Lionsgate Studios Corp.

Previous wording

Management’s discussion and analysis of financial condition and results of operations supplement the accompanying unaudited condensed consolidated financial statements and provides information about the Company’s business, financial condition, cash flows and results of operations. It should be read in conjunction with the unaudited condensed consolidated financial statements and related notes in this Quarterly Report on Form 10-Q and with our Annual Report on Form 10-K for the year ended March 31, 2026.

Current wording

Management’s discussion and analysis of financial condition and results of operations supplements the accompanying unaudited condensed consolidated financial statements and provides information about the Company’s business, financial condition, cash flows and results of operations. It should be read in conjunction with the unaudited condensed consolidated financial statements and related notes in this Quarterly Report on Form 10-Q and with our Annual Report on Form 10-K for the year ended March 31, 2026.

Previous wording

On May 6, 2025, the separation of the Studio Business from the Starz Business (the “Starz Separation”) was completed, resulting in Lionsgate Studios Corp. operating as an independent, publicly-traded company. As a result, our financial statements reflect only the Motion Picture and Television Production segments as continuing operations, while the historical results of the Starz Business are presented as discontinued operations for all periods prior to the separation. See Note 2 of our unaudited condensed consolidated financial statements for the presentation of discontinued operations, including the partial period through May 6, 2025, during the three months ended June 30, 2025.

Current wording

On May 6, 2025, the separation of the Studio Business from the Starz Business (the “Starz Separation”) was completed, resulting in Lionsgate Studios Corp. operating as an independent, publicly-traded company. As a result, our financial statements reflect only the Motion Picture and Television Production segments as continuing operations, while the historical results of the Starz Business are presented as discontinued operations for all periods prior to the separation. See Note 2 of our unaudited condensed consolidated financial statements for the presentation of discontinued operations, including the partial period through May 6, 2025, during the six months ended September 30, 2025.

Previous wording

Our revenues are generated by the Motion Picture and Television Production segments, collectively referred to as our Studio Business. Revenues are earned in the United States (“U.S.”), Canada, the United Kingdom and other foreign countries. No individual foreign country accounted for more than 10% of total revenue during the three months ended June 30, 2026 or 2025.

Current wording

Our revenues are generated by the Motion Picture and Television Production segments, collectively referred to as our Studio Business. Revenues are earned in the United States (“U.S.”), Canada, the United Kingdom and other foreign countries. No individual foreign country accounted for more than 10% of total revenue during the three and six months ended September 30, 2026 and 2025.

Previous wording

The preparation of our financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The application of the following accounting policies, which are important to our financial position and results of operations, requires significant judgments and estimates on the part of management. As described more fully below, these estimates bear the risk of change due to the inherent uncertainty of the estimate. In some cases, changes in the accounting estimates are reasonably likely to occur from period to period. Accordingly, actual results could differ materially from our estimates. To the extent that there are material differences between these estimates and actual results, our financial condition or results of operations will be affected. We base our estimates on past experience and other assumptions that we believe are reasonable under the circumstances, and we evaluate these estimates on an ongoing basis. We believe that the following discussion addresses our most critical accounting policies, which are those that are most important to the portrayal of our financial condition and results of operations and require management’s most difficult, subjective and complex judgments. For a summary of all of our accounting policies, including the accounting policies discussed below, see Note 1 to the audited consolidated financial statements and related notes in the Company’s Annual Report on Form 10-K for the year ended March 31, 2026, filed with the Securities and Exchange Commission (“SEC”) on May 27, 2026.

Current wording

The preparation of our financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. The application of the following accounting policies, which are important to our financial position and results of operations, requires significant judgments and estimates on the part of management. As described more fully below, these estimates bear the risk of change due to the inherent uncertainty of the estimate. In some cases, changes in the accounting estimates are reasonably likely to occur from period to period. Accordingly, actual results could differ materially from our estimates. To the extent that there are material differences between these estimates and actual results, our financial condition or results of operations will be affected. We base our estimates on past experience and other assumptions that we believe are reasonable under the circumstances, and we evaluate these estimates on an ongoing basis. We believe that the following discussion addresses our most critical accounting policies, which are those that are most important to the portrayal of our financial condition and results of operations and require management’s most difficult, subjective and complex judgments. For a summary of all of our accounting policies, including the accounting policies discussed below, see Note 1 to the audited consolidated financial statements and related notes in the Company’s Annual Report on Form 10-K for the year ended March 31, 2026, filed with the Securities and Exchange Commission (“SEC”) on May 27, 2026.

Previous wording

Amortization. Film cost amortization as well as participations and residuals expense are based on management’s estimates. Costs of acquiring and producing films and television programs and of acquired libraries that are amortized and estimated liabilities for participations and residuals costs are accrued using the individual-film-forecast method, based on the ratio of the current period's revenues to management’s estimated remaining total gross revenues to be earned (“ultimate revenue”).

Current wording

Amortization. Film cost amortization as well as participations and residuals expense are based on management’s estimates. Costs of acquiring and producing films and television programs and of acquired libraries that are amortized and estimated liabilities for participations and residuals costs are accrued using the individual-film-forecast method, based on the ratio of the current period's revenues to management’s estimated remaining total gross revenues to be earned (“ultimate revenue”). Management’s judgment is required in estimating ultimate revenue and the costs to be incurred throughout the life of each film or television program.

Previous wording

Income Taxes. We are subject to income taxes in Canada and the United States, as well as in several other 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. Realizing the benefit of our deferred tax assets requires the generation of sufficient future taxable income in each jurisdiction in which those deferred tax assets exist. Our assessment of whether taxable income in a jurisdiction will be sufficient to realize our deferred tax assets is an estimate that could change in the future, depending primarily on the actual operating performance of our Company. We continually evaluate our more-likely-than-not assessment and, if operating results deteriorate in a particular jurisdiction, we may need to record a valuation allowance against all or a portion of our deferred tax assets in that jurisdiction through a charge to our income tax provision. As of June 30, 2026, we had a valuation allowance of $1,489.5 million against certain Canadian, U.S. and other foreign deferred tax assets that may not be realized on a more-likely-than-not basis.

Current wording

Income Taxes. We are subject to income taxes in Canada and the United States, as well as in several other 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. Realizing the benefit of our deferred tax assets requires the generation of sufficient future taxable income in each jurisdiction in which those deferred tax assets exist. Our assessment of whether taxable income in a jurisdiction will be sufficient to realize our deferred tax assets is an estimate that could change in the future, depending primarily on the actual operating performance of our Company. We continually evaluate our more-likely-than-not assessment and, if operating results deteriorate in a particular jurisdiction, we may need to record a valuation allowance against all or a portion of our deferred tax assets in that jurisdiction through a charge to our income tax provision. As of September 30, 2026, we had a valuation allowance of $1,485.1 million against certain Canadian, U.S. and other foreign deferred tax assets that may not be realized on a more-likely-than-not basis.

Previous wording

Revenues. Consolidated revenues increased $250.7 million in the three months ended June 30, 2026 primarily reflecting an increase of $320.0 million from Motion Picture revenue, offset by a decrease of $99.2 million from Television Production.

Current wording

Revenues. Consolidated revenues increased $193.7 million in the three months ended September 30, 2026, reflecting an increase of $110.8 million and $82.9 million from Television Production and Motion Picture revenue, respectively.

Previous wording

Television Production revenue decreased $99.2 million, primarily due to a decrease in domestic television, digital home entertainment and international revenue.

Current wording

Television Production revenue increased $110.8 million, primarily due to an increase in domestic television, international and digital home entertainment revenue.

Previous wording

We refer to our Motion Picture and Television Production segments collectively as our Studio Business. The following table presents the revenues and segment profit of our Studio Business:

Current wording

We refer to our Motion Picture and Television Production segments collectively as our Studio Business.

Previous wording

Total direct operating expenses increased in the three months ended June 30, 2026. 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.

Current wording

Total direct operating expenses increased in the three months ended September 30, 2026. The increase was primarily due to higher direct operating expenses associated with increased Motion Picture and Television Production revenues. See further discussion in the Segment Results of Operations section below.

Previous wording

Other. Other direct operating expenses in the three months ended June 30, 2026 and 2025 consist of rent costs for production facilities that were unutilized due to lower demand following the industry strikes amounting to $5.1 million and $5.4 million, respectively. The costs are included in direct operating expense and are not allocated to the segments.

Current wording

Other costs included in total direct operating expenses that are not allocated to the Studio Business segments are primarily rent costs for production facilities that were unutilized due to lower demand following the industry strikes of $4.9 million and $6.1 million in the three months ended September 30, 2026 and 2025, respectively.

Previous wording

Distribution and marketing expenses increased in the three months ended June 30, 2026, primarily due to higher theatrical distribution and marketing expenses in the Motion Picture segment. See further discussion in the Segment Results of Operations section below.

Current wording

Distribution and marketing expenses decreased in the three months ended September 30, 2026, primarily due to lower theatrical distribution and marketing expenses in the Motion Picture segment. See further discussion in the Segment Results of Operations section below.

Previous wording

General and administrative expenses increased in the three months ended June 30, 2026, primarily as a result of increased share-based compensation expenses and increased Studio Business and Corporate general and administrative expenses. See further discussion in the Segment Results of Operations section below.

Current wording

Total general and administrative expenses increased in the three months ended September 30, 2026, primarily as a result of increased Studio Business and Corporate general and administrative expenses. See the Segment Results of Operations section below for discussion of the changes in segment general and administrative expenses.

Previous wording

Restructuring and Other. Restructuring and other decreased $1.9 million in the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. See Note 14 to our unaudited condensed consolidated financial statements. Restructuring and other includes severance and certain transaction and other costs, when applicable, and were as follows for the three months ended June 30, 2026 and 2025:

Current wording

Restructuring and Other. Restructuring and other decreased $16.0 million in the three months ended September 30, 2026 as compared to the three months ended September 30, 2025. See Note 14 to our unaudited condensed consolidated financial statements. The following table presents the components of restructuring and other on the unaudited condensed consolidated statements of operations for the three months ended September 30, 2026 and 2025:

Previous wording

(1) 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 and are not reflective of our ongoing operating structure.

Current wording

(2)Severance costs were primarily related to workforce reduction actions undertaken in connection with restructuring activities, as well as other cost-reduction initiatives that are not reflective of the Company’s ongoing operating activities.

Previous wording

Interest Expense. Interest expense of $56.9 million in the three months ended June 30, 2026 decreased $11.8 million from the three months ended June 30, 2025 primarily due to lower average interest rates on variable rate corporate debt and film related obligations.

Current wording

Interest Expense. Interest expense of $57.8 million in the three months ended September 30, 2026 decreased $9.5 million from the three months ended September 30, 2025, primarily due to lower average interest rates on variable rate corporate debt and film related obligations.

Previous wording

(2)Other interest expense includes payments associated with certain film related obligations (Production loans, Production Tax Credit Facility and Backlog Facility and other, see Note 7 to our unaudited condensed consolidated financial statements), interest expense associated with our 3 Arts Entertainment Credit Facility, payments and receipts associated with interest rate swaps along with the noncash amortization of unrealized gains in accumulated other comprehensive income related to dedesignated interest rate swaps which are being amortized to interest expense (see Note 17 to our unaudited condensed consolidated financial statements), and noncash amortization of debt issuance costs.

Current wording

(2)Other interest expense primarily consists of interest associated with our production loans, Production Tax Credit Facility and Backlog Facility. See Note 7 to our unaudited condensed consolidated financial statements for details. In addition, it includes payments or receipts associated with interest rate swaps, the noncash amortization of unrealized gains in accumulated other comprehensive income related to dedesignated interest rate swaps that are being amortized to interest expense (see Note 17 to our unaudited condensed consolidated financial statements), and the noncash amortization of debt issuance costs.

Previous wording

Interest and Other Income. Interest and other income of $4.8 million in the three months ended June 30, 2026 increased, as compared to interest and other income of $4.4 million in the three months ended June 30, 2025.

Current wording

Interest and other income. Interest and other income of $17.5 million for the three months ended September 30, 2026 increased, as compared to interest and other income of $3.4 million for the three months ended September 30, 2025, primarily due to the resolution of certain contingencies associated with the Starz Separation.

Previous wording

Other Gain (Loss), net. The change in other gain, net of $3.7 million for the three months ended June 30, 2026 compared to other loss, net of $17.0 million for the three months ended June 30, 2025, was primarily due to income related to foreign currency transactions during the three months ended June 30, 2026, as compared to losses incurred related to foreign currency transactions during the three months ended June 30, 2025.

Current wording

Other gain (loss), net. Other net loss of $1.7 million for the three months ended September 30, 2026, compared to other net gain of $3.2 million for the three months ended September 30, 2025. The change was primarily due to losses incurred from foreign currency transactions during the three months ended September 30, 2026, as compared to gains recognized from foreign currency transactions during the three months ended September 30, 2025.

Previous wording

Income Tax Provision. We recognized an income tax provision of $7.8 million for the three months ended June 30, 2026, compared to an income tax provision of $6.4 million in the three months ended June 30, 2025. Our income tax provision differs from the amount that would result from applying the Canadian federal statutory income tax rate to income (loss) before income taxes. This difference is primarily attributable to the mix of earnings and losses across the various jurisdictions in which our operations are conducted, the effect of valuation allowances against our deferred tax assets in jurisdictions where we do not recognize a tax benefit on losses, and certain minimum income and foreign withholding taxes.

Current wording

Income tax provision. We recognized an income tax provision of $2.5 million for the three months ended September 30, 2026, compared to an income tax provision of $1.8 million for the three months ended September 30, 2025. Our income tax provision differs from the amount that would result from applying the Canadian federal statutory income tax rate to income (loss) before income taxes. This difference is primarily attributable to the mix of earnings and losses across the various jurisdictions in which our operations are conducted, the effect of valuation allowances against our deferred tax assets in jurisdictions where we do not recognize a tax benefit on losses, 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 June 30, 2026 was $28.8 million, or basic and diluted net loss per common share of $0.10 on 291.6 million weighted average common shares outstanding. This compares to net loss attributable to our shareholders for the three months ended June 30, 2025 of $108.9 million, or basic and diluted net loss per common share of $0.40 on 272.3 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 September 30, 2026 was $15.5 million, or basic and diluted net loss per common share of $0.05 on 297.6 million weighted average common shares outstanding. This compares to net loss attributable to our shareholders for the three months ended September 30, 2025 of $113.5 million, or basic and diluted net loss per common share of $0.39 on 289.2 million weighted average common shares outstanding.

Previous wording

The following table reconciles the operating income (loss), which is the most comparable U.S. GAAP measure to the total segment profit non-GAAP measure for the three months ended June 30, 2026 and 2025. Refer to the preceding section discussing our consolidated results of operations, for the reconciliations of segment direct operating expense and general and administrative expense to their respective line items presented in the GAAP-based consolidated statement of operations. In addition, refer to Note 15 of our unaudited condensed consolidated financial statements for the reconciliations of adjusted depreciation and amortization and adjusted share-based compensation, as presented in the line items below, to U.S. GAAP depreciation and expense and share-based compensation expense.

Current wording

The following table reconciles the operating income (loss), which is the most comparable U.S. GAAP measure to the total segment profit non-GAAP measure for the three months ended September 30, 2026 and 2025. Refer to Note 15 of our unaudited condensed consolidated financial statements for the reconciliations of segment direct operating expense and general and administrative expense to their respective line items presented in the GAAP-based consolidated statement of operations. In addition, refer to Note 15 for the reconciliations of adjusted depreciation and amortization and adjusted share-based compensation expense, as presented in the line items below, to U.S. GAAP depreciation and amortization and share-based compensation expense.

Previous wording

Distribution and Marketing Expense. The increase in distribution and marketing expense in the three months ended June 30, 2026 was primarily due to higher theatrical P&A and Premium VOD expense associated with the theatrical slate releases in the current quarter, which included Michael, as compared to the prior year quarter releases. In the three months ended June 30, 2026 approximately $10.4 million of P&A and Premium VOD expense was incurred in advance for films to be released in subsequent quarters, compared to approximately $12.3 million in the three months ended June 30, 2025.

Current wording

Distribution and Marketing Expense. The decrease in distribution and marketing expense in the three months ended September 30, 2026 was primarily due to lower theatrical P&A and Premium VOD expense associated with the theatrical slate releases in the current quarter as compared to the prior year quarter releases. In the three months ended September 30, 2026 approximately $17.2 million of P&A and Premium VOD expense was incurred in advance for films to be released in subsequent quarters, compared to approximately $21.0 million in the three months ended September 30, 2025.

Previous wording

The primary component of Television Production revenue is domestic television revenue. Domestic television revenue decreased $53.1 million, or 32.1%, in the three months ended June 30, 2026, due to a lower number of television episodes delivered in the current quarter as compared to the prior year’s quarter.

Current wording

The primary component of Television Production revenue is domestic television revenue. Domestic television revenue increased $61.9 million, or 55.8%, in the three months ended September 30, 2026, due to a higher number of television episodes delivered in the current quarter, which included significant revenue from Power Origins Season 1 and The Hunting Wives Season 2 as compared to the prior year’s quarter.

Previous wording

International revenue decreased $11.0 million, or 23.8%, in the three months ended June 30, 2026, as compared to the three months ended June 30, 2025, due to lower revenue generated internationally from episodes delivered in the current quarter as compared to the prior year’s quarter.

Current wording

International revenue increased $28.8 million, or 93.8%, in the three months ended September 30, 2026, as compared to the three months ended September 30, 2025, primarily due to higher revenue generated internationally from episodes delivered on The Hunting Wives Season 2 as compared to the prior year’s quarter episode deliveries.

Previous wording

Direct Operating Expense. Direct operating expense of the Television Production segment in the three months ended June 30, 2026 decreased $88.1 million, or 36.8% 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. During the three months ended June 30, 2026, write-downs of $1.6 million were recorded for investments in film and television programs included in the Television Production segment direct operating expense. There were no write-downs recorded during the three months ended June 30, 2025.

Current wording

Direct Operating Expense. Direct operating expense of the Television Production segment in the three months ended September 30, 2026 increased $98.3 million, or 61.7%, due to the increase in Television Production revenues. Direct operating expenses as a percentage of television production revenue increased primarily due to the mix of titles generating revenue in the current quarter as compared to the prior year’s quarter. In addition, during the three months ended September 30, 2026, write-downs of investments in films and television programs related to the Television Production segment of $6.0 million were recognized as direct operating expenses, as compared to $1.5 million recorded during the three months ended September 30, 2025.

Previous wording

The increase in share-based compensation expense included in general and administrative expenses in the three months ended June 30, 2026, as compared to the three months ended June 30, 2025, was primarily due to 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. The increase in fair value was primarily attributed to increases in the Company’s stock price.

Current wording

The increase in share-based compensation expense included in general and administrative expense in the six months ended September 30, 2026, as compared to the six months ended September 30, 2025, was primarily due to 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. The increase in fair value was primarily attributed to increases in the Company’s stock price.

Previous wording

(2) Transaction and other costs primarily relate to transaction, integration and legal costs incurred in connection with certain strategic transactions and restructuring activities, as well as costs associated with certain legal matters. For the three months ended June 30, 2025, amounts exclude transaction costs associated with the Starz Separation as such amounts are classified within discontinued operations.

Current wording

(3)Transaction and other costs primarily related to transaction, integration and legal costs incurred in connection with certain strategic transactions and restructuring activities, as well as costs associated with certain legal matters. For the six months ended September 30, 2025, transaction costs associated with the Starz Separation were excluded as such amounts were classified within discontinued operations.

Previous wording

Loss on Extinguishment of Debt. Loss on extinguishment of debt of $1.0 million recognized during the three months ended June 30, 2025, related to the termination of our prior revolving credit facility and entry into the new Credit Agreement in connection with the Starz Separation. There was no extinguishment of debt recognized during the three months ended June 30, 2026.

Current wording

Loss on extinguishment of debt. Loss on extinguishment of debt of $2.2 million recognized during the six months ended September 30, 2025 related to the termination of our prior revolving credit facility and entry into the new Credit Agreement in connection with the Starz Separation. There were no extinguishments of debt during the six months ended September 30, 2026.

Previous wording

Gain on Investments, net. The decrease in gain on investments, net of $1.3 million recognized in the three months ended June 30, 2026 compared to a gain of $8.8 million recognized in the three months ended June 30, 2025, was primarily due to the sale of our equity method ownership interest in Spyglass and other investments in the prior year’s quarter.

Current wording

Gain on investments, net. Gain on investments, net of $1.5 million recognized in the six months ended September 30, 2026 decreased as compared to a gain on investments of $8.8 million recognized in the six months ended September 30, 2025 primarily due to the sale of our equity method ownership interest in Spyglass and other investments in the prior year period.

Previous wording

Theatrical revenue increased $179.9 million in the three months ended June 30, 2026 as compared to the three months ended June 30, 2025, primarily due to a $180.8 million increase in Lionsgate Original Releases, driven by the theatrical release of Michael in the current quarter.

Current wording

Theatrical revenue increased $172.6 million in the six months ended September 30, 2026, as compared to the six months ended September 30, 2025, primarily due to an increase of $173.7 million in Lionsgate Original Releases, driven by the theatrical release of Michael.

Previous wording

International revenue increased $89.4 million in the three months ended June 30, 2026, as compared to the three months ended June 30, 2025, primarily due to higher revenue generated from Lionsgate Original Releases of $88.8 million, driven by the theatrical slate title release of Michaelin the current quarter.

Current wording

International revenue increased $94.0 million in the six months ended September 30, 2026, as compared to the six months ended September 30, 2025, due to higher revenue generated from Lionsgate Original Releases of $91.5 million, primarily driven by the theatrical slate title release of Michael in the current period.

Previous 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 June 30, 2026. During the three months ended June 30, 2026, write-downs of $11.2 million were recorded for investments in film included in the Motion Picture segment direct operating expense. There were no write-downs recorded during the three months ended June 30, 2025.

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 six months ended September 30, 2026. In addition, during the six months ended September 30, 2026, write-downs of investments in films and television programs related to the Motion Picture segment of $14.3 million were recognized as direct operating expenses. There were no write-downs recognized during the six months ended September 30, 2025.

Previous wording

Home entertainment revenue decreased $33.4 million, or 62.1%, in the three months ended June 30, 2026, as compared to the three months ended June 30, 2025, due to lower digital media revenues generated in the current quarter as compared to the prior year’s quarter which reflected significant revenue generated by The Chosen Season 5.

Current wording

Home entertainment revenue decreased $14.5 million, or 15.7%, in the six months ended September 30, 2026, as compared to the six months ended September 30, 2025, primarily due to lower digital media revenues generated in the current period as compared to the prior year period, which reflected significant revenue generated by The Chosen Season 5.

Previous wording

Our liquidity and capital requirements in the three months ended June 30, 2026 were provided principally through cash generated from operations, corporate debt, our film related obligations (as further discussed below) and the monetization of trade accounts receivable. As of June 30, 2026, we had cash and cash equivalents of $425.8 million.

Current wording

Our liquidity and capital requirements in the six months ended September 30, 2026 were provided principally through cash generated from operations, corporate debt, our film related obligations, the monetization of trade accounts receivable and government incentive programs. As of September 30, 2026, we had cash and cash equivalents of $358.5 million.

Previous wording

Our corporate debt as of June 30, 2026, excluding film related obligations discussed further below, consisted of the following:

Current wording

Our corporate debt, excluding film related obligations, consisted of the following as of September 30, 2026:

Previous wording

•Senior Notes: We have $389.9 million outstanding of 6.0% senior notes due 2030 (the “Senior Notes”).

Current wording

•Senior Notes. We have $389.9 million outstanding of 6.0% senior notes due 2030 (the “Senior Notes”). The Senior Notes mature on April 15, 2030.

Previous wording

•eOne IP Credit Facility: In July 2024, certain subsidiaries of the Company entered into a $340.0 million senior secured amortizing term credit facility (the “eOne IP Credit Facility”) secured by certain intellectual property rights primarily associated with titles acquired as part of the eOne acquisition. In March 2026, the Company amended the eOne IP Credit Facility, increasing the maximum principal amount to $371.3 million, subject to the amount of collateral available, which is based on the valuation of unsold rights from the libraries, with $362.0 million outstanding as of June 30, 2026. The eOne IP Credit Facility matures on July 3, 2029.

Current wording

•eOne IP Credit Facility. In July 2024, as amended in March 2026, certain subsidiaries of the Company entered into a senior secured amortizing term credit facility (the “eOne IP Credit Facility”) secured by certain intellectual property rights primarily associated with titles acquired as part of the eOne acquisition. The maximum principal amount of the facility is $371.3 million, subject to the amount of collateral available. As of September 30, 2026, $345.3 million was outstanding with no additional borrowing capacity available. The eOne IP Credit Facility matures on July 3, 2029.

Previous wording

•LG IP Credit Facility. In September 2024, as amended in November 2024, December 2024, March 2025, June 2025 and September 2025, certain subsidiaries of the Company entered into a senior secured amortizing term credit facility (the “LG IP Credit Facility”) based on and secured by the Company’s intellectual property rights primarily associated with certain titles. The maximum principal amount of the LG IP Credit Facility is $1,250.0 million as of June 30, 2026 subject to the amount of collateral available, which is based on the valuation of unsold rights from the libraries. As of June 30, 2026, $1,156.3 million was outstanding under the LG IP Credit Facility. The LG IP Credit Facility matures on September 30, 2029.

Current wording

•LG IP Credit Facility. In September 2024, as subsequently amended, certain subsidiaries of the Company entered into a senior secured amortizing term credit facility (the “LG IP Credit Facility”) secured by intellectual property rights primarily associated with certain titles. The maximum principal amount of the LG IP Credit Facility is $1.25 billion, subject to the amount of collateral available. As of September 30, 2026, $1,125 million was outstanding with no additional borrowing capacity available. The LG IP Credit Facility matures on September 30, 2029.

Previous wording

•3 Arts Credit Facility. On May 29, 2025 in preparation for the A & A purchase (see Note 3 to our unaudited condensed consolidated financial statements), 3 Arts entered into a $50.0 million senior secured credit facility (the “3 Arts Credit Facility”) secured by a security interest in substantially all of the assets of 3 Arts and guarantors, as defined in the 3 Arts Credit Facility, subject to certain exceptions. As of June 30, 2026, $30.7 million was outstanding under the 3 Arts Credit Facility. Advances under the 3 Arts Credit Facility are payable at maturity, which is on May 29, 2029. As of June 30, 2026, there was $19.3 million available under the 3 Arts Credit Facility.

Current wording

•3 Arts Credit Facility. On May 29, 2025, in preparation for the A & A purchase (see Note 3 to our unaudited condensed consolidated financial statements), 3 Arts entered into a $50.0 million senior secured credit facility (the “3 Arts Credit Facility”) secured by a security interest in substantially all of the assets of 3 Arts and the guarantors, subject to certain exceptions. As of September 30, 2026, $30.7 million was outstanding and approximately $19.3 million of borrowing capacity remained available. The 3 Arts Credit Facility matures on May 29, 2029.