Lionsgate Reports Reduced Loss After Starz Spin-Off
Lionsgate released its latest financial results as a standalone film and TV studios company following the separation from its Starz streaming platform. For the second quarter of fiscal 2026, the newly independent studio reported significantly lower revenues but also a smaller loss.
Financial Performance Highlights
- Net loss attributable to shareholders was $113.5 million, improved from a $163.3 million loss a year earlier.
- Overall studio business revenue declined to $475.1 million from $604 million in the same period last year.
- Earnings per share loss improved to 39 cents compared to 68 cents a year earlier.
- Adjusted operating income before depreciation and amortization (OIBDA) reached $14.1 million.
Market Reaction and Business Structure
Following the earnings release, Lionsgate’s stock dropped by 5 percent, falling 36 cents to $6.67 in after-hours trading.
The newly formed Lionsgate Studios encompasses the Motion Picture Group, Television Studio business, and a film and TV library of about 20,000 titles. Starz now functions separately as a publicly traded company, reporting its own financial results.
Segment Revenue Details
The combined studio business, which includes Motion Picture and TV production segments, experienced a decrease in Motion Picture segment revenue, which fell to $276.4 million from $409.4 million in the previous year.
“The Hollywood studio, led by CEO Jon Feltheimer, posted a net loss attributable to shareholders at $113.5 million, compared to a year-earlier $163.3 million loss, after spinning off its Starz streaming platform.”
Summary: Lionsgate’s spinoff of Starz led to a tighter focus on its studios business, resulting in lower revenue but a notable reduction in net losses for fiscal 2026 Q2.