{"success":true,"data":{"pressRelease":{"id":"112046","rtpr_id":"nPn2wrn0Fa","ticker":"LION","exchange":"NYSE","all_tickers":["LION"],"title":"LIONSGATE REPORTS RESULTS FOR FIRST QUARTER FISCAL 2027","author":"PR Newswire","published_at":"2026-08-06T20:05:03.737Z","article_body":"LIONSGATE REPORTS RESULTS FOR FIRST QUARTER FISCAL 2027\n\nPR Newswire\n\nSANTA MONICA, Calif. and VANCOUVER, BC, Aug. 6, 2026\n\nRevenue was $776.6 Million, Up 48% Year-over-Year\n\nOperating Income was $25.6 Million\n\nNet Loss from Continuing Operations Attributable to Shareholders was $28.8\nMillion, or $0.10 Diluted Net Loss Per Share\n\nAdjusted Net Income from Continuing Operations Attributable to Shareholders\nwas $18.9 Million, or $0.06 Adjusted Diluted Net Income Per Share\n\nAdjusted OIBDA was $79.3 Million\n\nNet Cash Flows Provided by Operating Activities were $54 Million in the\nQuarter; Adjusted Free Cash Flow was $128.9 Million\n\nSANTA MONICA, Calif. and VANCOUVER, BC, Aug. 6, 2026 /PRNewswire/ -- Lionsgate\nStudios Corp. (NYSE: LION) today reported first quarter results for the\nquarter ended June 30, 2026.\n\nThe Company reported first quarter revenue of $776.6 million, operating income\nof $25.6 million and net loss from continuing operations attributable to\nshareholders of $28.8 million, or $0.10 diluted net loss per share on 292\nmillion diluted weighted average common shares outstanding. Adjusted net\nincome from continuing operations attributable to shareholders in the quarter\nwas $18.9 million or $0.06 adjusted diluted net income per share on 302\nmillion diluted weighted average common shares outstanding.  Adjusted OIBDA\nwas $79.3 million in the quarter.\n\n\"I'm pleased to report another quarter of strong financial results and growing\nmomentum across our business,\" said Lionsgate CEO Jon Feltheimer. \"As we\ncontinue to execute our franchise strategy across a deep portfolio of branded\nintellectual properties, generate increased visibility and stability from our\nfilm and television library, and benefit from continued improvement in our\noperating environment, we are positioned to deliver strong growth in fiscal\n2027 and beyond.\"\n\nTrailing 12-month library revenue was $987 million.  Filmed entertainment\nbacklog (contractual future revenue not yet recognized) increased 21%\nyear-over-year to $1.5 billion.  Driven by strong free cash flow, leverage\nimproved by nearly two turns from the March quarter to 4.3x trailing 12-month\nadjusted OIBDA.\n\nFirst Quarter Segment Results\n\nMotion Picture segment revenue of $587.3 million more than doubled from the\nprior year quarter and segment profit was $105 million, a record for the first\nquarter.  The results were driven by the success of recent theatrical\nreleases, including the billion-dollar worldwide box office performance of\nMichael, the highest-grossing biopic of all time, and the strong ancillary\nperformance of The Housemaid.\n\nTelevision Production segment revenue of $189.3 million and segment profit of\n$10.2 million declined from the prior year quarter due to the timing of\nepisodic deliveries. The Company continues to anticipate doubling scripted\ndeliveries in fiscal 2027 relative to fiscal 2026.\n\nLionsgate senior management will hold its analyst and investor conference call\nto discuss fiscal 2027 first quarter results today, August 6, at 5:00 PM\nET/2:00 PM PT.  Interested parties may listen to the live webcast by visiting\nthe events page on the Lionsgate Investor Relations website\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4747590-1&h=1878393243&u=https%3A%2F%2Finvestors.lionsgate.com%2Foverview%2Fdefault.aspx&a=website)\n. Alternatively, interested parties can join the webcast directly via the\nfollowing link\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4747590-1&h=3454147235&u=https%3A%2F%2Fevent.choruscall.com%2Fmediaframe%2Fwebcast.html%3Fwebcastid%3DIDVmCuDV&a=link)\n. A full replay will become available this evening by clicking the same link.\n\nAbout Lionsgate\n\nLionsgate (NYSE: LION) is one of the world's leading standalone, pure play\ncontent companies. It brings together diversified motion picture and\ntelevision production and distribution businesses, a world-class portfolio of\nvaluable brands and franchises, a premier talent management and production\npowerhouse at 3 Arts Entertainment and a more than 20,000-title film and\ntelevision library, all driven by Lionsgate's bold and entrepreneurial\nculture.\n\nFor further information, investors should contact:\nNilay Shah\n310-255-3651\nnshah@lionsgate.com (mailto:nshah@lionsgate.com)\n\nFor media inquiries, please contact:\nPeter D. Wilkes\n310-255-3726\npwilkes@lionsgate.com (mailto:pwilkes@lionsgate.com)\n\nLaurel Pecchia\n310-255-5114\nlpecchia@lionsgate.com (mailto:lpecchia@lionsgate.com)\n\nThe matters discussed in this press release include forward-looking\nstatements, including those regarding the performance of future fiscal\nyears.  Such statements are subject to a number of risks and uncertainties.\nActual results in the future could differ materially and adversely from those\ndescribed in the forward-looking statements as a result of various important\nfactors, including, but not limited to: the substantial investment of capital\nrequired to produce and market films and television series; budget overruns;\nlimitations imposed by our credit facility and notes; unpredictability of the\ncommercial success of our motion pictures and television programming; risks\nrelated to acquisition and integration of acquired businesses; the effects of\ndispositions of businesses or assets, including individual films or libraries;\nthe cost of defending our intellectual property; technological changes and\nother trends affecting the entertainment industry; potential adverse reactions\nor changes to business or employee relationships; weakness in the global\neconomy and financial markets, including a recession, bank failures and\ngeneral economic uncertainty; wars, terrorism and multiple international\nconflicts that could cause significant economic disruption and political and\nsocial instability; labor disruptions and strikes; the volatility of currency\nexchange rates; our ability to manage growth; the effects of competition on\nour future business; the impact of and changes in governmental regulations or\nthe enforcement thereof, tax laws and rates, accounting guidance and similar\nmatters in regions in which we operate or will operate in the future;\ninternational, national or local economic, social or political conditions that\ncould adversely affect our business; the effectiveness of our internal\ncontrols and our corporate policies and procedures; changes in personnel and\navailability of qualified personnel; the volatility of the market price and\nliquidity of our common shares; and the other risk factors set forth in\nLionsgate's public filings with the Securities and Exchange Commission.  The\ncompany undertakes no obligation to publicly release the result of any\nrevisions to these forward-looking statements that may be made to reflect any\nfuture events or circumstances.\n\nAdditional Information Available on Websites\nThe information in this press release should be read in conjunction with the\nfinancial statements and footnotes contained in Lionsgate's Quarterly Report\non Form 10-Q for the period ended June 30, 2026, which will be posted on\nLionsgate's website at http://investors.lionsgate.com/\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4747590-1&h=4236424331&u=https%3A%2F%2Finvestors.lionsgate.com%2Foverview%2Fdefault.aspx&a=http%3A%2F%2Finvestors.lionsgate.com%2F)\n.  Trending schedules containing certain financial information will also be\navailable.\n LIONSGATE STUDIOS CORP.\n\nCONSOLIDATED BALANCE SHEETS\n\n(Unaudited, amounts in millions)\n\n                                                                                June 30,                    March 31,\n                                                                                2026                        2026\n ASSETS\n Current assets:\n Cash and cash equivalents                                                      $         425.8             $         341.5\n Accounts receivable, net                                                       665.9                       784.8\n Other current assets                                                           366.6                       362.4\n Total current assets                                                           1,458.3                     1,488.7\n Investment in films and television programs, net                               2,162.9                     2,128.4\n Property and equipment, net                                                    34.5                        34.9\n Investments                                                                    40.1                        41.1\n Intangible assets, net                                                         24.7                        25.8\n Goodwill                                                                       846.8                       846.8\n Other noncurrent assets                                                        765.7                       761.4\n Total assets                                                                   $       5,333.0             $       5,327.1\n LIABILITIES\n Current liabilities:\n Accounts payable                                                               $         169.6             $         213.4\n Content related payables - current                                             22.5                        38.0\n Accrued expenses and other current liabilities                                 351.0                       354.0\n Participations and residuals - current                                         626.9                       615.6\n Film related obligations - current                                             1,622.1                     1,293.4\n Debt - current                                                                 162.1                       162.1\n Deferred revenue - current                                                     366.5                       370.4\n Total current liabilities                                                      3,320.7                     3,046.9\n Debt - noncurrent                                                              1,740.1                     1,778.1\n Participations and residuals - noncurrent                                      515.9                       485.2\n Film related obligations - noncurrent                                          414.4                       656.5\n Other noncurrent liabilities                                                   295.5                       308.1\n Deferred revenue - noncurrent                                                  90.1                        87.6\n Deferred tax liabilities                                                       14.4                        14.1\n Total liabilities                                                              6,391.1                     6,376.5\n\n Redeemable noncontrolling interest                                             112.0                       114.1\n\n EQUITY (DEFICIT)\n Common shares, no par value, unlimited shares authorized, 293.0 shares issued  2,530.9                     2,496.6\n (March 31, 2026 - 290.4)\n Accumulated deficit                                                            (3,762.1)                   (3,732.9)\n Accumulated other comprehensive income                                         31.0                        43.4\n Total Lionsgate Studios Corp. shareholders' equity (deficit)                   (1,200.2)                   (1,192.9)\n Noncontrolling interests                                                       30.1                        29.4\n Total equity (deficit)                                                         (1,170.1)                   (1,163.5)\n Total liabilities, redeemable noncontrolling interests and equity (deficit)    $       5,333.0             $       5,327.1\n\n \n LIONSGATE STUDIOS CORP.\n\nCONSOLIDATED STATEMENTS OF OPERATIONS\n\n(Unaudited, amounts in millions, except per share amounts)\n\n                                                                              Three Months Ended\n                                                                              June 30,\n                                                                              2026                                  2025\n Revenues                                                                     $         776.6                       $         525.9\n Expenses:\n Direct operating                                                             497.0                                 339.0\n Distribution and marketing                                                   121.8                                 118.1\n General and administration                                                   124.9                                 70.2\n Depreciation and amortization                                                4.4                                   4.4\n Restructuring and other                                                      2.9                                   4.8\n Total expenses                                                               751.0                                 536.5\n Operating income (loss)                                                      25.6                                  (10.6)\n Other income (expenses):\n Interest expense                                                             (56.9)                                (68.7)\n Interest and other income                                                    4.8                                   4.4\n Other gain (loss), net                                                       3.7                                   (17.0)\n Loss on extinguishment of debt                                               —                                     (1.0)\n Gain on investments, net                                                     1.3                                   8.8\n Equity interests loss                                                        —                                     (1.2)\n Loss from continuing operations before income taxes                          (21.5)                                (85.3)\n Income tax provision                                                         (7.8)                                 (6.4)\n Net loss from continuing operations, net of income taxes                     (29.3)                                (91.7)\n Net loss from discontinued operations, net of income taxes                   —                                     (14.9)\n Net loss                                                                     (29.3)                                (106.6)\n Net (income) loss attributable to noncontrolling interests                   0.5                                   (2.3)\n Net loss attributable to Lionsgate Studios Corp. shareholders                $          (28.8)                     $        (108.9)\n\n Amounts attributable to Lionsgate Studios Corp. shareholders:\n Net loss from continuing operations                                          $          (28.8)                     $          (94.0)\n Net loss from discontinued operations, net of income taxes                   —                                     (14.9)\n Net loss attributable to Lionsgate Studios Corp. shareholders                $          (28.8)                     $        (108.9)\n\n Per share information attributable to Lionsgate Studios Corp. shareholders:\n Basic net loss per common share - continuing operations                      $          (0.10)                     $          (0.35)\n Basic net loss per common share - discontinued operations                    —                                     (0.05)\n Basic net loss per common share                                              $          (0.10)                     $          (0.40)\n\n Diluted net loss per common share - continuing operations                    $          (0.10)                     $          (0.35)\n Diluted net loss per common share - discontinued operations                  —                                     (0.05)\n Diluted net loss per common share                                            $          (0.10)                     $          (0.40)\n\n Weighted average number of common shares outstanding:\n Basic                                                                        291.6                                 272.3\n Diluted                                                                      291.6                                 272.3\n\n \n LIONSGATE STUDIOS CORP.\n\nCONSOLIDATED STATEMENTS OF CASH FLOWS\n\n(Unaudited, amounts in millions)\n\n                                                                                Three Months Ended\n                                                                                June 30,\n                                                                                2026                                  2025\n Operating Activities:\n Net loss                                                                       $          (29.3)                     $        (106.6)\n Less: Net loss from discontinued operations, net of tax                        —                                     (14.9)\n Net loss from continuing operations, net of tax                                (29.3)                                (91.7)\n Adjustments to reconcile net loss to net cash provided by (used in) operating\n activities:\n Depreciation and amortization                                                  4.4                                   4.4\n Amortization of films and television programs                                  264.9                                 224.4\n Amortization of debt financing costs and other non-cash interest (benefit)     (0.3)                                 3.6\n Non-cash share-based compensation                                              41.1                                  1.7\n Other non-cash items                                                           6.4                                   25.3\n Loss on extinguishment of debt                                                 —                                     1.0\n Equity interests loss                                                          —                                     1.2\n Gain on investments, net                                                       (1.3)                                 (8.8)\n Deferred income taxes                                                          0.3                                   0.1\n Changes in operating assets and liabilities:\n Accounts receivable, net                                                       131.1                                 7.4\n Investment in films and television programs, net                               (300.6)                               (250.2)\n Other assets                                                                   (29.4)                                13.3\n Accounts payable and accrued liabilities                                       (58.8)                                (20.2)\n Participations and residuals                                                   42.9                                  (26.0)\n Content related payables                                                       (15.9)                                (9.8)\n Deferred revenue                                                               (1.4)                                 15.2\n Net Cash Flows Provided By (Used In) Operating Activities - Continuing         54.1                                  (109.1)\n Operations\n Net Cash Flows Provided By Operating Activities - Discontinued Operations      —                                     78.1\n Net Cash Flows Provided By (Used In) Operating Activities                      54.1                                  (31.0)\n Investing Activities:\n Acquisitions of businesses, net of cash acquired                               —                                     (29.4)\n Proceeds from the sale of equity method and other investments                  —                                     34.0\n Investments in equity method investees and other, net                          —                                     (1.5)\n Repayment of loans receivable, net                                             0.1                                   —\n Capital expenditures                                                           (2.9)                                 (3.5)\n Net Cash Flows Used In Investing Activities - Continuing Operations            (2.8)                                 (0.4)\n Net Cash Flows Used In Investing Activities - Discontinued Operations          —                                     (1.5)\n Net Cash Flows Used in Investing Activities                                    (2.8)                                 (1.9)\n Financing Activities:\n Debt - borrowings, net of debt issuance and redemption costs                   294.3                                 696.4\n Debt - repurchases and repayments                                              (335.5)                               (1,007.9)\n Film related obligations - borrowings                                          475.4                                 551.1\n Film related obligations - repayments                                          (392.6)                               (479.8)\n Cash settlement in connection with Starz Separation refinancing                —                                     262.8\n Sale of noncontrolling interest in Legacy Lionsgate Studios Corp.              —                                     (3.5)\n Distributions to noncontrolling interest                                       (1.4)                                 (0.8)\n Exercise of stock options                                                      5.6                                   —\n Tax withholding required on equity awards                                      (15.9)                                (0.3)\n Net Cash Flows Provided By Financing Activities - Continuing Operations        29.9                                  18.0\n Net Cash Flows Used In Financing Activities - Discontinued Operations          —                                     (22.3)\n Net Cash Flows Provided By (Used In) Financing Activities                      29.9                                  (4.3)\n Net Change In Cash, Cash Equivalents and Restricted Cash                       81.2                                  (37.2)\n Foreign Exchange Effects on Cash, Cash Equivalents and Restricted Cash         (1.6)                                 3.2\n Cash, Cash Equivalents and Restricted Cash - Beginning Of Period               419.8                                 291.6\n Cash, Cash Equivalents and Restricted Cash - End Of Period                     $         499.4                       $         257.6\n\nLIONSGATE STUDIOS CORP.\nSEGMENT INFORMATION\n(Unaudited, amounts in millions)\n\nThe Company has two reportable business segments: (1) Motion Picture and (2)\nTelevision Production.\n\n(1)  Motion Picture. Motion Picture consists of the development and\nproduction of feature films, acquisition of North American and worldwide\ndistribution rights, North American theatrical, home entertainment and\ntelevision distribution of feature films produced and acquired, and worldwide\nlicensing of distribution rights to feature films produced and acquired.\n\n(2) Television Production. Television Production consists of the development,\nproduction and worldwide distribution of television productions including\ntelevision series, television movies and mini-series and non-fiction\nprogramming. Television Production includes the licensing of Starz original\nseries productions to Starz, and the ancillary market distribution of Starz\noriginal productions and licensed product (prior to the Starz Separation,\nlicensing to the former Media Networks segment). Additionally, the Television\nProduction segment includes the results of operations of 3 Arts Entertainment.\n\nIn the ordinary course of business, the Company's reportable segments enter\ninto transactions with one another. Prior to the Starz Separation, the most\nsignificant intersegment transactions were licenses of motion pictures and\ntelevision programming, including Starz original productions, from the Motion\nPicture and Television Production segments to the former Media Networks\nsegment. These transactions were included in segment results but eliminated in\nconsolidation. Following the Starz Separation, licensing transactions between\nthe Company and Starz are no longer eliminated in consolidation and are\nreflected in consolidated results from continuing operations.\n\nSegment information for the three months ended June 30, 2026 and 2025 is\npresented in the tables below:\n                                                     Three Months Ended\n                                                     June 30,\n                                                     2026                                  2025\n Segment revenues\n Studio Business:\n Motion Picture                                      $         587.3                       $         267.3\n Television Production                               189.3                                 288.5\n Total Studio Business                               776.6                                 555.8\n Intersegment eliminations                           —                                     (29.9)\n                                                     $         776.6                       $         525.9\n Segment profit\n Studio Business:\n Motion Picture                                      $         105.0                       $            2.4\n Television Production                               10.2                                  26.0\n Total Studio Business                               115.2                                 28.4\n Corporate general and administrative expenses((1))  (35.9)                                (32.1)\n Adjusted OIBDA((1))                                 $           79.3                      $           (3.7)\n\n (1)  See \"Use of Non-GAAP Financial Measures\" for the definition of segment profit\n      and Adjusted OIBDA and the reconciliation to the most directly comparable U.S.\n      GAAP financial measure.\n\nThe CODM uses segment profit to evaluate the current operating performance of\neach segment, support future operating plans and forecasts and to allocate\nresources. Segment profit is defined as segment revenues, less segment direct\noperating, segment distribution and marketing and segment general and\nadministration expenses. Segment profit excludes, when applicable, corporate\ngeneral and administrative expenses, restructuring and other costs,\nshare-based compensation, certain content charges as a result of changes in\nmanagement and/or content strategy, unallocated rent cost and purchase\naccounting and related adjustments. The Company believes the presentation of\nsegment profit is relevant and useful for investors because it allows\ninvestors to view segment performance in a manner similar to the method used\nby the Company's CODM.\n\nTotal segment profit, when presented outside of the segment information is\nconsidered a non-GAAP financial measure, and should be considered in addition\nto, not as a substitute for, or superior to, measures of financial performance\nprepared in accordance with U.S. GAAP. The Company uses this non-GAAP measure,\namong other measures, to evaluate the aggregate operating performance of its\nbusiness.\n\nLIONSGATE STUDIOS CORP.\nRECONCILIATION OF OPERATING INCOME (LOSS)\nTO ADJUSTED OIBDA AND TOTAL STUDIO BUSINESS SEGMENT PROFIT\n(Unaudited, amounts in millions)\n\nThe following table reconciles the U.S GAAP measure, Operating income (loss),\nto the non-GAAP measures, Adjusted OIBDA and Total segment profit:\n                                                                  Three Months Ended\n                                                                  June 30,\n                                                                  2026                                2025\n Operating income (loss)                                          $          25.6                     $         (10.6)\n Adjusted depreciation and amortization((1))                      3.4                                 3.5\n Restructuring and other((2))                                     2.9                                 4.8\n Unallocated rent cost included in direct operating expense((3))  5.1                                 5.4\n Adjusted share-based compensation expense((4))                   40.3                                2.8\n Purchase accounting and related adjustments((5))                 2.0                                 3.2\n Intersegment eliminations((6))                                   —                                   (12.8)\n Adjusted OIBDA                                                   $          79.3                     $           (3.7)\n Corporate general and administrative expenses                    35.9                                32.1\n Total segment profit                                             $         115.2                     $          28.4\n\n (1)  Adjusted depreciation and amortization represent depreciation and amortization\n      as presented on the unaudited condensed consolidated statements of operations\n      less the depreciation and amortization related to the non-cash fair value\n      adjustments to property and equipment and intangible assets acquired in\n      acquisitions which are included in the purchase accounting and related\n      adjustments line item above, as shown in the table below:\n\n \n                                                                       Three Months Ended\n                                                                       June 30,\n                                                                       2026                                   2025\n Depreciation and amortization                                         $            4.4                       $            4.4\n Less: Amount included in purchase accounting and related adjustments  (1.0)                                  (0.9)\n Adjusted depreciation and amortization                                $            3.4                       $            3.5\n\n (2)  Restructuring and other includes restructuring and severance costs and certain\n      transaction and other costs, when applicable.\n\n \n                                   Three Months Ended\n                                   June 30,\n                                   2026                                   2025\n Restructuring and other:\n Severance((a))                    $            2.3                       $            1.7\n Transaction and other costs((b))  0.6                                    3.1\n Total restructuring and other     $            2.9                       $            4.8\n\n      (a)      Severance costs were primarily related to workforce reduction actions\n               undertaken in connection with restructuring activities, as well as other\n               cost-reduction initiatives.\n      (b)      Transaction and other costs primarily relate to transaction, integration and\n               legal costs incurred in connection with certain strategic transactions and\n               restructuring activities, as well as costs associated with certain legal\n               matters. For the three months ended June 30, 2025, transaction costs\n               associated with the Starz Separation are excluded, as such amounts are\n               classified within discontinued operations.\n (3)  Amounts represent rent cost for production facilities that were unutilized due\n      to lower demand following the industry strikes and, as such, were not\n      allocated to the Company's segments.\n (4)  The following table reconciles total share-based compensation expense to\n      adjusted share-based compensation expense:\n\n \n                                                        Three Months Ended\n                                                        June 30,\n                                                        2026                                2025\n Share-based compensation expense                       $          41.1                     $            1.7\n Less: Amount included in restructuring and other((a))  (0.8)                               1.1\n Adjusted share-based compensation                      $          40.3                     $            2.8\n\n      (a)      Amounts represent share-based compensation (expense) benefit recorded within\n               restructuring and other expenses, attributable to the accelerated vesting of\n               equity awards pursuant to certain severance arrangements.\n (5)  Purchase accounting and related adjustments primarily consist of the\n      amortization of non-cash fair value adjustments to certain assets acquired in\n      acquisitions. The table below presents the amounts included in each financial\n      statement line item for the three months ended June 30, 2026 and 2025:\n\n \n                                                    Three Months Ended\n                                                    June 30,\n                                                    2026                                   2025\n Purchase accounting and related adjustments:\n General and administrative expense((a))            $            1.0                       $            2.3\n Depreciation and amortization                      1.0                                    0.9\n Total purchase accounting and related adjustments  $            2.0                       $            3.2\n\n      (a)     Amounts represent compensation expense associated with the noncontrolling\n              equity interests in the distributable earnings of 3 Arts Entertainment. Due to\n              the link to continued employment performance, these amounts are classified as\n              general and administrative expense instead of noncontrolling interest in the\n              consolidated statements of operations.\n (6)  Amounts relate to the licensing of products from the Motion Picture and\n      Television Production segments to the former Media Networks segment prior to\n      the Starz Separation. Following the Starz Separation, licensing transactions\n      between the Company and Starz are no longer eliminated in consolidation and\n      are reflected in consolidated results from continuing operations.\n\nLIONSGATE STUDIOS CORP.\nRECONCILIATION OF NET INCOME (LOSS) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO\nLIONSGATE STUDIOS CORP. SHAREHOLDERS TO ADJUSTED NET INCOME (LOSS) FROM\nCONTINUING OPERATIONS ATTRIBUTABLE TO LIONSGATE STUDIOS CORP. SHAREHOLDERS AND\nBASIC AND DILUTED EPS FROM CONTINUING OPERATIONS TO ADJUSTED BASIC AND DILUTED\nEPS FROM CONTINUING OPERATIONS\n(Unaudited, amounts in millions, except per share amounts)\n                                                                                 Three Months Ended\n                                                                                 June 30,\n                                                                                 2026                                2025\n Reported Net Loss From Continuing Operations Attributable to Lionsgate Studios  $         (28.8)                    $         (94.0)\n Corp. Shareholders\n Adjusted share-based compensation expense                                       40.3                                2.8\n Restructuring and other                                                         2.9                                 4.8\n Unallocated rent cost included in direct operating expense                      5.1                                 5.4\n Purchase accounting and related adjustments                                     2.0                                 3.2\n Loss on extinguishment of debt                                                  —                                   1.0\n Gain on investments, net                                                        (1.3)                               (8.8)\n Noncontrolling interest impact of above items((1))                              (1.3)                               (2.5)\n Adjusted Net Income (Loss) From Continuing Operations Attributable to           $          18.9                     $         (88.1)\n Lionsgate Studios Corp. Shareholders\n\n Reported Basic EPS - Continuing Operations                                      $         (0.10)                    $         (0.35)\n Impact of adjustments on basic earnings per share                               0.16                                0.03\n Adjusted Basic EPS - Continuing Operations                                      $          0.06                     $         (0.32)\n\n Reported Diluted EPS - Continuing Operations                                    $         (0.10)                    $         (0.35)\n Impact of adjustments on diluted earnings per share                             0.16                                0.03\n Adjusted Diluted EPS - Continuing Operations                                    $          0.06                     $         (0.32)\n\n Adjusted weighted average number of common shares outstanding:\n Basic                                                                           291.6                               272.3\n Diluted                                                                         302.0                               272.3\n\n (1)  Represents the noncontrolling interest impact of the adjustments related to\n      subsidiaries that are not wholly-owned.\n\n \n LIONSGATE STUDIOS CORP.\n\nRECONCILIATION OF NET CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES\n FROM CONTINUING OPERATIONS\n\nTO ADJUSTED FREE CASH FLOW\n\n(Unaudited, amounts in millions)\n\n                                                                         Three Months Ended\n                                                                         June 30,\n                                                                         2026                                2025\n Net Cash Flows Provided By (Used In) Operating Activities - Continuing  $          54.1                     $        (109.1)\n Operations\n Capital expenditures                                                    (2.9)                               (3.5)\n Net borrowings and (repayment) of production and related loans((1)):\n Production loans                                                        78.7                                (3.1)\n Production tax credit facility                                          (1.0)                               3.8\n Adjusted Free Cash Flow                                                 $         128.9                     $        (111.9)\n\n (1)  See \"Reconciliation of Non-GAAP Adjustments for Net Borrowings and Repayment\n      of Production and Related Loans\" for reconciliation to the most directly\n      comparable U.S. GAAP financial measure.\n\nLIONSGATE STUDIOS CORP.\nRECONCILIATION OF NON-GAAP ADJUSTMENTS FOR NET BORROWINGS AND REPAYMENT OF\nPRODUCTION AND RELATED LOANS\n(Unaudited, amounts in millions)\n\nThe following tables reconcile the non-GAAP adjustments for net borrowings and\n(repayment) of production and related loans to the changes in the related\nbalance sheet amounts and the consolidated statement of cash flows:\n                                                                                 Three Months Ended June 30, 2026\n                                                                                 Non-GAAP Adjustments to Adjusted Free Cash Flow                                                              Total per U.S.\n                                                                                                                                                                                              GAAP Balance\n                                                                                                                                                                                              Sheet and\n                                                                                                                                                                                              Statement of\n                                                                                                                                                                                              Cash Flows\n                                                                                                                                                                                              Amounts\n                                                                                 Production                                 Production Tax                   Other Film\n                                                                                 Loans                                      Credit Facility                  Related\n                                                                                                                                                             Obligations\n Film related obligations at beginning of period (current and noncurrent)                                                                                                                     $      1,949.9\n\n Cash flows provided by (used in) financing activities - continuing operations\n Borrowings                                                                      $        328.8                             $         18.9                   $        127.7                   475.4\n Repayments                                                                      (250.1)                                    (19.9)                           (122.6)                          (392.6)\n                                                                                 $         78.7                             $         (1.0)                  $          5.1\n Cash flows provided by (used in) operating activities - continuing operations:\n Included in cash flows provided by (used in) operating activities -                                                                                                                          3.8\n continuing operations\n Film related obligations at end of period (current and noncurrent)                                                                                                                           $      2,036.5\n\n                                                                                 Three Months Ended June 30, 2025\n                                                                                 Non-GAAP Adjustments to Adjusted Free Cash Flow                                                              Total per U.S.\n                                                                                                                                                                                              GAAP Balance\n                                                                                                                                                                                              Sheet and\n                                                                                                                                                                                              Statement of\n                                                                                                                                                                                              Cash Flows\n                                                                                                                                                                                              Amounts\n                                                                                 Production                                  Production Tax                   Other Film\n                                                                                 Loans                                       Credit Facility                  Related\n                                                                                                                                                              Obligations\n Film related obligations at beginning of period (current and noncurrent)                                                                                                                     $      1,983.1\n\n Cash flows provided by (used in) financing activities - continuing operations:\n Borrowings                                                                      $        396.7                              $         10.7                   $        143.7                  551.1\n Repayments                                                                      (399.8)                                     (6.9)                            (73.1)                          (479.8)\n                                                                                 $         (3.1)                             $          3.8                   $         70.6\n Cash flows provided by (used in) operating activities - continuing operations:\n Included in cash flows provided by (used in) operating activities -                                                                                                                          5.9\n continuing operations\n Film related obligations at end of period (current and noncurrent)                                                                                                                           $      2,060.3\n\nLIONSGATE STUDIOS CORP.\nUSE OF NON-GAAP FINANCIAL MEASURES\n\nThis earnings release presents the following important financial measures\nutilized by the Company that are not all financial measures defined by U.S.\nGAAP. The Company uses non-GAAP financial measures, among other measures, to\nevaluate the operating performance of our business. These non-GAAP financial\nmeasures are in addition to, not a substitute for, or superior to, measures of\nfinancial performance prepared in accordance with U.S. GAAP.\n\nAdjusted OIBDA: Adjusted OIBDA is defined as operating income (loss) before\nadjusted depreciation and amortization (\"OIBDA\"), adjusted share-based\ncompensation (\"adjusted SBC\"), purchase accounting and related adjustments,\nrestructuring and other costs, certain charges (benefits) related to the\nCOVID-19 global pandemic, certain content charges, unallocated rent costs,\nintersegment profit eliminations, and unusual gains or losses, when\napplicable.\n\n * Adjusted depreciation and amortization represents depreciation and\namortization as presented on our consolidated statement of operations, less\nthe depreciation and amortization related to the amortization of purchase\naccounting and related adjustments associated with recent acquisitions.\nAccordingly, the full impact of the purchase accounting is included in the\nadjustment for \"purchase accounting and related adjustments\", described below.\n * Adjusted share-based compensation represents share-based compensation\nexcluding the impact of the acceleration of certain vesting schedules for\nequity awards pursuant to certain severance arrangements, which are included\nin restructuring and other expenses, when applicable.\n * Purchase accounting and related adjustments primarily represent the\namortization of non-cash fair value adjustments to certain assets acquired in\nrecent acquisitions. These adjustments include the non-cash charge for the\namortization of the recoupable portion of the purchase price and the expense\nassociated with the noncontrolling equity interests in the distributable\nearnings related to 3 Arts Entertainment, all of which are accounted for as\ncompensation and are included in general and administrative expense.\n * Restructuring and other includes restructuring and severance costs and certain\ntransaction and other costs, when applicable.\n * COVID-19 related charges or benefits include incremental costs associated with\nthe pausing and restarting of productions including paying/hiring certain cast\nand crew, maintaining idle facilities and equipment costs, and when\napplicable, certain motion picture and television impairments and development\ncharges associated with changes in performance expectations or the feasibility\nof completing the project resulting from circumstances associated with the\nCOVID-19 global pandemic, net of insurance recoveries, which are included in\ndirect operating expense, when applicable. In addition, the costs include\nearly or contractual marketing spends for film releases and events that have\nbeen canceled or delayed and will provide no economic benefit, which are\nincluded in distribution and marketing expense, when applicable.\n * Content charges include certain charges as a result of changes in content\nstrategy, which are included in direct operating expenses, when applicable.\n * Unallocated rent costs represent rent cost for production facilities that were\nunutilized as a result of the industry strikes, and therefore such amounts are\nnot allocated to the segments.\n * Intersegment profit eliminations relate to the licensing of products from the\nCompany's Studio Business to the former Media Networks segment prior to the\nStarz separation on May 6, 2025. Following the Starz Separation, the Company\nand Starz will continue to be parties to certain commercial agreements and\nlicensing of motion pictures or television programming to Starz. As a result,\nthe impacts of licensing motion pictures or television programming to Starz\nfollowing the Starz Separation are not eliminated in consolidation and are\nreflected in the consolidated results from continuing operations.\nAdjusted OIBDA is calculated similar to how the Company defines segment profit\nand manages and evaluates its segment operations. Segment profit also excludes\ncorporate general and administrative expense.\n\nTotal Segment Profit: Total segment profit is considered a non-GAAP financial\nmeasure, and should be considered in addition to, not as a substitute for, or\nsuperior to, measures of financial performance prepared in accordance with\nU.S. GAAP. We use this non-GAAP measure, among other measures, to evaluate the\naggregate operating performance of our business.\n\nWe believe the presentation of total segment profit is relevant and useful for\ninvestors because it allows investors to view total segment performance in a\nmanner similar to the primary method used by our management and enables them\nto understand the fundamental performance of our businesses before\nnon-operating items. Total segment profit is considered an important measure\nof the Company's performance because it reflects the aggregate profit\ncontribution from the Company's segments and represents a measure, consistent\nwith our segment profit, that eliminates amounts that, in management's\nopinion, do not necessarily reflect the fundamental performance of our\nbusinesses, are infrequent in occurrence, and in some cases are non-cash\nexpenses. Not all companies calculate segment profit or total segment profit\nin the same manner as defined by our management and similarly titled measures\npresented by other companies may not be comparable due to differences in the\nmethods of calculation and excluded items.\n\nAdjusted Free Cash Flow: Free cash flow is typically defined as net cash\nflows provided by (used in) operating activities, less capital expenditures.\nThe Company defines Adjusted Free Cash Flow as net cash flows provided by\n(used in) operating activities from continuing operations, less capital\nexpenditures, plus or minus the net increase or decrease in production and\nrelated loans (which includes our production tax credit facility), plus or\nminus certain unusual or non-recurring items.\n\nThe adjustment for the production and related loans, exclusive of our\nproduction tax credit facility, is made because the U.S. GAAP based cash flows\nfrom operations from continuing operations reflects a non-cash reduction of\ncash flows for the cost of films and television programs prior to the time the\nCompany pays for the film or television program through the payment of the\nassociated production or related loan which occurs at or near completion of\nthe production, or in some cases, over the period revenues and cash receipts\nare being generated, as more fully described below.\n\nThe cost of producing films and television programs, which is reflected as a\nreduction of the U.S. GAAP based cash flows provided by (used in) operating\nactivities from continuing operations, is often financed through production\nloans. The adjustment for production and related loans is made in order to\nbetter align the timing of the cash flows associated with producing films and\ntelevision programs with the timing of the repayment of the production loans,\nwhich is consistent with how management views its production cash spend and\nmanages the Company's cash flows and working capital needs. Borrowings on\nproduction loans offset the spend on investment in films reflected in the U.S.\nGAAP based cash flows provided by (used in) operating activities from\ncontinuing operations and thus increase the Adjusted Free Cash Flows as\ncompared to the U.S. GAAP based cash flows provided by (used in) operating\nactivities from continuing operations and subsequent payments on production\nloans reflect the payment for the production of the film or TV program and\nreduce Adjusted Free Cash Flows as compared to the U.S. GAAP based cash flows\nprovided by (used in) operating activities from continuing operations.\n\nThe adjustment for the production tax credit facility is made to better\nreflect the timing of the cash requirements of the production, since a portion\nof the amounts expended initially are later refunded through the receipt of\nthe tax credit, as more fully described below. The production tax credit\nfacility reduces the timing difference between the payments for production\ncost and the receipt of the tax credit and thus reflects the cash cost of the\nfilm or television program at or near the time the film or television program\nis produced and completed.\n\nPart of the cost of a film or television program is effectively funded through\nobtaining government incentives, however, the incentives are not received\nuntil a future period which could be a few years after the completion of the\nfilm. The tax credit facility reflects borrowings collateralized by the tax\ncredits to be received in the future and thus by including these borrowings in\nAdjusted Free Cash Flow it has the effect of better aligning the receipt of\nthe tax credits with the timing of the production and completion of the film\nand television programs, which is consistent with how management views its\nproduction cash spend and manages the Company's cash flows and working capital\nneeds. Borrowings under the tax credit facility reduce the cash spend\nreflected in the U.S. GAAP based cash flows provided by (used in) operating\nactivities from continuing operations and thus increase adjusted free cash\nflows and payments on the tax credit facility offset the tax credit receivable\ncollection reflected in the U.S. GAAP based cash flows provided by (used in)\noperating activities from continuing operations and reduce adjusted free cash\nflows as compared to the U.S. GAAP based cash flows provided by (used in)\noperating activities from continuing operations.\n\nThe Company believes that it is more meaningful to reflect the impact of the\npayment for these films and television programs when the payments are made\nunder the production loans and the receipt of the tax credit when the film is\nbeing produced in its Adjusted Free Cash Flow.\n\nAdjusted Net Income (Loss) - Continuing Operations Attributable to Lionsgate\nStudios Corp. Shareholders: Adjusted net income (loss) from continuing\noperations attributable to Lionsgate Studios Corp. shareholders is defined as\nnet income (loss) from continuing operations attributable to Lionsgate Studios\nCorp. shareholders, adjusted for share-based compensation, purchase accounting\nand related adjustments, restructuring and other items, unallocated rent costs\nrelated to unutilized facilities, net gains or losses on investments and\nother, gain or loss on extinguishment of debt, COVID-19 related charges\n(benefit), settlement litigation charge, unusual gains or losses, when\napplicable, as described in the Adjusted OIBDA definition, and net of the\nimpact of the adjustments on noncontrolling interest.\n\nAdjusted Basic and Diluted EPS - Continuing Operations: Adjusted basic\nearnings (loss) per share is defined as adjusted net income (loss) from\ncontinuing operations attributable to Lionsgate Studios Corp. shareholders\ndivided by the weighted average shares outstanding. Diluted EPS is similar to\nbasic EPS but is adjusted for the effects of securities that are diluted based\non the level of adjusted net income (loss) from continuing operations, similar\nto U.S. GAAP.\n\nOverall: These measures are non-GAAP financial measures as defined in\nRegulation G promulgated by the SEC and are in addition to, not a substitute\nfor, or superior to, measures of financial performance prepared in accordance\nwith U.S. GAAP.\n\nWe use these non-GAAP measures, among other measures, to evaluate the\noperating performance of our business. We believe these measures provide\nuseful information to investors regarding our results of operations and cash\nflows before non-operating items. Adjusted OIBDA is considered an important\nmeasure of the Company's performance because this measure eliminates amounts\nthat, in management's opinion, do not necessarily reflect the fundamental\nperformance of the Company's businesses, are infrequent in occurrence, and in\nsome cases are non-cash expenses. Adjusted Free Cash Flow is considered an\nimportant measure of the Company's liquidity because it provides information\nabout the ability of the Company to reduce net corporate debt, make strategic\ninvestments, dividends and share repurchases. Adjusted Net Income (Loss) from\nContinuing Operations Attributable to Lionsgate Studios Corp. Shareholders and\nAdjusted EPS are considered important measures of the Company's business\noperations as, similar to Adjusted OIBDA, these measures eliminate amounts\nthat, in management's opinion, do not necessarily reflect the fundamental\nperformance of the Company's businesses.\n\nThese non-GAAP measures are commonly used in the entertainment industry and by\nfinancial analysts and others who follow the industry to measure operating\nperformance. However, not all companies calculate these measures in the same\nmanner and the measures as presented may not be comparable to similarly titled\nmeasures presented by other companies due to differences in the methods of\ncalculation and excluded items.\n\nA general limitation of these non-GAAP financial measures is that they are not\nprepared in accordance with U.S. generally accepted accounting principles.\nThese measures should be reviewed in conjunction with the relevant U.S. GAAP\nfinancial measures and are not presented as alternative measures of operating\nincome, cash flow, net income (loss) from continuing operations, or earnings\n(loss) per share from continuing operations as determined in accordance with\nU.S. GAAP. Reconciliations of the adjusted metrics utilized to their\ncorresponding U.S. GAAP metrics are provided above.\n\nView original content to download\nmultimedia:https://www.prnewswire.com/news-releases/lionsgate-reports-results-for-first-quarter-fiscal-2027-302845344.html\n(https://www.prnewswire.com/news-releases/lionsgate-reports-results-for-first-quarter-fiscal-2027-302845344.html)\n\nSOURCE Lionsgate\n\n\n\nPhoto: \nhttps://mmx.prnewswire.com/media/MS235633/Lionsgate-Logo.jpg?id=OA2833701\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved.","article_body_html":"","raw_payload":{"data":{"id":"nPn2wrn0Fa","title":"LIONSGATE REPORTS RESULTS FOR FIRST QUARTER FISCAL 2027","author":"PR Newswire","ticker":"LION","created":"2026-08-06T20:05:03.737Z","tickers":["LION"],"exchange":"NYSE","article_body":"LIONSGATE REPORTS RESULTS FOR FIRST QUARTER FISCAL 2027\n\nPR Newswire\n\nSANTA MONICA, Calif. and VANCOUVER, BC, Aug. 6, 2026\n\nRevenue was $776.6 Million, Up 48% Year-over-Year\n\nOperating Income was $25.6 Million\n\nNet Loss from Continuing Operations Attributable to Shareholders was $28.8\nMillion, or $0.10 Diluted Net Loss Per Share\n\nAdjusted Net Income from Continuing Operations Attributable to Shareholders\nwas $18.9 Million, or $0.06 Adjusted Diluted Net Income Per Share\n\nAdjusted OIBDA was $79.3 Million\n\nNet Cash Flows Provided by Operating Activities were $54 Million in the\nQuarter; Adjusted Free Cash Flow was $128.9 Million\n\nSANTA MONICA, Calif. and VANCOUVER, BC, Aug. 6, 2026 /PRNewswire/ -- Lionsgate\nStudios Corp. (NYSE: LION) today reported first quarter results for the\nquarter ended June 30, 2026.\n\nThe Company reported first quarter revenue of $776.6 million, operating income\nof $25.6 million and net loss from continuing operations attributable to\nshareholders of $28.8 million, or $0.10 diluted net loss per share on 292\nmillion diluted weighted average common shares outstanding. Adjusted net\nincome from continuing operations attributable to shareholders in the quarter\nwas $18.9 million or $0.06 adjusted diluted net income per share on 302\nmillion diluted weighted average common shares outstanding.  Adjusted OIBDA\nwas $79.3 million in the quarter.\n\n\"I'm pleased to report another quarter of strong financial results and growing\nmomentum across our business,\" said Lionsgate CEO Jon Feltheimer. \"As we\ncontinue to execute our franchise strategy across a deep portfolio of branded\nintellectual properties, generate increased visibility and stability from our\nfilm and television library, and benefit from continued improvement in our\noperating environment, we are positioned to deliver strong growth in fiscal\n2027 and beyond.\"\n\nTrailing 12-month library revenue was $987 million.  Filmed entertainment\nbacklog (contractual future revenue not yet recognized) increased 21%\nyear-over-year to $1.5 billion.  Driven by strong free cash flow, leverage\nimproved by nearly two turns from the March quarter to 4.3x trailing 12-month\nadjusted OIBDA.\n\nFirst Quarter Segment Results\n\nMotion Picture segment revenue of $587.3 million more than doubled from the\nprior year quarter and segment profit was $105 million, a record for the first\nquarter.  The results were driven by the success of recent theatrical\nreleases, including the billion-dollar worldwide box office performance of\nMichael, the highest-grossing biopic of all time, and the strong ancillary\nperformance of The Housemaid.\n\nTelevision Production segment revenue of $189.3 million and segment profit of\n$10.2 million declined from the prior year quarter due to the timing of\nepisodic deliveries. The Company continues to anticipate doubling scripted\ndeliveries in fiscal 2027 relative to fiscal 2026.\n\nLionsgate senior management will hold its analyst and investor conference call\nto discuss fiscal 2027 first quarter results today, August 6, at 5:00 PM\nET/2:00 PM PT.  Interested parties may listen to the live webcast by visiting\nthe events page on the Lionsgate Investor Relations website\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4747590-1&h=1878393243&u=https%3A%2F%2Finvestors.lionsgate.com%2Foverview%2Fdefault.aspx&a=website)\n. Alternatively, interested parties can join the webcast directly via the\nfollowing link\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4747590-1&h=3454147235&u=https%3A%2F%2Fevent.choruscall.com%2Fmediaframe%2Fwebcast.html%3Fwebcastid%3DIDVmCuDV&a=link)\n. A full replay will become available this evening by clicking the same link.\n\nAbout Lionsgate\n\nLionsgate (NYSE: LION) is one of the world's leading standalone, pure play\ncontent companies. It brings together diversified motion picture and\ntelevision production and distribution businesses, a world-class portfolio of\nvaluable brands and franchises, a premier talent management and production\npowerhouse at 3 Arts Entertainment and a more than 20,000-title film and\ntelevision library, all driven by Lionsgate's bold and entrepreneurial\nculture.\n\nFor further information, investors should contact:\nNilay Shah\n310-255-3651\nnshah@lionsgate.com (mailto:nshah@lionsgate.com)\n\nFor media inquiries, please contact:\nPeter D. Wilkes\n310-255-3726\npwilkes@lionsgate.com (mailto:pwilkes@lionsgate.com)\n\nLaurel Pecchia\n310-255-5114\nlpecchia@lionsgate.com (mailto:lpecchia@lionsgate.com)\n\nThe matters discussed in this press release include forward-looking\nstatements, including those regarding the performance of future fiscal\nyears.  Such statements are subject to a number of risks and uncertainties.\nActual results in the future could differ materially and adversely from those\ndescribed in the forward-looking statements as a result of various important\nfactors, including, but not limited to: the substantial investment of capital\nrequired to produce and market films and television series; budget overruns;\nlimitations imposed by our credit facility and notes; unpredictability of the\ncommercial success of our motion pictures and television programming; risks\nrelated to acquisition and integration of acquired businesses; the effects of\ndispositions of businesses or assets, including individual films or libraries;\nthe cost of defending our intellectual property; technological changes and\nother trends affecting the entertainment industry; potential adverse reactions\nor changes to business or employee relationships; weakness in the global\neconomy and financial markets, including a recession, bank failures and\ngeneral economic uncertainty; wars, terrorism and multiple international\nconflicts that could cause significant economic disruption and political and\nsocial instability; labor disruptions and strikes; the volatility of currency\nexchange rates; our ability to manage growth; the effects of competition on\nour future business; the impact of and changes in governmental regulations or\nthe enforcement thereof, tax laws and rates, accounting guidance and similar\nmatters in regions in which we operate or will operate in the future;\ninternational, national or local economic, social or political conditions that\ncould adversely affect our business; the effectiveness of our internal\ncontrols and our corporate policies and procedures; changes in personnel and\navailability of qualified personnel; the volatility of the market price and\nliquidity of our common shares; and the other risk factors set forth in\nLionsgate's public filings with the Securities and Exchange Commission.  The\ncompany undertakes no obligation to publicly release the result of any\nrevisions to these forward-looking statements that may be made to reflect any\nfuture events or circumstances.\n\nAdditional Information Available on Websites\nThe information in this press release should be read in conjunction with the\nfinancial statements and footnotes contained in Lionsgate's Quarterly Report\non Form 10-Q for the period ended June 30, 2026, which will be posted on\nLionsgate's website at http://investors.lionsgate.com/\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4747590-1&h=4236424331&u=https%3A%2F%2Finvestors.lionsgate.com%2Foverview%2Fdefault.aspx&a=http%3A%2F%2Finvestors.lionsgate.com%2F)\n.  Trending schedules containing certain financial information will also be\navailable.\n LIONSGATE STUDIOS CORP.\n\nCONSOLIDATED BALANCE SHEETS\n\n(Unaudited, amounts in millions)\n\n                                                                                June 30,                    March 31,\n                                                                                2026                        2026\n ASSETS\n Current assets:\n Cash and cash equivalents                                                      $         425.8             $         341.5\n Accounts receivable, net                                                       665.9                       784.8\n Other current assets                                                           366.6                       362.4\n Total current assets                                                           1,458.3                     1,488.7\n Investment in films and television programs, net                               2,162.9                     2,128.4\n Property and equipment, net                                                    34.5                        34.9\n Investments                                                                    40.1                        41.1\n Intangible assets, net                                                         24.7                        25.8\n Goodwill                                                                       846.8                       846.8\n Other noncurrent assets                                                        765.7                       761.4\n Total assets                                                                   $       5,333.0             $       5,327.1\n LIABILITIES\n Current liabilities:\n Accounts payable                                                               $         169.6             $         213.4\n Content related payables - current                                             22.5                        38.0\n Accrued expenses and other current liabilities                                 351.0                       354.0\n Participations and residuals - current                                         626.9                       615.6\n Film related obligations - current                                             1,622.1                     1,293.4\n Debt - current                                                                 162.1                       162.1\n Deferred revenue - current                                                     366.5                       370.4\n Total current liabilities                                                      3,320.7                     3,046.9\n Debt - noncurrent                                                              1,740.1                     1,778.1\n Participations and residuals - noncurrent                                      515.9                       485.2\n Film related obligations - noncurrent                                          414.4                       656.5\n Other noncurrent liabilities                                                   295.5                       308.1\n Deferred revenue - noncurrent                                                  90.1                        87.6\n Deferred tax liabilities                                                       14.4                        14.1\n Total liabilities                                                              6,391.1                     6,376.5\n\n Redeemable noncontrolling interest                                             112.0                       114.1\n\n EQUITY (DEFICIT)\n Common shares, no par value, unlimited shares authorized, 293.0 shares issued  2,530.9                     2,496.6\n (March 31, 2026 - 290.4)\n Accumulated deficit                                                            (3,762.1)                   (3,732.9)\n Accumulated other comprehensive income                                         31.0                        43.4\n Total Lionsgate Studios Corp. shareholders' equity (deficit)                   (1,200.2)                   (1,192.9)\n Noncontrolling interests                                                       30.1                        29.4\n Total equity (deficit)                                                         (1,170.1)                   (1,163.5)\n Total liabilities, redeemable noncontrolling interests and equity (deficit)    $       5,333.0             $       5,327.1\n\n \n LIONSGATE STUDIOS CORP.\n\nCONSOLIDATED STATEMENTS OF OPERATIONS\n\n(Unaudited, amounts in millions, except per share amounts)\n\n                                                                              Three Months Ended\n                                                                              June 30,\n                                                                              2026                                  2025\n Revenues                                                                     $         776.6                       $         525.9\n Expenses:\n Direct operating                                                             497.0                                 339.0\n Distribution and marketing                                                   121.8                                 118.1\n General and administration                                                   124.9                                 70.2\n Depreciation and amortization                                                4.4                                   4.4\n Restructuring and other                                                      2.9                                   4.8\n Total expenses                                                               751.0                                 536.5\n Operating income (loss)                                                      25.6                                  (10.6)\n Other income (expenses):\n Interest expense                                                             (56.9)                                (68.7)\n Interest and other income                                                    4.8                                   4.4\n Other gain (loss), net                                                       3.7                                   (17.0)\n Loss on extinguishment of debt                                               —                                     (1.0)\n Gain on investments, net                                                     1.3                                   8.8\n Equity interests loss                                                        —                                     (1.2)\n Loss from continuing operations before income taxes                          (21.5)                                (85.3)\n Income tax provision                                                         (7.8)                                 (6.4)\n Net loss from continuing operations, net of income taxes                     (29.3)                                (91.7)\n Net loss from discontinued operations, net of income taxes                   —                                     (14.9)\n Net loss                                                                     (29.3)                                (106.6)\n Net (income) loss attributable to noncontrolling interests                   0.5                                   (2.3)\n Net loss attributable to Lionsgate Studios Corp. shareholders                $          (28.8)                     $        (108.9)\n\n Amounts attributable to Lionsgate Studios Corp. shareholders:\n Net loss from continuing operations                                          $          (28.8)                     $          (94.0)\n Net loss from discontinued operations, net of income taxes                   —                                     (14.9)\n Net loss attributable to Lionsgate Studios Corp. shareholders                $          (28.8)                     $        (108.9)\n\n Per share information attributable to Lionsgate Studios Corp. shareholders:\n Basic net loss per common share - continuing operations                      $          (0.10)                     $          (0.35)\n Basic net loss per common share - discontinued operations                    —                                     (0.05)\n Basic net loss per common share                                              $          (0.10)                     $          (0.40)\n\n Diluted net loss per common share - continuing operations                    $          (0.10)                     $          (0.35)\n Diluted net loss per common share - discontinued operations                  —                                     (0.05)\n Diluted net loss per common share                                            $          (0.10)                     $          (0.40)\n\n Weighted average number of common shares outstanding:\n Basic                                                                        291.6                                 272.3\n Diluted                                                                      291.6                                 272.3\n\n \n LIONSGATE STUDIOS CORP.\n\nCONSOLIDATED STATEMENTS OF CASH FLOWS\n\n(Unaudited, amounts in millions)\n\n                                                                                Three Months Ended\n                                                                                June 30,\n                                                                                2026                                  2025\n Operating Activities:\n Net loss                                                                       $          (29.3)                     $        (106.6)\n Less: Net loss from discontinued operations, net of tax                        —                                     (14.9)\n Net loss from continuing operations, net of tax                                (29.3)                                (91.7)\n Adjustments to reconcile net loss to net cash provided by (used in) operating\n activities:\n Depreciation and amortization                                                  4.4                                   4.4\n Amortization of films and television programs                                  264.9                                 224.4\n Amortization of debt financing costs and other non-cash interest (benefit)     (0.3)                                 3.6\n Non-cash share-based compensation                                              41.1                                  1.7\n Other non-cash items                                                           6.4                                   25.3\n Loss on extinguishment of debt                                                 —                                     1.0\n Equity interests loss                                                          —                                     1.2\n Gain on investments, net                                                       (1.3)                                 (8.8)\n Deferred income taxes                                                          0.3                                   0.1\n Changes in operating assets and liabilities:\n Accounts receivable, net                                                       131.1                                 7.4\n Investment in films and television programs, net                               (300.6)                               (250.2)\n Other assets                                                                   (29.4)                                13.3\n Accounts payable and accrued liabilities                                       (58.8)                                (20.2)\n Participations and residuals                                                   42.9                                  (26.0)\n Content related payables                                                       (15.9)                                (9.8)\n Deferred revenue                                                               (1.4)                                 15.2\n Net Cash Flows Provided By (Used In) Operating Activities - Continuing         54.1                                  (109.1)\n Operations\n Net Cash Flows Provided By Operating Activities - Discontinued Operations      —                                     78.1\n Net Cash Flows Provided By (Used In) Operating Activities                      54.1                                  (31.0)\n Investing Activities:\n Acquisitions of businesses, net of cash acquired                               —                                     (29.4)\n Proceeds from the sale of equity method and other investments                  —                                     34.0\n Investments in equity method investees and other, net                          —                                     (1.5)\n Repayment of loans receivable, net                                             0.1                                   —\n Capital expenditures                                                           (2.9)                                 (3.5)\n Net Cash Flows Used In Investing Activities - Continuing Operations            (2.8)                                 (0.4)\n Net Cash Flows Used In Investing Activities - Discontinued Operations          —                                     (1.5)\n Net Cash Flows Used in Investing Activities                                    (2.8)                                 (1.9)\n Financing Activities:\n Debt - borrowings, net of debt issuance and redemption costs                   294.3                                 696.4\n Debt - repurchases and repayments                                              (335.5)                               (1,007.9)\n Film related obligations - borrowings                                          475.4                                 551.1\n Film related obligations - repayments                                          (392.6)                               (479.8)\n Cash settlement in connection with Starz Separation refinancing                —                                     262.8\n Sale of noncontrolling interest in Legacy Lionsgate Studios Corp.              —                                     (3.5)\n Distributions to noncontrolling interest                                       (1.4)                                 (0.8)\n Exercise of stock options                                                      5.6                                   —\n Tax withholding required on equity awards                                      (15.9)                                (0.3)\n Net Cash Flows Provided By Financing Activities - Continuing Operations        29.9                                  18.0\n Net Cash Flows Used In Financing Activities - Discontinued Operations          —                                     (22.3)\n Net Cash Flows Provided By (Used In) Financing Activities                      29.9                                  (4.3)\n Net Change In Cash, Cash Equivalents and Restricted Cash                       81.2                                  (37.2)\n Foreign Exchange Effects on Cash, Cash Equivalents and Restricted Cash         (1.6)                                 3.2\n Cash, Cash Equivalents and Restricted Cash - Beginning Of Period               419.8                                 291.6\n Cash, Cash Equivalents and Restricted Cash - End Of Period                     $         499.4                       $         257.6\n\nLIONSGATE STUDIOS CORP.\nSEGMENT INFORMATION\n(Unaudited, amounts in millions)\n\nThe Company has two reportable business segments: (1) Motion Picture and (2)\nTelevision Production.\n\n(1)  Motion Picture. Motion Picture consists of the development and\nproduction of feature films, acquisition of North American and worldwide\ndistribution rights, North American theatrical, home entertainment and\ntelevision distribution of feature films produced and acquired, and worldwide\nlicensing of distribution rights to feature films produced and acquired.\n\n(2) Television Production. Television Production consists of the development,\nproduction and worldwide distribution of television productions including\ntelevision series, television movies and mini-series and non-fiction\nprogramming. Television Production includes the licensing of Starz original\nseries productions to Starz, and the ancillary market distribution of Starz\noriginal productions and licensed product (prior to the Starz Separation,\nlicensing to the former Media Networks segment). Additionally, the Television\nProduction segment includes the results of operations of 3 Arts Entertainment.\n\nIn the ordinary course of business, the Company's reportable segments enter\ninto transactions with one another. Prior to the Starz Separation, the most\nsignificant intersegment transactions were licenses of motion pictures and\ntelevision programming, including Starz original productions, from the Motion\nPicture and Television Production segments to the former Media Networks\nsegment. These transactions were included in segment results but eliminated in\nconsolidation. Following the Starz Separation, licensing transactions between\nthe Company and Starz are no longer eliminated in consolidation and are\nreflected in consolidated results from continuing operations.\n\nSegment information for the three months ended June 30, 2026 and 2025 is\npresented in the tables below:\n                                                     Three Months Ended\n                                                     June 30,\n                                                     2026                                  2025\n Segment revenues\n Studio Business:\n Motion Picture                                      $         587.3                       $         267.3\n Television Production                               189.3                                 288.5\n Total Studio Business                               776.6                                 555.8\n Intersegment eliminations                           —                                     (29.9)\n                                                     $         776.6                       $         525.9\n Segment profit\n Studio Business:\n Motion Picture                                      $         105.0                       $            2.4\n Television Production                               10.2                                  26.0\n Total Studio Business                               115.2                                 28.4\n Corporate general and administrative expenses((1))  (35.9)                                (32.1)\n Adjusted OIBDA((1))                                 $           79.3                      $           (3.7)\n\n (1)  See \"Use of Non-GAAP Financial Measures\" for the definition of segment profit\n      and Adjusted OIBDA and the reconciliation to the most directly comparable U.S.\n      GAAP financial measure.\n\nThe CODM uses segment profit to evaluate the current operating performance of\neach segment, support future operating plans and forecasts and to allocate\nresources. Segment profit is defined as segment revenues, less segment direct\noperating, segment distribution and marketing and segment general and\nadministration expenses. Segment profit excludes, when applicable, corporate\ngeneral and administrative expenses, restructuring and other costs,\nshare-based compensation, certain content charges as a result of changes in\nmanagement and/or content strategy, unallocated rent cost and purchase\naccounting and related adjustments. The Company believes the presentation of\nsegment profit is relevant and useful for investors because it allows\ninvestors to view segment performance in a manner similar to the method used\nby the Company's CODM.\n\nTotal segment profit, when presented outside of the segment information is\nconsidered a non-GAAP financial measure, and should be considered in addition\nto, not as a substitute for, or superior to, measures of financial performance\nprepared in accordance with U.S. GAAP. The Company uses this non-GAAP measure,\namong other measures, to evaluate the aggregate operating performance of its\nbusiness.\n\nLIONSGATE STUDIOS CORP.\nRECONCILIATION OF OPERATING INCOME (LOSS)\nTO ADJUSTED OIBDA AND TOTAL STUDIO BUSINESS SEGMENT PROFIT\n(Unaudited, amounts in millions)\n\nThe following table reconciles the U.S GAAP measure, Operating income (loss),\nto the non-GAAP measures, Adjusted OIBDA and Total segment profit:\n                                                                  Three Months Ended\n                                                                  June 30,\n                                                                  2026                                2025\n Operating income (loss)                                          $          25.6                     $         (10.6)\n Adjusted depreciation and amortization((1))                      3.4                                 3.5\n Restructuring and other((2))                                     2.9                                 4.8\n Unallocated rent cost included in direct operating expense((3))  5.1                                 5.4\n Adjusted share-based compensation expense((4))                   40.3                                2.8\n Purchase accounting and related adjustments((5))                 2.0                                 3.2\n Intersegment eliminations((6))                                   —                                   (12.8)\n Adjusted OIBDA                                                   $          79.3                     $           (3.7)\n Corporate general and administrative expenses                    35.9                                32.1\n Total segment profit                                             $         115.2                     $          28.4\n\n (1)  Adjusted depreciation and amortization represent depreciation and amortization\n      as presented on the unaudited condensed consolidated statements of operations\n      less the depreciation and amortization related to the non-cash fair value\n      adjustments to property and equipment and intangible assets acquired in\n      acquisitions which are included in the purchase accounting and related\n      adjustments line item above, as shown in the table below:\n\n \n                                                                       Three Months Ended\n                                                                       June 30,\n                                                                       2026                                   2025\n Depreciation and amortization                                         $            4.4                       $            4.4\n Less: Amount included in purchase accounting and related adjustments  (1.0)                                  (0.9)\n Adjusted depreciation and amortization                                $            3.4                       $            3.5\n\n (2)  Restructuring and other includes restructuring and severance costs and certain\n      transaction and other costs, when applicable.\n\n \n                                   Three Months Ended\n                                   June 30,\n                                   2026                                   2025\n Restructuring and other:\n Severance((a))                    $            2.3                       $            1.7\n Transaction and other costs((b))  0.6                                    3.1\n Total restructuring and other     $            2.9                       $            4.8\n\n      (a)      Severance costs were primarily related to workforce reduction actions\n               undertaken in connection with restructuring activities, as well as other\n               cost-reduction initiatives.\n      (b)      Transaction and other costs primarily relate to transaction, integration and\n               legal costs incurred in connection with certain strategic transactions and\n               restructuring activities, as well as costs associated with certain legal\n               matters. For the three months ended June 30, 2025, transaction costs\n               associated with the Starz Separation are excluded, as such amounts are\n               classified within discontinued operations.\n (3)  Amounts represent rent cost for production facilities that were unutilized due\n      to lower demand following the industry strikes and, as such, were not\n      allocated to the Company's segments.\n (4)  The following table reconciles total share-based compensation expense to\n      adjusted share-based compensation expense:\n\n \n                                                        Three Months Ended\n                                                        June 30,\n                                                        2026                                2025\n Share-based compensation expense                       $          41.1                     $            1.7\n Less: Amount included in restructuring and other((a))  (0.8)                               1.1\n Adjusted share-based compensation                      $          40.3                     $            2.8\n\n      (a)      Amounts represent share-based compensation (expense) benefit recorded within\n               restructuring and other expenses, attributable to the accelerated vesting of\n               equity awards pursuant to certain severance arrangements.\n (5)  Purchase accounting and related adjustments primarily consist of the\n      amortization of non-cash fair value adjustments to certain assets acquired in\n      acquisitions. The table below presents the amounts included in each financial\n      statement line item for the three months ended June 30, 2026 and 2025:\n\n \n                                                    Three Months Ended\n                                                    June 30,\n                                                    2026                                   2025\n Purchase accounting and related adjustments:\n General and administrative expense((a))            $            1.0                       $            2.3\n Depreciation and amortization                      1.0                                    0.9\n Total purchase accounting and related adjustments  $            2.0                       $            3.2\n\n      (a)     Amounts represent compensation expense associated with the noncontrolling\n              equity interests in the distributable earnings of 3 Arts Entertainment. Due to\n              the link to continued employment performance, these amounts are classified as\n              general and administrative expense instead of noncontrolling interest in the\n              consolidated statements of operations.\n (6)  Amounts relate to the licensing of products from the Motion Picture and\n      Television Production segments to the former Media Networks segment prior to\n      the Starz Separation. Following the Starz Separation, licensing transactions\n      between the Company and Starz are no longer eliminated in consolidation and\n      are reflected in consolidated results from continuing operations.\n\nLIONSGATE STUDIOS CORP.\nRECONCILIATION OF NET INCOME (LOSS) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO\nLIONSGATE STUDIOS CORP. SHAREHOLDERS TO ADJUSTED NET INCOME (LOSS) FROM\nCONTINUING OPERATIONS ATTRIBUTABLE TO LIONSGATE STUDIOS CORP. SHAREHOLDERS AND\nBASIC AND DILUTED EPS FROM CONTINUING OPERATIONS TO ADJUSTED BASIC AND DILUTED\nEPS FROM CONTINUING OPERATIONS\n(Unaudited, amounts in millions, except per share amounts)\n                                                                                 Three Months Ended\n                                                                                 June 30,\n                                                                                 2026                                2025\n Reported Net Loss From Continuing Operations Attributable to Lionsgate Studios  $         (28.8)                    $         (94.0)\n Corp. Shareholders\n Adjusted share-based compensation expense                                       40.3                                2.8\n Restructuring and other                                                         2.9                                 4.8\n Unallocated rent cost included in direct operating expense                      5.1                                 5.4\n Purchase accounting and related adjustments                                     2.0                                 3.2\n Loss on extinguishment of debt                                                  —                                   1.0\n Gain on investments, net                                                        (1.3)                               (8.8)\n Noncontrolling interest impact of above items((1))                              (1.3)                               (2.5)\n Adjusted Net Income (Loss) From Continuing Operations Attributable to           $          18.9                     $         (88.1)\n Lionsgate Studios Corp. Shareholders\n\n Reported Basic EPS - Continuing Operations                                      $         (0.10)                    $         (0.35)\n Impact of adjustments on basic earnings per share                               0.16                                0.03\n Adjusted Basic EPS - Continuing Operations                                      $          0.06                     $         (0.32)\n\n Reported Diluted EPS - Continuing Operations                                    $         (0.10)                    $         (0.35)\n Impact of adjustments on diluted earnings per share                             0.16                                0.03\n Adjusted Diluted EPS - Continuing Operations                                    $          0.06                     $         (0.32)\n\n Adjusted weighted average number of common shares outstanding:\n Basic                                                                           291.6                               272.3\n Diluted                                                                         302.0                               272.3\n\n (1)  Represents the noncontrolling interest impact of the adjustments related to\n      subsidiaries that are not wholly-owned.\n\n \n LIONSGATE STUDIOS CORP.\n\nRECONCILIATION OF NET CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES\n FROM CONTINUING OPERATIONS\n\nTO ADJUSTED FREE CASH FLOW\n\n(Unaudited, amounts in millions)\n\n                                                                         Three Months Ended\n                                                                         June 30,\n                                                                         2026                                2025\n Net Cash Flows Provided By (Used In) Operating Activities - Continuing  $          54.1                     $        (109.1)\n Operations\n Capital expenditures                                                    (2.9)                               (3.5)\n Net borrowings and (repayment) of production and related loans((1)):\n Production loans                                                        78.7                                (3.1)\n Production tax credit facility                                          (1.0)                               3.8\n Adjusted Free Cash Flow                                                 $         128.9                     $        (111.9)\n\n (1)  See \"Reconciliation of Non-GAAP Adjustments for Net Borrowings and Repayment\n      of Production and Related Loans\" for reconciliation to the most directly\n      comparable U.S. GAAP financial measure.\n\nLIONSGATE STUDIOS CORP.\nRECONCILIATION OF NON-GAAP ADJUSTMENTS FOR NET BORROWINGS AND REPAYMENT OF\nPRODUCTION AND RELATED LOANS\n(Unaudited, amounts in millions)\n\nThe following tables reconcile the non-GAAP adjustments for net borrowings and\n(repayment) of production and related loans to the changes in the related\nbalance sheet amounts and the consolidated statement of cash flows:\n                                                                                 Three Months Ended June 30, 2026\n                                                                                 Non-GAAP Adjustments to Adjusted Free Cash Flow                                                              Total per U.S.\n                                                                                                                                                                                              GAAP Balance\n                                                                                                                                                                                              Sheet and\n                                                                                                                                                                                              Statement of\n                                                                                                                                                                                              Cash Flows\n                                                                                                                                                                                              Amounts\n                                                                                 Production                                 Production Tax                   Other Film\n                                                                                 Loans                                      Credit Facility                  Related\n                                                                                                                                                             Obligations\n Film related obligations at beginning of period (current and noncurrent)                                                                                                                     $      1,949.9\n\n Cash flows provided by (used in) financing activities - continuing operations\n Borrowings                                                                      $        328.8                             $         18.9                   $        127.7                   475.4\n Repayments                                                                      (250.1)                                    (19.9)                           (122.6)                          (392.6)\n                                                                                 $         78.7                             $         (1.0)                  $          5.1\n Cash flows provided by (used in) operating activities - continuing operations:\n Included in cash flows provided by (used in) operating activities -                                                                                                                          3.8\n continuing operations\n Film related obligations at end of period (current and noncurrent)                                                                                                                           $      2,036.5\n\n                                                                                 Three Months Ended June 30, 2025\n                                                                                 Non-GAAP Adjustments to Adjusted Free Cash Flow                                                              Total per U.S.\n                                                                                                                                                                                              GAAP Balance\n                                                                                                                                                                                              Sheet and\n                                                                                                                                                                                              Statement of\n                                                                                                                                                                                              Cash Flows\n                                                                                                                                                                                              Amounts\n                                                                                 Production                                  Production Tax                   Other Film\n                                                                                 Loans                                       Credit Facility                  Related\n                                                                                                                                                              Obligations\n Film related obligations at beginning of period (current and noncurrent)                                                                                                                     $      1,983.1\n\n Cash flows provided by (used in) financing activities - continuing operations:\n Borrowings                                                                      $        396.7                              $         10.7                   $        143.7                  551.1\n Repayments                                                                      (399.8)                                     (6.9)                            (73.1)                          (479.8)\n                                                                                 $         (3.1)                             $          3.8                   $         70.6\n Cash flows provided by (used in) operating activities - continuing operations:\n Included in cash flows provided by (used in) operating activities -                                                                                                                          5.9\n continuing operations\n Film related obligations at end of period (current and noncurrent)                                                                                                                           $      2,060.3\n\nLIONSGATE STUDIOS CORP.\nUSE OF NON-GAAP FINANCIAL MEASURES\n\nThis earnings release presents the following important financial measures\nutilized by the Company that are not all financial measures defined by U.S.\nGAAP. The Company uses non-GAAP financial measures, among other measures, to\nevaluate the operating performance of our business. These non-GAAP financial\nmeasures are in addition to, not a substitute for, or superior to, measures of\nfinancial performance prepared in accordance with U.S. GAAP.\n\nAdjusted OIBDA: Adjusted OIBDA is defined as operating income (loss) before\nadjusted depreciation and amortization (\"OIBDA\"), adjusted share-based\ncompensation (\"adjusted SBC\"), purchase accounting and related adjustments,\nrestructuring and other costs, certain charges (benefits) related to the\nCOVID-19 global pandemic, certain content charges, unallocated rent costs,\nintersegment profit eliminations, and unusual gains or losses, when\napplicable.\n\n * Adjusted depreciation and amortization represents depreciation and\namortization as presented on our consolidated statement of operations, less\nthe depreciation and amortization related to the amortization of purchase\naccounting and related adjustments associated with recent acquisitions.\nAccordingly, the full impact of the purchase accounting is included in the\nadjustment for \"purchase accounting and related adjustments\", described below.\n * Adjusted share-based compensation represents share-based compensation\nexcluding the impact of the acceleration of certain vesting schedules for\nequity awards pursuant to certain severance arrangements, which are included\nin restructuring and other expenses, when applicable.\n * Purchase accounting and related adjustments primarily represent the\namortization of non-cash fair value adjustments to certain assets acquired in\nrecent acquisitions. These adjustments include the non-cash charge for the\namortization of the recoupable portion of the purchase price and the expense\nassociated with the noncontrolling equity interests in the distributable\nearnings related to 3 Arts Entertainment, all of which are accounted for as\ncompensation and are included in general and administrative expense.\n * Restructuring and other includes restructuring and severance costs and certain\ntransaction and other costs, when applicable.\n * COVID-19 related charges or benefits include incremental costs associated with\nthe pausing and restarting of productions including paying/hiring certain cast\nand crew, maintaining idle facilities and equipment costs, and when\napplicable, certain motion picture and television impairments and development\ncharges associated with changes in performance expectations or the feasibility\nof completing the project resulting from circumstances associated with the\nCOVID-19 global pandemic, net of insurance recoveries, which are included in\ndirect operating expense, when applicable. In addition, the costs include\nearly or contractual marketing spends for film releases and events that have\nbeen canceled or delayed and will provide no economic benefit, which are\nincluded in distribution and marketing expense, when applicable.\n * Content charges include certain charges as a result of changes in content\nstrategy, which are included in direct operating expenses, when applicable.\n * Unallocated rent costs represent rent cost for production facilities that were\nunutilized as a result of the industry strikes, and therefore such amounts are\nnot allocated to the segments.\n * Intersegment profit eliminations relate to the licensing of products from the\nCompany's Studio Business to the former Media Networks segment prior to the\nStarz separation on May 6, 2025. Following the Starz Separation, the Company\nand Starz will continue to be parties to certain commercial agreements and\nlicensing of motion pictures or television programming to Starz. As a result,\nthe impacts of licensing motion pictures or television programming to Starz\nfollowing the Starz Separation are not eliminated in consolidation and are\nreflected in the consolidated results from continuing operations.\nAdjusted OIBDA is calculated similar to how the Company defines segment profit\nand manages and evaluates its segment operations. Segment profit also excludes\ncorporate general and administrative expense.\n\nTotal Segment Profit: Total segment profit is considered a non-GAAP financial\nmeasure, and should be considered in addition to, not as a substitute for, or\nsuperior to, measures of financial performance prepared in accordance with\nU.S. GAAP. We use this non-GAAP measure, among other measures, to evaluate the\naggregate operating performance of our business.\n\nWe believe the presentation of total segment profit is relevant and useful for\ninvestors because it allows investors to view total segment performance in a\nmanner similar to the primary method used by our management and enables them\nto understand the fundamental performance of our businesses before\nnon-operating items. Total segment profit is considered an important measure\nof the Company's performance because it reflects the aggregate profit\ncontribution from the Company's segments and represents a measure, consistent\nwith our segment profit, that eliminates amounts that, in management's\nopinion, do not necessarily reflect the fundamental performance of our\nbusinesses, are infrequent in occurrence, and in some cases are non-cash\nexpenses. Not all companies calculate segment profit or total segment profit\nin the same manner as defined by our management and similarly titled measures\npresented by other companies may not be comparable due to differences in the\nmethods of calculation and excluded items.\n\nAdjusted Free Cash Flow: Free cash flow is typically defined as net cash\nflows provided by (used in) operating activities, less capital expenditures.\nThe Company defines Adjusted Free Cash Flow as net cash flows provided by\n(used in) operating activities from continuing operations, less capital\nexpenditures, plus or minus the net increase or decrease in production and\nrelated loans (which includes our production tax credit facility), plus or\nminus certain unusual or non-recurring items.\n\nThe adjustment for the production and related loans, exclusive of our\nproduction tax credit facility, is made because the U.S. GAAP based cash flows\nfrom operations from continuing operations reflects a non-cash reduction of\ncash flows for the cost of films and television programs prior to the time the\nCompany pays for the film or television program through the payment of the\nassociated production or related loan which occurs at or near completion of\nthe production, or in some cases, over the period revenues and cash receipts\nare being generated, as more fully described below.\n\nThe cost of producing films and television programs, which is reflected as a\nreduction of the U.S. GAAP based cash flows provided by (used in) operating\nactivities from continuing operations, is often financed through production\nloans. The adjustment for production and related loans is made in order to\nbetter align the timing of the cash flows associated with producing films and\ntelevision programs with the timing of the repayment of the production loans,\nwhich is consistent with how management views its production cash spend and\nmanages the Company's cash flows and working capital needs. Borrowings on\nproduction loans offset the spend on investment in films reflected in the U.S.\nGAAP based cash flows provided by (used in) operating activities from\ncontinuing operations and thus increase the Adjusted Free Cash Flows as\ncompared to the U.S. GAAP based cash flows provided by (used in) operating\nactivities from continuing operations and subsequent payments on production\nloans reflect the payment for the production of the film or TV program and\nreduce Adjusted Free Cash Flows as compared to the U.S. GAAP based cash flows\nprovided by (used in) operating activities from continuing operations.\n\nThe adjustment for the production tax credit facility is made to better\nreflect the timing of the cash requirements of the production, since a portion\nof the amounts expended initially are later refunded through the receipt of\nthe tax credit, as more fully described below. The production tax credit\nfacility reduces the timing difference between the payments for production\ncost and the receipt of the tax credit and thus reflects the cash cost of the\nfilm or television program at or near the time the film or television program\nis produced and completed.\n\nPart of the cost of a film or television program is effectively funded through\nobtaining government incentives, however, the incentives are not received\nuntil a future period which could be a few years after the completion of the\nfilm. The tax credit facility reflects borrowings collateralized by the tax\ncredits to be received in the future and thus by including these borrowings in\nAdjusted Free Cash Flow it has the effect of better aligning the receipt of\nthe tax credits with the timing of the production and completion of the film\nand television programs, which is consistent with how management views its\nproduction cash spend and manages the Company's cash flows and working capital\nneeds. Borrowings under the tax credit facility reduce the cash spend\nreflected in the U.S. GAAP based cash flows provided by (used in) operating\nactivities from continuing operations and thus increase adjusted free cash\nflows and payments on the tax credit facility offset the tax credit receivable\ncollection reflected in the U.S. GAAP based cash flows provided by (used in)\noperating activities from continuing operations and reduce adjusted free cash\nflows as compared to the U.S. GAAP based cash flows provided by (used in)\noperating activities from continuing operations.\n\nThe Company believes that it is more meaningful to reflect the impact of the\npayment for these films and television programs when the payments are made\nunder the production loans and the receipt of the tax credit when the film is\nbeing produced in its Adjusted Free Cash Flow.\n\nAdjusted Net Income (Loss) - Continuing Operations Attributable to Lionsgate\nStudios Corp. Shareholders: Adjusted net income (loss) from continuing\noperations attributable to Lionsgate Studios Corp. shareholders is defined as\nnet income (loss) from continuing operations attributable to Lionsgate Studios\nCorp. shareholders, adjusted for share-based compensation, purchase accounting\nand related adjustments, restructuring and other items, unallocated rent costs\nrelated to unutilized facilities, net gains or losses on investments and\nother, gain or loss on extinguishment of debt, COVID-19 related charges\n(benefit), settlement litigation charge, unusual gains or losses, when\napplicable, as described in the Adjusted OIBDA definition, and net of the\nimpact of the adjustments on noncontrolling interest.\n\nAdjusted Basic and Diluted EPS - Continuing Operations: Adjusted basic\nearnings (loss) per share is defined as adjusted net income (loss) from\ncontinuing operations attributable to Lionsgate Studios Corp. shareholders\ndivided by the weighted average shares outstanding. Diluted EPS is similar to\nbasic EPS but is adjusted for the effects of securities that are diluted based\non the level of adjusted net income (loss) from continuing operations, similar\nto U.S. GAAP.\n\nOverall: These measures are non-GAAP financial measures as defined in\nRegulation G promulgated by the SEC and are in addition to, not a substitute\nfor, or superior to, measures of financial performance prepared in accordance\nwith U.S. GAAP.\n\nWe use these non-GAAP measures, among other measures, to evaluate the\noperating performance of our business. We believe these measures provide\nuseful information to investors regarding our results of operations and cash\nflows before non-operating items. Adjusted OIBDA is considered an important\nmeasure of the Company's performance because this measure eliminates amounts\nthat, in management's opinion, do not necessarily reflect the fundamental\nperformance of the Company's businesses, are infrequent in occurrence, and in\nsome cases are non-cash expenses. Adjusted Free Cash Flow is considered an\nimportant measure of the Company's liquidity because it provides information\nabout the ability of the Company to reduce net corporate debt, make strategic\ninvestments, dividends and share repurchases. Adjusted Net Income (Loss) from\nContinuing Operations Attributable to Lionsgate Studios Corp. Shareholders and\nAdjusted EPS are considered important measures of the Company's business\noperations as, similar to Adjusted OIBDA, these measures eliminate amounts\nthat, in management's opinion, do not necessarily reflect the fundamental\nperformance of the Company's businesses.\n\nThese non-GAAP measures are commonly used in the entertainment industry and by\nfinancial analysts and others who follow the industry to measure operating\nperformance. However, not all companies calculate these measures in the same\nmanner and the measures as presented may not be comparable to similarly titled\nmeasures presented by other companies due to differences in the methods of\ncalculation and excluded items.\n\nA general limitation of these non-GAAP financial measures is that they are not\nprepared in accordance with U.S. generally accepted accounting principles.\nThese measures should be reviewed in conjunction with the relevant U.S. GAAP\nfinancial measures and are not presented as alternative measures of operating\nincome, cash flow, net income (loss) from continuing operations, or earnings\n(loss) per share from continuing operations as determined in accordance with\nU.S. GAAP. Reconciliations of the adjusted metrics utilized to their\ncorresponding U.S. GAAP metrics are provided above.\n\nView original content to download\nmultimedia:https://www.prnewswire.com/news-releases/lionsgate-reports-results-for-first-quarter-fiscal-2027-302845344.html\n(https://www.prnewswire.com/news-releases/lionsgate-reports-results-for-first-quarter-fiscal-2027-302845344.html)\n\nSOURCE Lionsgate\n\n\n\nPhoto: \nhttps://mmx.prnewswire.com/media/MS235633/Lionsgate-Logo.jpg?id=OA2833701\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved."},"type":"article","timestamp":"2026-08-06T20:05:05.221967844Z","server_sent_at_ms":1786046705221},"received_at":"2026-08-06T20:05:05.276Z","source_url":"https://www.prnewswire.com/news-releases/lionsgate-reports-results-for-first-quarter-fiscal-2027-302845344.html"},"analysis":{"id":"101049","press_release_id":"112046","analysis_json":{"industry":{"label":"Media & Entertainment","sector":"Communication Services"},"redFlags":[],"eventType":"earnings","narrative":"Lionsgate reported Q1 revenue of $776.6 million, up 48% year-over-year, with Adjusted Free Cash Flow of $128.9 million and leverage improving to 4.3x.\n\nThe Motion Picture segment drove the outperformance, with revenue more than doubling to $587.3 million and segment profit hitting a record $105 million, fueled by the success of 'Michael' and 'The Housemaid.'\n\nManagement anticipates doubling scripted television deliveries in fiscal 2027 despite a temporary decline in Television Production segment revenue due to delivery timing.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Record Motion Picture profitability and 48% revenue surge highlight Lionsgate's strong operational momentum."},"keyFigures":{"revenue":"$776.6 million","guidance":"anticipate doubling scripted deliveries in fiscal 2027 relative to fiscal 2026","revenueYoy":"48%","customDimensions":{"backlog":1500000000,"adjusted_eps":0.06,"adjusted_fcf":128900000,"adjusted_oibda":79300000,"leverage_ratio":"4.3x","operating_income":25600000,"adjusted_net_income":18900000,"library_revenue_ttm":987000000,"motion_picture_profit":105000000,"motion_picture_revenue":587300000}},"quotedText":"I'm pleased to report another quarter of strong financial results and growing momentum across our business","namedEntities":{"people":[{"name":"Jon Feltheimer","role":"CEO"},{"name":"Nilay Shah","role":"Investor Contact"},{"name":"Peter D. Wilkes","role":"Media Contact"},{"name":"Laurel Pecchia","role":"Media Contact"}],"products":["Michael","The Housemaid"],"companies":[{"name":"Lionsgate Studios Corp.","ticker":"LION"},{"name":"3 Arts Entertainment","relationship":"subsidiary/segment"}],"dollarAmounts":[{"amount":"$776.6 Million","context":"Q1 revenue"},{"amount":"$25.6 Million","context":"Operating Income"},{"amount":"$28.8 Million","context":"Net Loss from Continuing Operations"},{"amount":"$18.9 Million","context":"Adjusted Net Income from Continuing Operations"},{"amount":"$79.3 Million","context":"Adjusted OIBDA"},{"amount":"$54 Million","context":"Net Cash Flows Provided by Operating Activities"},{"amount":"$128.9 Million","context":"Adjusted Free Cash Flow"},{"amount":"$987 million","context":"Trailing 12-month library revenue"},{"amount":"$1.5 billion","context":"Filmed entertainment backlog"},{"amount":"$587.3 million","context":"Motion Picture segment revenue"},{"amount":"$105 million","context":"Motion Picture segment profit"},{"amount":"$189.3 million","context":"Television Production segment revenue"},{"amount":"$10.2 million","context":"Television Production segment profit"}]},"materialImpact":{"score":4,"reasoning":"Revenue surged 48% year-over-year to $776.6 million, driven by a record Q1 in the Motion Picture segment with profit doubling to $105 million. Adjusted Free Cash Flow was strong at $128.9 million, and leverage improved significantly to 4.3x."},"tickerRelevance":{"others":[],"primary":"LION"},"globalImportance":40,"audienceRelevance":50,"eventTypeSecondary":["guidance_update"],"importanceComponents":{"tickerTier":"mid-cap","eventGravity":"strong_earnings_growth","sectorWeight":"media"}},"event_type":"earnings","event_type_secondary":["guidance_update"],"sentiment":"bullish","material_impact_score":4,"narrative":"Lionsgate reported Q1 revenue of $776.6 million, up 48% year-over-year, with Adjusted Free Cash Flow of $128.9 million and leverage improving to 4.3x.\n\nThe Motion Picture segment drove the outperformance, with revenue more than doubling to $587.3 million and segment profit hitting a record $105 million, fueled by the success of 'Michael' and 'The Housemaid.'\n\nManagement anticipates doubling scripted television deliveries in fiscal 2027 despite a temporary decline in Television Production segment revenue due to delivery timing.","key_figures":{"revenue":"$776.6 million","guidance":"anticipate doubling scripted deliveries in fiscal 2027 relative to fiscal 2026","revenueYoy":"48%","customDimensions":{"backlog":1500000000,"adjusted_eps":0.06,"adjusted_fcf":128900000,"adjusted_oibda":79300000,"leverage_ratio":"4.3x","operating_income":25600000,"adjusted_net_income":18900000,"library_revenue_ttm":987000000,"motion_picture_profit":105000000,"motion_picture_revenue":587300000}},"named_entities":{"people":[{"name":"Jon Feltheimer","role":"CEO"},{"name":"Nilay Shah","role":"Investor Contact"},{"name":"Peter D. Wilkes","role":"Media Contact"},{"name":"Laurel Pecchia","role":"Media Contact"}],"products":["Michael","The Housemaid"],"companies":[{"name":"Lionsgate Studios Corp.","ticker":"LION"},{"name":"3 Arts Entertainment","relationship":"subsidiary/segment"}],"dollarAmounts":[{"amount":"$776.6 Million","context":"Q1 revenue"},{"amount":"$25.6 Million","context":"Operating Income"},{"amount":"$28.8 Million","context":"Net Loss from Continuing Operations"},{"amount":"$18.9 Million","context":"Adjusted Net Income from Continuing Operations"},{"amount":"$79.3 Million","context":"Adjusted OIBDA"},{"amount":"$54 Million","context":"Net Cash Flows Provided by Operating Activities"},{"amount":"$128.9 Million","context":"Adjusted Free Cash Flow"},{"amount":"$987 million","context":"Trailing 12-month library revenue"},{"amount":"$1.5 billion","context":"Filmed entertainment backlog"},{"amount":"$587.3 million","context":"Motion Picture segment revenue"},{"amount":"$105 million","context":"Motion Picture segment profit"},{"amount":"$189.3 million","context":"Television Production segment revenue"},{"amount":"$10.2 million","context":"Television Production segment profit"}]},"model_name":"glm-4.7","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-08-07T05:06:20.079Z","global_importance":40,"audience_relevance":50,"importance_components":{"tickerTier":"mid-cap","eventGravity":"strong_earnings_growth","sectorWeight":"media"}},"durationMs":141938,"modelName":"glm-4.7"}}