Lionsgate Studios (LION)
NYSE:LION
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Lionsgate Studios
(NYSE:LION)
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Rating:52Neutral
Price Target:
$12.50
▲(0.40% Upside)
Action:ReiteratedDate:04/16/26
The score is held back primarily by weak financial fundamentals—negative equity, ongoing losses, and a return to cash burn—despite strong top-line momentum. Technicals are supportive with a strong uptrend, but overbought signals temper near-term setup. Valuation support is limited due to negative earnings, while the earnings call and recent corporate events add moderate optimism via improving OIBDA outlook and governance stability amid high leverage.
Positive Factors
Record library monetization
A growing, record $1.05B trailing‑12m library provides durable, recurring licensing revenue as rights recycle across platforms. Consistent library monetization smooths cash flow, supports margins over time, and reduces reliance on one-off theatrical hits for long‑term revenue stability.
Negative Factors
Structurally weak balance sheet (negative equity)
Negative equity of roughly -$1.28B is a structural capital weakness that impairs financial flexibility and increases refinancing and covenant risk. It reduces ability to absorb shocks, limits traditional credit metrics, and can force dilutive financing or asset sales to fund operations or deleveraging.
Read all positive and negative factors
Positive Factors
Negative Factors
Record library monetization
A growing, record $1.05B trailing‑12m library provides durable, recurring licensing revenue as rights recycle across platforms. Consistent library monetization smooths cash flow, supports margins over time, and reduces reliance on one-off theatrical hits for long‑term revenue stability.
Read all positive factors
Lionsgate Studios (LION) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.59B
Dividend YieldN/A
Average Volume (3M)2.22M
Price to Earnings (P/E)―
Beta (1Y)0.99
Revenue Growth31.47%
EPS Growth-35.23%
CountryUS
Employees1,717
SectorConsumer Cyclical
Sector Strength84
IndustryEntertainment
Share Statistics
EPS (TTM)-0.85
Shares Outstanding290,187,260
10 Day Avg. Volume2,531,891
30 Day Avg. Volume2,215,675
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 Cap0.98
Enterprise Value/Revenue1.26
Enterprise Value/Gross Profit3.68
Enterprise Value/Ebitda2.71
Forecast
1Y Price Target
$14.42Price Target Upside15.82% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.25
Revenue Forecast (FY)$3.15B
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: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
Positive
12.45
Price Trends
9.55
Positive
9.07
Positive
7.76
Positive
Market Momentum
0.54
Negative
77.34
Negative
81.27
Negative
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 above the 20-day moving average (MA) of 10.13, above the 50-day MA of 9.55, and above the 200-day MA of 7.76, indicating a bullish trend. The MACD of 0.54 indicates Negative momentum. The RSI at 77.34 is Negative, neither overbought nor oversold. The STOCH value of 81.27 is Negative, 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 | $371.60B | 19.21 | 49.24% | ― | 18.57% | 45.93% | |
74 Outperform | $188.69B | 18.16 | 10.29% | 1.10% | 4.02% | 27.66% | |
68 Neutral | $25.28B | 34.54 | 16.22% | 0.75% | 9.20% | -10.54% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $67.99B | -5.13 | -6.13% | ― | -2.78% | 84.26% | |
56 Neutral | $12.04B | 5.53 | -4.36% | 1.48% | 1.14% | 93.73% | |
52 Neutral | $3.59B | -14.33 | 20.86% | ― | 31.47% | -35.23% |
* Consumer Cyclical Sector Average
LION
Lionsgate Studios
12.38
5.16
71.47%
PSKY
Paramount Skydance
10.76
-0.99
-8.44%
DIS
Walt Disney
108.66
3.88
3.70%
NFLX
Netflix
88.25
-25.77
-22.60%
FOXA
Fox
62.69
12.92
25.97%
WBD
Warner Bros
27.12
18.05
199.01%
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.