Lions Gate Entertainment Corp (LGF-A) reported a Q4 2024 revenue of $1.118 billion, delivering a modest YoY uplift of 2.96% and a sequential QoQ increase of 14.63%. The gross margin stood at 42.7% (gross profit of $477.7 million), while EBITDA was solid at $482.8 million. Despite the topline improvement and EBITDA generation, the company posted an operating loss of $60.9 million and a net loss of $39.4 million for the quarter, resulting in an EPS of -$0.17. The results underscore ongoing investment in content and Starz monetization efforts, even as the business bears a heavy cost base and working-capital dynamics that constrain near-term profitability.
From a balance-sheet perspective, Lions Gate remains highly leveraged with total debt of $4.418 billion and negative shareholders’ equity of approximately -$3.127 billion. Liquidity appears modest: cash and cash equivalents of about $314 million at the period end, total cash at end of period of $371.4 million, and negative operating cash flow (-$4.6 million). Free cash flow was also negative at approximately -$14.6 million, reflecting continued cash burn tied to content investments, SG&A intensity, and working-capital needs. Management commentary in the earnings release emphasized ongoing content development and international STARZ distribution initiatives, but explicit forward guidance was not provided in the data supplied.
The near-term investment thesis hinges on Lions Gate’s ability to monetize STARZ more effectively—through subscriber growth, pricing, and international expansion—while achieving deleveraging through cash flow improvements and potential refinancing. The market backdrop for entertainment peers remains competitive, with higher content costs and ad-supported monetization dynamics. If STARZ scaling translates into meaningful EBITDA leverage and the company can stabilize cash flows, a path toward improved equity value could emerge; however, persistent losses, a negative book value, and a sizable debt burden argue for a cautious stance until there is clearer evidence of sustained deleveraging and cash generation.