Lionsgate Studios Posts 12-Year OIBDA High as Starz Split Takes Effect

Lionsgate Studios delivered its strongest adjusted profitability in over a decade, Benzinga reported Thursday, as the company wrapped a fiscal fourth quarter marked by a landmark corporate split and a surge in content performance.

Revenue and Profit Surge in Final Quarter

The studio posted quarterly revenue of $907 million for the period ending in spring 2026. Adjusted operating income before depreciation and amortization came in at $165 million, a 17% year-over-year increase and the highest such figure the company has recorded in twelve years. Chief Financial Officer Jimmy Barge highlighted the strength of cash flows and noted that net debt now sits at roughly $1.6 billion, pointing to meaningful deleveraging progress over the period.

Starz Separation Reshapes the Corporate Structure

The headline strategic development of the quarter was the completion of Lionsgate’s separation from Starz. The two businesses now operate as distinct publicly traded companies. Chief Executive Officer John Feltheimer indicated that capital markets have responded positively to the cleaner structure. The move had long been anticipated by investors who argued the combined entity obscured the standalone value of each division.

Content Pipeline Drives Forward Outlook

Management pointed to a robust slate as the backbone of its fiscal 2027 and 2028 growth expectations. Theatrical hit “The Housemaid” was cited as a standout performer, with a sequel titled “The Housemaid’s Secret” already in production. A new installment in the Hunger Games franchise is also in development, reinforcing the studio’s strategy around branded, repeatable intellectual properties. On the television side, Chairman of the TV Group Kevin Beggs flagged several projects beyond the previously announced Rookie spinoff, though specific titles were not yet disclosed publicly.

AI Strategy and Industry Consolidation

Feltheimer and Barge both addressed the studio’s growing use of artificial intelligence, framing it as a tool to lift creative output and operational efficiency rather than a cost-cutting mechanism. Analysts on the call also pressed management about the potential knock-on effects of the Paramount-Skydance and Warner Bros. Discovery combination on Lionsgate’s library licensing business. Executives acknowledged the shifting competitive landscape but stopped short of providing quantified projections for library revenue impact.

The company enters fiscal 2027 with what management described as significant growth momentum, underpinned by franchise sequels, a leaner balance sheet and two structurally independent public companies.

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