Lionsgate delivered a robust financial performance for the second quarter of its fiscal year 2026, which ended on September 30. The company reported total revenue of $668.8 million, marking a 41 percent increase compared to the same period last year. This growth allowed the studio to narrow its net loss significantly while improving its operating income.
Operating income for the quarter stood at $29.1 million, a substantial improvement from an operating loss of $46.0 million recorded in the prior year. Despite the positive operating results, the company still posted a net loss from continuing operations attributable to shareholders of $15.5 million. This translates to a diluted net loss of five cents per share.
Jon Feltheimer, the chief executive officer of Lionsgate, attributed the strong results to the alignment of various components within the company's fiscal 2027 plan. He stated that the momentum supports the forecast for significant growth in adjusted operating income before depreciation and amortization. Feltheimer noted that the studio is successfully positioning major film releases for the next three years, which provides greater visibility into future growth trajectories for fiscal years 2028 and 2029.
The motion picture segment contributed heavily to the overall financial health, with revenue rising 30 percent year over year to $359.3 million. Segment profit increased significantly to $88.7 million. A primary driver of this success was the ongoing revenue from the biographical film Michael, which has grossed over one billion dollars at the global box office. The studio also benefited from continued strength in its film library.
Television production also saw substantial gains, with segment revenue jumping 56 percent to $309.5 million. Profit in this segment rose 73 percent to $21.6 million. The increase was fueled by a significant rise in scripted episodic deliveries. Notable titles included Power: Origins, as well as the second seasons of The Studio for Apple TV and The Hunting Wives for Netflix.
Looking ahead, Lionsgate anticipates doubling its scripted deliveries in fiscal 2027 relative to the previous year. The company is focusing on branded properties to drive theatrical success. Feltheimer noted that ten of the next 15 wide theatrical releases are repeatable branded properties. Key upcoming titles include the new Hunger Games installment, Resurrection of the Christ Parts 1 and 2, The Housemaid’s Secret, Michael 2, and a Naruto adaptation.
The upcoming release of The Hunger Games: Sunrise on the Reaping is scheduled to open in two weeks, kicking off the Thanksgiving box office season. Feltheimer expressed confidence that this film will be one of the biggest and best entries in the franchise's history. The studio believes these marquee properties will support strong earnings power over the next three years.
In the television space, The Rookie is growing in popularity as it approaches its ninth season. A spinoff titled The Rookie: North is set to debut on ABC in January. The series will stream on Hulu in the United States and on Disney+ in most international territories. Meanwhile, Ghosts is exploring new spinoff opportunities as it enters its sixth season on CBS.
Lionsgate also highlighted a recent licensing deal with Netflix as evidence of the value being created for the Power franchise ten years after the original series launched. Additionally, Netflix renewed The Hunting Wives for a third season before its second season even premiered. The second season is set to debut on Thanksgiving Day, with production for the third season scheduled to begin next month at the Lionsgate Studios sound stages in Atlanta.
