Lionsgate Studios (LION) AI Stock Analysis

• Market Cap: $2.60B
• Dividend Yield: N/A
• Average Volume (3M): 3.12M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• Revenue Growth: 97.19%
• EPS Growth: -21.46%
• Country: US
• Employees: 1,717
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Entertainment
• EPS (TTM): -0.20
• Shares Outstanding: 289,729,300
• 10 Day Avg. Volume: 2,753,421
• 30 Day Avg. Volume: 3,121,092
• 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: 2.18
• Enterprise Value/Revenue: 2.04
• Enterprise Value/Gross Profit: 6.18
• Enterprise Value/Ebitda: 4.03
• 1Y Price Target: $9.75
• Price Target Upside: 8.57% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): -0.2
• Revenue Forecast (FY): $2.54B

• Rating: 52 Neutral
• Price Target: $9.00 ▲(0.22% Upside)

Lionsgate Studios' overall stock score is primarily impacted by its financial challenges, including negative equity and cash flow issues. While technical indicators show positive momentum, and strategic financial maneuvers are promising, the company's valuation and high debt levels remain concerns. The positive outlook from the earnings call and corporate events provide some optimism, but significant financial restructuring is needed for substantial improvement.

Positive Factors

Library Revenue Strength

A $1B trailing library demonstrates durable IP monetization across windows and formats. Steady library income cushions cyclical box office swings, supports licensing and syndication revenue, and provides repeatable cash generation that underpins long-term profitability and strategic reinvestment.

Robust TV Slate & Renewals

Award-winning shows and confirmed renewals create recurring licensing and residual revenue. Doubling scripted series deliveries expands predictable content output, strengthens distributor relationships, and increases opportunities for long-term licensing, international sales, and steady cash flows.

Expanded Credit Facility

A larger credit facility supplies structural liquidity to fund production cycles, rights acquisitions, and M&A, smoothing cash volatility inherent to entertainment. It increases strategic optionality for content investment and portfolio growth if drawdowns are used prudently and covenants managed.

Negative Factors

Negative Stockholders' Equity

Negative equity signals cumulative losses and balance-sheet erosion, limiting capital-raising options and increasing creditor scrutiny. This structural weakness reduces financial flexibility, can tighten covenant constraints, and raises long-term risk to executing content strategies or absorbing revenue shocks.

High Leverage

A 6.4x leverage ratio materially increases interest and refinancing risk and limits capacity to fund new content organically. High structural leverage reduces resilience to box office or licensing setbacks and constrains strategic moves like acquisitions or larger slate investments without deleveraging.

Persistent Cash Flow Losses

Continued operating losses and negative operating cash flow impair the firm's ability to self-fund production and marketing, forcing reliance on external financing. Over months this reduces runway for high-cost tentpoles, increases cost of capital, and pressures margins and investment in new content.

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

Lionsgate Studios faces significant financial challenges, with declining revenues and profitability issues. The balance sheet shows negative equity, raising concerns about financial stability. While there is some positive cash flow growth, overall cash flow remains negative. The company needs to address these issues to improve its financial health.

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: Positive
• Last Price: 8.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 8.98 is above the 20-day moving average (MA) of 8.88, above the 50-day MA of 7.84, and above the 200-day MA of 6.86, indicating a bullish trend. The MACD of 0.33 indicates Positive momentum. The RSI at 59.92 is Neutral, neither overbought nor oversold. The STOCH value of 53.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LION.

Lionsgate Studios Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOXA	77 Outperform	$30.83B	16.45	17.33%	0.75%	14.91%	9.30%
DIS	75 Outperform	$202.68B	16.58	11.78%	1.10%	3.61%	152.34%
NFLX	71 Outperform	$404.63B	36.99	42.86%	―	15.49%	35.54%
WBD	68 Neutral	$70.96B	152.61	1.36%	―	-4.29%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
LION	52 Neutral	$2.60B	-12.95	―	―	97.19%	-21.46%
PSKY	51 Neutral	$13.33B	-46.30	-1.90%	1.48%	-0.48%	97.09%

Lionsgate Studios Corporate Events

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.