Lionsgate Shrinks Quarterly Loss After Starz Spin-Off
The Hollywood major released its latest financial results as an independent film and TV studios company following its separation from the Starz streaming platform.
Financial Performance Highlights
- Lionsgate posted a net loss attributable to shareholders of $113.5 million for the second quarter of fiscal 2026, down from a $163.3 million loss a year earlier.
- Overall studio revenue declined to $475.1 million from $604 million the previous year.
- Earnings per share loss improved to 39 cents from 68 cents a year ago.
- The adjusted OIBDA was reported at $14.1 million.
Shareholder Reaction and Market Impact
After-market trading saw Lionsgate’s stock drop 36 cents, or 5 percent, closing at $6.67.
Company Structure Post Spin-Off
The new Lionsgate Studios business includes the Motion Picture Group, Television Studio, and a library of 20,000 films and TV titles. Starz, now a separate publicly traded company, reports its own financials independently.
Segment Revenue Details
The combined studios business reported a drop in Motion Picture segment revenue to $276.4 million from $409.4 million in the prior year period.
“Lionsgate posted a net loss attributable to shareholders at $113.5 million, compared to a year-earlier $163.3 million loss, after spinning off its Starz streaming platform.”
“Overall studio business revenue fell to $475.1 million, compared to a year-earlier $604 million.”
Author’s summary: Following the Starz spin-off, Lionsgate has reduced its quarterly losses with lower revenues but improved earnings per share, focusing on its core film and TV production businesses.