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Lionsgate Studios
(NYSE:LION)
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Rating:55Neutral
Price Target:
$13.50
▲(1.20% Upside)
Action:Reiterated
Date:08/07/26
The score is primarily supported by improving operating/cash-flow trends and a constructive earnings-call outlook (strong Q1 growth, positive free cash flow, and deleveraging targets). Offsetting this are meaningful financial-structure risk (persistent negative equity), weak technical momentum (below key moving averages with negative MACD), and a loss-making profile reflected in the negative P/E and no dividend support.
Positive Factors
Cash Generation
Sustained positive operating and free cash flow provides durable internal funding for content investment, working capital and debt reduction. Over 2–6 months this improves flexibility to finance high-return projects and supports management’s deleveraging targets without dilutive capital raises.
Negative Factors
Negative Equity
Persistent negative shareholders' equity signals structural capital shortfall and constrains financial flexibility. Over months this elevates refinancing and covenant risk, limits strategic options and can increase borrowing costs, making execution of growth or M&A initiatives more difficult.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Sustained positive operating and free cash flow provides durable internal funding for content investment, working capital and debt reduction. Over 2–6 months this improves flexibility to finance high-return projects and supports management’s deleveraging targets without dilutive capital raises.
Read all positive factors
Lionsgate Studios (LION) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.95B
Dividend YieldN/A
Average Volume (3M)3.30M
Price to Earnings (P/E)―
Beta (1Y)0.92
Revenue Growth-17.64%
EPS Growth-54.79%
CountryUS
Employees916
SectorGeneral
Sector StrengthN/A
IndustryMedia & Entertainment
Share Statistics
EPS (TTM)-0.41
Shares Outstanding297,490,940
10 Day Avg. Volume2,668,082
30 Day Avg. Volume3,302,387
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$15.89Price Target Upside19.11% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)0.32
Revenue Forecast (FY)$3.38B
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 makes money primarily by creating and monetizing film and television content across multiple windows and platforms. Key revenue streams generally include: (1) Content licensing: selling or licensing distribution rights for films ...
Lionsgate Studios Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call highlighted significant operational and financial momentum: strong revenue growth (+48% YoY), record Motion Picture profitability, sizable free cash flow ($129M), backlog expansion (+21% YoY) and meaningful deleveraging (net debt improvement of $121M and leverage down nearly 2 turns to 4.3x). Key strategic wins (Power licensing to Netflix), diversified TV distribution success, and franchise development (Hunger Games, Resurrection, Rambo, John Wick universe) reinforce long-term growth potential. Near-term weaknesses include a GAAP loss per share ($0.10), flat trailing 12-month library revenue, timing-driven TV softness, ongoing leverage considerations, and reliance on the performance of several major content releases. On balance, the highlights and forward outlook materially outweigh the lowlights.Positive Updates
Strong Top-Line Growth
Revenue grew 48% year-over-year to $777 million for the quarter, driven primarily by Motion Picture performance and library monetization.
Negative Updates
Reported GAAP Loss Per Share
Reported diluted loss per share was $0.10 for the quarter, while diluted adjusted earnings per share were modest at $0.06, indicating the headline GAAP result remained a loss despite operational improvements.
Read all updates
Q1-2027 Updates
Positive
Negative
Strong Top-Line Growth
Revenue grew 48% year-over-year to $777 million for the quarter, driven primarily by Motion Picture performance and library monetization.
Read all positive updates
Company Guidance
Management reiterated confidence in its fiscal 2027 outlook and said it continues to expect significant growth in adjusted OIBDA and free cash flow this year and beyond, supported by Q1 results: revenue +48% y/y to $777M, adjusted OIBDA $79M, operating income $26M, diluted loss per share $0.10 (diluted adjusted EPS $0.06), free cash flow $129M, trailing 12‑month library revenue $987M, a $1.5B film & TV backlog (up 21% y/y), Studio segment profit $115M, Motion Picture revenue $587M (segment profit $105M, the highest Q1 MP profit), and TV revenue $189M (segment profit $10M); the balance sheet also improved to net debt ≈$1.5B (‑$121M sequential), leverage 4.3x (down ~2 turns since March; mid‑4x target met early), $426M unrestricted cash and $800M revolver capacity, with management expecting continued deleveraging toward 3–3.5x in FY28 and below 3x thereafter (a potential 3 Arts put in Q4 would add ~0.5x temporarily), and TV segment profit to improve sequentially in Q2 and accelerate in H2, with the Q3 release of The Hunger Games: Sunrise on the Reaping cited as a key near‑term driver.Lionsgate Studios Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
28
Negative
Cash Flow
55
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.88B | 2.63B | 3.20B | 2.99B | 3.08B | 2.72B |
| Gross Profit | 1.14B | 1.05B | 985.50M | 1.10B | 875.90M | 794.20M |
| EBITDA | 1.20B | 1.14B | 1.77B | 334.80M | 1.84B | 1.68B |
| Net Income | -118.30M | -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 | 425.80M | 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 | 6.39B | 6.38B | 6.04B | 6.13B | 4.85B | 4.26B |
| Stockholders Equity | -1.20B | -1.28B | -1.05B | -1.15B | -780.40M | -261.30M |
Cash Flow | ||||||
| Free Cash Flow | 97.10M | 11.40M | -120.30M | 479.00M | 339.60M | -441.10M |
| Operating Cash Flow | 109.90M | 24.80M | -106.80M | 488.90M | 346.10M | -435.00M |
| Investing Cash Flow | -4.60M | -12.20M | -35.40M | -331.80M | 31.30M | -180.70M |
| Financing Cash Flow | 145.10M | 114.30M | 84.50M | -74.90M | -394.50M | 525.50M |
Lionsgate Studios Technical Analysis
Neutral
13.34
Price Trends
14.03
Negative
12.72
Positive
10.49
Positive
Market Momentum
-0.29
Positive
39.73
Neutral
19.71
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 13.34 is below the 20-day moving average (MA) of 13.36, below the 50-day MA of 14.03, and above the 200-day MA of 10.49, indicating a neutral trend. The MACD of -0.29 indicates Positive momentum. The RSI at 39.73 is Neutral, neither overbought nor oversold. The STOCH value of 19.71 is Positive, 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 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 (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $298.60B | 22.20 | 47.96% | ― | 17.62% | 34.80% | |
72 Outperform | $23.06B | 13.56 | 14.74% | 0.99% | 0.60% | -5.58% | |
71 Outperform | $167.04B | 15.37 | 10.29% | 1.58% | 4.02% | 27.66% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | $3.95B | -18.70 | 9.60% | ― | -17.64% | -54.79% | |
54 Neutral | $65.94B | -38.12 | -4.94% | ― | -2.78% | 84.26% | |
50 Neutral | $8.91B | -14.07 | -5.27% | 2.44% | 1.14% | 93.73% |
* General Sector Average
LION
Lionsgate Studios
12.97
6.64
104.90%
PSKY
Paramount Skydance
9.19
-1.15
-11.10%
DIS
Walt Disney
104.91
-5.92
-5.34%
NFLX
Netflix
74.14
-47.02
-38.81%
FOXA
Fox
64.03
10.52
19.66%
WBD
Warner Bros
26.78
15.87
145.46%
Lionsgate Studios Corporate Events
Business Operations and StrategyExecutive/Board Changes
Lionsgate Studios Extends CFO Contract to Ensure Stability
Positive
Jul 23, 2026
On July 20, 2026, Lionsgate Studios Corp.’s Compensation Committee approved an amendment to the employment agreement of Chief Financial Officer James W. Barge. The change extends Barge’s contract term by three months to October 31, 202...
Regulatory Filings and ComplianceShareholder Meetings
Lionsgate Studios Sets Timeline for 2026 Shareholder Meeting
Neutral
Jul 6, 2026
Lionsgate Studios Corp. has scheduled its 2026 annual general and special meeting of shareholders for September 15, 2026, at its Canadian head office, with detailed information to be provided in an upcoming proxy statement. The company has set Jul...
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.