Lionsgate Studios Q1 Revenue Surges 48% to $777M, Swings to Operating Profit

summarizeSummary

Lionsgate Studios reported Q1 FY2027 revenue of $776.6M, up 48% YoY, with operating income of $25.6M and adjusted free cash flow of $128.9M, driven by blockbuster theatrical releases and library strength.

check_boxKey Events · Earnings and Guidance · LION

• Revenue Surges 48% to $777M

  Q1 FY2027 revenue reached $776.6 million, up from $525.9 million a year ago, driven by the Motion Picture segment which more than doubled to $587.3 million.

• Swings to Operating Profit

  Operating income was $25.6 million compared to a loss of $10.6 million in the prior-year quarter, with adjusted OIBDA of $79.3 million versus a loss of $3.7 million.

• Adjusted Free Cash Flow Turns Positive

  Adjusted free cash flow was $128.9 million, a dramatic improvement from negative $111.9 million a year ago, driven by strong operating cash flow and production loan timing.

• Leverage Improves Nearly Two Turns

  Leverage fell to 4.3x trailing 12-month adjusted OIBDA from approximately 6.3x in the March quarter, reflecting stronger earnings and cash flow.

auto_awesomeAnalysis · LION · Trade & Services

A standout quarter for Lionsgate Studios saw revenue jump 48% to $776.6 million, flipping the prior-year operating loss into a $25.6 million profit. The Motion Picture segment more than doubled its top line to $587.3 million, fueled by the billion-dollar biopic 'Michael' and robust ancillary performance. Adjusted OIBDA reached $79.3 million, while adjusted free cash flow swung sharply positive to $128.9 million, helping leverage improve by nearly two turns. These results confirm that the studio's franchise strategy is gaining traction and that the operating environment has improved markedly from the strike-impacted prior year.