Lionsgate finished 2025 with a third consecutive quarter in the red but was able to slow the bleeding in the December period thanks to its turnaround at the box office with the release of “Now You See Me: Now You Don’t” and “The Housemaid.”
In its latest earnings report, the studio reported a loss of $46 million, which equates to per-share earnings of 16 cents per share. Even removing one-time items, its adjusted income of $3.9 million and EPS of 1 cent a share falls short of Wall Street projections of earnings of 2 cents per share, according to Yahoo Finance.
Still, the results mark an improvement from the $113 million loss that Lionsgate reported in the direct prior quarter, but below the $21 million loss in the year-ago period. This is in spite of a 15% increase in year-over-year revenue to $724.3 million.
The biggest sign of improvement for Lionsgate was a 35% year-over-year increase in theatrical division revenue to $421.1 million thanks to “Now You See Me 3” and “The Housemaid,” which combined for approximately $120 million in domestic box office grosses. Segment profit was $58.5 million, which Lionsgate attributed to increased marketing budgets for those films.
But that increase was offset by a 25% decrease in television revenue to $303 million, with a segment profit of $55.7 million. Lionsgate attributed the drop to the timing of episodic deliveries, partially offset by strength in television library revenue.
Lionsgate CEO Jon Feltheimer said that the studio was on track to start turning a profit in the year ahead as the theatrical division is expected to have improved revenue from upcoming films like “Michael” and “The Hunger Games: Sunrise on the Reaping.”
“I’m pleased to report a quarter that keeps us on track for our fiscal 2026 financial targets and positions us for significant growth in fiscal 2027 and beyond,” said Feltheimer. “Our investment in our IP portfolio is achieving its intended results: our film and television pipelines are strong, our library
continues to grow, and our extension of franchise properties across multiple platforms continues to increase.”
