Lionsgate reported stronger-than-expected revenue for its fiscal third quarter, boosted by hits like 'The Housemaid' and 'Now You See Me: Now You Don’t,' despite wider losses from marketing costs. The studio's motion picture segment saw significant growth, while television revenues dipped due to delivery timing. CEO Jon Feltheimer highlighted the company's robust pipelines and library growth amid industry consolidation.
Lionsgate's fiscal 2026 third quarter, ending in September with the company's year concluding in March, delivered revenue of $724 million, an increase of about 17% year-over-year that exceeded Wall Street expectations. Operating income reached $85 million, but net losses widened to approximately $45 million from $22 million the prior year, primarily due to elevated print and advertising spending on recent releases.
The motion picture division led the gains, with revenue climbing 35% to $421 million, driven by the thrillers 'The Housemaid' and 'Now You See Me: Now You Don’t.' 'The Housemaid,' starring Sydney Sweeney and Amanda Seyfried and released on December 19, contributed only 12 days of domestic box office to the quarter, with its full impact expected in the fourth quarter and fiscal 2027. The film has grossed $266 million worldwide to date. Segment profit fell to $58.5 million from $83 million, reflecting higher promotional expenses. A sequel, 'The Housemaid’s Secret,' is slated for production this year.
In contrast, television production revenue declined to $303 million, with profits slipping to $55.7 million from $61 million, attributed to the timing of episodic deliveries like 'The Studio' a year earlier. This was partially offset by strength in library licensing, including shows such as 'The Hunting Wives' on Netflix and 'The Rainmaker' on USA Network. The group secured renewals for 12 of its 13 scripted series across 12 buyers. Trailing 12-month library revenue hit a record $1.05 billion, up 10%.
Upcoming releases include 'Michael' on April 27, 'The Hunger Games: Sunrise on the Reaping' in November, and 'Resurrection of the Christ: Parts One and Two' in March and May 2027. Projects in development encompass 'John Rambo,' a new 'John Wick' film, 'Naruto,' 'American Psycho,' and sequels to 'Saw' and 'Blair Witch.'
"I’m pleased to report a quarter that keeps us on track for our fiscal 2026 financial targets and positions us for significant growth in fiscal 2027 and beyond," Feltheimer said. He emphasized the value of the company's IP portfolio amid mergers like the contest for Warner Bros. Discovery. Shares rose about 2% to near $9 in after-hours trading, following the 2025 Starz spinoff and recent board addition of Steven Mnuchin.