For the three months ended September 30, the entertainment company reported revenue of $668.8 million, compared with the corresponding period last year. Operating income also improved significantly, reaching $29.1 million against an operating loss of $46 million recorded a year earlier.
Despite the improved performance, Lionsgate reported a net loss from continuing operations attributable to shareholders of $15.5 million, representing a diluted loss of five cents per share.
Commenting on the results, Lionsgate Chief Executive Officer, Jon Feltheimer, said the company's performance reflected progress across its business operations and strengthened its confidence in delivering significant growth in adjusted operating income before depreciation and amortisation (OIBDA) in fiscal 2027.
“Our strong performance in the quarter reflects all of the pieces of our fiscal 2027 plan coming together, reaffirming our confidence in this year’s forecast of significant adjusted OIBDA [Operating income before depreciation and amortization] growth,” Feltheimer said.
He added that the company was building momentum through its upcoming film releases, strong library performance and improving business conditions, expressing confidence in its growth prospects over the next two financial years.
Lionsgate's film library remained a major contributor to its performance, generating $1.04 billion in revenue over the trailing 12 months, its second-highest figure on record.
The motion picture division recorded a 30 per cent year-on-year revenue increase to $359.3 million, while segment profit rose significantly to $88.7 million. The performance was driven by the continued contribution of Michael, which grossed more than $1 billion at the global box office, alongside sustained demand for the studio's film library.
Its television production division also delivered strong results, with revenue rising 56 per cent to $309.5 million, while segment profit increased by 73 per cent to $21.6 million compared with the previous year.
The growth was attributed largely to increased deliveries of scripted television productions, including Power: Origins and the second seasons of The Studio, produced for Apple TV, and The Hunting Wives, for Netflix.
The company also disclosed plans to double its scripted television deliveries in fiscal 2027 compared with the previous financial year, signalling an expansion of its production activities.
Looking ahead, Feltheimer said established entertainment franchises would play a significant role in driving the company's performance, noting that 10 of its next 15 wide theatrical releases would be based on existing intellectual properties.
Among the major projects expected to lead the slate are new instalments in The Hunger Games franchise, Resurrection of the Christ Parts 1 and 2, The Housemaid’s Secret, Michael 2 and Naruto.
“Ten of Lionsgate’s next 15 wide theatrical releases are repeatable branded properties,” Feltheimer said during the company's earnings call.
He added that the combination of established franchises and other major film properties would strengthen the studio's earnings potential over the next three years.
Particular attention is being placed on The Hunger Games: Sunrise on the Reaping, which is scheduled to open in two weeks, ahead of the Thanksgiving holiday box office period.
“We believe that this will be one of our biggest and best Hunger Games yet,” Feltheimer said.
On television, the company highlighted the continued popularity of The Rookie, which is heading into its ninth season, as well as plans to expand the franchise through a new spin-off, The Rookie: North.
The spin-off is scheduled to debut on ABC in January and will also be available on Hulu in the United States and Disney+ in most international markets.
Lionsgate is similarly exploring additional spin-off opportunities for Ghosts as the CBS comedy enters its sixth season.
Feltheimer also pointed to the company's recent licensing agreement with Netflix as evidence of the long-term commercial value of its television properties, particularly the Power franchise, a decade after the original series made its debut.
Meanwhile, Netflix has renewed The Hunting Wives for a third season ahead of the release of its second instalment. The second season is scheduled to debut on Thanksgiving Day, while production on the third season is expected to begin next month at Lionsgate Studios' sound stages in Atlanta.
The latest financial results underscore the contribution of successful theatrical releases, established entertainment franchises and television production to Lionsgate's business strategy as the studio positions itself for further growth in the coming years.