Lionsgate Reports Lower Loss Following Starz Spin-Off
Lionsgate released its latest financial results as an independent film and TV studio company after separating from its Starz streaming platform.
Second Quarter Fiscal 2026 Results
For the second quarter of fiscal 2026, Lionsgate posted reduced total revenues and a smaller net loss compared to the previous year. The studio reported a net loss attributable to shareholders of $113.5 million, an improvement from a $163.3 million loss a year earlier.
Despite this, investors reacted negatively in after-market trading, causing the studio's shares to drop by 36 cents, or 5 percent, closing at $6.67.
Revenue and Earnings Details
- Total studio business revenue declined to $475.1 million from $604 million in the prior-year period.
- Lionsgate recorded an earnings per share loss of 39 cents, compared to a 68 cents loss per share a year earlier.
- The adjusted operating income before depreciation and amortization (OIBDA) was $14.1 million.
Business Composition and Segment Performance
The newly independent Lionsgate Studios now consists of the Motion Picture Group, the Television Studio business, and a film and TV library of approximately 20,000 titles. Starz operates separately as a publicly traded company and reports its own results.
The Motion Picture segment saw its revenue drop significantly to $276.4 million from $409.4 million in the same period last year.
"The Hollywood studio, led by CEO Jon Feltheimer, posted a net loss attributable to shareholders at $113.5 million, compared to a year-earlier $163.3 million loss, after spinning off its Starz streaming platform."
Author's summary: After separating from Starz, Lionsgate’s film and TV studios showed improved profitability despite lower revenues, marking progress in its transition to a standalone entertainment company.