Content Pipeline ChallengesRebuilding its content pipeline can have a near-term drag on cash flow and the leverage profile.
Revenue ShortfallLionsgate reported revenue of $475MM (-21% y/y), slightly missing our $497MM estimate and consensus $515MM.
TV Business RecoveryThe TV business has yet to reach full recovery post-strikes; with many streaming services continuing to look for ways to contain costs, demand for content remains under a bit of pressure.