📊 LION Key Takeaways
Is Lionsgate Studios Corp. (LION) a Good Investment?
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.
Despite 7% YoY revenue growth, Lionsgate Studios remains structurally unprofitable with negative operating and net margins and sustained negative free cash flow. The balance sheet is stressed—negative equity, sub-0.5x current ratio, and negative interest coverage—indicating acute liquidity and refinancing risk. Without clear evidence of margin expansion and positive operating cash flow, fundamentals are unfavorable.
Lionsgate Studios Corp. Key Strengths (LION)
- 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
- Revenue growth (+7% YoY) at $1.73B scale
- Capex-light spend ($9.7M) enabling potential FCF leverage if operations improve
- Slight YoY improvement in net loss (+2.7%)
LION Stock Risks: Lionsgate Studios Corp. Investment Risks
- 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
- Liquidity strain (current and quick ratio 0.46x)
- High leverage and negative equity (LT debt $1.92B; equity -$1.28B)
- Inability to cover interest and ongoing cash burn (interest coverage -0.1x; OCF -$243.9M)
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
- Operating cash flow
- Interest coverage
Lionsgate Studios Corp. (LION) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
LION Profit Margin, ROE & Profitability Analysis
LION vs Services Sector: How Lionsgate Studios Corp. Compares
How Lionsgate Studios Corp. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Lionsgate Studios Corp. Stock Overvalued? LION Valuation Analysis 2026
Based on fundamental analysis, Lionsgate Studios Corp. has mixed fundamental signals relative to the Services 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.
Lionsgate Studios Corp. Balance Sheet: LION Debt, Cash & Liquidity
LION Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
LION Quarterly Earnings & 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.
Lionsgate Studios Corp. Dividends, Buybacks & Capital Allocation
LION SEC Filings: Latest 10-K & 10-Q 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 a Combined AI Grade of D from Claude (D) and ChatGPT (D) with 86% combined 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). ChatGPT: Revenue growth (+7% YoY) at $1.73B scale. Capex-light spend ($9.7M) enabling potential FCF leverage if operations improve.
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. ChatGPT: Liquidity strain (current and quick ratio 0.46x). High leverage and negative equity (LT debt $1.92B; equity -$1.28B).
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 grade reflects both perspectives for balanced insights.
What is LION's fundamental grade?
Based on our AI fundamental analysis in May 2026, Lionsgate Studios Corp. has a D grade with 86% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is LION stock overvalued or undervalued?
Valuation metrics for LION: ROE of N/A (sector avg: 16%), net margin of -15.6% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is LION's AI grade for 2026?
Our dual AI analysis gives Lionsgate Studios Corp. a combined D grade 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 Services stocks?
Vs Services sector averages: Net margin -15.6% (avg: 10%), ROE N/A (avg: 16%), current ratio 0.46 (avg: 1.5).