Lionsgate Studios Corp. (LION)
NYSE:LION
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Lionsgate Studios
(NYSE:LION)
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Rating:57Neutral
Price Target:
$13.50
▲(8.43% Upside)
Action:Reiterated
Date:05/23/26
The score is held back primarily by weak financial fundamentals—net losses, negative TTM free cash flow, and especially deeply negative equity—despite solid EBITDA margins. Offsetting this, the stock shows strong technical momentum (price above all key moving averages with positive MACD) and valuation support from a low P/E. The latest earnings call was constructive with improved profitability/cash flow and FY27 growth expectations, but high leverage and limited quantified guidance temper the upside.
Positive Factors
Library Recurring Revenue
A >$1B trailing library with 5% YoY growth provides a durable, re-licensing revenue base that smooths content timing volatility. Persistent library cash flows support margin durability, recurring licensing income and predictable monetization windows, underpinning medium-term cash generation.
Negative Factors
Negative Equity
A materially negative shareholders’ equity (~-$1.19B TTM) signals cumulative losses that weaken the capital structure, limit borrowing capacity and complicate refinancing. This structural balance sheet stain reduces strategic optionality and increases vulnerability to adverse industry or macro shocks over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Library Recurring Revenue
A >$1B trailing library with 5% YoY growth provides a durable, re-licensing revenue base that smooths content timing volatility. Persistent library cash flows support margin durability, recurring licensing income and predictable monetization windows, underpinning medium-term cash generation.
Read all positive factors
Lionsgate Studios (LION) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.06B
Dividend YieldN/A
Average Volume (3M)4.55M
Price to Earnings (P/E)―
Beta (1Y)1.01
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. Volume5,146,096
30 Day Avg. Volume4,551,773
Financial Highlights & Ratios
PEG Ratio-0.22
Price to Book (P/B)-2.07
Price to Sales (P/S)1.01
P/FCF Ratio-33.56
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue1.51
Enterprise Value/Gross Profit3.81
Enterprise Value/Ebitda3.60
Forecast
1Y Price Target
$14.51Price Target Upside16.56% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)0.29
Revenue Forecast (FY)$3.18B
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 bran...
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 | 162.10M | 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 | -66.40M | 11.40M | -120.30M | 479.00M | 339.60M | -441.10M |
| Operating Cash Flow | -53.00M | 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
11.59
Positive
10.39
Positive
8.69
Positive
Market Momentum
0.75
Negative
68.08
Neutral
71.11
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 13.01, above the 50-day MA of 11.59, and above the 200-day MA of 8.69, indicating a bullish trend. The MACD of 0.75 indicates Negative momentum. The RSI at 68.08 is Neutral, neither overbought nor oversold. The STOCH value of 71.11 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 37 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $367.81B | 27.27 | 49.24% | ― | 18.57% | 45.93% | |
75 Outperform | $180.91B | 16.33 | 10.29% | 1.10% | 4.02% | 27.66% | |
73 Outperform | $26.00B | 14.68 | 14.86% | 0.75% | 0.60% | -5.58% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $4.06B | ― | 16.27% | ― | -17.64% | -54.79% | |
55 Neutral | $68.04B | ― | -4.94% | ― | -2.78% | 84.26% | |
53 Neutral | $11.89B | ― | -4.64% | 1.48% | 1.14% | 93.73% |
* Consumer Cyclical Sector Average
LION
Lionsgate Studios
14.35
7.12
98.48%
PSKY
Paramount Skydance
10.61
-1.30
-10.91%
DIS
Walt Disney
101.83
-9.97
-8.92%
NFLX
Netflix
86.02
-34.70
-28.75%
FOXA
Fox
63.92
9.50
17.45%
WBD
Warner Bros
27.01
17.04
170.91%
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.