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LIONBullishEarningsnews
High materiality9/10

Lionsgate Q1: Revenue +48% YoY, Adjusted Cash Flow Strength; Starz Separation Implications

Aug 6, 2026, 4:15 PM EDT1 sourcesAI-analyzed
Why it may matterVerify against the original reporting

The quarter confirms robust revenue growth and a path to higher returns via library backlog and free cash flow, while leverage is compressing. The Starz separation could unlock additional value and shift licensing dynamics favorably, supporting multiple expansion. Historical parallels show that clear post-separation visibility and strong cash flow lifts share sentiment in entertainment names.

AI summary

What happened, with direct paths to the underlying reporting

Lionsgate reported Q1 FY2027 revenue of $776.6M, up 48% YoY, with Adjusted OIBDA of $79.3M and Adjusted Free Cash Flow of $128.9M. The company cited a $987M trailing library revenue and a $1.5B backlog, alongside an improved leverage ratio of 4.3x. With Starz now reported in continuing operations post-separation, Lionsgate expects growth in fiscal 2027, supported by a strong Motion Picture performance (notably Michael) and plans to double scripted deliveries in FY2027.

  • Revenue rose to $776.6M, up 48% YoY. Adjusted OIBDA was $79.3M.
  • GAAP net loss was $28.8M; EPS was $(0.10) for the quarter.
  • Adjusted net income was $18.9M; Adjusted EPS $0.06.
  • Library revenue trailing 12 months: $987M; backlog $1.5B.
  • Motion Picture revenue $587.3M; segment profit $105M (Q1 record).

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