Lions Gate Entertainment Corp (LGF-A) reported QQ1 2026 revenue of $319.7 million, down 71.4% year over year and 67.1% quarter over quarter. The quarter produced a net loss of $42.5 million and an EPS of -$2.54, with negative operating income of $26.9 million and an EBITDA of -$7.1 million. Despite the bottom-line weakness, the company generated $65.4 million of cash from operations and $58.5 million in free cash flow, supporting a positive near-term liquidity trajectory. However, the balance sheet remains levered with total debt of $611.7 million and net debt of $560.1 million, against total assets of $2.0916 billion and cash at hand of $51.6 million. Financing activities reflected significant outflows of $106.8 million, contributing to a net cash increase of $33.8 million for the period and a cash balance of $51.6 million at quarter-end.
From a structural standpoint, the most meaningful asset is the Starz media networks business, which continues to be the principal lever for long-term value creation through premium subscription distribution and international expansion. Management commentary (where available) emphasized content investment alongside monetization initiatives for Starz; near-term revenue and profitability remain pressured by linear-to-digital transitions, timing of licensing/distribution deals, and ongoing content costs. Investors should monitor Starz subscriber growth, international penetration, and the progression of monetization initiatives as primary catalysts for a healthier revenue trajectory and improved margin profile over time.