Lionsgate Studios Corp. (LION)
NYSE:LION
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Lionsgate Studios
(NYSE:LION)
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Rating:57Neutral
Price Target:
$17.00
▲(36.55% Upside)
Action:Reiterated
Date:06/17/26
The score is held down primarily by weak financial performance (net losses, negative TTM cash flow, and notably negative equity), partially offset by strong technical uptrend signals and a positive earnings-call outlook centered on improving OIBDA, strong recent free cash flow, and expectations for FY27 cash-flow improvement despite still-elevated leverage.
Positive Factors
Improved operating profitability (Adjusted OIBDA)
A 12-year high adjusted OIBDA demonstrates durable operating leverage in the studio model: higher OIBDA underpins margin sustainability across cycles, improves cash conversion potential, and gives management a clearer path to deleveraging and reinvestment in content without requiring permanent revenue expansion.
Negative Factors
Deeply negative shareholders' equity
Negative equity is a structural capital-structure weakness that limits financial flexibility: it complicates leverage metrics, can restrict access to unsecured capital, increase refinancing costs, and magnify downside in adverse scenarios, making sustained investment in content and M&A more conditional on cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved operating profitability (Adjusted OIBDA)
A 12-year high adjusted OIBDA demonstrates durable operating leverage in the studio model: higher OIBDA underpins margin sustainability across cycles, improves cash conversion potential, and gives management a clearer path to deleveraging and reinvestment in content without requiring permanent revenue expansion.
Read all positive factors
Lionsgate Studios (LION) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.50B
Dividend YieldN/A
Average Volume (3M)4.22M
Price to Earnings (P/E)―
Beta (1Y)1.05
Revenue Growth-17.64%
EPS Growth-54.79%
CountryUS
Employees1,717
SectorConsumer Cyclical
Sector Strength84
IndustryEntertainment
Share Statistics
EPS (TTM)-0.71
Shares Outstanding290,633,600
10 Day Avg. Volume4,610,906
30 Day Avg. Volume4,220,808
Financial Highlights & Ratios
PEG Ratio-0.22
Price to Book (P/B)-2.07
Price to Sales (P/S)1.01
P/FCF Ratio232.25
Enterprise Value/Market Cap1.78
Enterprise Value/Revenue3.04
Enterprise Value/Gross Profit7.68
Enterprise Value/Ebitda7.28
Forecast
1Y Price Target
$15.18Price Target Upside21.91% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)0.3
Revenue Forecast (FY)$3.35B
Lionsgate Studios Business Overview & Revenue Model
Company Description
Lionsgate Studios operates as a preeminent, independent, publicly traded entity within the global content sector. It integrates a broad spectrum of film and television creation and distribution operations, an elite collection of valuable brands an...
How the Company Makes Money
Lionsgate Studios primarily makes money by producing and monetizing film and television content through a mix of distribution, licensing, and library exploitation. Key revenue streams include: (1) Content licensing to third parties, where films an...
Lionsgate Studios Earnings Call Summary
Earnings Call Date:May 22, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call conveyed strong operating performance and clear momentum: record-level adjusted OIBDA, significant motion picture profit growth, durable library revenue exceeding $1 billion, strong free cash flow, and a deep content pipeline with multiple branded franchises and sequel opportunities. Management highlighted improved liquidity, a sizable backlog, AI adoption, and confident FY27 growth expectations. Headwinds include a quarter-over-quarter revenue decline driven by timing and mix, TV delivery timing pressures, elevated leverage (6.1x) despite improvement, and some uncertainty due to release timing and potential strategic actions (e.g., 3 Arts put). On balance, the positives — strong profitability, cash generation, pipeline visibility and marquee theatrical successes — outweigh the near-term challenges, pointing to a constructive outlook.Positive Updates
Adjusted OIBDA Reaches 12-Year High
Adjusted OIBDA for the quarter was $165 million, a 12-year high and up 17% year-over-year, demonstrating improved operating profitability.
Negative Updates
Quarterly Revenue Decline
Total Lionsgate Studios revenue was down year-over-year to $907 million for the quarter, reflecting timing and mix headwinds despite strong profit metrics.
Read all updates
Q4-2026 Updates
Positive
Negative
Adjusted OIBDA Reaches 12-Year High
Adjusted OIBDA for the quarter was $165 million, a 12-year high and up 17% year-over-year, demonstrating improved operating profitability.
Read all positive updates
Company Guidance
Management guided to “significant” adjusted OIBDA growth in fiscal 2027 and “substantial” free cash flow improvement (building on Q4 adjusted OIBDA of $165M, up 17% YoY, and Q4 free cash flow of $190M), with continued deleveraging from year‑end net debt of ~ $1.6B (improved ~ $150M QoQ) and leverage of 6.1x toward roughly 4.0–4.5x; they expect to double scripted episodic deliveries in FY27 versus FY26, to realize much of a $1.3B backlog (≈90% within 24 months), and to benefit from durable library performance (trailing‑12‑month library revenue >$1B, +5% YoY), while maintaining ~ $800M revolver capacity and $341M unrestricted cash and strong theatrical carryover (including Michael, on track for >$1B WW, and The Housemaid).Lionsgate Studios Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
22
Negative
Cash Flow
30
Negative
| Breakdown | TTM | Mar 2025 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.63B | 2.63B | 3.20B | 2.99B | 3.08B | 2.72B |
| Gross Profit | 1.04B | 1.03B | 985.50M | 1.10B | 875.90M | 794.20M |
| EBITDA | 1.10B | 1.19B | 1.77B | 334.80M | 1.84B | 1.68B |
| Net Income | -198.40M | -198.30M | -128.50M | -93.50M | -300.00K | 11.10M |
Balance Sheet | ||||||
| Total Assets | 5.33B | 5.24B | 5.12B | 5.10B | 4.41B | 4.33B |
| Cash, Cash Equivalents and Short-Term Investments | 341.50M | 182.40M | 205.70M | 277.00M | 210.90M | 256.90M |
| Total Debt | 3.89B | 3.98B | 3.66B | 3.72B | 3.18B | 2.76B |
| Total Liabilities | 6.38B | 6.38B | 6.04B | 6.13B | 4.85B | 4.26B |
| Stockholders Equity | -1.19B | -1.28B | -1.05B | -1.15B | -780.40M | -261.30M |
Cash Flow | ||||||
| Free Cash Flow | 11.40M | 11.40M | -120.30M | 479.00M | 339.60M | -441.10M |
| Operating Cash Flow | 24.80M | 24.80M | -106.80M | 488.90M | 346.10M | -435.00M |
| Investing Cash Flow | -3.70M | -12.20M | -35.40M | -331.80M | 31.30M | -180.70M |
| Financing Cash Flow | 110.90M | 114.30M | 84.50M | -74.90M | -394.50M | 525.50M |
Lionsgate Studios Technical Analysis
Positive
12.45
Price Trends
12.87
Positive
11.08
Positive
9.24
Positive
Market Momentum
0.69
Negative
65.91
Neutral
72.12
Neutral
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 12.45 is below the 20-day moving average (MA) of 14.18, below the 50-day MA of 12.87, and above the 200-day MA of 9.24, indicating a bullish trend. The MACD of 0.69 indicates Negative momentum. The RSI at 65.91 is Neutral, neither overbought nor oversold. The STOCH value of 72.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LION.
Lionsgate Studios Risk Analysis
Lionsgate Studios disclosed 40 risk factors in its most recent earnings report. Lionsgate Studios reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lionsgate Studios Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $180.41B | 16.35 | 10.29% | 1.10% | 4.02% | 27.66% | |
72 Outperform | $325.83B | 24.43 | 49.24% | ― | 18.57% | 45.93% | |
70 Outperform | $20.77B | 11.63 | 14.86% | 0.75% | 0.60% | -5.58% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $4.50B | -22.66 | 16.27% | ― | -17.64% | -54.79% | |
55 Neutral | $11.12B | ― | -4.64% | 1.48% | 1.14% | 93.73% | |
55 Neutral | $65.69B | -37.61 | -4.94% | ― | -2.78% | 84.26% |
* Consumer Cyclical Sector Average
LION
Lionsgate Studios
15.49
9.39
153.93%
PSKY
Paramount Skydance
9.94
-2.18
-17.98%
DIS
Walt Disney
103.89
-12.57
-10.79%
NFLX
Netflix
77.38
-47.97
-38.27%
FOXA
Fox
52.23
-3.32
-5.98%
WBD
Warner Bros
26.20
15.52
145.32%
Lionsgate Studios Corporate Events
Business Operations and StrategyExecutive/Board Changes
Lionsgate Extends CEO Contract with Performance-Based Equity Plan
Positive
Apr 15, 2026
On April 13, 2026, Lionsgate Studios’ board compensation committee amended CEO Jon Feltheimer’s employment agreement, extending his term by two years to July 31, 2031 and granting him performance-based equity awards tied to ambitious s...
Business Operations and StrategyShareholder Meetings
Lionsgate Studios Shareholders Strongly Back Board and Governance
Positive
Mar 18, 2026
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...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.