Lionsgate Studios Corp. Q2 FY2026 earnings call

• Library revenue reached $1 billion trailing 12 months, a record. - Invested in tentpoles for fiscal '27 and beyond, wrapped production on Michael, Hunger Games, and 2 Resurrection films. - Announced deal with Millennium for Expendables franchise and Rambo rights. - TV business had 3 wins, 3 Arts talent management grew with sports acquisition. - Motion Picture group had $276M revenue, segment profit $31M, with profit expected to build from Q3 to Q4. - Headcount reduced by ~5% in September, overall 20%+ reduction in 18 months. - Applied AI to business for productivity and cost savings, protecting content from unauthorized AI use.

For the fiscal second quarter 2026, Motion Picture revenue was $276 million with a segment profit of $31 million. TV revenue was $199 million and segment profit was $13 million. Trailing 12-month library revenue reached $1 billion for the first time, with the percentage of library revenues from television doubling over the past 10 years.

• Growth expected over next 2 quarters and through fiscal '27. - Motion Picture segment profit to build from Q3 to Q4 due to titles entering Pay 1 window and P&A spend. - TV segment profit strength remaining with increased deliveries and licensing revenue. - Backlog at $1.6 billion, 85%+ to come in 18 months, reflective of future revenue/cash flow. - Delevering expected as adjusted EBITDA ramps up in fiscal '27 and beyond.

• Uncertainties in M&A environment with disruption and uncertainty. - Need to stay competitive in an ultra-competitive landscape, as work is needed for every win.

Q: Drill down on confidence for back half of year/2027, M&A optionality A: Adam Fogelson on confidence from social media traction, Jon Feltheimer on sticking to knitting with library and slate.

Q: Update on Michael film option for second film A: Adam Fogelson on director's cut being exceptional, creative team working on second film plans.

Q: Now You See Me tracking, international revenue A: Adam Fogelson on tracking close to first film, international demand high.

Q: 3 Arts sizing, growth A: James Barge on not disclosing exact numbers, Brian Goldsmith on production momentum and sports growth.

Q: Industry M&A, series orders A: Kevin Beggs on uncertainty in market, green shoots with series orders.

Q: Stage play ancillary revenue, IP monetization A: Adam Fogelson on various licensing opportunities, continued interest in expanding John Wick Live.

Q: Backlog, leverage, 3 Arts partnership A: James Barge on backlog strength in TV, delevering through EBITDA growth, Jon Feltheimer on 3 Arts partnership talks.

Q: Resurrection movie, Now You See Me advertising A: Michael Burns on Resurrection movie on track, Adam Fogelson on Now You See Me marketing efficiency.

Q: Resurrection movie, Now You See Me advertising cost A: Michael Burns on Resurrection on track, Adam Fogelson on Now You See Me marketing efficiency with lower ad spend.

Q: Slate concentration, international presales A: Adam Fogelson on international presales for larger films, support for mid/lower budget films.