Lionsgate Reduces Quarterly Loss Following Starz Spin-Off
Lionsgate has reported a significant reduction in loss for the second quarter of fiscal 2026 after spinning off its Starz streaming platform. The Hollywood studio, under the leadership of CEO Jon Feltheimer, revealed a net loss of $113.5 million, a decrease from $163.3 million during the same quarter last year.
Lionsgate Financial Performance Overview
Post-spin-off, Lionsgate’s overall revenue for its film and TV divisions fell to $475.1 million, down from $604 million in the previous year. The stock reacted negatively in after-market trading, dropping by 5% to $6.67.
Revenue Breakdown
- Net Loss: $113.5 million (2026) compared to $163.3 million (2025)
- Total Revenue: $475.1 million (2026) down from $604 million (2025)
- Earnings Per Share Loss: 39 cents (2026) versus 68 cents (2025)
Segment Performance
The Motion Picture segment’s revenue declined to $276.4 million from $409.4 million year-over-year. The TV production segment also faced a drop, with revenue falling to $198.7 million compared to $416 million the previous year. The company noted fewer wide film releases compared to last year as a contributing factor.
Future Prospects
Lionsgate is optimistic about significant growth in scripted episodic deliveries for fiscal 2027. The new Lionsgate Studios division includes the Motion Picture Group and Television Studio, featuring a library of 20,000 films and TV shows.
Feltheimer indicated plans for a robust film slate and the continuation of TV series, including the much-anticipated Michael biopic directed by Antoine Fuqua, set for release on April 24, 2026. Jaafar Jackson will portray the iconic pop star in this feature debut.
Television Wins
Lionsgate’s television division has seen recent success, with notable victories including the Emmy-winning series “The Studio” and the Netflix hit “The Hunting Wives.” All featured shows have been renewed for their second seasons.
Challenges and Market Dynamics
Despite challenges posed by a competitive media landscape, Feltheimer believes Lionsgate is well-positioned for future growth. He emphasized the importance of a strong content portfolio and an efficient production model in an evolving marketplace.
Additionally, Lionsgate reported record library revenue of $1 billion over the trailing twelve months, highlighting its content management strengths and strategic positioning within the industry.
