Lionsgate Studios Corp.

Lionsgate Studios reported first-quarter fiscal 2027 revenue of $777 million, up 48% year over year. Adjusted OIBDA was $79 million; operating income was $26 million; reported diluted loss per share was $0.10; and diluted adjusted EPS was $0.06. Free cash flow was $129 million. Motion Picture revenue more than doubled to $587 million, with segment profit of $105 million, while Television revenue was $189 million and segment profit was $10 million. Trailing 12-month library revenue was $987 million, roughly flat year over year, and backlog was $1.5 billion, up 21% year over year. For the balance sheet, net debt ended at about $1.5 billion, down $121 million sequentially, leverage improved to 4.3x, and the company had $426 million of unrestricted cash and $800 million of revolver capacity. Management said TV segment profit should improve sequentially in the second quarter and accelerate in the back half of the year, and reiterated expectations for significant adjusted OIBDA and free cash flow growth in fiscal 2027 and beyond.

Jon Feltheimer said the company’s pure-play content strategy is working, the balance sheet is strengthening faster than expected, and Lionsgate’s portfolio is becoming more franchise-driven and valuable. He emphasized a slate built around more than a dozen branded repeatable properties, strong audience response to recent titles, and the idea that Lionsgate is increasingly well positioned as media buyers and streamers value scaled content assets. His tone was confident and expansive, with repeated references to momentum, optionality, and the long-term value of IP.

Jimmy Barge focused on the quarter’s financial improvement and balance sheet progress. He cited $777 million of revenue, $79 million of adjusted OIBDA, $129 million of free cash flow, and $1.5 billion of backlog, and said Motion Picture profit strength drove the quarter. He noted net debt fell to about $1.5 billion, leverage improved to 4.3x, and the company reached its mid-4x leverage target earlier than planned; he also highlighted $426 million of unrestricted cash and $800 million of revolver availability. He said TV should improve sequentially in Q2 and accelerate later in the year, while the company expects continued deleveraging and significant growth in adjusted OIBDA and free cash flow.

Analysts pressed on the relevance of IP in the current box office and Lionsgate’s confidence in its sequel/revival-heavy slate; Adam Fogelson said each title is tested against clear audience demand, fan feedback, budget discipline, and the right filmmakers, and that the company believes its slate clears that bar. Questions on the Power licensing deal focused on library value and Starz’s role; Jim Packer and Jon Feltheimer said the Netflix deal expands international reach, creates a new U.S. window for some titles, and supports future global licensing opportunities, while still benefiting Starz. On M&A, Michael Burns said Lionsgate has not had substantive talks but remains a compelling standalone asset with strategic optionality. Management also fielded questions on 3 Arts and Michael, saying strategic transactions are being explored, the business is seeing momentum in sports and creator verticals, and Michael’s sequel is targeted for production late this year or early next year.