Lionsgate Reports $112 Million Loss Despite Record Library Revenue

2025-11-08 companies

Santa Monica, Friday, 7 November 2025.
Lionsgate’s Q2 2025 results highlight a $111.9 million net loss but a 13% increase in library revenue to $1 billion, suggesting growth potential amid financial challenges.

Financial Challenges and Net Losses

Lionsgate Studios Corp. (NYSE: LION) reported a significant net loss of $111.9 million for the second quarter of fiscal 2026, which ended on September 30, 2025. This figure represents a diluted net loss per share of $0.39 over 289.2 million diluted weighted average common shares outstanding [1][2]. Despite these challenges, the company achieved a notable 13% year-over-year increase in its trailing 12-month library revenue, reaching a record $1.0 billion [1][2].

Operating Losses and Revenue Decline

The company recorded an operating loss of $46.0 million for the quarter. Revenue saw a sharp decline, totaling $475.1 million, down from $604 million in the same quarter of the previous year, reflecting a 21.3% decrease [3][4]. This downturn is largely attributed to a reduced number of theatrical releases and a general slowdown in film and television output [4].

Strategic Adjustments Post-Starz Spin-Off

Following its strategic separation from Starz, completed on May 6, 2025, Lionsgate has operated independently as a standalone film and television studio. The separation has had substantial impacts on financial reporting, with Starz being accounted for as discontinued operations in Lionsgate’s financial statements [5][6]. This restructuring aims to streamline operations and focus resources on its core studio business.

Future Growth Prospects Amidst Current Challenges

Despite the current financial losses, Lionsgate’s management remains optimistic about future growth. The company’s backlog increased by 31% sequentially to nearly $1.6 billion, indicating strong contractual commitments for future revenues. CEO Jon Feltheimer expressed confidence in achieving significant growth over the next two quarters and through fiscal 2027, emphasizing the company’s strategic focus on leveraging AI technologies and expanding its creative toolkit [2][3][5][6].

Sources

earnings loss Lionsgate