Lionsgate Posts Quarterly Loss After 'Ballerina' Disappoints
Key Takeaways
- Lionsgate posted a $94 million net loss in its most recent quarter after spinning off Starz
- The "John Wick" spinoff "Ballerina" disappointed at the box office
- Company revenues reached $555.9 million, beating analyst expectations
- Loss per share hit 35 cents, worse than the projected 25 cents
- CEO promises return to growth by fiscal 2027 through cost cuts and AI integration
- Film division dragged down earnings despite TV unit profits doubling
- Stock rose over 2% in after-hours trading despite the losses
The Numbers Don't Lie , But They Tell Strange Stories
Lionsgate just dropped a $94 million loss on shareholders. The studio that gave us "John Wick" and "The Hunger Games" now sits naked without its Starz streaming arm, counting quarters like a broke gambler after a bad night.
The company pushed out three films this quarter. "The Studio" landed on Apple TV+ to decent reviews. "Another Simple Favor" came and went. Then there was "Ballerina" , Ana de Armas spinning kicks and bullets in a "John Wick" universe that audiences apparently didn't want to visit.
Revenues hit $555.9 million, which actually beat what the suits on Wall Street expected. But losing 35 cents per share when analysts figured you'd only lose 25 cents? That's like missing your mouth when you're drinking whiskey , embarrassing and wasteful.
The stock jumped 2% after hours. Markets are weird that way. Sometimes losing less money than expected counts as winning.
When Ballerinas Can't Dance at the Box Office
"Ballerina" should have been easy money. Take Ana de Armas. Put her in the "John Wick" world. Add some stylized violence and a decent budget. Print tickets.
Instead, the film stumbled harder than a drunk trying to parallel park. The movie managed just $131 million worldwide , that's 29% of what "John Wick: Chapter 4" pulled in with its $447 million global take.
You can smell the desperation in those numbers. Franchise fatigue hits different when you're stretching a concept beyond its natural limits. "John Wick" worked because Keanu Reeves looked like he could actually kill someone with a pencil. The spinoff felt like watching someone else wear your favorite jacket , technically it fits, but something's off.
The film went through reshoots. Multiple delays. Red flags waving in the California wind. Lionsgate's last six films have all been box office disappointments, and "Ballerina" just added another tally to that losing streak.
The Starz Divorce Papers Are Finally Signed
Lionsgate officially separated from its Starz cable and streaming business this quarter. Think of it as corporate amputation , cutting off a limb to save the body.
The split leaves Lionsgate as a pure play movie and TV operation. No more streaming wars. No more competing with Netflix and Disney+ directly. Just making content and selling it to whoever pays the most.
The separation was a "major event" that happened in May, and you can see the financial surgery marks all over these quarterly numbers. When you rip apart a company, the accounting gets messy fast.
Some analyst probably has a PowerPoint somewhere explaining how this makes everything cleaner. Simpler. More focused. In reality, it's like watching someone sell their car to pay rent , necessary, maybe, but not exactly a victory lap.
Television Saves the Day (Sort Of)
While movies tanked, the TV side doubled its profits. "The Studio" landed on Apple TV+ as a Hollywood satire that critics actually liked. "The Hunting Wives" showed up on Netflix.
Television keeps the lights on at Lionsgate these days. Streaming services need content like addicts need fixes, and Lionsgate has a library full of intellectual property ready to be squeezed into series format.
CEO Jon Feltheimer promised the company will "double our scripted television series deliveries next year". Translation: we're going to milk every franchise until it stops producing revenue.
The TV business model makes sense. Make a show. Sell it to a streamer. Collect checks. Repeat. Movies require theaters and marketing budgets and the prayer that audiences show up opening weekend. TV just needs someone with a subscription and insomnia.
AI and Cost Cuts: The Corporate Medicine Cabinet
Feltheimer announced plans to cut costs and integrate AI technology as a "first mover" across operations. Every struggling company reaches for the same medicine cabinet these days , layoffs and artificial intelligence.
AI in entertainment means different things. Maybe it's using machine learning to predict which scripts might work. Maybe it's automating parts of post-production. Maybe it's just corporate buzzword bingo to make shareholders feel better about losing money.
Cost cuts are more straightforward. Fire people. Cancel projects. Rent smaller offices. The usual stuff companies do when the quarterly numbers look like a crime scene.
Feltheimer promised a return to growth by fiscal 2027. Three years is a long time in Hollywood. That's enough time for two more franchise reboots and at least one more corporate restructuring.
The Pipeline: Banking on Familiar Names
Lionsgate isn't sitting still. "The Hunger Games: Sunrise on the Reaping" went into production, mining that young adult dystopia vein one more time. Because apparently audiences haven't had enough of teenagers fighting to the death in elaborate television productions.
A two-part sequel to "The Passion of the Christ" is in partnership with Mel Gibson. That's either brilliant counter-programming or the kind of decision that makes sense only after several drinks and a long look at overseas box office numbers.
Three major film tentpoles are set for release in the coming fiscal year. Tentpoles are what studios call movies they expect to hold up the entire yearly budget. Like using toothpicks to prop up a house of cards.
The company also mentioned stage adaptations of "La La Land," "Dirty Dancing," and "The Hunger Games." When your movies aren't making money, try Broadway. When Broadway doesn't work, try regional dinner theater.
The Hollywood Machine Keeps Grinding
Lionsgate's operating loss hit $10.6 million this quarter. That's the cost of doing business when your business involves spending $100 million on movies that might make $50 million back.
The entertainment industry operates on optimism and accounting tricks. Every quarter brings new explanations for why the numbers look bad but the future looks bright. Every press release mentions upcoming projects that will surely turn things around.
Lionsgate isn't alone , Warner Bros., Universal, and Apple all fielded expensive disasters this year. "Joker: Folie à Deux" and "Furiosa: A Mad Max Saga" joined the graveyard of films that looked good on paper but died at multiplexes.
The machine keeps grinding because it has to. Studios have overhead. Employees. Contracts. You can't just stop making movies because the last few didn't work. You make more movies and hope the next batch finds an audience willing to buy tickets instead of staying home with their streaming subscriptions.
Frequently Asked Questions
Q: How much money did Lionsgate lose this quarter?
A: Lionsgate posted a $94 million net loss after spinning off its Starz division.
Q: Why did "Ballerina" perform poorly at the box office?
A: The film only made $131 million worldwide, just 29% of what "John Wick: Chapter 4" earned. Franchise fatigue and multiple production issues likely contributed to its disappointing performance.
Q: What is Lionsgate doing to improve its financial situation?
A: The company plans to cut costs, integrate AI technology, and double its scripted television deliveries while focusing on major film releases.
Q: When does Lionsgate expect to return to growth?
A: CEO Jon Feltheimer promised a return to "solid growth in fiscal 2027".
Q: What upcoming projects does Lionsgate have planned?
A: The company is producing "The Hunger Games: Sunrise on the Reaping" and partnering with Mel Gibson on a "Passion of the Christ" sequel, plus stage adaptations of several popular films.
Q: How did Lionsgate's stock react to the earnings report?
A: The stock was up more than 2% in after-hours trading despite the quarterly loss, likely because revenue beat analyst expectations.
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