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Lionsgate Studios
(NYSE:LION)
Select Model
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Rating:54Neutral
Price Target:
$12.50
▲(6.11% Upside)
Action:Reiterated
Date:10/21/26
The score is held back mainly by financial risk from persistent negative equity and continued GAAP losses despite improving operations and positive free cash flow. Offsetting factors include constructive earnings-call guidance with strong recent quarter performance and deleveraging progress, plus a moderately supportive near-term technical setup. Valuation remains a weak point due to negative earnings (negative P/E) and no indicated dividend yield.
Positive Factors
Improving cash generation
Positive operating and free cash flow indicate that Lionsgate is converting its content operations into internal funding, despite uneven historical performance. If sustained, this can support debt reduction, preserve strategic flexibility, and reduce reliance on external capital over the next several quarters.
Negative Factors
Persistent negative equity
Persistent negative equity signals a constrained capital structure and leaves Lionsgate with less financial flexibility than a company funded by positive net assets. This can limit its ability to absorb operating setbacks, fund growth, or negotiate from strength during industry volatility.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving cash generation
Positive operating and free cash flow indicate that Lionsgate is converting its content operations into internal funding, despite uneven historical performance. If sustained, this can support debt reduction, preserve strategic flexibility, and reduce reliance on external capital over the next several quarters.
Read all positive factors
Lionsgate Studios (LION) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.62B
Dividend Yield4.2%
Average Volume (3M)3.28M
Price to Earnings (P/E)―
Beta (1Y)0.75
Revenue Growth-8.00%
EPS Growth41.10%
CountryUS
Employees916
SectorGeneral
Sector StrengthN/A
IndustryMedia & Entertainment
Share Statistics
EPS (TTM)-0.41
Shares Outstanding297,559,700
10 Day Avg. Volume3,466,993
30 Day Avg. Volume3,283,027
Financial Highlights & Ratios
PEG Ratio-0.23
Price to Book (P/B)-2.18
Price to Sales (P/S)1.06
P/FCF Ratio243.96
Enterprise Value/Market Cap2.23
Enterprise Value/Revenue2.79
Enterprise Value/Gross Profit7.06
Enterprise Value/Ebitda6.71
Forecast
1Y Price Target
$13.78Price Target Upside16.96% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)0.4
Revenue Forecast (FY)$3.35B
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 | 783.10M |
| EBITDA | 1.20B | 1.14B | 1.30B | 1.22B | 1.84B | 1.71B |
| 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 | 3.94B | 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
Positive
11.78
Price Trends
11.34
Positive
12.62
Positive
11.53
Positive
Market Momentum
0.17
Negative
69.53
Neutral
82.94
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 11.78 is above the 20-day moving average (MA) of 11.29, above the 50-day MA of 11.34, and above the 200-day MA of 11.53, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 69.53 is Neutral, neither overbought nor oversold. The STOCH value of 82.94 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 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $2.88B | 70.80 | 11.87% | ― | 14.79% | 22.14% | |
76 Outperform | $4.40B | 5.93 | 8.27% | 3.59% | -3.61% | -37.40% | |
65 Neutral | $2.73B | 30.89 | 12.02% | ― | 0.14% | ― | |
59 Neutral | $2.26B | -1.10 | -83.28% | ― | 7.87% | -2072.73% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | $224.82M | 17.42 | 11.30% | ― | 8.04% | -13.38% | |
54 Neutral | $3.62B | -30.93 | 9.60% | 4.20% | -8.00% | 41.10% |
* General Sector Average
LION
Lionsgate Studios
12.70
6.29
98.13%
IMAX
IMAX
52.31
19.87
61.25%
AENT
Alliance Entertainment Holding
4.50
-0.82
-15.41%
MH
McGraw Hill, Inc.
14.80
2.18
17.27%
STUB
StubHub Holdings Incorporation Class A
6.10
-13.05
-68.15%
VSNT
Versant Media Group
32.29
-11.90
-26.93%
Lionsgate Studios Corporate Events
Executive/Board ChangesShareholder Meetings
Lionsgate Studios shareholders back governance and executive pay
Positive
Sep 16, 2026
On September 15, 2026, Lionsgate Studios Corp. held its Annual General and Special Meeting of Shareholders, where 91.47% of common shares entitled to vote were represented in person or by proxy. Shareholders considered key governance and oversight...
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...
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.