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Lionsgate Studios (LION)
NYSE:LION
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Lionsgate Studios
(NYSE:LION)
Rating:41Neutral
Price Target:―
Positive Factors
Mergers and Acquisitions
Analyst remains bullish on LION's strategic value as a pure-play studio asset that should benefit from industry M&A as strategic buyers look to beef up content portfolios.
Revenue Growth
Stronger growth is anticipated in FY27 due to the setup from current challenges.
Theatrical Releases
Theatrical slate for upcoming years includes high-profile releases like the Hunger Games prequel and The Passion of the Christ sequel, suggesting potential for strong future earnings.
Negative Factors
Box Office Performance
The soft performance of the show 'Ballerina' is contributing to a tougher year for the company.
Content Delivery Delays
The company is facing delays in TV content deliveries, impacting FY26 revenue negatively.
Risk of Underperformance
The stock carries significant risk due to a weak slate over the past two years and potential downside if future projects underperform and M&A interest decreases.
Lionsgate Studios (LION) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.78B
Dividend YieldN/A
Average Volume (3M)2.22M
Price to Earnings (P/E)―
Beta (1Y)0.67
Revenue Growth432.48%
EPS Growth-930.72%
CountryUS
Employees1,717
SectorFinancial
Sector Strength74
IndustryEntertainment
Share Statistics
EPS (TTM)-0.32
Shares Outstanding289,518,040
10 Day Avg. Volume1,965,427
30 Day Avg. Volume2,217,524
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap2.92
Enterprise Value/Revenue1.66
Enterprise Value/Gross Profit11.49
Enterprise Value/Ebitda8.33
Forecast
1Y Price Target
$8.69Price Target Upside41.30% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
Lionsgate Studios Business Overview & Revenue Model
Company DescriptionLionsgate Studios (NASDAQ: LION) 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 MoneyLionsgate Studios generates revenue through several key streams. Primarily, the company earns from the production and distribution of films and television content. This includes box office sales from theatrical releases, licensing fees from television networks and streaming platforms, and home entertainment sales, such as DVDs, Blu-rays, and digital downloads. Additionally, Lionsgate benefits from syndication and distribution deals that expand its content reach globally. The company also engages in strategic partnerships and co-productions to optimize its production costs and enhance market reach, contributing significantly to its revenue. Moreover, Lionsgate explores merchandise sales and ancillary product lines related to its popular franchises as supplementary income sources.
Lionsgate Studios Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call presented a mix of strong financial performance in the quarter and record library revenue, alongside challenges such as a decline in television segment profit and the delay of a major film project. Despite some setbacks, the highlights of revenue growth and strategic achievements suggest an overall positive outlook.Q4-2025 Updates
Positive Updates
Successful Separation from Starz
Lionsgate completed the separation from Starz and began trading under the ticker symbol LION, which is expected to unlock significant value for shareholders and simplify the capital structure.
Record Library Revenue
Lionsgate achieved a record performance in its library segment with trailing twelve-month revenue of $956 million, driven by a strong fourth quarter.
Motion Picture Group Performance
Motion Picture revenue was up 28% year over year to $526 million, with segment profit reaching a ten-year high of $135 million, up 65% year over year.
Strong Financial Quarter
Lionsgate Studios revenue was up 22% year over year to $1.1 billion. Adjusted OIBDA was up 49% to $138 million, and operating income increased significantly to $94 million.
Television Group Achievements
The TV group secured key series renewals and launched new shows, including Seth Rogen's 'The Studio,' which became an Emmy contender and was renewed for a second season.
Negative Updates
Television Segment Profit Decline
While television revenue increased by 16% year over year to $543 million, segment profit was down 23% year over year, facing tough comparisons with the previous year.
Delay of Michael Jackson Biopic
The release of the Michael Jackson biopic is likely to be delayed out of fiscal 2026, impacting financial results for that year but bolstering the fiscal 2027 slate.
Annual Profit Decline
Adjusted OIBDA for the year was down 8% to $302 million, and operating income was down 11% to $125 million, with reported fully diluted earnings per share showing a loss of $0.43.
Company Guidance
During the Lionsgate Studios Fourth Quarter 2025 Earnings Conference Call, the company outlined several financial metrics and strategic initiatives. For the quarter, Lionsgate's revenue increased by 22% year over year to $1.1 billion, with adjusted OIBDA rising 49% to $138 million and operating income reaching $94 million. The quarterly library revenue set a record at $340 million, while the full-year revenue was up 7% to $3.2 billion. However, adjusted OIBDA for the year dropped by 8% to $302 million, and operating income decreased by 11% to $125 million. The company reported a net cash flow from operating activities of $256 million for the quarter and a positive adjusted free cash flow of $395 million. The fiscal year saw a trailing twelve-month library revenue of $956 million, growing 8% year over year. Lionsgate's Motion Picture Group performed well, with revenue up 28% year over year to $526 million, while the Television Group secured several series renewals and launched new content. Looking forward, the company anticipates a strong fiscal 2027 slate and expects positive free cash flow over the next two years, supported by a robust pipeline of film and TV projects.Lionsgate Studios Financial Statement Overview
Summary
Lionsgate Studios is facing significant financial challenges. The income statement shows profitability issues with negative margins, and the balance sheet is concerning due to a high debt-to-equity ratio and negative stockholders' equity. Cash flow metrics indicate liquidity problems, with negative free cash flow and operational inefficiencies.Income Statement
Lionsgate Studios has experienced fluctuating revenue with a slight decrease in TTM. The company shows a negative net profit margin and EBITDA margin, indicating profitability challenges. The gross profit margin has decreased significantly in the TTM, reflecting increasing cost pressures.45
Neutral
Balance Sheet
The company's high debt-to-equity ratio is concerning, with negative stockholders' equity indicating potential solvency issues. Despite this, the asset base has expanded over the years, which may provide some stability. However, the negative equity ratio highlights financial instability.30
Negative
Cash Flow
Cash flow metrics are weak, with negative free cash flow in the TTM, indicating liquidity concerns. Operating cash flow has turned negative in the TTM, reflecting operational inefficiencies. The cash flow to net income ratios indicate challenges in converting income to cash.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2020 | Dec 2018 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.13B | 3.20B | 2.99B | 3.08B | 1.91B | 17.87M |
| Gross Profit | 452.20M | 0.00 | 1.10B | 875.90M | 692.90M | 17.87M |
| EBITDA | 623.50M | -367.70M | 334.80M | 1.87B | 922.30M | 96.59M |
| Net Income | -194.00M | -128.50M | -93.50M | -300.00K | -19.60M | 43.82M |
Balance Sheet | ||||||
| Total Assets | 5.16B | 5.12B | 5.10B | 4.41B | 3.69B | 4.73B |
| Cash, Cash Equivalents and Short-Term Investments | 186.10M | 205.70M | 312.60M | 210.90M | 361.30M | 262.30M |
| Total Debt | 1.67B | 1.67B | 4.10B | 3.18B | 2.35B | 260.47M |
| Total Liabilities | 6.16B | 6.04B | 6.13B | 4.85B | 3.71B | 4.29B |
| Stockholders Equity | -1.15B | -1.08B | -1.15B | -780.40M | -236.90M | 446.24M |
Cash Flow | ||||||
| Free Cash Flow | -111.30M | -120.30M | 479.00M | 339.60M | -242.60M | 156.79M |
| Operating Cash Flow | -98.50M | -106.80M | 488.90M | 346.10M | -232.40M | 166.43M |
| Investing Cash Flow | 3.80M | -35.40M | -331.80M | 31.30M | -300.00K | -236.15M |
| Financing Cash Flow | 39.30M | 84.50M | -74.90M | -394.50M | 365.00M | 95.71M |
Lionsgate Studios Technical Analysis
Negative
6.15
Price Trends
6.16
Negative
6.50
Negative
7.04
Negative
Market Momentum
0.01
Negative
47.10
Neutral
38.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LION, the sentiment is Negative. The current price of 6.15 is below the 20-day moving average (MA) of 6.17, below the 50-day MA of 6.16, and below the 200-day MA of 7.04, indicating a bearish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 47.10 is Neutral, neither overbought nor oversold. The STOCH value of 38.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LION.
Lionsgate Studios Risk Analysis
Lionsgate Studios disclosed 38 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
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $211.63B | 18.63 | 11.01% | 0.85% | 5.00% | 144.65% | |
68 Neutral | $17.69B | 11.82 | 10.30% | 3.73% | 9.66% | 0.42% | |
68 Neutral | $16.86B | ― | -0.11% | 1.35% | -1.75% | 99.73% | |
50 Neutral | ― | ― | -1.75% | 99.73% | |||
47 Neutral | ― | ― | -2.85% | 75.96% | |||
42 Neutral | ― | ― | -2.85% | 75.96% | |||
41 Neutral | $1.78B | ― | 19.96% | ― | 432.48% | -930.72% |
* Financial Sector Average
Performance Comparison
LION
Lionsgate Studios
6.15
-0.89
-12.64%
PSKY
Paramount Skydance
15.84
5.56
54.09%
DIS
Walt Disney
117.65
28.62
32.15%
LGF.A
Lions Gate Entertainment Class A
8.59
0.80
10.27%
LGF.B
Lions Gate Entertainment Class B
7.69
0.80
11.61%
PARAA
Paramount Global
16.91
-5.09
-23.14%
Lionsgate Studios Corporate Events
Executive/Board Changes
Lionsgate Studios Extends EVP Bruce Tobey’s Contract
Neutral
Apr 10, 2025
On April 9, 2025, Lions Gate Entertainment Corp. announced an amendment to the employment agreement with Bruce Tobey, extending his term as Executive Vice President and General Counsel through March 31, 2028. The amendment includes a revised compensation package, with an annual base salary of $1,200,000 and a target bonus of 85% of his salary, alongside eligibility for annual equity awards. The agreement outlines conditions for severance payments and accelerated vesting of equity awards in the event of termination without cause or a change in control, impacting the company’s executive compensation strategy and potentially its financial commitments.
Spark’s Take on LION Stock
According to Spark, TipRanks’ AI Analyst, LION is a Underperform.
Lionsgate Studios is currently experiencing significant financial difficulty, with negative profitability indicators, high leverage, and liquidity concerns. The technical analysis signals bearish momentum, and the negative P/E ratio indicates valuation challenges. The absence of earnings call insights or corporate events further limits the prospects for immediate recovery.
To see Spark’s full report on LION stock, click here.
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.