Lionsgate Revenue: 41 Percent Surge Amid Takeover Rumors

Lionsgate reported a second-quarter net loss of $15.5 million on Thursday, a sharp reduction from the $113.5 million loss recorded in the same period last year. This improvement coincided with a 41 percent increase in overall studio revenue, which reached $668.8 million. The figure exceeded the analyst consensus estimate of $627.6 million for the quarter.

The company's adjusted OIBDA stood at $72 million. Per-share losses narrowed to 5 cents, down from 39 cents a year earlier. These figures mark the second quarter of fiscal 2027 for the studio, which is led by CEO Jon Feltheimer.

The primary driver of financial growth was the film and television library. This portfolio of 20,000 titles generated $1.04 billion over the trailing 12 months, representing the second-highest quarterly watermark in the company's history. The library includes active franchises such as John Wick and Hunger Games. It also features established brands like Twilight, La La Land, and Dirty Dancing that support live experiences and merchandise sales.

Lionsgate has actively monetized these intellectual property assets through new agreements. The studio recently signed a deal with Netflix to license the first four series from the Power franchise. This move occurs ten years after the original television show launched. The company is also advancing stage productions, including a North American tour for the Dirty Dancing musical and a La La Land stage musical slated for a 2028 opening. Additionally, the Now You See Me Live attraction opened at the MGM Grand in Las Vegas.

Feltheimer told analysts that library growth is driven by diverse sources. He cited the Hunger Games franchise and the Canadian family drama Heartland, which has aired for nearly two decades. He also mentioned Kill Bill: The Whole Bloody Affair, a project by Quentin Tarantino. The studio recently announced a partnership with Meta to release the latest Hunger Games film in 3D for lightweight VR glasses after its theatrical run. Feltheimer indicated that original programming ideas are being discussed with the tech giant.

The Motion Picture segment saw revenue jump 30 percent to $359.3 million. This rise followed the release of the Michael biopic and The Housemaid. Segment profit for this division climbed to $88.7 million from $30.5 million a year ago. The TV production segment revenue increased 56 percent to $309.5 million, driven by higher episodic deliveries for shows including The Hunting Wives and The Studio. Profit in this segment rose to $21.6 million from $12.5 million.

Wall Street speculation regarding a potential takeover of Lionsgate has intensified. Legendary reportedly submitted an offer to the studio. Feltheimer declined to address the M&A chatter directly during the earnings call. He stated that the company is well-positioned in a consolidating environment. Kevin Beggs, chair of the Lionsgate TV Group, noted that the studio is doing business with the enlarged Paramount Skydance entity. He described the partner as a strong buyer that is ramping up operations quickly.

Adam Fogelson, chair of the Motion Picture Group, confirmed that development on the Michael sequel is underway. The studio has also begun preproduction on a John Wick animated prequel. Keanu Reeves will reprise his role, with Shannon Tindle directing. The film slate for the next three years includes Resurrection of The Christ Parts 1 and 2, The Housemaid’s Secret, and a Naruto adaptation co-financed by Sony Pictures.