Lionsgate Q2 Earnings Report Shows Revenue Dip Amid Major Restructuring

Lionsgate Studios has reported a significant drop in revenue for its second fiscal quarter. The results cover the period following the company’s high-profile spin-off of its Starz streaming platform. The newly standalone studio is navigating a challenging media landscape.

The company posted a net loss of $113.5 million, an improvement from the prior year. However, overall revenue fell sharply, reflecting a lighter release schedule. According to Reuters, the market reacted negatively, with shares dropping in after-hours trading.

Segment Performance Reveals Film and TV Challenges

The Motion Picture Group saw revenue fall to $276.4 million. This decline was primarily due to having only two wide theatrical releases this quarter. The comparable quarter last year benefited from five wide releases.

Despite the revenue drop, the film segment’s profit saw a remarkable rebound. It reached $30.5 million, a major improvement from $1.7 million a year ago. The studio has moved past the financial impact of last year’s underperforming Borderlands film.

Television Production and Future Pipeline

The Television Studio segment also experienced a revenue decrease. Its earnings fell to $198.7 million, down from the previous year. The company attributes this to the timing of episodic deliveries, with several projects pushed to later in the fiscal year.

CEO Jon Feltheimer expressed confidence in the studio’s future slate. He highlighted upcoming projects, including the Michael biopic and a new Hunger Games film. The company expects “significant growth” in its scripted TV deliveries for fiscal 2027.

The latest Lionsgate Q2 2026 earnings illustrate a studio in transition. While near-term revenues are pressured, a robust pipeline of franchises and series renewals positions it for a potential rebound. The path forward hinges on executing its release strategy in an increasingly fragmented market.

Thought you’d like to know

What was Lionsgate’s net loss for the quarter?

The company reported a net loss attributable to shareholders of $113.5 million. This is an improvement from the $163.3 million loss recorded in the same period last year. The reduced loss follows the corporate separation from Starz.

Why did the Motion Picture Group’s revenue decline?

Revenue fell due to a lighter theatrical slate. The quarter featured only two wide releases, compared to five in the year-earlier period. This created a difficult comparison for the studio’s financial performance.

How did the TV production business perform?

Television production revenue was $198.7 million, down from the prior year. The decline was attributed to the timing of episodic deliveries. Lionsgate anticipates more deliveries in the second half of the fiscal year.

What did the CEO say about future projects?

Jon Feltheimer pointed to a strong upcoming film and TV slate. He confirmed the completion of the *Michael* biopic and ongoing work on new *Hunger Games* and *Resurrection* films. The studio has also secured renewals for several hit television series.

How did investors react to the earnings report?

Investors reacted negatively in after-market trading. The studio’s stock price fell by 5 percent following the announcement. The drop reflects concerns over the reported revenue declines.