📊 LION Key Takeaways
Is Lionsgate Studios Corp. (LION) a Good Investment?
Lionsgate faces critical solvency challenges with negative stockholders' equity of -$1.2B, indicating liabilities exceed assets. The company cannot service its debt (0.4x interest coverage ratio) and has severe liquidity constraints (0.49x current ratio), while generating losses despite $2.6B in revenue and stagnant 1.8% growth.
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)
- Positive operating income of $97.1M demonstrates underlying business operations generate some profit
- Substantial revenue base of $2.6B provides scale and market presence
- Cash reserves of $341.5M provide near-term liquidity buffer
- 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 -$1.2B indicates technical insolvency with liabilities exceeding total assets
- Interest coverage ratio of 0.4x means operating income cannot cover interest expense, creating imminent default risk
- Severe liquidity crisis with current ratio of 0.49x, unable to meet short-term obligations without asset sales
- Net losses of -$198.3M despite revenue generation indicates unsustainable operational structure
- Anemic free cash flow of $11.4M (0.4% margin) insufficient to delever $1.9B long-term debt
- Stagnant revenue growth of 1.8% YoY provides no growth narrative to offset debt burden
- 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
- Stockholders' equity trend toward positive territory (solvency recovery)
- Interest coverage ratio improvement above 1.0x (debt serviceability)
- Operating cash flow growth to support debt reduction
- Revenue growth acceleration above 5% YoY (return to growth)
- Current ratio improvement above 1.0x (liquidity adequacy)
- Debt reduction milestones and refinancing activity
- Operating cash flow
- Interest coverage
Lionsgate Studios Corp. (LION) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 0.4% FCF margin may limit capital allocation flexibility. 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 declined by 18% over the 5-year period, indicating business contraction. The most recent EPS of $-4.58 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 87% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are LION's key strengths?
Claude: Positive operating income of $97.1M demonstrates underlying business operations generate some profit. Substantial revenue base of $2.6B provides scale and market presence. 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 -$1.2B indicates technical insolvency with liabilities exceeding total assets. Interest coverage ratio of 0.4x means operating income cannot cover interest expense, creating imminent default risk. 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 $2.6B.
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 $-0.70.
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 June 2026, Lionsgate Studios Corp. has a D grade with 87% 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 -7.5% (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 $24.8M, with capital expenditures of $13.4M. FCF margin is 0.4%.
How does LION compare to other Services stocks?
Vs Services sector averages: Net margin -7.5% (avg: 10%), ROE N/A (avg: 16%), current ratio 0.49 (avg: 1.5).