📊 LION Key Takeaways
Is LION a Good Investment? Thesis Analysis
Lionsgate is in severe financial distress with negative stockholders equity (-$1.3B), indicating technical insolvency. The company is burning cash at an unsustainable rate (-$253.6M FCF annually), coupled with persistent unprofitability (-15.6% net margin) and critically low liquidity (0.46x current ratio). Without immediate restructuring or dramatic operational turnaround, the company faces elevated default risk.
Why Buy LION? Key Strengths
- Revenue growth of 7% YoY demonstrates some market demand for content
- Operating cash burn slightly improved in net income terms (+2.7% YoY)
- Maintains $182.4M in cash providing short-term operational runway
LION Investment Risks to Consider
- Negative stockholders equity of -$1.3B indicates accounting insolvency
- Operating cash flow negative at -$243.9M; company burning cash from core operations
- Current ratio of 0.46x signals severe liquidity crisis; liabilities exceed short-term assets
- Interest coverage ratio of -0.1x shows inability to service debt from operating income
- Burn rate of -$253.6M FCF annually would exhaust cash reserves within 9 months at current trajectory
- Long-term debt of $1.9B unsustainable given negative operating cash flows
Key Metrics to Watch
- Operating cash flow trajectory and path to positive FCF
- Quarterly progress toward operating profitability
- Liquidity position and cash runway given burn rate
- Debt restructuring discussions or covenant compliance status
LION Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
LION Profitability Ratios
LION vs Default Sector
How Lionsgate Studios Corp. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is LION Overvalued or Undervalued?
Based on fundamental analysis, Lionsgate Studios Corp. has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
LION Balance Sheet & Liquidity
LION 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Lionsgate Studios Corp.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $0.00 indicates the company is currently unprofitable.
LION Growth Metrics (YoY)
LION Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $628.2M | -$21.9M | $-0.09 |
| Q2 2026 | $475.1M | -$113.5M | $-0.39 |
| Q1 2026 | $486.9M | -$59.4M | $-0.24 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
LION Capital Allocation
LION SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Lionsgate Studios Corp. (CIK: 0002052959)
📋 Recent SEC Filings
❓ Frequently Asked Questions about LION
What is the AI rating for LION?
Lionsgate Studios Corp. (LION) has an AI rating of STRONG SELL with 95% confidence, based on fundamental analysis of SEC EDGAR filings.
What are LION's key strengths?
Claude: Revenue growth of 7% YoY demonstrates some market demand for content. Operating cash burn slightly improved in net income terms (+2.7% YoY).
What are the risks of investing in LION?
Claude: Negative stockholders equity of -$1.3B indicates accounting insolvency. Operating cash flow negative at -$243.9M; company burning cash from core operations.
What is LION's revenue and growth?
Lionsgate Studios Corp. reported revenue of $1.7B.
Does LION pay dividends?
Lionsgate Studios Corp. does not currently pay dividends.
Where can I find LION SEC filings?
Official SEC filings for Lionsgate Studios Corp. (CIK: 0002052959) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LION's EPS?
Lionsgate Studios Corp. has a diluted EPS of $-0.95.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is LION a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Lionsgate Studios Corp. has a STRONG SELL rating with 95% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is LION stock overvalued or undervalued?
Valuation metrics for LION: ROE of N/A (sector avg: 15%), net margin of -15.6% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy LION stock in 2026?
Our dual AI analysis gives Lionsgate Studios Corp. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is LION's free cash flow?
Lionsgate Studios Corp.'s operating cash flow is $-243.9M, with capital expenditures of $9.7M. FCF margin is -14.7%.
How does LION compare to other Default stocks?
Vs Default sector averages: Net margin -15.6% (avg: 12%), ROE N/A (avg: 15%), current ratio 0.46 (avg: 1.8).