Lions Gate Entertainment (LGF-A) Q1 2025 Earnings Report

LGF-A reported Q1 2025 revenue of $834.7 million, down 8.1% year over year and 25.3% quarter over quarter, with a gross margin of 43.37% and EBITDA of $358.0 million (EBITDA margin 42.89%). Operating income totaled $44.4 million (operating margin 5.32%), while net income was negative at $-59.4 million and EPS of $-0.25. The quarterly result reflects a solid EBITDA base offset by higher interest expense and a meaningful working capital outflow, contributing to a negative net income despite a constructive gross margin.

Cash flow and liquidity remained challenged in the quarter: net cash from operating activities was $(158.9) million and free cash flow was $(167.9) million. The company saw a substantial swing in working capital (change in working capital of $(503.3) million) and executed small net acquisitions ($259.0 million) alongside modest capital expenditures ($9.0 million). Ending cash stood at $229.1 million, and aggregate leverage remained elevated with total debt of $4.2169 billion and net debt of $3.9878 billion. These dynamics imply that near-term profitability hinges on financing costs and working capital management, even as EBITDA remains robust on a revenue base that benefits from Lions Gate’s diversified content portfolio.

Management commentary is not included in the provided data set, and no earnings-call transcript was supplied to extract quotes. The forward-looking indicators therefore rely on the reported results, segment mix, and industry context. The core growth implication centers on STARZ-based international distribution and licensing opportunities, along with ongoing content investment that could unlock higher-margin licensing and streaming revenue over time. Investors should monitor leverage dynamics, Starz monetization progress, and working capital normalization as catalysts or risks to the near-term path.