Key Points:
- Lionsgate reported a $94 million net loss in Q1 fiscal 2026 as it adjusts to operating without Starz following the business separation.
- Television production revenue rose 20% to $288.5 million, helping offset declines in the motion picture segment.
- The company posted record trailing 12-month library revenue of $989 million, up 12% on a year-over basis.
Television and motion picture studio Lionsgate posted a $94 million loss attributed to shareholders in its first quarter since splitting from premium multiplex network Starz, the company revealed on Thursday.
During Lionsgate’s fiscal first quarter of 2026 (Q1, coincides with calendar Q2 2025), Lionsgate lost $10.9 million on studio and licensing revenue of $555.9 million. Net losses attributed to shareholders clocked in at $94 million, the company affirmed.
In prepared remarks, Lionsgate CEO Jon Feltheimer said that trend is likely to continue in the short term while the company eyes profitability during its next fiscal year.
“In a post-separation transitional year for the studio, we are taking a number of important steps toward returning to solid growth in fiscal 2027,” Feltheimer said “We have three major film tent poles set for release in the coming fiscal year, expect to double our scripted television series deliveries next year and continue to innovate our brands across new businesses and onto new platforms.”
Lionsgate’s television production segment was a bright spot, with revenue climbing 20 percent year over year to $288.5 million. Segment profit for TV production rose nearly 150 percent to $26 million, driven by increased episodic deliveries and higher-margin new series. Lower general and administrative expenses also helped boost profitability.
On the other side was the film studio business, which saw a steep year-over decline. Revenue fell to $267.3 million from $349.6 million in the prior-year period, and segment profit dropped to $2.4 million from $85.2 million. The company cited a tough comparison with carryover profits from fiscal 2024 film releases.
Despite the operating losses, Lionsgate continues to see growth in its content library. Trailing 12-month library revenue reached a record $989 million, a 12 percent year-over-year increase and the third straight quarter of record performance in that category.
Cash flow from operations remained negative, with the company reporting $109.1 million in net cash used from continuing operations. Adjusted free cash flow came in at negative $111.9 million. Lionsgate ended the quarter with $186.1 million in cash and cash equivalents.
Looking ahead, the company said it remains focused on scaling its studio business through upcoming film releases, expanded TV production and strategic licensing, including continued content deals with Starz under new commercial arrangements.
Shares of Lionsgate were priced around 2 percent higher in after-hours trading on Thursday.
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