Lionsgate Studios Corp. (LION) Posts Q2 Loss, Falls Short of Revenue Projections
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 07 2025
0mins
Source: NASDAQ.COM
Quarterly Performance: Lionsgate Studios Corp. reported a quarterly loss of $0.20 per share, missing the Zacks Consensus Estimate of a loss of $0.14, and showing a significant decline in revenues to $475.1 million, down from $823.7 million a year ago.
Earnings Outlook: The company's earnings outlook remains unfavorable, with a Zacks Rank of #4 (Sell), indicating expected underperformance in the near future, and current consensus estimates for the upcoming quarter and fiscal year suggest continued challenges.
Market Comparison: Lionsgate shares have declined by 11.3% since the start of the year, contrasting with the S&P 500's gain of 15.6%, raising concerns among investors about the stock's future trajectory.
Industry Context: The Media Conglomerates industry, to which Lionsgate belongs, is currently ranked in the bottom 29% of Zacks industries, suggesting that broader industry trends may negatively impact the company's stock performance.
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Analyst Views on LION
Wall Street analysts forecast LION stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for LION is 9.30 USD with a low forecast of 8.00 USD and a high forecast of 11.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
4 Buy
1 Hold
0 Sell
Strong Buy
Current: 9.490
Low
8.00
Averages
9.30
High
11.00
Current: 9.490
Low
8.00
Averages
9.30
High
11.00
About LION
Lionsgate Studios Corp. is a pure play content company. The Company brings together diversified motion picture and television production and distribution businesses, a portfolio of brands and franchises, a talent management and production house and a more than 20,000-title film and television library. The Company's Motion Picture segment consists of the development and production of feature films, acquisition of North American and worldwide distribution rights, North American theatrical, home entertainment and television distribution of feature films produced and acquired, and worldwide licensing of distribution rights to feature films produced and acquired. Its Television Production segment consists of the development, production and worldwide distribution of television productions, including television series, television movies and miniseries, and non-fiction programming. Television Production segment also includes the operations of 3 Arts Entertainment, a talent management company.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Lionsgate Appoints Former Treasury Secretary Mnuchin to Board
- New Board Member: Lionsgate has appointed former U.S. Treasury Secretary Steven Mnuchin to its Board of Directors, effective immediately, aiming to leverage his extensive experience in global finance to enhance corporate governance and strategic decision-making.
- Financial Background: Mnuchin's previous roles include Partner and CIO at Goldman Sachs, and Founder, Chairman, and CEO of Dune Capital Management and OneWest Bank, showcasing a robust background in financial services that could bolster Lionsgate's adaptability in complex market environments.
- Production Experience: As a co-financier of the blockbuster Avatar, Mnuchin holds over 35 executive producer credits, which could provide Lionsgate with fresh perspectives and resources in content creation and market promotion.
- Market Reaction: This appointment may positively impact Lionsgate's stock price, particularly against the backdrop of rising debt and recent rating downgrades, with Mnuchin's addition seen as a move to bolster investor confidence.
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Manchester United Strikes Multi-Million Pound TV Deal with Lionsgate
- Historical Drama Agreement: Manchester United has reached a deal with U.S. media production company Lionsgate to create a TV show based on the club's history, ensuring a guaranteed sum in the low multi-million pounds, which could significantly enhance the club's brand value and revenue potential if the show is produced and sold.
- Future Revenue Sharing: The agreement stipulates that future royalties will be shared between Manchester United and Lionsgate, with the value increasing based on the number of seasons, episodes, and the size of any deal, providing the club with a sustainable financial benefit and enhancing its long-term financial stability.
- Creative Team Involvement: British writer and director Jed Mercurio, known for hit series Bodyguard and Line of Duty, is involved in discussions about the project and is a lifelong Manchester United fan, which will help ensure the show's quality and appeal, further enhancing the club's cultural influence.
- Market Potential Analysis: The show's concept is similar to Netflix's popular historical drama The Crown, and if successfully launched, it is expected to attract global Manchester United fans and history drama enthusiasts, potentially creating new revenue streams and increasing the club's visibility and influence in the global market.
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