Lionsgate released its latest financial results on Thursday amid renewed takeover chatter around the major Hollywood studio, and as it posted sharply higher overall revenues and a narrowing loss in the second quarter of fiscal 2027.
The studio, led by CEO Jon Feltheimer, posted a second quarter net loss attributable to shareholders at $15.5 million, compared to a year-earlier $113.5 million, on overall studio revenue rising 41 percent to $668.8 million, against a year-earlier $475.1 million. That beat an analyst consensus for $627.6 million in overall revenues in the latest quarter.
Lionsgate posted an earnings per-share loss of 5 cents, compared to a year-earlier per-share loss of 39 cents. The adjusted OIBDA came to $72 million.
Lionsgate said its film and TV library,
Lionsgate said its film and TV library, a major profit driver underpinned by franchises and other branded IP, generated $1.04 billion over the trailing 12 months, its second highest quarterly watermark. That massive studio library — a 20,000-title film and TV portfolio — houses active franchise IP like John Wick, Hunger Games as well as blue-chip library brands for live experiences and merchandising like Twilight, Oscar best picture winner La La Land and Dirty Dancing.
Lionsgate recently unveiled a deal with Netflix to license the first four series from the Power franchise ten years after the original Power TV show launched and spinoffs followed. The studio is monetizing its franchise IP elsewhere, including with the North American tour of the Dirty Dancing musical set to land on Broadway, a La La Landstage musical in development for a 2028 opening, and opening Now You See Me Live at the MGM Grand in Las Vegas.
“The growth of our library is coming from many different places. Drivers in the quarter included the Hunger Games franchise, as you might expect, but also Heartland, a Canadian family drama TV series that has been on the air for nearly 20 years, and Kill Bill: The Whole Bloody Affair from legendary filmmaker Quentin Tarantino,” Feltheimer told analysts during an after-market call on Thursday that was webcast.
He added after Lionsgate unveiled a recent deal
He added after Lionsgate unveiled a recent deal to partner with Meta to bring its latest Hunger Gamesfranchise pic in 3D to Mark Zuckerberg’s lightweight VR glasses product after a theatrical run, other potential collaborations with the tech giant were on the drawing board. “Frankly, I think Meta has a real possibility of being a big player in the content area. And we’re already discussing some original programming ideas with them,” Feltheimer said.
The studio head added about the wider performance of the studio during the second quarter: “We’re performing well against the backdrop of an operating environment that is showing a number of encouraging signs. Audiences are coming back to movie theatres. Scripted TV series orders are stabilizing with new creative and financial partners emerging across the media ecosystem. The close of the Skydance acquisition of Warner Discovery eliminates a layer of uncertainty that was hanging over the industry. And we bring to this environment not only strong content slates, a world-class library and a deep portfolio of branded IP, but a focus on monetizing it across a broader range of platforms than ever before.”
Lionsgate became a standalone company after splitting from the Starz premium cable and streaming service. The Jon Feltheimer-run studio recently became the subject of M&A chatter on Wall Street after Legendary reportedly submitted a takeover offer.
Feltheimer during the analyst call declined to respond
Feltheimer during the analyst call declined to respond directly to M&A speculation, but did add: “What I say is what I’ve said before, in this rapidly consolidating environment I believe we’re very well positioned. Simple as that.”
Lionsgate is also looking to build on a rebound for its Motion Pictures division after the release of Michaeland The Housemaidand ahead of the The Hunger Games: Sunrise on the Reapingtheatrical rollout in mid-November. Adam Fogelson, chair of the Motion Picture Group, said development on the Michaelsequel continued, including putting the full creative team in place. “It’s lining up to be incredibly exciting. We’re making real progress,” he told analysts.
The studio has also begun preproduction on a John Wick animated prequel, with Keanu Reeves returning to his iconic role and Shannon Tindle directing. The animated feature will be produced by Thunder Road’s Basil Iwanyk and Erica Lee, 87Eleven Entertainment Chad Stahelski, Reeves and Point Grey. Lionsgate first talked about the animated prequel feature at CinemaCon in 2025.
Feltheimer told analysts he had confidence
Feltheimer told analysts he had “confidence in the earnings power of our film slate over the next three years,” to be powered by titles like the new Hunger Games, Resurrection of The Christ Parts 1 & 2,The Housemaid’s Secret, Michael 2 and Naruto, where Sony Pictures is on board as the international partner and co-financier for the film adaptation of Kishimoto’s iconic manga.
During the latest quarter, the company’s studios business, which combines the Motion Picture and TV production segments, saw Motion Picture segment revenue jump 30 percent to $359.3 million, compared to $276.4 million in the year-ago period. The key driver was the release of the Michael biopic and strong library revenue. And TV production segment revenue rose 56 percent to $309.5 million, against a year-earlier $198.7 million, on higher episodic deliveries, including for The Hunting Wivesand The Studio.
The segment profit for the Motion Picture division, a key metric, came in at $88.7 million, compared to a year-earlier $30.5 million. The TV production segment profit was up sharply $21.6 million, against a year-earlier $12.5 million.
Lionsgate TV Group chair and chief creative officer
Lionsgate TV Group chair and chief creative officer Kevin Beggs told analysts his TV division was already doing big business with the enlarged Paramount Skydance studio after completing the acquisition of Warner Bros. Discovery. “We feel good about a stronger buyer, and they’re moving very quickly to ramp up all their operations,” he said. Feltheimer echoed that theme by arguing Lionsgate had “another strong buyer and strong partner” in Paramount under Skydance CEO David Ellison.
Lionsgate COO Brian Goldsmith talked about the introduction of artificial intelligence tools across the studio. “Throughout the entire organization, the goal, of course, is to improve efficiency and productivity,” he reported. Without getting specific about possible cost savings, Goldsmith added “ultimately we’re going to try and squeeze out as much efficiency as we can while creating the most commercial product as possible.”
