Lionsgate reported stronger fiscal first-quarter results, narrowing its net loss to $28.8 million as the box-office success of the Michael Jackson biopic "Michael" lifted its film division to record profits. The results underline how a single hit release can transform a studio's fortunes, and Lionsgate is already moving to capitalise on the franchise with a sequel now in development, aiming to start production by late 2026 or early 2027.

The Motion Picture segment posted revenue of $587.3 million, more than double the prior year, with profit rising to $105 million from just $2.4 million a year earlier, driven by "Michael" surpassing $1 billion at the global box office and strong ancillary performance from "The Housemaid". Television Production revenue fell 34% to $189.3 million on the timing of episodic deliveries, though Lionsgate expects licensing four "Power" series to Netflix to boost the segment later in the year. Overall quarterly revenue reached $776.6 million, up 48%, with operating income of $25.6 million versus a loss a year earlier, while the net loss per share improved to 10 cents from a much larger loss of $94 million in the prior-year period.