0002052959-25-000018
SEC filingRevenue grew 8% QoQ to $525.9M, driven by Television Production growth, but operating loss narrowed to $10.6M.
For the three months ended June 30, 2025, consolidated revenue increased 8.0% to $525.9 million from $486.9 million in the prior-year period. The growth was primarily driven by a 19.7% increase in Television Production revenue ($288.5 million) and a $73.9 million reduction in intersegment eliminations, partially offset by a 23.5% decline in Motion Picture revenue ($267.3 million). Gross profit (revenue less direct operating and distribution & marketing expenses) fell 35.0% to $68.8 million, with gross margin contracting to 13.1% from 21.7%, reflecting higher distribution and marketing costs in Motion Picture. Operating loss improved 52.9% to $10.6 million, benefiting from a $25.7 million decrease in general and administrative expenses (driven by lower share-based compensation and segment G&A) and a $22.9 million drop in restructuring and other costs. Net loss attributable to Lionsgate Studios Corp. shareholders widened to $108.9 million ($0.40 per share) from $59.4 million ($0.24 per share), largely due to a $42.6 million swing in discontinued operations from income to loss.
Motion Picture: Revenue declined 23.5% to $267.3 million, driven by lower television revenue ($35.4 million vs. $88.0 million, down 59.8%), home entertainment revenue ($115.9 million vs. $149.3 million, down 22.4%), and theatrical revenue ($28.7 million vs. $36.0 million, down 20.3%), partially offset by higher international revenue ($81.3 million vs. $70.6 million, up 15.2%). Direct operating expense as a percentage of revenue rose to 51.1% from 43.6%, while distribution and marketing expense increased 27.8% to $105.8 million, driven by higher theatrical P&A and Premium VOD spend. Gross contribution plunged 78.3% to $24.8 million, and segment profit fell 97.2% to $2.4 million.
Television Production: Revenue increased 19.7% to $288.5 million, led by a 171.7% surge in home entertainment revenue to $53.8 million (driven by digital revenue from The Chosen Season 5), a 30.4% rise in international revenue to $46.3 million, and a 3.3% increase in domestic television revenue to $165.5 million. Direct operating expense as a percentage of revenue improved slightly to 83.1% from 83.8%. Gross contribution rose 28.0% to $36.6 million, and segment profit more than doubled to $26.0 million, up 143.0%.
Management expects cash requirements for productions to remain consistent and marketing spend to increase in fiscal 2026 compared to fiscal 2025. The company believes cash flow from operations, cash on hand, revolving credit facility availability, and other financing sources will be adequate to meet known operational and debt service requirements for the next 12 months and beyond. No specific quantitative guidance was provided.
Operating cash flow from continuing operations improved to -$109.1M from -$215.3M, while total operating cash flow (including discontinued operations) was -$31.0M versus -$158.9M in the prior year. The improvement was driven by a significant reduction in investment in films and television programs ($250.2M vs. $643.2M) and a smaller net loss from continuing operations ($91.7M vs. $90.8M). Depreciation and amortization of films and television programs totaled $228.8M, providing a substantial non-cash offset to the net loss.
Capital expenditures remained low at $3.5M (down from $4.1M), indicating minimal fixed-asset investment. Free cash flow (not explicitly stated) would be negative given the operating cash outflow and capex. The company did not report share repurchases or dividends.
Working capital swings were notable: accounts receivable decreased by $7.4M (vs. a $176.6M decrease last year), while content-related payables swung from a $58.5M source to a $9.8M use. Deferred revenue provided $15.2M, down sharply from $181.3M in the prior year. The financing section shows significant debt activity, with $696.4M in borrowings and $1,007.9M in repayments, reflecting the Starz Separation refinancing. Overall, cash flow quality improved due to lower content spending, but remains negative from operations.