Lionsgate Quarterly Revenue Pops 41% on Strength of ‘Michael,’ TV Series Sales as Studio Narrows Net Loss

Lionsgate experienced a significant financial upswing in the second quarter of its fiscal 2026 year, reporting a 41% increase in revenue compared to the same period last year. The studio posted total revenues of $668.8 million for the quarter ending September 30, signaling robust growth spurred by both its theatrical and television divisions.

The improved revenue performance was accompanied by a turnaround in operating results. Lionsgate achieved an operating income of $29.1 million, a stark improvement from an operating loss of $46.0 million during the prior-year quarter. Despite still posting a net loss attributable to shareholders of $15.5 million, the diluted net loss per share narrowed to 5 cents, reflecting better cost management and stronger top-line momentum.

Central to Lionsgate’s resurgence is the enduring success of the biographical film "Michael," which chronicles the life of the iconic King of Pop. The movie has amassed over $1 billion at the box office, substantially contributing to the studio’s motion picture segment. Revenues for this segment rose 30% year-over-year to $359.3 million, with segment profits surging to $88.7 million. This marks a pivotal factor in Lionsgate’s broader strategic emphasis on leveraging high-profile tentpole films.

The studio’s content library also played a critical role, generating $1.04 billion in revenue over the trailing twelve months—ranking as Lionsgate’s second highest library revenue on record. This stable catalog income complements the studio’s slate of new releases and supports ongoing profitability.

Lionsgate’s television production arm demonstrated even more dramatic growth, with revenues climbing 56% to $309.5 million and segment profits increasing 73% to $21.6 million compared to the previous year. This surge was driven by a substantial rise in scripted episodic deliveries, including new seasons of shows like "Power: Origins," Apple TV’s "The Studio," and Netflix’s "The Hunting Wives."

The company plans to further accelerate its scripted output, aiming to double deliveries in fiscal 2027 versus fiscal 2026. This strategic pivot underscores Lionsgate’s commitment to expanding its television footprint and capitalizing on streaming demand.

Looking ahead, Lionsgate’s upcoming theatrical lineup features a strong mix of established franchises and new projects. Notably, the studio is preparing for the release of "The Hunger Games: Sunrise on the Reaping," scheduled to open in two weeks and expected to be one of the franchise’s most successful installments. Other anticipated titles include "Resurrection of the Christ" Parts 1 and 2, "The Housemaid’s Secret," "Michael 2," and a film adaptation from the "Naruto" universe.

On the television side, Lionsgate continues to develop popular series and spin-offs. “The Rookie,” entering its ninth season, remains a key asset, with a spin-off titled "The Rookie: North" set to premiere in January across ABC and streaming platforms Hulu and Disney+. Similarly, the comedy series "Ghosts," approaching its sixth season on CBS, is exploring additional spin-off opportunities.

Lionsgate’s ongoing collaboration with Netflix further highlights the studio’s ability to sustain franchise value over time. The renewal of "The Hunting Wives" for a third season, even before the second season’s debut, exemplifies this success. The second season launched on Thanksgiving Day, with production on season three commencing imminently at Lionsgate’s Atlanta sound stages.

Collectively, these developments reflect Lionsgate’s strategic focus on solidifying its film tentpoles and expanding scripted television content to fuel growth through fiscal 2027 and beyond. The company’s leadership expresses confidence in maintaining an upward trajectory through fiscal 2029, buoyed by a diversified portfolio and strengthened operational fundamentals.

While the studio continues to narrow its net loss, the results highlight an ongoing transition toward profitability supported by marquee intellectual properties and a growing television catalog. As Lionsgate positions itself for the next phase, its blend of blockbuster films and serialized storytelling appears set to drive sustained financial improvement.