Lionsgate Studios Corp. reported robust fourth-quarter fiscal 2025 results for the period ended March 31, 2025, with revenue reaching $1.1 billion, a 22% increase year-over-year. The company posted net income of $21.9 million, or $0.10 diluted earnings per share, and adjusted net income of $60.9 million, or $0.21 adjusted diluted earnings per share. Operating income significantly rose to $94.2 million, and Adjusted OIBDA increased by 49% to $138.3 million.
The Motion Picture segment achieved its highest quarterly segment profit in 10 years, growing 65% to $135.3 million on 28% revenue growth to $526.4 million. This was driven by the box office success of mid-budget films 'Den of Thieves 2: Pantera' and 'Flight Risk', increased non-theatrical content deliveries, and strong library demand. The Television Production segment's revenue increased 16% to $543.3 million, though segment profit decreased to $40.6 million due to a tough comparison with a prior-year library sale.
For the full fiscal year 2025, total consolidated revenues increased by 7% to $3.195 billion, influenced by the eOne acquisition. However, the company reported a wider net loss of $128.5 million compared to $93.5 million in FY24, and total segment profit decreased by 4.7% to $444.1 million. Despite this, adjusted free cash flow for the year was positive at $89 million, and trailing 12-month library revenue hit a record $956 million, up 8% year-over-year, with a record $340 million in Q4 driven by licensing 'The Rookie' to Disney+ and 'The Chosen' to Amazon Prime.
Post-separation net debt was approximately $1.65 billion, supported by a new $800 million revolving credit facility, with TTM studio leverage declining to 4.9x. Management outlined a strategic outlook, positioning fiscal year 2026 as an investment year focused on pipeline replenishment to drive 'solid two-year adjusted OIBDA growth from fiscal 2025 through fiscal 2027'. Content spend is expected to remain consistent at around $1.6 billion, with increased marketing spend.
The company anticipates generating 'positive free cash flow' over the combined fiscal years 2026 and 2027. A strong slate is planned for FY27, potentially including the Michael Jackson biopic, the next 'Hunger Games' film, and 'The Resurrection of the Christ'. Lionsgate aims to achieve a target leverage range of 3.5 to 4 times by the end of fiscal 2027, with a long-range goal of 3 to 3.5 times.
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