LOS ANGELES, Jan. 7, 2026 /PRNewswire/ -- Cineverse (Nasdaq: CNVS), a next-generation entertainment studio, today announced the acquisition of Giant Worldwide, a global media services provider serving the world's leading Hollywood studios and streaming platforms. Acquisition Brings Giant's Existing Clients – Including the World's Top Movie Studios, Networks and Leading Entertainment Companies – to Cineverse's Matchpoint™ Ecosystem Thanks to this strategic acquisition, Matchpoint™—the Company's award-winning ...

Critically Acclaimed, Fan-Favorite Action-Comedy Garnered an 86% Rotten Tomatoes Score LOS ANGELES, Jan. 6, 2026 /PRNewswire/ -- Cineverse (Nasdaq: CNVS), a next-generation entertainment studio, has announced today that streaming rights to The Toxic Avenger have been acquired by Hulu. The films SVOD premiere will be on Thursday, January 8, 2026. Photos can be found here. When a downtrodden janitor, Winston Gooze (Dinklage), is exposed to a catastrophic toxic accident, he's transformed into a new kind of her ...

Award-Winning Search & Discovery Tool Uses AI to Help Movie and TV Fans Decide What to Watch in an Easy, Engaging and Entertaining Way At CES, CINESEARCH will debut a new, bold look reflecting the unique and innovative search capabilities of the product, reflecting its DNA of deep contextual and emotional understanding of media. Among the new features being introduced are: "Over the past year, we've made significant advances across our entire Matchpoint platform—strengthening the underlying technology, expa ...

Core Insights - Cineverse's latest film, "Silent Night, Deadly Night," has premiered on over 1,600 screens in North America and has received an 84% score on Rotten Tomatoes, indicating strong positive reception [1][2] Company Overview - Cineverse (Nasdaq: CNVS) is a next-generation entertainment studio that distributes content across various platforms, including theatrical, digital, and physical formats [9] - The company has a diverse portfolio, distributing over 71,000 films, series, and podcasts, and is known for its horror division, Bloody Disgusting [9] Film Performance - "Silent Night, Deadly Night" is expected to be profitable and has garnered rave reviews, with notable mentions from major publications highlighting its unique take on the holiday genre [3][2] - The film features a controversial scene that has gone viral, contributing to its buzz and audience engagement [2] Distribution Strategy - Cineverse has distribution rights for "Silent Night, Deadly Night" across all windows, including TVOD, physical home entertainment, and streaming, enhancing its market reach [3] - The film is also set to open in various international markets, including the UK, France, and Germany, through its genre label Sixth Dimension [4] Upcoming Projects - Following the success of "Silent Night, Deadly Night," Cineverse has additional titles lined up, including "Return to Silent Hill" and a 20th-anniversary release of "Pan's Labyrinth" [8]

Financial Performance - For the three months ended September 30, 2025, total revenue decreased by 3% to $12.4 million, with streaming and digital revenue declining by 5% to $9.6 million [146]. - The company experienced a 39% increase in base distribution revenue for the three months ended September 30, 2025, totaling $1.8 million, primarily due to theatrical releases [146]. - For the six months ended September 30, 2025, total revenue increased by 7% to $23.5 million, with streaming and digital revenue rising by 5% to $18.7 million [154]. - The company reported a net loss attributable to common stockholders of $9.3 million for the three months ended September 30, 2025 [139]. - The company reported a net loss of $9.1 million for the six months ended September 30, 2025, compared to a net loss of $4.3 million in 2024 [165]. - Adjusted EBITDA for the six months ended September 30, 2025, was a loss of $5.8 million, compared to a loss of $0.9 million in the same period of 2024 [165]. Expenses - Direct operating expenses decreased by 17% to $5.2 million for the three months ended September 30, 2025, driven by lower variable costs [150]. - Selling, general and administrative expenses increased by 79% to $11.4 million for the three months ended September 30, 2025, largely due to higher compensation and marketing expenses [151]. - For the six months ended September 30, 2025, total Selling, General and Administrative expenses increased by $7.4 million, or 57%, compared to the same period in 2024, reaching $20.4 million [157]. - Compensation expenses rose by $2.6 million, or 31%, primarily due to an increase in employee headcount [157]. - Marketing expenses surged by $3.3 million, or 7427%, largely attributed to the promotion of Toxic Avenger [157]. - Interest expense decreased by $0.2 million to $0.1 million for the three months ended September 30, 2025, due to a lower average balance on the Line of Credit Facility [153]. - Interest expense decreased by $0.9 million for the six months ended September 30, 2025, primarily due to higher outstanding debt balances and increased interest rates in 2024 [160]. - Amortization of intangible assets increased by $0.5 million, or 31%, during the six months ended September 30, 2025, primarily due to higher capitalized content costs [159]. Cash Flow and Financing - Net cash used in operating activities for the six months ended September 30, 2025, was $21.7 million, compared to $2.4 million in 2024 [166]. - Net cash provided by financing activities increased to $11.0 million for the six months ended September 30, 2025, from $0.5 million in 2024 [166]. - The company has a Line of Credit Facility with East West Bank, allowing borrowings of up to $12.5 million, with $6.6 million outstanding as of September 30, 2025 [140]. - The company plans to continue investing in content development and acquisitions, with short-term content advances of $5.4 million as of September 30, 2025 [141]. Accumulated Deficit and Working Capital - As of September 30, 2025, the company reported an accumulated deficit of $510.2 million and negative working capital of $1.3 million [139].

Financial Data and Key Metrics Changes - Total revenues for Q2 2026 were $12.7 million, down 3% from the prior year quarter, but would have been $13.4 million, up 5%, if a $1.1 million licensing deal for the Toxic Avenger was recognized [5][14] - Operating margins improved by 7% from the prior year quarter to 58% [5] - Net loss for the quarter was $5.5 million, compared to a net loss of $1.2 million in the prior year quarter [15] - Adjusted EBITDA was negative $3.7 million, down from positive $0.5 million in the prior year quarter [15] - Cash and cash equivalents were $2.3 million as of September 30, with $5.9 million available on a $12.5 million working capital facility [15][16] Business Line Data and Key Metrics Changes - The performance of the Toxic Avenger Unrated was below expectations at the box office, but it is expected to be profitable with an IRR of 40% due to strong ancillary distribution [6][9] - The company continues to focus on controlling costs and leveraging efficiencies from Cineverse Services India to manage SG&A spending [6] - The upcoming releases, Silent Night Deadly Night and Return to Silent Hill, are projected to follow a similar low-cost investment strategy [9] Market Data and Key Metrics Changes - Total streaming viewers reached 143.8 million, up 47% year over year, with total minutes streamed at 3.4 billion, up 45% [18] - SVOD subscribers grew to 1.39 million, a 6% increase year over year [18] - The Cineverse branded channel grew more than 6,400% in viewership since its relaunch in January [19] Company Strategy and Development Direction - The company is focusing on a fan-centric, IP-based film strategy, avoiding mixed-genre films in the future [31] - The Match Point technology sales pipeline is expanding, with dozens of potential partners actively evaluating the technology [12][23] - The MicroCo joint venture aims to become a leader in the micro-drama market, which is expected to represent a significant portion of streaming viewing time [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that investments made in sales, marketing, and technology will yield strong results in the remainder of the fiscal year and beyond [15][17] - The advertising environment is mixed, but there is optimism for growth as political spending ramps up in Q4 [20][21] - The company believes it is well-positioned for future growth with multiple engines of growth supported by technology and a growing audience [26] Other Important Information - The content library is now valued at $45 million, significantly above the $3.2 million book value [12][16] - The company is actively seeking strategic partnerships and acquisitions to enhance its technology offerings [24][40] Q&A Session Summary Question: Impact of Toxic Avenger's performance on future slate - Management believes the performance validated their theatrical releasing strategy and will influence future film selections to avoid mixed-genre movies [30][31] Question: Timing of monetization for Match Point - Management indicated that while the sales cycle is longer, there is strong interest from studios, and they expect significant revenue contributions in the next 12-24 months [32][33]

Financial Performance - Total revenue for Q2 FY 2026 was $12.4 million, a 3% decrease from $12.7 million in the prior-year quarter[4] - Net loss attributable to common stockholders was $(5.7) million, or $(0.31) per share, compared to a net loss of $(1.4) million, or $(0.09) per share, in the prior-year quarter[7] - Total revenues for the three months ended September 30, 2025, were $12,357,000, a decrease of 3% compared to $12,739,000 for the same period in 2024[31] - Operating loss for the three months ended September 30, 2025, was $(5,410,000), compared to $(861,000) for the same period in 2024, reflecting a significant increase in losses[31] - Net loss attributable to common stockholders for the three months ended September 30, 2025, was $(5,678,000), compared to $(1,376,000) for the same period in 2024, indicating a worsening financial performance[31] - Adjusted EBITDA for the three months ended September 30, 2025, was $(3,685,000), compared to $532,000 for the same period in 2024, showing a decline in operational performance[36] - The company reported a net loss before income taxes of $(5,525,000) for the three months ended September 30, 2025, compared to $(1,197,000) for the same period in 2024, reflecting deteriorating profitability[31] Operating Expenses - SG&A expenses rose by $5.0 million, or 79%, to $11.4 million, driven by increased marketing costs and compensation[5] - Selling, general and administrative expenses for the three months ended September 30, 2025, were $11,407,000, a substantial increase from $6,364,000 for the same period in 2024, indicating rising operational costs[31] Assets and Liabilities - Total current assets decreased to $23,258,000 as of September 30, 2025, from $38,081,000 as of March 31, 2025, indicating a liquidity challenge[29] - Total liabilities decreased to $24,784,000 as of September 30, 2025, from $34,724,000 as of March 31, 2025, reflecting a reduction in financial obligations[29] - Cash and cash equivalents significantly decreased to $2,336,000 as of September 30, 2025, from $13,941,000 as of March 31, 2025, highlighting cash flow issues[29] - Total stockholders' equity decreased to $37,163,000 as of September 30, 2025, from $37,792,000 as of March 31, 2025, indicating a decline in shareholder value[29] Revenue Streams - Streaming and digital revenues decreased by 5% to $9.6 million from $10.1 million in the prior year[6] Strategic Initiatives - Cineverse announced a new venture, MicroCo, projected to tap into a $10 billion market by 2027[10] - The company plans to reissue the 20th anniversary edition of Pan's Labyrinth in Fall 2026, with a marketing campaign starting at the Cannes Film Festival[3] - Cineverse's Matchpoint™ platform added over 20 new customers in the last 100 days, indicating strong momentum in technology partnerships[17] Content Valuation - The company's content library, valued at $45 million, significantly exceeds its book value of $3.2 million[16] - The Toxic Avenger Unrated is projected to generate an internal rate of return (IRR) of over 40% despite underperforming at the box office[2]

Core Insights - Cineverse Corp. reported total revenue of $12.4 million for Q2 FY 2026, a 3% decline year-over-year, primarily due to timing differences in revenue recognition for content licensing agreements [1][4][12] - The direct operating margin improved by 7 percentage points to 58% compared to the prior-year quarter, indicating solid performance across core business lines despite the revenue decline [2][13] - The company experienced a net loss of $(5.7) million, or $(0.31) per share, compared to a net loss of $(1.4) million, or $(0.09) per share, in the prior-year quarter [6][28] Financial Performance - Total quarterly revenue was $12.4 million, down from $12.7 million in the prior-year quarter, driven by gains in streaming, digital distribution, and theatrical sales [4] - Streaming and digital revenues decreased by 5% to $9.6 million, while base distribution revenue increased by 39% to $1.8 million, primarily due to the theatrical release of The Toxic Avenger Unrated [8] - SG&A expenses rose by 79% to $11.4 million, reflecting increased marketing costs and investments in the theatrical slate and technology group [5] Operational Developments - Cineverse announced the reissue of the 20th anniversary edition of Pan's Labyrinth, with a marketing campaign set to kick off at the Cannes Film Festival in May 2026 [3][16] - The company is advancing its MicroCo venture, a new studio for microseries, projected to reach a market size of $10 billion by 2027 [14][19] - The Toxic Avenger Unrated is projected to generate an internal rate of return (IRR) of over 40%, despite underperforming at the box office [2][15] Strategic Initiatives - Cineverse is expanding its technology partnerships and has signed four new customers for its Matchpoint™ media supply chain platform [18] - The company continues to build its content library, which is valued at $45 million, significantly above its book value of $3.2 million [9][17] - Management emphasizes a focus on profitability while pursuing growth through strategic partnerships and technology advancements [21]

Core Insights - Cineverse Corp. is a streaming technology and entertainment company that offers various streaming services, including SVOD, AVOD, and FAST channels, and recently rebranded from Cinedigm Corp. [1] - The consensus price target for Cineverse has remained steady at $9, indicating a stable outlook from analysts regarding the company's performance in the streaming sector [2][6] - Recent discussions during the Q1 2026 earnings call may provide insights into how the rebranding could influence future growth and market presence [3][6] - Technological advancements are crucial for enhancing Cineverse's competitive position in the streaming market [4][6] - Content partnerships and acquisitions are vital for expanding Cineverse's content library, which could attract more subscribers and boost revenue growth [5][6]

Core Insights - Cineverse (Nasdaq: CNVS) is establishing itself as a leader in the entertainment industry by signing new customers for its automated video content management platform, Matchpoint [1][2] - The company is experiencing strong market traction and interest in its technology, particularly in the streaming services sector [2][4] - Matchpoint has seen significant adoption over the past year, with various media companies recognizing its value in addressing streaming challenges [2][4] Company Developments - Cineverse Technology Group, formed in May, is leveraging its proprietary technology to enhance video streaming and content management [3][6] - The company launched Matchpoint 3.0, the most advanced version of its platform, and introduced several new streaming channels powered by Matchpoint [4][5] - Strategic partnerships have been established with various media entities, including APTN, The Asylum, and Rockbot, to enhance content delivery and expand channel offerings [3][4] Market Expansion - Cineverse is expanding its lineup of streaming channels through FAST distribution deals, indicating a broader reach in the entertainment market [2][4] - The company has made significant advancements in AI technology, including the introduction of cineSearch, an AI-powered search and discovery tool [5][6] - New in-car entertainment capabilities and partnerships with Symphony AI have been announced, showcasing the company's commitment to innovation [4][5] Financial Performance - Cineverse is set to report its second-quarter fiscal results on November 14, 2025, indicating ongoing financial transparency and engagement with investors [8]