Lionsgate Studios Corp. (LION)

Price$11.31Cached quoteAs of 2026-10-08 10:22 UTC

AI: Overvalued

Price checkThe shares still price in a durable recovery that recent cash results have not yet proved.

At the observed quote, Lionsgate's equity value was about $3.3 billion. Adding roughly $1.77 billion of net debt gives an enterprise value near $5.1 billion. Using the supplied quarterly cash-flow history, trailing operating cash flow was about $110 million and capital spending about $13 million, leaving roughly $97 million of free cash flow, meaning operating cash left after capital spending. The equity value is about 34 times that cash measure, demanding for a business with negative trailing net income and volatile film-driven results. StockAnalysis.com Pasted text

Big pictureOperations are improving, but profits and cash remain too uneven for a classic value case.

Fiscal 2026 revenue rose modestly to $2.63 billion, while operating income improved to $97.1 million from an $18.1 million loss. Net income was still negative at $198.3 million. The latest four supplied quarters together produced about $2.88 billion of revenue, a $118 million net loss, and only about $97 million of simple free cash flow after capital spending. The June quarter was much stronger, but its 48% revenue jump was helped heavily by successful film releases, so durability is not yet established. SEC Pasted text

Business strengthThe library and franchises are valuable, but leverage and dilution weaken downside protection.

The June quarter showed genuine assets: trailing library revenue was $987 million and filmed-entertainment backlog reached $1.5 billion, up 21% year over year. Yet the balance sheet remains stretched. The supplied June figures show about $2.20 billion of debt against $426 million of cash, negative stockholders' equity near $1.20 billion, and current liabilities far above current assets. Shares outstanding rose about 3% from March 2025 to June 2026, while stock compensation was $41.1 million in the latest quarter. No buybacks or dividends were reported in the supplied history. SEC+1 Pasted text

What could change the storyA real sale or sustained debt reduction could justify more, while weaker releases would expose the premium.

The strongest upside case is strategic: Reuters reported takeover interest from Bolloré and others, and Lionsgate's library and franchises could be worth more to a larger buyer. But no deal is certain, Banijay later ruled itself out, and Reuters reported that high valuation expectations had already discouraged some interested parties. Operationally, the valuation would look safer if several quarters confirm the recent cash rebound while debt keeps falling. If blockbuster results fade or television deliveries disappoint, the current premium to inconsistent cash generation becomes harder to defend. Reuters+2Reuters+2

AI: News

Takeover interest surfacesReported interest from European buyers lifted hopes that Lionsgate's library could command a takeover premium.

On July 14, Reuters reported that Lionsgate was exploring a possible sale and had attracted interest from Bolloré Group and Banijay. Shares rose as much as 9% in after-hours trading after the report. The strategic logic is clear: a buyer could value Lionsgate's franchises and library more highly inside a larger distribution platform. The report also stressed that no deal was certain and that high shareholder price expectations had deterred some earlier interest. Reuters

Banijay steps awayOne named bidder ruled out a deal, reducing the certainty behind the takeover premium.

On July 29, Banijay said it was not pursuing Lionsgate and would instead focus on integrating recent acquisitions and reducing its own debt. That removed one publicly identified potential bidder from the reported process. It does not eliminate the possibility of a transaction, because Bolloré and other parties had also been mentioned, but it weakens the idea that a competitive bidding process is assured. Public reporting did not establish a clean one-day stock move caused solely by this announcement. Reuters

Strong first-quarter reboundA blockbuster film and library demand drove sharp revenue growth, but the company still reported a net loss.

On August 6, Lionsgate reported June-quarter revenue of $776.6 million, up 48% year over year, operating income of $25.6 million, and a $28.8 million net loss. Adjusted operating profit before certain items was $79.3 million, and adjusted free cash flow was $128.9 million. Motion Picture revenue reached $587.3 million with $105 million of segment profit, helped by Michael, while library revenue and backlog remained strong. The numbers improved expectations, but they also showed how much results can depend on release timing. SEC+1

Activist raises sale pressureAnson Funds pushed for a sale or stronger artificial intelligence strategy, adding strategic pressure and uncertainty.

On August 11, Semafor reported that activist investor Anson Funds had urged Lionsgate to redefine itself for the artificial-intelligence era or pursue a sale. Deadline later reported that the shares fell 4% that Tuesday and another 1% Wednesday to a four-month low. The timing does not prove the activist news caused the decline, but the episode highlighted investor concern over how generative video could affect content economics and whether Lionsgate should monetize its library through licensing, a sale, or both. Semafor+1

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Revenue

2023

2024

2025

2026

Net income

2021

2022

2023

2024

2025

2026

Free cash flow

2023

2024

2025

2026

Total cash / debt

CashTotal debt

2022

2023

2024

2025

2026

Financial statements

	2026	2025	2024	2023	2022	2021
Revenue	$2.63B	$2.58B	$2.45B	$3.08B	—	—
Operating expenses	$2.53B	$2.60B	$2.46B	$2.94B	—	—
Operating income	$97.1M	−$18.1M	−$14.5M	$139.6M	—	—
Operating margin	3.69%	−0.70%	−0.59%	4.53%	—	—
EBITDA	$114.7M	−$300,000	$1.1M	$157.5M	—	—
EBITDA margin	4.36%	−0.01%	0.04%	5.11%	—	—
Net income	−$198.3M	−$362.0M	−$1.10B	−$2.01B	−$188.2M	−$18.9M
Net profit margin	−7.53%	−14.01%	−45.01%	−65.19%	—	—
Basic EPSper basic share	-$0.70	-$1.43	-$4.58	$0.00	—	—
Diluted EPSper diluted share	-$0.70	-$1.43	-$4.58	$0.00	—	—

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 20 reported holders of LION
Holder	Shares held
MHR FUND MANAGEMENT LLC	37.65M
Liberty 77 Capital L.P.	37.55M
Jericho Capital Asset Management L.P.	18.82M
BlackRock, Inc.	16.43M
FMR LLC	10.35M
VANGUARD PORTFOLIO MANAGEMENT LLC	10.32M
NEUBERGER BERMAN GROUP LLC	10.27M
VANGUARD CAPITAL MANAGEMENT LLC	9.3M
AMERIPRISE FINANCIAL INC	8.77M
WELLINGTON MANAGEMENT GROUP LLP	7.43M
Liberty Global Ltd. / Liberty Global Ventures Ltd	7.04M
GEODE CAPITAL MANAGEMENT, LLC	6.08M
Jefferies Financial Group Inc.	5.81M
Coastal Bridge Advisors, LLC	5.43M
SHAPIRO CAPITAL MANAGEMENT LLC	5.03M
STATE STREET CORP	4.95M
Anson Funds Management LP	4.33M
Broad Bay Capital Management, LP	4.1M
FELTHEIMER JON	3.78M
BURNS MICHAEL RAYMOND	3.12M

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys8$57.79M disclosed value

Sells (SEC code S)3$2.02M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Dec 23, 2025Form 4	BURNS MICHAEL RAYMONDVice Chair	SellCommon Shares	21.7K	$9.01	$195.9K	3.06M
Dec 22, 2025Form 4	FELTHEIMER JONChief Executive Officer	SellCommon Shares	195.0K	$8.28	$1.61M	3.47M
Dec 18, 2025Form 4	Goldsmith BrianChief Operating Officer	SellCommon Shares	25.0K	$8.54	$213.5K	1.49M
Jul 9, 2025Form 4	Liberty 77 Capital L.P. +6TenPercentOwner	BuyCommon Shares · indirect	72.1K	$5.59	$403.0K	37.55M
Jul 7, 2025Form 4	Liberty 77 Capital L.P. +6TenPercentOwner	BuyCommon Shares · indirect	500.0K	$5.63	$2.81M	37.48M