Lionsgate Studios Corp.

Previous wording

Immediately following the Business Combination through immediately prior to the Starz Separation, approximately 87.8% of the total shares of Legacy Lionsgate Studios were held by Old Lionsgate, while 12.2% were owned by former SEAC public shareholders, SEAC founders and common equity financing investors. In addition to establishing Legacy Lionsgate Studios as a standalone publicly-traded entity, the transaction resulted in approximately $330.0 million of gross proceeds to Old Lionsgate. Net proceeds of $278.2 million, inclusive of transaction costs that remained accrued at March 31, 2025 and which were paid during the six months ended September 30, 2025 totaling $3.5 million, were used to partially pay down amounts outstanding under Old Lionsgate's corporate debt (see Note 7 Other Prior Period Debt Transactions for further detail).

Current wording

Immediately following the Business Combination through immediately prior to the Starz Separation, approximately 87.8% of the total shares of Legacy Lionsgate Studios were held by Old Lionsgate, while 12.2% were owned by former SEAC public shareholders, SEAC founders and common equity financing investors. In addition to establishing Legacy Lionsgate Studios as a standalone publicly-traded entity, the transaction resulted in approximately $330.0 million of gross proceeds to Old Lionsgate. Net proceeds of $278.2 million, inclusive of transaction costs that remained accrued at March 31, 2025 and which were paid during the nine months ended December 31, 2025 totaling $3.5 million, were used to partially pay down amounts outstanding under Old Lionsgate's corporate debt. See Note 7 to our unaudited condensed consolidated financial statements for further detail.

Previous wording

Our revenues are derived from the Motion Picture and Television Production segments, as described below. Our revenues are derived from the U.S., Canada, the United Kingdom and other foreign countries. None of the non-U.S. countries individually comprised greater than 10% of total revenues for the three and six months ended September 30, 2025 and 2024.

Current wording

Our revenues are derived from the Motion Picture and Television Production segments, as described below. Our revenues are derived from the U.S., Canada, the United Kingdom and other foreign countries. None of the non-U.S. countries individually comprised greater than 10% of total revenues for the three and nine months ended December 31, 2025 and 2024.

Previous wording

For motion pictures, ultimate revenue includes estimates over a period not to exceed ten years following the date of initial release of the motion picture. The most sensitive factor affecting our estimate of ultimate revenues for a film intended for theatrical release is the film's theatrical performance, as subsequent revenues from the licensing and sale in other markets have historically been highly correlated to its theatrical performance. After a films release, our estimates of revenue from succeeding markets are revised based on historical relationships and an analysis of current market trends.

Current wording

For motion pictures, ultimate revenue includes estimates over a period not to exceed ten years following the date of initial release of the motion picture. The most sensitive factor affecting our estimate of ultimate revenues for a film intended for theatrical release is the film's theatrical performance, as subsequent revenues from the licensing and sale in other markets have historically been highly correlated to its theatrical performance. After a film is released, our estimates of revenue from succeeding markets are revised based on historical relationships and an analysis of current market trends.

Previous wording

Goodwill. As of September 30, 2025, the carrying value of goodwill was $845.2 million. Goodwill is allocated to our reporting units, which are our operating segments or one level below our operating segments (component level). Reporting units are determined by the discrete financial information available for the component and whether that information is regularly reviewed by segment management. Components are aggregated into a single reporting unit if they share similar economic characteristics. Our reporting units for purposes of goodwill impairment testing, along with their respective goodwill balances as of September 30, 2025, were Motion Picture (goodwill of $396.9 million), our Television (goodwill of $355.3 million) and Talent Management (goodwill of $93.0 million) businesses, both of which are part of our Television Production segment.

Current wording

Goodwill. As of December 31, 2025, the carrying value of goodwill was $846.8 million. Goodwill is allocated to our reporting units, which are our operating segments or one level below our operating segments (component level). Reporting units are determined by the discrete financial information available for the component and whether that information is regularly reviewed by segment management. Components are aggregated into a single reporting unit if they share similar economic characteristics. Our reporting units for purposes of goodwill impairment testing, along with their respective goodwill balances as of December 31, 2025, were Motion Picture (goodwill of $396.9 million) and our Television (goodwill of $318.9 million) and Talent Management (goodwill of $131.0 million) businesses, both of which are part of our Television Production segment.

Previous wording

During the three and six months ended September 30, 2025, there were no events or circumstances that rose to the level that would indicate that it is more-likely-than not that the fair value of a reporting unit is less than its carrying value.

Current wording

During the three and nine months ended December 31, 2025, no events or circumstances occurred that would indicate it is more-likely-than not that the fair value of any reporting unit is less than its carrying value. Accordingly, an impairment test was not required during the current reporting period.

Previous wording

Income Taxes. We are subject to federal and state income taxes in the U.S., and in several foreign jurisdictions. We record deferred tax assets related to net operating loss carryforwards and certain temporary differences, net of applicable reserves in these jurisdictions. We recognize a future tax benefit to the extent that realization of such benefit is more likely than not on a jurisdiction-by-jurisdiction basis; otherwise, a valuation allowance is applied. In order to realize the benefit of our deferred tax assets, we will need to generate sufficient taxable income in the future in each of the jurisdictions which have these deferred tax assets. However, the assessment as to whether there will be sufficient taxable income in a jurisdiction to realize our net deferred tax assets in that jurisdiction is an estimate which could change in the future depending primarily upon the actual performance of our Company. We will be required to continually evaluate the more likely than not assessment that our net deferred tax assets will be realized, and if operating results deteriorate in a particular jurisdiction, we may need to record a valuation allowance for all or a portion of our deferred tax assets through a charge to our income tax benefit (provision). As of September 30, 2025, we had a valuation allowance of $1,536.4 million against certain U.S. and foreign deferred tax assets that may not be realized on a more likely than not basis.

Current wording

Income Taxes. We are subject to federal and state income taxes in the U.S., and in several foreign jurisdictions. We record deferred tax assets related to net operating loss carryforwards and certain temporary differences, net of applicable reserves in these jurisdictions. We recognize a future tax benefit to the extent that realization of such benefit is more likely than not on a jurisdiction-by-jurisdiction basis; otherwise, a valuation allowance is applied. In order to realize the benefit of our deferred tax assets, we will need to generate sufficient taxable income in the future in each of the jurisdictions which have these deferred tax assets. However, the assessment as to whether there will be sufficient taxable income in a jurisdiction to realize our net deferred tax assets in that jurisdiction is an estimate which could change in the future depending primarily upon the actual performance of our Company. We will be required to continually evaluate the more likely than not assessment that our net deferred tax assets will be realized, and if operating results deteriorate in a particular jurisdiction, we may need to record a valuation allowance for all or a portion of our deferred tax assets through a charge to our income tax benefit (provision). As of December 31, 2025, we had a valuation allowance of $1,545.3 million against certain U.S. and foreign deferred tax assets that may not be realized on a more likely than not basis.

Previous wording

(1) During the first quarter of fiscal 2026, the Company began reflecting the results of operations of its streaming platform in India within the Motion Picture segment as such operations are not a part of the disposal group of the Starz Business. Accordingly, the following amounts were reclassified from the former Media Networks segment to the Motion Picture segment in the three months ended September 30, 2024 to conform to the current period presentation: (i) revenue of $2.3 million; (ii) direct operating expense of $1.8 million; (iii) distribution and marketing expense of $0.7 million; and (iv) general and administration expense of $0.7 million, which resulted in gross contribution loss of $0.2 million and segment loss of $0.9 million reclassified.

Current wording

(1) During the first quarter of fiscal 2026, the Company began reflecting the results of operations of its streaming platform in India within the Motion Picture segment as such operations are not a part of the disposal group of the Starz Business. Accordingly, the following amounts were reclassified from the former Media Networks segment to the Motion Picture segment in the three months ended December 31, 2024 to conform to the current period presentation: (i) revenue of $2.2 million; (ii) direct operating expense of $1.6 million; (iii) distribution and marketing expense of $0.8 million; and (iv) general and administration expense of $0.7 million, which resulted in gross contribution loss of $0.2 million and segment loss of $0.9 million. Additionally, the Company sold its streaming platform in India in December 2025, see Note 15 to our unaudited condensed consolidated financial statements.

Previous wording

Revenues. Consolidated revenues decreased$128.9 million in the three months ended September 30, 2025 reflecting a decrease of$217.9 million and$133.0 million from Television Production and Motion Picture revenue, respectively, partially offset by an increase of $222.0 million as a result of no intersegment eliminations being recorded in the current quarter compared to the prior year quarter. Intersegment eliminations related to the licensing of products from our Studio Business to the former Media Networks segment prior to the Starz Separation. Following the Starz Separation, revenue from licenses to Starz are not eliminated from our consolidated results from continuing operations. See further discussion in the Segment Results of Operations section below.

Current wording

Revenues. Consolidated revenues increased $96.1 million in the three months ended December 31, 2025 reflecting an increase of $109.8 million from Motion Picture revenue and no intersegment eliminations recorded in the current quarter compared to the prior year quarter of $87.8 million, offset by a decrease of $101.5 million from Television Production. Intersegment eliminations relate to the licensing of products from our Studio Business to the former Media Networks segment prior to the Starz Separation. Following the Starz Separation, revenue from licenses to Starz were not eliminated from our consolidated results from continuing operations. See further discussion in the Segment Results of Operations section below.

Previous wording

(1) Direct operating expenses for Motion Picture in the three months ended September 30, 2024 reflect the reclassification of $1.8 million from the former Media Networks segment to conform to the current period presentation.

Current wording

(1) Direct operating expenses for Motion Picture in the three months ended December 31, 2024 reflect the reclassification of $1.6 million from the former Media Networks segment to conform to the current period presentation.

Previous wording

Direct operating expenses decreased in the three months ended September 30, 2025. The decrease of expenses for the Television Production and Motion Picture segments was due to decreased revenues in each segment. The decrease in intersegment eliminations is due to there being no Motion Picture and Television Production intersegment revenue from licenses of motion pictures and original series to the former Media Networks segment following the Starz Separation, as discussed above. See further discussion in the Segment Results of Operations section below.

Current wording

Total direct operating expenses increased in the three months ended December 31, 2025. The increase was primarily due to increased revenue from the Motion Picture segment, partially offset by a decrease in revenue from the Television Production segment. The decrease in intersegment eliminations is due to there being no Motion Picture and Television Production intersegment revenue from licenses of motion pictures and original series to the former Media Networks segment following the Starz Separation, as discussed above. See further discussion in the Segment Results of Operations section below.

Previous wording

Other. Other direct operating expense in the three months ended September 30, 2025 and September 30, 2024 primarily includes rent cost for production facilities that were unutilized as a result of the industry strikes amounting to 6.1 million and $5.2 million, respectively, which was not allocated to the segments, and is included in direct operating expense.

Current wording

Other. Other direct operating expenses in the three months ended December 31, 2025 and December 31, 2024 primarily consist of rent costs for production facilities that were unutilized due to lower demand following the industry strikes amounting to $7.9 million and $4.1 million, respectively. The costs are included in direct operating expense and are not allocated to the segments.

Previous wording

Distribution and marketing expenses decreased in the three months ended September 30, 2025, primarily due to lower Motion Picture theatrical P&A and Premium VOD expense associated with the theatrical slate releases in the current quarter. See further discussion in the Segment Results of Operations section below.

Current wording

Distribution and marketing expenses increased in the three months ended December 31, 2025, primarily due to higher Motion Picture theatrical P&A and Premium VOD expenses associated with the theatrical slate releases in the current quarter. See further discussion in the Segment Results of Operations section below.

Previous wording

(1) Motion Picture general and administrative expenses in the three months ended September 30, 2024 reflect the reclassification of $2.7 million from the former Media Networks segment to conform to the current period presentation.

Current wording

(1) Motion Picture general and administrative expenses in the three months ended December 31, 2024 reflect the reclassification of $0.7 million from the former Media Networks segment to conform to the current period presentation.

Previous wording

General and administrative expenses increased in the three months ended September 30, 2025, primarily as a result of increased share-based compensation expense, offset by a decrease in Studio Business and Corporate general and administrative expenses. See further discussion in the Segment Results of Operations section below.

Current wording

General and administrative expenses increased in the three months ended December 31, 2025, primarily as a result of increased share-based compensation expense, offset by a decrease in Corporate general and administrative expenses. See further discussion in the Segment Results of Operations section below.

Previous wording

The decrease in share-based compensation expense included in general and administrative expense in the six months ended September 30, 2025, as compared to the six months ended September 30, 2024 is primarily due to lower fair values in the current period associated with performance-based stock option and other equity awards that are revalued at each reporting period until the stock option or equity award vests and the applicable performance goals are achieved, partially offset by share-based bonuses granted in the current period. The following table presents share-based compensation expense by financial statement line item:

Current wording

The increase in share-based compensation expense included in general and administrative expense in the three months ended December 31, 2025, as compared to the three months ended December 31, 2024 was primarily due to share-based bonuses granted in the current fiscal period, with no similar grants in the prior fiscal period, and higher fair values in the current fiscal period associated with performance-based stock option and other equity awards that are revalued at each reporting period until the stock option or equity award vests and the applicable performance goals are achieved.

Previous wording

Restructuring and Other. Restructuring and other increased $21.0 million in the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, and includes restructuring and severance costs and certain transaction and other costs, when applicable. Restructuring and other costs were as follows for the three months ended September 30, 2025 and 2024 (see Note 15 to our unaudited condensed consolidated financial statements):

Current wording

Restructuring and Other. Restructuring and other decreased $23.2 million in the three months ended December 31, 2025 as compared to the three months ended December 31, 2024. See Note 15 to our unaudited condensed consolidated financial statements. Restructuring and other includes restructuring and severance costs and certain transaction and other costs, when applicable and were as follows for the three months ended December 31, 2025 and 2024:

Previous wording

(1) The Company recorded $8.6 million in development expenses during the six months ended September 30, 2025, representing write-downs in connection with the restructuring of the Motion Picture and Television Production businesses. In addition, the amounts in the three and six months ended September 30, 2025 and 2024 include impairment costs of certain operating lease right-of-use and leasehold improvement assets related to the Television Production segment associated with facility leases that will no longer be utilized by the Company, primarily related to the integration of eOne.

Current wording

(1) Content and other impairments primarily reflect $2.3 million in content impairment charges recorded during the three months ended December 31, 2025 in connection with the restructuring of the Motion Picture and Television Production businesses. In addition, the amounts in the three months ended December 31, 2025 and 2024 include impairment charges related to certain operating lease right-of-use and leasehold improvements within the Television Production segment. These impairments were recognized as a result of facilities that are no longer expected to be utilized by the Company, primarily related to the integration of eOne.

Previous wording

(2) Severance costs were primarily related to restructuring, acquisition integration activities and other cost-saving initiatives.

Current wording

(2) Severance costs were primarily related to workforce reduction actions undertaken in connection with restructuring and acquisition integration activities, as well as other cost-reduction initiatives.

Previous wording

Interest Expense. Interest expense of $67.3 million in the three months ended September 30, 2025 decreased $0.6 million from the three months ended September 30, 2024.

Current wording

Interest Expense. Interest expense of $65.0 million in the three months ended December 31, 2025 increased $1.3 million from the three months ended December 31, 2024.

Previous wording

Interest and Other Income. Interest and other income of $3.4 million for the three months ended September 30, 2025 increased as compared to interest and other income of $3.3 million for the three months ended September 30, 2024.

Current wording

Interest and Other Income. Interest and other income of $4.0 million in the three months ended December 31, 2025 increased, as compared to interest and other income of $3.1 million in the three months ended December 31, 2024.

Previous wording

Other Gain (Losses), net. Other gain (losses) was a net gain of $3.2 million for the three months ended September 30, 2025 as compared to a net loss of $13.8 million for the three months ended September 30, 2024. The change was due to gains related to foreign currency during the three months ended September 30, 2025 as compared to losses related to foreign currency during the three months ended September 30, 2024, partially offset by a decrease in losses related to our monetization of accounts receivable programs (see Note 19 to our unaudited condensed consolidated financial statements).

Current wording

Other Income (Loss), net. Other gain (losses) was net loss of $7.6 million in the three months ended December 31, 2025, compared to a net gain of $10.2 million in the three months ended December 31, 2024. The change was due to losses incurred related to foreign currency transactions during the three months ended December 31, 2025 as compared to income related to foreign currency transactions during the three months ended December 31, 2024

Previous wording

Loss on Extinguishment of Debt. During the three months ended September 30, 2024, a loss on extinguishment of debt of $0.5 million was recorded for the write-off of debt issuance costs associated with the voluntary prepayment of Term Loan B. There was no comparable loss in the three months ended September 30, 2025. See Note 7 to our unaudited condensed consolidated financial statements.

Current wording

Loss on Extinguishment of Debt. During the three months ended December 31, 2024, a loss on extinguishment of debt of $0.3 million was recorded for the write-off of debt issuance costs associated with the voluntary prepayment of Term Loan B. There was no comparable loss in the three months ended December 31, 2025. See Note 7 to our unaudited condensed consolidated financial statements.

Previous wording

Equity Interests Loss. Equity interests loss of $1.9 million increased in the three months ended September 30, 2025 compared to equity interests loss of $0.1 million in the three months ended September 30, 2024 due to greater losses generated by our equity method investees.

Current wording

Equity Interests Income (Loss). Equity interests loss of $5.1 million in the three months ended December 31, 2025, compared to equity interests income of $7.6 million in the three months ended December 31, 2024.

Previous wording

Income Tax Provision. We had an income tax provision of $1.8 million in the three months ended September 30, 2025, compared to an income tax provision of $3.9 million in the three months ended September 30, 2024. Our income tax provision differs from the U.S. federal statutory income tax rate of 21% multiplied by income (loss) before taxes due to the mix of our earnings across the various jurisdictions in which our operations are conducted, changes in valuation allowances against our deferred tax assets, and certain minimum income and foreign withholding taxes.

Current wording

Income Tax Provision. We had an income tax provision of $6.7 million in the three months ended December 31, 2025, compared to an income tax provision of $4.3 million in the three months ended December 31, 2024. Our income tax provision differs from the U.S. federal statutory income tax rate of 21% multiplied by income (loss) before taxes due to the mix of our earnings across the various jurisdictions in which our operations are conducted, changes in valuation allowances against our deferred tax assets, and certain minimum income and foreign withholding taxes.

Previous wording

Net Loss Attributable to Lionsgate Studios Corp. Shareholders. Net loss attributable to our shareholders for the three months ended September 30, 2025 was $113.5 million, or basic and diluted net loss per common share of $0.39 on 289.2 million weighted average common shares outstanding. This compares to net loss attributable to our shareholders for the three months ended September 30, 2024 of $163.3 million, or basic and diluted net loss per common share of $0.66 on 249.3 million weighted average common shares outstanding.

Current wording

Net Loss Attributable to Lionsgate Studios Corp. Shareholders. Net loss attributable to our shareholders for the three months ended December 31, 2025 was $46.2 million, or basic and diluted net loss per common share of $0.16 on 290.0 million weighted average common shares outstanding. This compares to net loss attributable to our shareholders for the three months ended December 31, 2024 of $21.9 million, or basic and diluted net loss per common share of $0.09 on 250.2 million weighted average common shares outstanding.

Previous wording

The Company’s primary measure of segment performance is segment profit. Segment profit is defined as segment revenues, less segment direct operating and segment distribution and marketing expense, less segment general and administration expenses. Segment profit and total segment profit excludes, when applicable, corporate general and administrative expense, restructuring and other costs, share-based compensation, certain programming and content charges as a result of changes in management and/or programming and content strategy, certain benefits related to the COVID-19 global pandemic, unallocated rent cost and purchase accounting and related adjustments. Segment profit is a U.S. GAAP financial measure and is disclosed in Note 16 to our unaudited condensed consolidated financial statements.

Current wording

Our primary measure of segment performance is segment profit. Segment profit is defined as segment revenues, less segment direct operating and segment distribution and marketing expense, less segment general and administration expenses. Segment profit and total segment profit excludes, when applicable, corporate general and administrative expense, restructuring and other costs, share-based compensation, certain programming and content charges as a result of changes in management and/or programming and content strategy, certain benefits related to the COVID-19 global pandemic, unallocated rent cost and purchase accounting and related adjustments. Segment profit is a U.S. GAAP financial measure and is disclosed in Note 16 to our unaudited condensed consolidated financial statements.

Previous wording

The Company believes the presentation of total segment profit is relevant and useful for investors because it allows investors to view total segment performance in a manner similar to the primary method used by the Company’s management and enables them to understand the fundamental performance of the Company’s businesses before non-operating items. Total segment profit is considered an important measure of the Company’s performance because it reflects the aggregate profit contribution from the Company’s segments and represents a measure, consistent with our segment profit, that eliminates amounts that, in management’s opinion, do not necessarily reflect the fundamental performance of the Company’s businesses, are infrequent in occurrence, and in some cases are non-cash expenses. Not all companies calculate segment profit or total segment profit in the same manner, and segment profit and total segment profit as defined by the Company may not be comparable to similarly titled measures presented by other companies due to differences in the methods of calculation and excluded items.

Current wording

We believe the presentation of total segment profit is relevant and useful for investors because it allows investors to view total segment performance in a manner similar to the primary method used by our management and enables them to understand the fundamental performance of our businesses before non-operating items. Total segment profit is considered an important measure of the Company’s performance because it reflects the aggregate profit contribution from the Company’s segments and represents a measure, consistent with our segment profit, that eliminates amounts that, in management’s opinion, do not necessarily reflect the fundamental performance of our businesses, are infrequent in occurrence, and in some cases are non-cash expenses. Not all companies calculate segment profit or total segment profit in the same manner as defined by our management and similarly titled measures presented by other companies may not be comparable due to differences in the methods of calculation and excluded items.

Previous wording

The following table reconciles the U.S. GAAP measure, operating loss, to the non-GAAP measure, total segment profit, for the three months ended September 30, 2025 and 2024. In addition, each of segment direct operating expense, distribution and marketing expense and general and administrative expense is reconciled to the respective line items presented in the GAAP-based unaudited condensed consolidated statement of operations in the preceding section of the Management’s Discussion and Analysis of Financial Condition and Results of Operations which discusses our unaudited condensed consolidated results of operations.

Current wording

The following table reconciles the operating loss, which is the most comparable U.S. GAAP measure to the total segment profit non-GAAP measure for the three months ended December 31, 2025 and 2024. In addition, each of segment direct operating expense, distribution and marketing expense and general and administrative expense is reconciled to the respective line items presented in the GAAP-based unaudited condensed consolidated statement of operations in the preceding section of the Management’s Discussion and Analysis of Financial Condition and Results of Operations which discusses our unaudited condensed consolidated results of operations.

Previous wording

Television revenue decreased $70.1 million, or 64.5%, in the three months ended September 30, 2025, as compared to the three months ended September 30, 2024 due to lower television window openings in the current quarter, as compared to the theatrical slate titles with television window openings during the prior quarter.

Current wording

Television revenue increased $4.8 million, or 12.5%, in the three months ended December 31, 2025, as compared to the three months ended December 31, 2024, primarily due to higher revenue from our Lionsgate Original Releases of fiscal 2025 and 2026 theatrical slate titles with television window openings in the current quarter, compared to the fiscal 2025 television window openings for theatrical slate titles in the prior quarter.

Previous wording

Direct Operating Expense. The decrease in direct operating expenses was due to lower Motion Picture revenue. The decrease in direct operating expenses as a percentage of revenue is driven by the performance and costs of the titles released during the three months ended September 30, 2025. There were no write-downs in investments in film included in Motion Picture segment direct operating expense in the three months ended September 30, 2025, as compared to $18.3 million in the three months ended September 30, 2024.

Current wording

Direct Operating Expense. The increase in direct operating expenses was due to higher Motion Picture revenue. The increase in direct operating expenses as a percentage of revenue is driven by the performance and costs of the titles released during the three months ended December 31, 2025. There were no write-downs in investments in film included in Motion Picture segment direct operating expense in the three months ended December 31, 2025, as compared to $0.2 million in the three months ended December 31, 2024.

Previous wording

Distribution and Marketing Expense. The decrease in distribution and marketing expense in the three months ended September 30, 2025 was primarily due to lower theatrical P&A and Premium VOD expense associated with the theatrical slate releases in the current quarter. In the three months ended September 30, 2025 approximately $21.0 million of P&A and Premium VOD expense was incurred in advance for films to be released in subsequent quarters, compared to approximately $16.2 million in the three months ended September 30, 2024 in the Motion Picture segment.

Current wording

Distribution and Marketing Expense. The increase in distribution and marketing expense in the three months ended December 31, 2025 was primarily due to higher theatrical P&A and Premium VOD expense associated with the theatrical slate releases in the current quarter. In the three months ended December 31, 2025 approximately $16.0 million of P&A and Premium VOD expense was incurred in advance for films to be released in subsequent quarters, compared to approximately $22.1 million in the three months ended December 31, 2024 in the Motion Picture segment.

Previous wording

Gross Contribution. Gross contribution of the Motion Picture segment for the three months ended September 30, 2025 increased as compared to the three months ended September 30, 2024 as a result of lower Motion Picture direct operating expenses and lower distribution and marketing expenses, partially offset by lower Motion Picture revenue.

Current wording

Gross Contribution. Gross contribution of the Motion Picture segment for the three months ended December 31, 2025 decreased as compared to the three months ended December 31, 2024 as a result of higher Motion Picture distribution and marketing and direct operating expenses, partially offset by higher Motion Picture revenue.

Previous wording

The primary component of Television Production revenue is domestic television revenue. Domestic television revenue decreased in the three months ended September 30, 2025 due to a decrease in the number of television episodes delivered.

Current wording

The primary component of Television Production revenue is domestic television revenue. Domestic television revenue decreased $125.7 million, or 48.4%, in the three months ended December 31, 2025, due to a lower number of television episodes delivered in the current quarter as compared to the prior quarter.

Previous wording

International revenue in the three months ended September 30, 2025 decreased $19.0 million, or 38.2% as compared to the three months ended September 30, 2024 due to higher revenue generated internationally from episodes delivered in the prior quarter as compared to lower revenue generated from international television episodes delivered in the current period.

Current wording

International revenue increased $26.1 million, or 44.0%, in the three months ended December 31, 2025, as compared to the three months ended December 31, 2024, due to higher revenue generated internationally from episodes delivered in the current quarter as compared to lower revenue generated from international television episodes delivered in the prior quarter.

Previous wording

Home entertainment revenue in the three months ended September 30, 2025 increased $3.6 million, or 10.3% as compared to the three months ended September 30, 2024 due to higher digital media revenues.

Current wording

Home entertainment revenue increased $2.0 million, or 3.5% ,in the three months ended December 31, 2025, as compared to the three months ended December 31, 2024, due to higher digital media revenues.

Previous wording

Direct Operating Expense. Direct operating expense of the Television Production segment in the three months ended September 30, 2025 decreased $207.8 million, or 56.6% due to the decrease in Television Production revenues. Direct operating expenses as a percentage of television production revenue decreased primarily due to the mix of titles generating revenue in the current quarter as compared to the prior year’s quarter.

Current wording

Direct Operating Expense. Direct operating expense of the Television Production segment in the three months ended December 31, 2025 decreased $98.6 million, or 30.8% due to the decrease in Television Production revenues. Direct operating expenses as a percentage of television production revenue decreased primarily due to the mix of titles generating revenue in the current quarter as compared to the prior quarter.

Previous wording

Gross Contribution. Gross contribution of the Television Production segment for the three months ended September 30, 2025 decreased as compared to the three months ended September 30, 2024, primarily due to lower Television Production revenue, partially offset by lower direct operating expenses.

Current wording

Gross Contribution. Gross contribution of the Television Production segment for the three months ended December 31, 2025 decreased as compared to the three months ended December 31, 2024, primarily due to lower Television Production revenue, offset by lower direct operating expenses.

Previous wording

(1) During the first quarter of fiscal 2026, the Company began reflecting the results of operations of its streaming platform in India within the Motion Picture segment as such operations are not a part of the disposal group of the Starz Business. Accordingly, revenue of $4.6 million was reclassified from the former Media Networks segment to the Motion Picture segment in the six months ended September 30, 2024 to conform to the current period presentation.

Current wording

(1) During the first quarter of fiscal 2026, the Company began reflecting the results of operations of its streaming platform in India within the Motion Picture segment as such operations are not a part of the disposal group of the Starz Business. Accordingly, revenue of $6.8 million was reclassified from the former Media Networks segment to the Motion Picture segment in the nine months ended December 31, 2024 to conform to the current period presentation. Additionally, the Company sold its streaming platform in India in December 2025, see Note 15 to our unaudited condensed consolidated financial statements.

Previous wording

Revenues. Consolidated revenues decreased $89.9 million in the six months ended September 30, 2025 reflecting lower intersegment eliminations of $295.8 million and a decrease of $214.9 million and $170.8 million from Motion Picture and Television Productions, respectively. Intersegment eliminations relate to the licensing of products from our Studio Business to the former Media Networks segment prior to the Starz Separation.

Current wording

Revenues. Consolidated revenues increased $6.2 million in the nine months ended December 31, 2025, reflecting a decrease of $105.2 million and $272.2 million from Motion Picture and Television Productions revenue, respectively, offset by lower intersegment eliminations recorded in the current period of $383.6 million. Intersegment eliminations relate to the licensing of products from our Studio Business to the former Media Networks segment prior to the Starz Separation.

Previous wording

Television Production revenue decreased $170.8 million due to lower domestic television revenue, international revenue and other revenue.

Current wording

Motion Picture revenue decreased $105.2 million due to a decrease in television revenue, international revenue and home entertainment revenue, offset by an increase in theatrical and other revenue.