Lionsgate (LION) Q2 2026 Earnings Transcript

Lionsgate’s fiscal Q2 2026 highlighted ongoing investment in content and a solid library footprint, even as near-term profitability faced headwinds. Total revenue was $475 million, with motion picture and television segments contributing; adjusted OIBDA stood at $14 million while GAAP operating income showed a $46 million loss. Diluted EPS was negative $0.39, and the adjusted loss per share was $0.20. Net cash flow from operations was negative $104 million, and adjusted free cash flow burned $129 million amid production spend and library investments. Trailing 12-month library revenue reached a record $1 billion, up 13% year over year. Backlog rose to $1.6 billion, with over 85% expected to convert to revenue within 18 months. Net debt was $1.7 billion, and the leverage ratio was 6.4x, though liquidity remained solid with an $800 million undrawn revolver and $247 million cash. Lionsgate reduced headcount by about 5% in September and expects total reductions of more than 20% across an 18‑month window. The company is pursuing four to five potential M&A partners to optimize growth and deleveraging, while slate initiatives include high-profile releases and expansion in live and digital formats. Library revenue now accounts for roughly 30% of total library revenue, and management emphasized AI investment to boost productivity and protect IP.