Lionsgate Studios (LION)
NYSE:LION
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Lionsgate Studios
(NYSE:LION)
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Rating:51Neutral
Price Target:
$9.50
▲(1.17% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Lionsgate Studios (LION) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.72B
Dividend YieldN/A
Average Volume (3M)2.51M
Price to Earnings (P/E)―
Beta (1Y)0.76
Revenue Growth97.19%
EPS Growth-21.46%
CountryUS
Employees1,717
SectorConsumer Cyclical
Sector Strength84
IndustryEntertainment
Share Statistics
EPS (TTM)0.01
Shares Outstanding290,187,260
10 Day Avg. Volume1,784,331
30 Day Avg. Volume2,507,648
Financial Highlights & Ratios
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 Cap0.97
Enterprise Value/Revenue0.95
Enterprise Value/Gross Profit2.76
Enterprise Value/Ebitda2.03
Forecast
1Y Price Target
$11.07Price Target Upside17.89% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)-0.18
Revenue Forecast (FY)$2.56B
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 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...
Lionsgate Studios Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 21, 2026
Earnings Call Sentiment Positive
The call communicated a mix of encouraging operating momentum and substantial near-term financial pressures. Positives include record library revenue (up 10% YoY to $1.05B), strong Motion Picture topline growth (+35% to $421M), a deep franchise slate, renewals of nearly all scripted series (12 of 13), and a 26% increase in backlog giving visibility into future cash flows. Offsetting these strengths are elevated leverage (net debt $1.75B; 7.4x leverage), GAAP losses (EPS -$0.16), negative operating cash flow (-$109M) and quarter-to-quarter profit timing impacts from heavy P&A spend (~$100M) and episodic delivery timing. Management projects meaningful improvement in Q4 adjusted OIBDA, organic deleveraging into mid-4x by mid fiscal '27 and further progress into fiscal '28, which together with the strong slate and library momentum underpin a cautiously optimistic outlook.Positive Updates
Consolidated Revenue and Profitability Metrics
Q3 fiscal 2026 revenue increased 1% year-over-year to $724 million. Adjusted OIBDA was $85 million and operating income was $36 million. Reported fully diluted loss per share was $0.16 while fully diluted adjusted earnings were $0.01 per share.
Negative Updates
Net Loss and Weak GAAP Earnings
Reported GAAP fully diluted loss per share was $0.16 for the quarter, indicating the company remains unprofitable on a reported basis despite modest adjusted EPS of $0.01.
Read all updates
Q3-2026 Updates
Positive
Negative
Consolidated Revenue and Profitability Metrics
Q3 fiscal 2026 revenue increased 1% year-over-year to $724 million. Adjusted OIBDA was $85 million and operating income was $36 million. Reported fully diluted loss per share was $0.16 while fully diluted adjusted earnings were $0.01 per share.
Read all positive updates
Company Guidance
Management guided that Q4 adjusted OIBDA should improve materially from Q3 and that the company is on track to deliver strong adjusted OIBDA growth in fiscal ’27 (relative to fiscal ’25), driven by three fiscal ’27 tentpoles and a planned doubling of scripted episodic deliveries in fiscal ’27; Q3 studio results were revenue $724M, adjusted OIBDA $85M, operating income $36M, reported loss per share $0.16 and adjusted EPS $0.01, with net cash used in operations $109M and adjusted free cash flow use $58M. Motion Picture revenue was $421M (up 35% YoY) with segment profit $59M and ~ $100M of U.S. P&A this quarter (additional Q4 P&A for April’s Michael), TV revenue was $303M with segment profit $56M, trailing 12‑month library revenue reached a record $1.05B (up 10% YoY) with 33% from TV series, backlog rose 26% YoY to $1.5B (~80% of which is expected to convert in the next 15 months), net debt was $1.75B with leverage at 7.4x (revolver $770M undrawn, cash $213M) and management expects leverage to fall to the mid‑4s by mid‑FY27 and to ~3–3.5x in FY28; operational highlights supporting the guidance included 12 of 13 scripted renewals, more than 40 active franchises, strong box‑office carryover (Now You See Me ~ $250M worldwide) and the Housemaid release (mostly contributing in Q4 and into fiscal ’27).Lionsgate Studios Financial Statement Overview
Summary
Income Statement
57
Neutral
Balance Sheet
28
Negative
Cash Flow
34
Negative
| 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
Neutral
9.39
Price Trends
9.26
Positive
8.52
Positive
7.44
Positive
Market Momentum
0.11
Positive
49.18
Neutral
41.43
Neutral
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 9.39 is below the 20-day moving average (MA) of 9.69, above the 50-day MA of 9.26, and above the 200-day MA of 7.44, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 49.18 is Neutral, neither overbought nor oversold. The STOCH value of 41.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $394.01B | 36.11 | 43.25% | ― | 15.49% | 35.54% | |
68 Neutral | $167.85B | 21.11 | 11.35% | 1.10% | 3.61% | 152.34% | |
68 Neutral | $23.58B | 34.54 | 16.22% | 0.75% | 14.91% | 9.30% | |
62 Neutral | $67.13B | 98.11 | 2.05% | ― | -4.29% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $9.87B | -1.44 | -4.36% | 1.48% | -0.48% | 97.09% | |
51 Neutral | $2.72B | ― | 20.86% | ― | 97.19% | -21.46% |
* Consumer Cyclical Sector Average
LION
Lionsgate Studios
9.39
1.89
25.20%
PSKY
Paramount Skydance
8.88
-2.50
-21.95%
DIS
Walt Disney
94.75
-2.25
-2.32%
NFLX
Netflix
93.32
-0.07
-0.07%
FOXA
Fox
58.64
4.43
8.17%
WBD
Warner Bros
27.07
16.70
161.04%
Lionsgate Studios Corporate Events
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...
Business Operations and StrategyExecutive/Board Changes
Lionsgate Studios Adds Mnuchin, Strikes Governance Pact
Positive
Jan 26, 2026
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 Se...
Regulatory Filings and ComplianceShareholder Meetings
Lionsgate Studios Sets Timetable for 2026 Shareholder Meeting
Neutral
Jan 9, 2026
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 ...
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.