Lionsgate Sees Revenue Surge From ‘Michael’, ‘The Housemaid’ In June Quarter

Lionsgate Studios posted a strong June quarter as motion picture revenue of $587 million more than doubled from the prior year and profit hit a Q1 record $105 million driven by the billion-dollar worldwide box office of Michael and the strong ancillary performance of The Housemaid.

The company said television production revenue and profit fell (to $189 million and $10.2 million, respectively) for the fiscal first quarter on the timing of episodic deliveries. It anticipates doubling scripted deliveries in fiscal 2028 from 2027.

Trailing 12-month library revenue was $987 million. Total quarterly revenue jumped nearly 50% to $777 million, outpacing Wall Street forecasts.

Adjusted net income from continuing operations was $18.9 million, or $0.06 per share. Net loss narrowed to $29 million from $107 million.

“I’m pleased to report another quarter of strong financial results and growing momentum across our business,” said CEO Jon Feltheimer. “As we continue to execute our franchise strategy across a deep portfolio of branded intellectual properties, generate increased visibility and stability from our film and television library, and benefit from continued improvement in our operating environment, we are positioned to deliver strong growth in fiscal 2027 and beyond.”

Lionsgate shares popped on the numbers, rising 2.4% at $13.26 in late trading. The stock’s had a major runup since the split with Starz and been buoyed by takeover speculation — bouncing from a 52-week range of under $6 to a high near $17 – including a 9% jump one day last month on chatter that it’s courting buyers in Europe.

The media and entertainment industry has been consolidating with high-profile transactions in the pipeline and more to come. Lionsgate had been a potential takeover target for years but became a more digestible target as a pure content play.

The studio currently has a second Michael movie in development as well as a sequel to The Housemaid. Brittany Snow recently joined Paul Feig’s The Housemaid’s Secret opposite Sydney Sweeney, Kirsten Dunst and Paul Anthony Kelly. Hunger Games: Sunrise On The Reaping opens in November. Mel Gibson’s The Resurrection of the Christ Part One is coming in 2027. The backdrop is positive with the domestic box office rebounding.

Execs will hosting a call with analysts at 5 pm ET.