Lionsgate Studios (LION) AI Stock Analysis

• Market Cap: $2.57B
• Dividend Yield: N/A
• Average Volume (3M): 2.75M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• 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: 289,729,300
• 10 Day Avg. Volume: 2,368,363
• 30 Day Avg. Volume: 2,753,797
• PEG Ratio: 1.94
• Price to Book (P/B): -2.03
• Price to Sales (P/S): 0.67
• P/FCF Ratio: -17.67
• Enterprise Value/Market Cap: 2.43
• Enterprise Value/Revenue: 2.24
• Enterprise Value/Gross Profit: 6.80
• Enterprise Value/Ebitda: 4.43
• 1Y Price Target: $10.64
• Price Target Upside: 19.82% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: $10.00 ▲(12.61% Upside)

The score is held back primarily by weak financial performance—declining revenue, ongoing losses, negative equity, and negative operating/free cash flow—despite positive technical momentum with the stock trading above major moving averages. The earnings call adds moderate support via strong library performance and upbeat growth guidance, but leverage and cash burn remain key constraints, and valuation is difficult to justify with a negative P/E and no dividend yield.

Positive Factors

Library Revenue Strength

A $1B trailing library with 13% growth underpins durable, recurring licensing income across streaming, pay-TV and other windows. Strong library monetization smooths revenue volatility from new releases and enhances long-term cash generation and margin stability.

TV Content Pipeline

Award-winning TV output and a planned doubling of scripted deliveries create a sustained pipeline of commissioned fees, renewals and backend upside. This generates contracted, repeatable revenue and makes the business less cyclically tied to theatrical performance.

Talent/3 Arts Diversification

Expansion of 3 Arts into talent management and sports creates recurring agency and production revenue streams, cross-sells IP rights, and diversifies earnings away from pure studio cycles, improving structural revenue mix and potential margin uplift over time.

Negative Factors

Negative Equity

Negative shareholders' equity reflects cumulative losses or capital deficits and signals structural balance-sheet weakness. It raises refinancing cost, limits strategic flexibility, distorts return metrics and increases the likelihood of dilutive or costly capital raises over the medium term.

High Leverage

Elevated net debt and 6.4x leverage constrain financial flexibility, heighten interest and refinancing risk, and force prioritization of cash-generative projects. This limits the firm's ability to invest aggressively in content or pursue M&A without deleveraging first.

Operating Cash Burn

Consistent operating losses and negative operating/free cash flow indicate ongoing cash burn. Without sustained margin improvement or higher recurring licensing cash, liquidity pressures may force asset sales, cost cuts or external financing, undermining long-term cash-generation plans.

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 generates revenue through several key streams, including theatrical distribution of films, television licensing, and digital streaming. The company earns money by producing and distributing films that perform well at the box office, as well as through licensing content to television networks and streaming platforms. Additionally, Lionsgate benefits from home entertainment sales, including DVD and Blu-ray sales, as well as digital downloads and rentals. The company has established significant partnerships with various streaming services, which provide a steady revenue influx through licensing agreements. Furthermore, Lionsgate's extensive catalog of intellectual properties allows it to monetize its content through merchandising and ancillary products, contributing to its overall earnings.

Lionsgate Studios Financial Statement Overview

Summary

Financial health is pressured by declining revenue (-11.13% TTM) and negative net margin (-6.97%). The balance sheet is a major concern with negative stockholders’ equity, signaling elevated financial risk despite a positive ROE that is distorted by the negative equity base. Cash flow shows mixed signals: free cash flow growth is positive (18.60%), but operating and free cash flows are negative, indicating continued funding and timing challenges.

Income Statement

Lionsgate Studios has experienced a decline in revenue, with a negative revenue growth rate of -11.13% in the TTM period. The gross profit margin has decreased to 26.73%, and the net profit margin is negative at -6.97%, indicating challenges in profitability. The EBIT margin is slightly positive at 3.12%, but the EBITDA margin remains strong at 43.95%, suggesting some operational efficiency despite the losses.

Balance Sheet

The company has a negative stockholders' equity, resulting in a negative debt-to-equity ratio, which is concerning. The return on equity is positive at 17.12%, but this is due to the negative equity. The equity ratio is not calculable due to negative equity, indicating financial instability.

Cash Flow

Lionsgate Studios shows a positive free cash flow growth rate of 18.60%, but both operating and free cash flows are negative. The operating cash flow to net income ratio is negative, indicating cash flow challenges. However, the free cash flow to net income ratio is above 1, suggesting some ability to cover net losses with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.78B	3.20B	2.99B	3.08B	2.72B	1.91B
Gross Profit	919.00M	985.50M	1.10B	875.90M	794.20M	692.90M
EBITDA	1.41B	1.77B	334.80M	1.84B	1.68B	922.30M
Net Income	-194.10M	-128.50M	-93.50M	-300.00K	11.10M	-19.60M
Balance Sheet
Total Assets	5.16B	5.12B	5.10B	4.41B	4.33B	3.69B
Cash, Cash Equivalents and Short-Term Investments	202.40M	205.70M	277.00M	210.90M	256.90M	361.30M
Total Debt	3.89B	3.66B	3.72B	3.18B	2.76B	2.35B
Total Liabilities	6.28B	6.04B	6.13B	4.85B	4.26B	3.71B
Stockholders Equity	-1.26B	-1.05B	-1.15B	-780.40M	-261.30M	-236.90M
Cash Flow
Free Cash Flow	-53.70M	-120.30M	479.00M	339.60M	-441.10M	-242.60M
Operating Cash Flow	-42.10M	-106.80M	488.90M	346.10M	-435.00M	-232.40M
Investing Cash Flow	-7.40M	-35.40M	-331.80M	31.30M	-180.70M	-300.00K
Financing Cash Flow	52.40M	84.50M	-74.90M	-394.50M	525.50M	365.00M

Lionsgate Studios Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8.88
• 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 Neutral. The current price of 8.88 is below the 20-day moving average (MA) of 9.27, above the 50-day MA of 8.58, and above the 200-day MA of 7.04, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 45.00 is Neutral, neither overbought nor oversold. The STOCH value of 12.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LION.

Lionsgate Studios Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DIS	69 Neutral	$189.64B	15.36	11.65%	1.10%	3.61%	152.34%
NFLX	69 Neutral	$338.45B	31.72	42.76%	―	15.49%	35.54%
FOXA	68 Neutral	$28.44B	16.91	16.87%	0.75%	14.91%	9.30%
WBD	68 Neutral	$66.99B	144.08	1.36%	―	-4.29%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
LION	52 Neutral	$2.57B	-12.81	―	―	97.19%	-21.46%
PSKY	50 Neutral	$11.86B	―	-1.90%	1.48%	-0.48%	97.09%

Lionsgate Studios Corporate Events

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.