LION Stock Forecast & Price Target

Lionsgate Studios Corp has demonstrated significant revenue growth, with trailing twelve-month library revenues reaching $1 billion, a substantial increase from $892 million the previous year, driven by the rising demand for premium content. The company's strategic focus on television production has escalated its contribution to library revenue, increasing from approximately 15% to about 30% over the past decade, indicating a robust expansion in this segment. Furthermore, the studio's strong revenue generation of $3.2 billion in fiscal year 2025, coupled with a notable 31% sequential increase in backlog, underscores a positive outlook for profitability and overall valuation in the media industry.

Lionsgate Studios Corp reported a 15% decline in OIBDA for fiscal 2025, primarily driven by a poor performance in its Motion Picture Segment, which included significantly fewer theatrical releases compared to the previous year. The company's television revenues from non-Starz entities have stagnated since 2018, indicating a lack of growth in this segment, while profitability was further pressured by rising marketing costs and a noted decline in Home Entertainment contributions due to the dominance of streaming services. Overall, these challenges, combined with reduced expectations for studio EBITDA over recent years, contribute to a negative outlook for the company’s financial performance.