As described in Note 1, on May 6, 2025, the Starz Separation was completed. The Starz Business, previously presented as the Media Networks segment of Old Lionsgate, is presented as discontinued operations within these unaudited condensed consolidated financial statements.


	Three Months Ended
	June 30,
	2025		2024
	(Amounts in millions)
Revenues	$	127.3	$	347.8
Expenses:
Direct operating	71.7		141.3
Distribution and marketing	26.3		105.2
General and administration	10.0		23.6
Depreciation and amortization	19.6		41.6
Restructuring and other	13.5		(5.2)
Total expenses	141.1		306.5
Operating income (loss)	(13.8)		41.3
Interest expense	(0.4)		(5.3)
Interest and other income	—		0.1
Other expenses	(0.6)		(1.7)
Loss on extinguishment of debt	—		(2.2)
Income (loss) from discontinued operations before income taxes	(14.8)		32.2
Income tax provision	(0.1)		(4.5)
Net income (loss) from discontinued operations, net of income taxes	$	(14.9)	$	27.7

General and administrative corporate overhead costs previously allocated to the Starz Business in the three months ended June 30, 2024, of $4.3 million do not meet the criteria to be presented as discontinued operations and are therefore excluded from amounts presented above. Expenses incurred directly attributable to the Starz Separation, including legal, accounting and tax advisory services, are reflected as discontinued operations, including $6.3 million for the three months ended June 30, 2025.

Discontinued operations includes only interest and other related expenses related to debt positions that are directly related to the Starz Business or remained with Starz following the completion of the Starz Separation. This includes the Existing Notes which were issued by a Starz entity, and to the extent not exchanged for Exchange Notes, as further described in Note 7, remained with Starz, along with any other film related and other obligations directly related to the Starz Business. No other interest expense was allocated to discontinued operations.

Lionsgate has separately reported the assets and liabilities of the discontinued operations of the Starz Business in its unaudited condensed consolidated balance sheet as of March 31, 2025. These assets and liabilities consist of the following:


	March 31, 2025
	(Amounts in millions)
ASSETS
Cash and cash equivalents	$	11.2
Accounts receivable, net	50.9
Other current assets	13.7
Total current assets - discontinued operations	75.8
Investment in films and television programs and program rights, net	918.9
Property and equipment, net	48.6
Intangible assets, net	816.0
Other assets	40.1
Total assets - discontinued operations	$	1,899.4

LIABILITIES
Accounts payable	$	53.6
Content related payables	99.3
Other accrued liabilities	40.9
Residuals	27.7
Film related obligations	90.9
Deferred revenue	38.4
Total current liabilities - discontinued operations	350.8
Debt	318.3
Other liabilities	75.7
Deferred tax liabilities	7.2
Total liabilities - discontinued operations	$	752.0

Transition Services Agreement. In connection with the Starz Separation, the Company and Starz entered into a transition services agreement pursuant to which the Company and Starz provide to each other, on an interim, transitional basis, various services, such as services related to production (such as music creative/supervision), finance, accounting, legal, information technology, human resources, investor relations, employee benefits and other services, for periods generally up to thirteen (13) months following the completion of the Starz Separation. During the three months ended June 30, 2025, the Company recognized $0.2 million of transition services agreement reimbursement as a reduction to general and administration expense within these unaudited condensed consolidated financial statements.

Content Licensing. Following the Starz Separation, the Company and Starz will continue to be parties to certain commercial agreements, including: (i) master originals content licensing agreements that will license subscription video on demand ("SVOD") and pay television rights to Starz for certain of the Company’s owned first-run original series for the U.S. and Canada; (ii) library license agreements that will license SVOD and pay television rights to Starz for certain of the Company’s owned library series and film content for the U.S. and Canada; (iii) a multiyear pay-one television output arrangement, granting Starz an exclusive U.S. pay television/SVOD license for Lionsgate- or Summit-branded films theatrically released in the U.S.; and (iv) a distribution agreement authorizing the Company to globally distribute on an exclusive basis off-

platform linear, on-demand, and transactional rights to certain original series owned by Starz (subject to holdbacks to preserve periods of exclusivity for Starz’s platforms). The agreements have varying terms, with certain library license agreements currently extending through at least 2036 and the pay television/SVOD license for Lionsgate- or Summit-branded films theatrically released in the U.S. running through at least 2028. The Company’s net loss from continuing operations for the three months ended June 30, 2025 includes $82.5 million of revenue from licensing agreements with Starz. Following the Starz Separation, the Company received $60.3 million from Starz related to the licensing agreements during the three months ended June 30, 2025.