Lionsgate Studios (LION) AI Stock Analysis

• Market Cap: $2.68B
• Dividend Yield: N/A
• Average Volume (3M): 2.61M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.76
• Revenue Growth: 97.19%
• EPS Growth: -21.46%
• Country: US
• Employees: 1,717
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Entertainment
• EPS (TTM): 0.01
• Shares Outstanding: 290,187,260
• 10 Day Avg. Volume: 2,745,975
• 30 Day Avg. Volume: 2,608,415
• PEG Ratio: -0.11
• Price to Book (P/B): -2.07
• Price to Sales (P/S): 0.95
• P/FCF Ratio: -33.56
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 0.99
• Enterprise Value/Gross Profit: 2.87
• Enterprise Value/Ebitda: 2.12
• 1Y Price Target: $11.08
• Price Target Upside: 16.26% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): -0.18
• Revenue Forecast (FY): $2.56B

• Rating: 51 Neutral
• Price Target: $9.50 ▼(-0.31% Downside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is held back primarily by weak financial quality—negative equity, ongoing losses, and a return to negative operating/free cash flow—despite strong revenue growth. Technicals are moderately supportive with price above key moving averages and positive MACD. Earnings-call guidance and visibility (record library revenue, higher backlog, expected OIBDA improvement) help offset concerns, but leverage and cash burn remain key risks, while valuation is unattractive due to losses and no dividend support.

Positive Factors

Record library monetization

A record $1.05B trailing-12 library revenue signals durable, recurring licensing income from a deep content catalog. Strong library monetization reduces reliance on hit-driven theatrical timing, supports multi-window licensing, and underpins steady cash generation over ensuing quarters.

Growing, visible backlog

A $1.5B backlog with ~80% convertibility within 15 months provides concrete near-term revenue visibility. This contracted demand reduces revenue volatility, supports forecastable studio cash flows and eases execution planning for production and marketing investments over the next 2–6 months.

Franchise and renewal depth

High renewal rates and an extensive franchise slate create multi-year IP monetization opportunities across film, TV, games and live. Recurring series renewals and numerous franchises lower content risk, improve licensing leverage, and support sequels/spin-offs that drive sustained revenue.

Negative Factors

Persistently negative equity

Material negative equity undermines financial flexibility and increases sensitivity to losses or shocks. It complicates creditor perceptions, can limit access to low-cost capital, and raises the risk that adverse operating trends force dilutive financings or asset sales over the medium term.

Recent cash burn

A swing to negative operating and free cash flow indicates the company is consuming cash, driven by timing of theatrical spend and episodic deliveries. Continued cash burn limits the ability to deleverage, fund growth, or absorb misses without external financing or asset monetization.

Elevated leverage

High net debt and ~7.4x leverage materially increase refinancing and interest-rate risk, constraining strategic flexibility. Even with management's deleveraging targets, such leverage magnifies downside from box-office or licensing shortfalls and prolongs the path to sustainable cash generation.

Lionsgate Studios Business Overview & Revenue Model

Company Description

Lionsgate Studios is one of the world’s leading standalone, pure play, publicly-traded content companies. It brings together diversified motion picture and television production and distribution businesses, a world-class portfolio of valuable brands and franchises, a talent management and production powerhouse and a more than 20,000-title film and television library, all driven by Lionsgate’s bold and entrepreneurial culture.

How the Company Makes Money

Lionsgate Studios primarily makes money by creating and monetizing film and television content through multiple windows and counterparties. Key revenue streams include: (1) Content production and distribution: revenues from theatrical releases and subsequent distribution in home entertainment and other channels, as well as international sales and distribution arrangements. (2) Television studio activities: fees and revenues from producing scripted series for broadcasters, cable networks, and streaming services, which can include production service fees and back-end participation depending on deal structure. (3) Licensing of its content library: recurring revenue from licensing film and TV titles to streaming platforms, pay-TV networks, free/ad-supported TV services, and other distributors, often across different territories and time windows. (4) Monetization of intellectual property: revenues associated with franchised properties through sequels/spin-offs and related licensing opportunities where applicable. (5) Ancillary and other: additional income from agreements related to distribution, content sales, and other studio-related services. Significant drivers of earnings include the performance of new releases, the volume and profitability of television commissions, demand from streaming and linear buyers for library content, and the pricing/terms of licensing and distribution deals with domestic and international partners.

Lionsgate Studios Financial Statement Overview

Summary

Top-line momentum is strong (TTM revenue +37.7%) and gross margin is decent (~33%), but profitability remains weak (TTM net margin ~-7%, thin EBIT margin) and recent cash flow has deteriorated (TTM operating cash flow -$65.6M; TTM free cash flow -$78.9M). The balance sheet is a major risk due to persistently negative equity (TTM roughly -$1.28B), limiting financial flexibility.

Income Statement

Revenue growth is strong in TTM (Trailing-Twelve-Months) (+37.7%) after a modest FY2025 increase (+7.0%), indicating improving top-line momentum. Gross margin is decent (~33% TTM), but profitability remains pressured: net losses persist (TTM net margin about -7.0%) and EBIT margin is thin (~1.9% TTM), suggesting costs and/or amortization/other charges are limiting earnings conversion despite healthy EBITDA margins.

Balance Sheet

The balance sheet is the key weakness: stockholders’ equity is negative across all periods (TTM roughly -$1.28B), which undermines financial flexibility and makes leverage harder to assess on a traditional basis. While reported total debt is low in TTM ($159M) versus prior fiscal years (~$3.2–$3.7B), the negative equity position remains a material risk and increases sensitivity to operating setbacks or refinancing needs.

Cash Flow

Cash generation has become inconsistent. After strong positive operating cash flow and free cash flow in FY2023–FY2024 (both positive and sizable), TTM (Trailing-Twelve-Months) and FY2025 swing back to negative operating cash flow (-$65.6M TTM; -$106.8M FY2025) and negative free cash flow (-$78.9M TTM; -$120.3M FY2025). A positive note is that free cash flow is less negative versus FY2025 (TTM free cash flow growth is strongly positive), but the current cash burn profile is still a concern.

Breakdown	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	2.79B	3.20B	2.99B	3.08B	2.72B
Gross Profit	662.30M	985.50M	1.10B	875.90M	794.20M
EBITDA	921.50M	1.77B	334.80M	1.84B	1.68B
Net Income	-246.70M	-128.50M	-93.50M	-300.00K	11.10M
Balance Sheet
Total Assets	5.24B	5.12B	5.10B	4.41B	4.33B
Cash, Cash Equivalents and Short-Term Investments	182.40M	205.70M	277.00M	210.90M	256.90M
Total Debt	159.00M	3.66B	3.72B	3.18B	2.76B
Total Liabilities	6.38B	6.04B	6.13B	4.85B	4.26B
Stockholders Equity	-1.28B	-1.05B	-1.15B	-780.40M	-261.30M
Cash Flow
Free Cash Flow	-78.90M	-120.30M	479.00M	339.60M	-441.10M
Operating Cash Flow	-65.60M	-106.80M	488.90M	346.10M	-435.00M
Investing Cash Flow	-11.40M	-35.40M	-331.80M	31.30M	-180.70M
Financing Cash Flow	-13.50M	84.50M	-74.90M	-394.50M	525.50M

Lionsgate Studios Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LION, the sentiment is Positive. The current price of 9.53 is above the 20-day moving average (MA) of 9.39, above the 50-day MA of 9.21, and above the 200-day MA of 7.37, indicating a bullish trend. The MACD of 0.22 indicates Positive momentum. The RSI at 51.92 is Neutral, neither overbought nor oversold. The STOCH value of 16.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LION.

Lionsgate Studios Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NFLX	76 Outperform	$387.68B	36.11	43.25%	―	15.49%	35.54%
DIS	68 Neutral	$176.28B	21.11	11.35%	1.10%	3.61%	152.34%
FOXA	68 Neutral	$23.33B	34.54	16.22%	0.75%	14.91%	9.30%
WBD	62 Neutral	$68.00B	98.11	2.05%	―	-4.29%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PSKY	57 Neutral	$10.17B	-1.44	-4.36%	1.48%	-0.48%	97.09%
LION	51 Neutral	$2.68B	-14.33	20.86%	―	97.19%	-21.46%

Lionsgate Studios Corporate Events

Lionsgate Studios Shareholders Strongly Back Board and Governance

On March 17, 2026, Lionsgate Studios Corp. held its Annual General and Special Meeting of Shareholders, where 90.92% of common shares entitled to vote were represented in person or by proxy, reflecting strong shareholder engagement. At the meeting, investors approved all board nominees, reappointed Ernst & Young LLP as independent registered public accounting firm for the fiscal year ending March 31, 2026, and backed the advisory vote on executive compensation, signaling broad support for current governance, oversight, and pay practices.

The director slate, including figures such as Gordon Crawford, Jon Feltheimer, Steven Mnuchin, and others, received approval rates largely above 80%, with Mnuchin drawing 99.78% of votes cast in favor, underscoring confidence in the board’s composition. The 99.63% support for Ernst & Young LLP and an 80.19% favorable vote on executive compensation suggest continuity in financial oversight and leadership strategy, which may provide operational stability and reassure investors about the company’s governance framework.

The most recent analyst rating on (LION) stock is a Hold with a $10.50 price target. To see the full list of analyst forecasts on Lionsgate Studios stock, see the LION Stock Forecast page.

Lionsgate Studios Adds Mnuchin, Strikes Governance Pact

On January 26, 2026, Lionsgate Studios entered into a governance, standstill and voting agreement with Liberty 77-affiliated funds and MHR Fund Management that installs Liberty Strategic Capital’s managing partner and former U.S. Treasury Secretary Steven T. Mnuchin as a Liberty-designated independent director on its board, bringing the total number of directors to eleven. Under the deal, Liberty 77 and MHR have agreed to mutual voting support for each other’s board nominees and to refrain from activist measures such as increasing their stakes above 17.5%, launching proxy contests or other actions that could challenge Lionsgate’s governance structure for a defined multi-year period, while receiving pre-emptive, registration and “most favored nation” rights aligned with existing major shareholders; the company does not anticipate Mnuchin’s appointment will materially alter its operations but expects his financial, regulatory and entertainment experience, as well as the alignment with significant shareholders, to reinforce board oversight and governance stability for investors.

The most recent analyst rating on (LION) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Lionsgate Studios stock, see the LION Stock Forecast page.

Lionsgate Studios Sets Timetable for 2026 Shareholder Meeting

Lionsgate Studios Corp. has scheduled its initial annual general and special meeting of shareholders for March 17, 2026, to be held at its Canadian head office, with further details to be provided in a forthcoming proxy statement. The company has established January 20, 2026, as the deadline for shareholder proposals to be included in the proxy materials under Rule 14a-8, and February 13, 2026, as the cutoff for eligible shareholders to submit director nominations, reinforcing formal governance processes and providing a clear timetable for investor participation in corporate decision-making.

The most recent analyst rating on (LION) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on Lionsgate Studios stock, see the LION Stock Forecast page.