On Thursday, Lionsgate posted surprisingly strong results in its first quarter earnings report, including record-breaking revenues from its film studio division. The quarter from April to June, which Lionsgate categorizes as its fiscal first quarter of 2027, included over twice the revenue from its film division compared to the same quarter last year. In fact, it was the most profitable fiscal Q1 quarter in the studio’s history, largely due to the success of MICHAEL, which itself earned over $1 billion at the worldwide box office to become the highest-grossing biopic in history.
The company’s quarterly report emphasized its ability to build valuable new IP as a mid-major studio. Lionsgate CEO Jon Feltheimer confirmed that the studio is in active development of sequels to both MICHAEL and THE HOUSEMAID. Feltheimer stated the MICHAEL sequel has been targeted for a late 2027 or early 2028 release date. Lionsgate also teased upcoming releases from its established franchises of JOHN WICK, THE HUNGER GAMES, RAMBO, and THE RESURRECTION OF THE CHRIST. Despite significant losses in its TV division, investors responded positively to the details in Lionsgate’s earnings report. Part of this enthusiasm may come from the potential for Lionsgate to become an acquisition target. While Lionsgate has been the target of acquisition rumors for years, Netflix has recently emerged as a potential interested party to acquire Lionsgate in order to capitalize on its valuable IP.
