Lionsgate has reported another quarter in the red with third quarter losses of $113.5 million while revenue dropped 21% to $475 million.
That equates to a diluted net loss of 39 cents per share, missing Wall Street projections for a 13-cent loss, even as losses narrowed from 66 cents per share and a $163 million loss in the same quarter a year earlier.
Film: Revenue from the motion picture group came in at $276.5 million — down from $409 million the previous year — in a quarter where the studio only released two films wide: “The Long Walk” and “The Strangers — Chapter 2,” which combined for $50.2 million at the domestic box office. But Lionsgate also did not have a big budget flop like last year’s “Borderlands,” which led to a year-over-year segment profit increase to $30.5 million from just $1.2 million in the third quarter of 2024.
Lionsgate’s Q4 slate includes “Good Fortune,” which grossed $15.2 million domestically, “Now You See Me: Now You Don’t” later this month and “The Housemaid” in December.
TV: Television revenue dipped to $198 million, with a segment profit increase of $12.5 million. Lionsgate attributed the slide to delays in episodic deliveries until the first half of 2026.
Despite the poor result, CEO Jon Feltheimer still pointed to a coming 12-month period that will see the studio release films like “Michael” and “The Hunger Games: Sunrise on the Reaping,” as well as a restocked TV slate with renewals for shows like Apple TV’s “The Studio” and USA’s “The Rainmaker.”
Feltheimer also pointed to Lionsgate’s continued growth in 12-month trailing library revenue, which increased for the fourth consecutive quarter by 13% to $1 billion.
“We reported a quarter in line with our financial expectations with all signs pointing to significant growth over the next two quarters and through fiscal 2027,” said Feltheimer. “During the quarter we readied a film slate primed to deliver strong growth over the next 18 months, refilled our television pipeline with key series renewals and breakout new shows, and reported $1 billion in trailing 12-month library revenue, a record performance that highlights our entire portfolio of intellectual property.”
Lionsgate has dipped 3% in after-hours trading to $6.80/share at time of writing.
