Lionsgate Studios Q2 revenue rises 41% to $668.8 million as library revenue tops $1 billion

Lionsgate closed the second quarter of fiscal 2027 with strong growth, reflecting the continued momentum of its film and television businesses. The US entertainment company reported revenue of $668.8 million for the quarter ended September 30, up 41% year-over-year. Operating income reached $29.1 million, while Adjusted OIBDA stood at $72 million. Net loss from continuing operations attributable to shareholders amounted to $15.5 million, or $0.05 per diluted share.

The Michael effect and the tv series

Performance was supported by growth across both of the company's main operating segments. The Motion Picture division generated revenue of $359.3 million, up 30% compared with the same period last year, while segment profit climbed significantly to $88.7 million. Results benefited from the ongoing contribution of Michael and continued strength across Lionsgate's film library, which remains a strategic asset for the studio.

The Television Production division delivered even stronger growth. Revenue increased 56% year-over-year to $309.5 million, while segment profit rose 73% to $21.6 million. The improvement was driven largely by higher scripted episodic deliveries, including Power: Origins, the second season of The Studio and the second season of The Hunting Wives. Lionsgate also expects to double its scripted production deliveries in fiscal 2027 compared with the previous financial year.

Content library and balance sheet

One of the most significant highlights of the earnings report was the performance of the company's content library. Trailing 12-month film and television library revenue reached $1.04 billion, marking the second-highest result in Lionsgate's history. The figure underlines the growing importance of monetizing existing intellectual property and content rights, particularly in an entertainment market characterized by rising production costs and intensifying competition for audience attention.

On the financial front, the filmed entertainment backlog, representing contracted future revenue not yet recognized, stood at $1.5 billion. The company's leverage ratio also improved by 0.6 times compared with the June quarter, reaching 3.7 times, supported by growth in trailing 12-month Adjusted OIBDA.

Outlook

Management expressed confidence in the company's outlook for the current fiscal year, reaffirming expectations of significant Adjusted OIBDA growth. The next challenge will be to turn the strength of its content library and expanding production pipeline into sustainable growth over the coming years. In an industry increasingly focused on extracting value from intellectual property across multiple platforms and distribution windows, Lionsgate's extensive library continues to stand out as one of its most valuable assets.