Lionsgate Shrinks Quarterly Loss After Starz Spin-Off
Lionsgate, now operating independently as a film and television studio following its separation from Starz, released its latest financial report for the second quarter of fiscal 2026.
Financial Performance
The Hollywood studio, led by CEO Jon Feltheimer, reported a net loss of $113.5 million, a significant improvement from the $163.3 million loss recorded a year earlier. Revenue for the quarter declined to $475.1 million from $604 million in the previous year.
In after-hours trading, investors reacted by pushing Lionsgate’s stock down by 36 cents, or 5 percent, closing at $6.67. Earnings per share registered a loss of 39 cents, compared to a 68-cent loss a year prior. Adjusted OIBDA stood at $14.1 million.
Business Structure
The newly formed Lionsgate Studios combines the company’s Motion Picture Group and Television Studio operations, supported by a vast library of 20,000 film and TV titles. The split from Starz marked a structural shift toward focusing on core content production.
Segment Highlights
The studio’s Motion Picture segment saw revenue fall to $276.4 million from $409.4 million a year earlier. Starz, which now functions as a separate publicly traded entity, reports its own financial performance independently.
“Lionsgate’s reduced loss signals early stability after its strategic separation from Starz,” industry analysts noted.
Outlook
With its streamlined structure and independent status, Lionsgate is positioning itself to strengthen its content pipeline and adapt more quickly to market trends in entertainment production and distribution.
Author's summary: Lionsgate cut its losses in Q2 2026 after parting with Starz, signaling early progress as a fully independent film and television company.