million to $12.5 million.
Future Outlook and Projects
Looking ahead, Feltheimer expressed optimism for substantial growth in scripted content deliveries in fiscal 2027. He highlighted ongoing productions, including the highly anticipated biopic of Michael Jackson, directed by Antoine Fuqua. This project recently completed summer reshoots and is scheduled for release on April 24, 2026.
Additionally, the studio continues work on the next installment of The Hunger Games franchise and two Resurrection films. The initial footage from the Michael biopic was unveiled alongside the announcement of its release date.
Television Successes
On the television front, Lionsgate has celebrated recent successes with series that have performed well across various platforms. The studio reported wins with three shows, including:
- The Studio – a comedy that earned 13 Emmy awards.
- The Hunting Wives – a popular show on Netflix.
- The Rainmaker – recently greenlit for a second season.
Each of these series showcases diverse genres and financial models, contributing to Lionsgate’s overall growth strategy in a competitive market.
Conclusion
The continued evolution of the media landscape presents new challenges. Feltheimer noted that while finding and engaging audiences is increasingly difficult, Lionsgate’s extensive portfolio positions it well for future opportunities. The company reported a record $1 billion in library revenue over the past 12 months, demonstrating the value of its content across platforms.
