Cineverse (CNVS)

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In New 'PSA' From Liquid Death and Cineverse, The Toxic Avenger (Peter Dinklage) Explains the Dangers of High-Sugar Soda
Prnewswire· 2025-08-19 16:00
Company Overview - Cineverse (Nasdaq: CNVS) is a next-generation entertainment studio that distributes content across various platforms, including theatrical, digital, and physical formats, and has a library of over 71,000 premium films, series, and podcasts [8] - Liquid Death is one of the fastest-growing non-alcoholic beverage brands, known for its unique marketing approach that combines health and sustainability with entertainment [9] Campaign Launch - Cineverse has launched a new campaign in partnership with Liquid Death ahead of the theatrical release of "The Toxic Avenger Unrated" on August 29, 2025 [1][5] - The campaign features a public service announcement (PSA) from the character Toxie, portrayed by Peter Dinklage, focusing on the dangers of high-sugar soda [1][3] Product Details - Liquid Death's soda-flavored sparkling waters contain only 10 calories and 2 grams of sugar per can, with no artificial sweeteners, and are available at major retailers like Amazon, Target, and Walmart [3] - The campaign includes a digital billboard in Times Square, NYC, and will be promoted across digital and social media platforms [4] Film Information - "The Toxic Avenger" is a horror/comedy film directed by Macon Blair, featuring an all-star cast including Peter Dinklage, Kevin Bacon, and Elijah Wood [5][6] - The film tells the story of Winston Gooze, a janitor who transforms into the Toxic Avenger after a toxic accident, fighting against corporate greed and corruption [6] Future Releases - Cineverse plans to expand its franchise with upcoming releases, including "Silent Night, Deadly Night" on December 12, 2025, and "Air Bud Returns" in 2026 [7]
Cineverse (CNVS) - 2026 Q1 - Earnings Call Transcript
2025-08-14 21:30
Financial Data and Key Metrics Changes - The company reported revenue of $11.1 million, a $2.1 million or 22% increase year-over-year, with a gross margin of 57% compared to 51% last year, significantly above guidance of 45% to 50% [14] - The net loss for the quarter was $3.5 million, with adjusted EBITDA of negative $2.1 million, compared to a net loss of $3.1 million and adjusted EBITDA of $1.4 million in the prior year quarter [14][15] - Cash and cash equivalents stood at $2 million as of June 30, 2025, with $8.9 million available on a $12.5 million working capital facility [15][16] Business Line Data and Key Metrics Changes - Streaming business delivered 4 billion total minutes viewed, up 38% year-over-year, and 20% sequentially, with total streaming viewers climbing to 214 million, up 24% [17][18] - Subscriber count grew to 1.4 million, an increase of 5% year-over-year and 1% over the prior quarter [18] - The advertising business saw a 57% year-over-year growth driven by new and returning advertisers, despite mixed performance in open market programmatic [19] Market Data and Key Metrics Changes - The company is entering the microseries market, projected to reach $10 billion by February 2027, with a joint venture for MicroCo aimed at becoming a first mover in this rapidly growing market [12][26] - The Cineverse channel has grown more than 4300% since January, indicating strong traction in the market [18] Company Strategy and Development Direction - The company is focusing on expanding its theatrical releasing business and building out its technology product, with significant investments in sales, legal, marketing, and technology [7][14] - The strategy includes leveraging unique assets in streaming, content, technology, and AI to create a competitive advantage in the microseries space [13][26] - The Motion Picture Group is building a strong slate of wide releases, targeting identifiable audiences and creating event viewing experiences [27][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in seeing strong returns from investments made in the current quarter, expecting improved top and bottom line results for the remainder of the fiscal year [7][14] - The company is optimistic about the upcoming releases, including "The Toxic Avenger" and "Air Bud Returns," which are expected to resonate well with audiences [10][11][28] - Management highlighted the importance of engaging with fans and delivering films they want to see, emphasizing a commitment to innovative approaches in distribution and marketing [31][32] Other Important Information - The company has no long-term debt and has reduced outstanding warrants to 700,000, positioning itself favorably for future growth [15][16] - The marketing campaign for "The Toxic Avenger" was noted as a significant success, receiving extensive media coverage and positive fan engagement [30] Q&A Session Summary Question: Why partner with Cineverse for MicroCo? - Management highlighted the unique collection of assets Cineverse has built, making it an attractive partner for entering the microseries market, which is expected to be a $10 billion business [36][41] Question: What is the investment strategy for MicroCo? - The company plans to bootstrap and fund the launch internally with potential for additional equity partners if needed, emphasizing the scalability of the business [45] Question: What progress has been made with MatchPoint technology? - Management reported significant inroads in bringing MatchPoint to market, with a tripled pipeline of potential deals and a focus on targeting larger studios for meaningful revenue [51][52] Question: How is the podcast revenue strategy evolving? - The company is shifting from programmatic sales to direct sales with a dedicated team, already seeing significant deals coming in, indicating a strong belief in future revenue growth from this segment [55][56]
Cineverse (CNVS) - 2026 Q1 - Quarterly Report
2025-08-14 21:01
[General Information](index=1&type=section&id=General%20Information) Cineverse Corp. filed a Form 10-Q for Q1 FY2026, with its Class A Common Stock listed on Nasdaq, classified as a non-accelerated filer - Cineverse Corp. filed a Quarterly Report on Form 10-Q for the fiscal period ended June 30, 2025[1](index=1&type=chunk) - The company's Class A Common Stock (**CNVS**) is listed on The Nasdaq Stock Market[1](index=1&type=chunk) - Cineverse Corp. is classified as a non-accelerated filer and a smaller reporting company[2](index=2&type=chunk) - As of August 8, 2025, there were **19,075,264 shares of Class A Common Stock outstanding**[3](index=3&type=chunk) [PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements and management's discussion and analysis for Cineverse Corp [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements of Cineverse Corp. for the period ended June 30, 2025, along with detailed notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Presents the company's financial position, including assets, liabilities, and equity, as of June 30, 2025, and March 31, 2025 | Metric (in thousands) | June 30, 2025 | March 31, 2025 | Change ($) | Change (%) | | :-------------------- | :------------ | :------------- | :--------- | :--------- | | Total Assets | $61,534 | $72,516 | $(10,982) | -15.14% | | Total Liabilities | $25,380 | $34,724 | $(9,344) | -26.91% | | Total Stockholders' Equity | $37,070 | $38,752 | $(1,682) | -4.34% | | Cash and cash equivalents | $1,985 | $13,941 | $(11,956) | -85.76% | | Total current assets | $24,863 | $38,081 | $(13,218) | -34.71% | | Total current liabilities | $25,139 | $34,435 | $(9,296) | -27.00% | [Unaudited Condensed Consolidated Statements of Operations](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Details the company's revenues, expenses, and net loss for the three months ended June 30, 2025, and 2024 | Metric (in thousands, except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change ($) | Change (%) | | :------------------------------------ | :------------------------------- | :------------------------------- | :--------- | :--------- | | Revenues | $11,119 | $9,127 | $1,992 | 21.82% | | Total operating expenses | $14,821 | $11,905 | $2,916 | 24.50% | | Operating loss | $(3,702) | $(2,778) | $(924) | 33.26% | | Net loss | $(3,516) | $(3,050) | $(466) | 15.28% | | Net loss attributable to common stock holders | $(3,649) | $(3,162) | $(487) | 15.39% | | Basic EPS | $(0.21) | $(0.20) | $(0.01) | 5.00% | | Diluted EPS | $(0.21) | $(0.20) | $(0.01) | 5.00% | [Unaudited Condensed Consolidated Statements of Comprehensive (Loss) Income](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20(Loss)%20Income) Reports the net loss and other comprehensive income/loss components for the three months ended June 30, 2025, and 2024 | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :------------------------------- | :------------------------------- | :--------- | :--------- | | Net loss | $(3,516) | $(3,050) | $(466) | 15.28% | | Foreign exchange translation | $16 | $55 | $(39) | -70.91% | | Net income attributable to noncontrolling interest | $(44) | $(23) | $(21) | 91.30% | | Comprehensive loss | $(3,544) | $(3,018) | $(526) | 17.43% | [Unaudited Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Summarizes cash inflows and outflows from operating, investing, and financing activities for the three months ended June 30, 2025, and 2024 | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :------------------------------- | :------------------------------- | :--------- | :--------- | | Net cash used in operating activities | $(14,524) | $(2,344) | $(12,180) | 519.62% | | Net cash used in investing activities | $(16) | $151 | $(167) | -110.60% | | Net cash provided by financing activities | $2,568 | $925 | $1,643 | 177.62% | | Net Change in Cash and Cash Equivalents | $(11,972) | $(1,267) | $(10,705) | 844.91% | | Cash and cash equivalents at end of period | $1,985 | $3,955 | $(1,970) | -49.81% | [Unaudited Condensed Consolidated Statements of Equity](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Equity) Details changes in stockholders' equity, including net loss, stock issuances, and treasury stock transactions, for the period - As of June 30, 2025, total stockholders' equity was **$37,070 thousand**, a decrease from **$38,752 thousand** as of March 31, 2025. Key changes include a net loss of **$3,560 thousand**, an increase in additional paid-in capital by **$2,900 thousand** (driven by stock-based compensation and common stock issuance for deferred consideration), and an increase in treasury stock by **$965 thousand** due to employee tax payments[21](index=21&type=chunk)[23](index=23&type=chunk) [Notes to the Condensed Consolidated Financial Statements (Unaudited)](index=10&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Provides detailed explanations and disclosures supporting the financial statements, covering accounting policies, segment information, and debt [1. Nature of Operations and Liquidity](index=10&type=section&id=1.%20NATURE%20OF%20OPERATIONS%20AND%20LIQUIDITY) Describes Cineverse's business as a streaming technology and entertainment company and assesses its liquidity position - Cineverse operates as a streaming technology and entertainment company, focusing on owned/operated streaming channels, global content aggregation/distribution, and its Matchpoint™ SaaS platform for OTT app development and content distribution (SVOD, AVOD, FAST, social video, audio podcasts)[25](index=25&type=chunk)[26](index=26&type=chunk) - The company distributes content for major brands like Hallmark, ITV, NFL, and various content creators across digital platforms (Apple iTunes, Amazon Prime, Netflix, Hulu, Xbox, Pluto, Tubi) and physical goods (DVD, Blu-ray)[27](index=27&type=chunk) Financial Metric (as of June 30, 2025) | Financial Metric (as of June 30, 2025) | Amount (in millions) | | :------------------------------------- | :------------------- | | Accumulated Deficit | $(504.6) | | Working Capital | $(0.3) | | Net Loss (3 months ended June 30, 2025) | $(3.6) | | Net Cash Used in Operating Activities (3 months ended June 30, 2025) | $(14.5) | - The company has a Line of Credit Facility with East West Bank, providing up to **$12.5 million** (expandable to **$15.0 million**) at an interest rate of **1.25% above the prime rate** (**8.75%** as of June 30, 2025), maturing April 8, 2028. **$3.6 million** was outstanding as of June 30, 2025[29](index=29&type=chunk)[30](index=30&type=chunk) - Management believes current cash and the Line of Credit Facility will provide sufficient liquidity for at least the next twelve months, despite ongoing investments in content development and acquisitions[34](index=34&type=chunk) [2. Basis of Presentation and Summary of Significant Accounting Policies](index=11&type=section&id=2.%20BASIS%20OF%20PRESENTATION%20AND%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) Outlines the accounting principles used for interim financial statements, key estimates, and significant accounting policies [Basis of Presentation](index=11&type=section&id=Basis%20of%20Presentation) Explains that interim financial statements are unaudited and prepared in conformity with GAAP and SEC rules - The interim financial statements are unaudited, prepared in conformity with GAAP and SEC rules, and include all normal recurring adjustments[35](index=35&type=chunk)[37](index=37&type=chunk) [Use of Estimates](index=11&type=section&id=Use%20of%20Estimates) Highlights management's reliance on estimates and judgments in preparing financial statements, which may differ from actual results - Management makes estimates and judgments affecting reported amounts, particularly for revenue recognition, credit losses, goodwill/intangible asset impairments, share-based compensation, valuation allowance for deferred income taxes, and amortization of intangible assets[39](index=39&type=chunk)[41](index=41&type=chunk) [Accounting Policies](index=12&type=section&id=Accounting%20Policies) Confirms no material changes to significant accounting policies since the last annual report - There have been no material changes in the company's significant accounting policies compared to the Annual Report on Form 10-K for the year ended March 31, 2025[42](index=42&type=chunk) [Segment Reporting](index=12&type=section&id=Segment%20Reporting) States that the company manages its operations and business as a single reporting segment - The Company manages its operations and business in one reporting segment[43](index=43&type=chunk) [Cash and Cash Equivalents](index=12&type=section&id=Cash%20and%20Cash%20Equivalents) Defines cash equivalents and addresses potential risks related to bank account balances exceeding insured limits - Highly liquid investments with original maturities of three months or less are considered cash equivalents. Bank accounts may exceed FDIC insured limits, but the risk of any loss is minimal[45](index=45&type=chunk) [Property and Equipment, Net](index=12&type=section&id=Property%20and%20Equipment%2C%20Net) Describes the accounting treatment for property and equipment, including depreciation methods and capitalization of internally developed software - Property and equipment are stated at cost, less accumulated depreciation and amortization, recorded using the straight-line method over estimated useful lives (3-10 years). Costs associated with internally developed software are capitalized when the preliminary project stage is completed and amortized over its useful life[46](index=46&type=chunk) [Intangible Assets, Net](index=12&type=section&id=Intangible%20Assets%2C%20Net) Explains the accounting for intangible assets, including amortization methods and impairment testing for finite and indefinite-lived assets - Intangible assets are stated at cost less accumulated amortization. Finite-lived assets are amortized using the straight-line method over estimated useful lives (3-20 years), while indefinite-lived assets are tested annually for impairment[47](index=47&type=chunk)[49](index=49&type=chunk) Intangible Asset Net Values (in thousands) | Intangible Asset (in thousands) | Net as of June 30, 2025 | Net as of March 31, 2025 | | :------------------------------ | :---------------------- | :----------------------- | | Content Library | $2,856 | $2,527 | | Advertiser Relationships and Channel | $8,193 | $8,621 | | Customer Relationships | $477 | $545 | | Software | $1,920 | $2,000 | | Tradenames, Trademarks and Patents | $733 | $758 | | Capitalized Content | $4,270 | $3,717 | | Total Intangible Assets | $18,449 | $18,168 | - Amortization expense for intangible assets was **$1.0 million** for the three months ended June 30, 2025, compared to **$0.7 million** for the same period in 2024[49](index=49&type=chunk) [Capitalized Content](index=13&type=section&id=Capitalized%20Content) Details the capitalization and amortization of direct costs incurred in content production expected to generate future returns - Direct costs incurred in the production of content are capitalized if expected to generate a return over the anticipated useful life and are amortized as a group within Depreciation and Amortization[50](index=50&type=chunk)[51](index=51&type=chunk) [Impairment of Long-lived and Finite-lived Intangible Assets](index=14&type=section&id=Impairment%20of%20Long-lived%20and%20Finite-lived%20Intangible%20Assets) Describes the process for reviewing long-lived and finite-lived intangible assets for impairment, with no charges recorded this quarter - The recoverability of long-lived and finite-lived intangible assets is reviewed when events or conditions indicate possible impairment. No impairment charges were recorded during the three months ended June 30, 2025 and 2024[52](index=52&type=chunk) [Goodwill](index=14&type=section&id=Goodwill) Explains the annual impairment testing for goodwill, with no impairment charges recorded in the current or prior quarter - Goodwill is tested for impairment annually or more often if warranted by events or changes in circumstances. No goodwill impairment charge was recorded in the three months ended June 30, 2025 and 2024[53](index=53&type=chunk)[55](index=55&type=chunk) [Fair Value Measurements](index=14&type=section&id=Fair%20Value%20Measurements) Discusses fair value measurement disclosures and confirms no assets or liabilities were carried at fair value as of June 30, 2025 - Fair value measurement disclosures are grouped into three levels based on valuation factors. There were no assets and liabilities carried at fair value as of June 30, 2025[56](index=56&type=chunk)[57](index=57&type=chunk) [Content Advances](index=14&type=section&id=Content%20Advances) Describes content advances as prepayments to studios for distribution services, regularly evaluated for recoverability - Content advances are prepayments to studios for distribution services, regularly evaluated for recoverability. Long-term content advances were **$5.9 million** as of June 30, 2025. A **$128 thousand** reduction in the reserve for recovery of advances was recognized for the three months ended June 30, 2025[58](index=58&type=chunk) [Accounts Payable and Accrued Expenses](index=15&type=section&id=Accounts%20Payable%20and%20Accrued%20Expenses) Provides a breakdown of accounts payable and accrued expenses, including amounts due to producers and accrued compensation | Category (in thousands) | As of June 30, 2025 | As of March 31, 2025 | | :---------------------- | :------------------ | :------------------- | | Accounts payable | $5,468 | $7,298 | | Amounts due to producers | $9,292 | $16,488 | | Accrued compensation and benefits | $1,655 | $1,398 | | Accrued other expenses | $4,342 | $5,925 | | Total | $20,757 | $31,109 | [Deferred Consideration](index=15&type=section&id=Deferred%20Consideration) Details the final payments for the DMR and FTV acquisitions, made through common stock issuance and cash - The final deferred consideration payment of **$2.4 million** for the Digital Media Rights (DMR) acquisition was made on April 1, 2025, through the issuance of **677 thousand shares of Common Stock**. The deferred consideration related to the FoundationTV (FTV) acquisition was **$464 thousand** as of June 30, 2025, and was paid in cash in July 2025[60](index=60&type=chunk)[61](index=61&type=chunk) [Revenue Recognition](index=15&type=section&id=Revenue%20Recognition) Explains the company's revenue recognition policies across streaming, podcast, and base distribution segments | Revenue Source (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change ($) | Change (%) | | :---------------------------- | :------------------------------- | :------------------------------- | :--------- | :--------- | | Streaming and digital | $9,104 | $7,703 | $1,401 | 18.19% | | Podcast and other | $989 | $1,043 | $(54) | -5.18% | | Base distribution | $1,024 | $351 | $673 | 191.74% | | Other non-recurring | $2 | $30 | $(28) | -93.33% | | Total Revenue | $11,119 | $9,127 | $1,992 | 21.82% | - Streaming and digital revenue pertains to the OTT business, including licensing, service, advertising, and subscription revenue. Base distribution revenue relates to non-streaming revenue like Theatrical and DVD sales. Podcast and other revenue primarily relate to the Bloody Disgusting Podcast Network[63](index=63&type=chunk) [Credit Losses](index=16&type=section&id=Credit%20Losses) Describes the company's policy for maintaining reserves for expected credit losses on accounts receivable - Reserves for expected credit losses on accounts receivable are maintained primarily on a specific identification basis. The allowance for credit losses was **$406 thousand** as of June 30, 2025, an increase of **$99 thousand** from March 31, 2025[68](index=68&type=chunk)[69](index=69&type=chunk) [Contract Liabilities](index=16&type=section&id=Contract%20Liabilities) Explains the recording of deferred revenue as a contract liability when payments are received in advance of performance - Deferred revenue (contract liability) is recorded when cash payments are received or due in advance of performance. The ending deferred revenue balance was **$0.1 million** as of June 30, 2025, down from **$0.2 million** as of March 31, 2025[70](index=70&type=chunk)[71](index=71&type=chunk) [Participations and Royalties Payable](index=17&type=section&id=Participations%20and%20Royalties%20Payable) Defines participations payable for revenue-sharing and royalties owed to studios or content producers - Participations payable represent amounts owed to distributors under revenue-sharing arrangements for Company-owned content. Accounts payable and accrued expenses are recorded for royalties owed to studios or content producers for licensing arrangements[74](index=74&type=chunk) [Concentrations](index=17&type=section&id=Concentrations) Identifies significant customer concentrations in consolidated revenue and accounts receivable - For the three months ended June 30, 2025, one customer represented **27% of consolidated revenue** (down from **39% in 2024**). As of June 30, 2025, two customers represented **21% and 12% of consolidated accounts receivable**[75](index=75&type=chunk) [Direct Operating Expenses](index=17&type=section&id=Direct%20Operating%20Expenses) Lists the components of direct operating expenses, including cost of revenue, fulfillment, and royalty expenses - Direct operating expenses consist of cost of revenue, fulfillment expenses, shipping costs, property taxes and insurance on systems, royalty expenses, reserves against advances, and marketing and direct personnel costs[76](index=76&type=chunk) [Stock-based Compensation](index=17&type=section&id=Stock-based%20Compensation) Describes the accounting for stock-based awards issued to employees and non-employees, recognizing expense over the service period - The company issues stock-based awards (restricted stock, RSUs, SARs, PSUs) to employees and non-employees, recognizing compensation expense based on fair value over the service period. Forfeitures are recognized as they occur[77](index=77&type=chunk) [Income Taxes](index=17&type=section&id=Income%20Taxes) Explains the asset and liability method for income taxes, deferred tax assets, valuation allowances, and uncertain tax positions - Income taxes are accounted for using the asset and liability method, with deferred tax assets and liabilities recognized for future tax consequences. Valuation allowances are established when deferred tax assets are unlikely to be realized. The company had no uncertain tax positions as of June 30, 2025[78](index=78&type=chunk)[79](index=79&type=chunk)[82](index=82&type=chunk) [Recently Issued Accounting Pronouncements](index=18&type=section&id=Recently%20Issued%20Accounting%20Pronouncements) Discusses the company's adoption plans for new accounting standards related to income tax disclosures and expense disaggregation - The company is adopting ASU 2023-09 (Income Taxes - Improvements to Income Tax Disclosures) for its December 31, 2025 year-end disclosure. It is evaluating the impact of ASU 2024-03 (Income Statement-Reporting Comprehensive Income- Expense Disaggregation Disclosures), effective for fiscal years beginning after December 15, 2026[84](index=84&type=chunk)[85](index=85&type=chunk) [3. Segment Information](index=18&type=section&id=3.%20SEGMENT%20INFORMATION) Confirms Cineverse operates as a single reportable segment, with the CEO reviewing consolidated financial data for decision-making - The Company operates as a single reportable segment. The CEO (CODM) reviews consolidated financial information, operating income/loss, net income/loss, and specific expense categories (royalty, license, payroll, professional services, advertising, G&A, amortization) for decision-making[86](index=86&type=chunk)[87](index=87&type=chunk) Segment Performance (in thousands) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | | Revenues | $11,119 | $9,127 | | Total operating expenses | $14,821 | $11,905 | | Operating loss | $(3,702) | $(2,778) | | Net loss | $(3,516) | $(3,050) | [4. Other Interests](index=19&type=section&id=4.%20OTHER%20INTERESTS) Details the company's investments in unconsolidated VIEs, consolidated subsidiaries, and other entities accounted for using the cost method - Cineverse indirectly owns **100% of CDF2 Holdings**, an unconsolidated Variable Interest Entity (VIE) created for digital cinema conversion. The company's maximum exposure to loss is limited to its initial **$2.0 million investment**, which is carried at **$0** as of June 30, 2025[90](index=90&type=chunk)[91](index=91&type=chunk)[94](index=94&type=chunk) - Cineverse owns an **85% interest in CONtv, LLC**, a worldwide digital network that creates original content and distributes on-demand digital content, which is consolidated in the financial statements[95](index=95&type=chunk) - The company holds an investment in Roundtable Entertainment Holdings, Inc., accounted for using the cost method, made in connection with a proposed collaboration for streaming content production and distribution[97](index=97&type=chunk) [5. Stockholders' Equity](index=20&type=section&id=5.%20STOCKHOLDERS'%20EQUITY) Provides details on changes in common stock, warrants, preferred stock, treasury stock, and equity incentive plans - As of June 30, 2025, **275 million shares of Common Stock** were authorized. During the three months ended June 30, 2025, **1.1 million shares** were issued for preferred stock dividends, acquisition deferred consideration, and employee equity awards[98](index=98&type=chunk) - As of June 30, 2025, **2.7 million warrants** were exercisable. Subsequent to June 30, 2025, **1.9 million warrants** were exercised for net proceeds of **$5.8 million**[100](index=100&type=chunk) - Cumulative dividends in arrears on Series A Preferred Stock were **$89 thousand** as of June 30, 2025, and were paid in Common Stock[101](index=101&type=chunk) - Treasury stock increased to **830 thousand shares** as of June 30, 2025, primarily due to **326 thousand shares** retained for employee taxes related to restricted stock awards[102](index=102&type=chunk)[107](index=107&type=chunk) - The company issued **522 thousand RSUs** to certain employees during the three months ended June 30, 2025, vesting over a 3-year period with a fair value of **$1.5 million**. Stock-based compensation expense was **$0.4 million** for both the three months ended June 30, 2025 and 2024[106](index=106&type=chunk)[108](index=108&type=chunk) [6. Earnings Per Share](index=21&type=section&id=6.%20EARNINGS%20PER%20SHARE) Explains the computation of basic and diluted earnings per share, noting that potentially dilutive securities were anti-dilutive due to net loss | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :----- | :------------------------------- | :------------------------------- | | Net loss attributable to Common Stock holders (in thousands) | $(3,649) | $(3,162) | | Weighted average shares of Common Stock - basic | 16,992,358 | 15,702,144 | | Basic and Diluted EPS | $(0.21) | $(0.20) | - Potentially dilutive common equivalent shares (options, SARs, warrants, restricted stock units/awards) were excluded from diluted EPS computation because their effect would have been anti-dilutive due to the net loss[110](index=110&type=chunk)[112](index=112&type=chunk) [7. Debt](index=22&type=section&id=7.%20DEBT) Details the company's Line of Credit Facility and a Term Loan, including terms, outstanding amounts, and interest expenses - The Line of Credit Facility with East West Bank provides up to **$12.5 million** (expandable to **$15.0 million**) at **1.25% above the prime rate** (**8.75%** as of June 30, 2025), maturing April 8, 2028. **$3.6 million** was outstanding as of June 30, 2025[113](index=113&type=chunk) - Interest expense for the Line of Credit Facility was **$0.1 million** for the three months ended June 30, 2025, compared to **$0.2 million** in the prior year quarter[114](index=114&type=chunk) - A Term Loan (T3 Loan) of up to **$3.666 million** was used for funding distribution arrangements for the film 'Terrifier 3'. The principal was paid during the three months ended December 31, 2024. Subsequent to June 30, 2025, a **$375 thousand reduction** to accrued Participation Interest was negotiated, and a final payment of **$944 thousand** was made to the T3 Lender[115](index=115&type=chunk)[116](index=116&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk)[120](index=120&type=chunk) [8. Commitments and Contingencies (Leases)](index=23&type=section&id=8.%20COMMITMENTS%20AND%20CONTINGENCIES) Describes the company's operating lease liabilities, primarily for Cineverse India operations, and associated cash flows - Cineverse operates without domestic operating leases, except for two operating leases related to its Cineverse India operations, with expiration dates in July 2027. Lease expenses were **$49 thousand** for the three months ended June 30, 2025, compared to **$115 thousand** in 2024[121](index=121&type=chunk) Lease-Related Liabilities (in thousands) | Lease-Related Liabilities (in thousands) | As of June 30, 2025 | As of March 31, 2025 | | :------------------------------------- | :------------------ | :------------------- | | Current Operating Lease Liabilities | $191 | $187 | | Noncurrent Operating Lease Liabilities | $226 | $275 | | Total | $417 | $462 | Operating Lease Commitments (in thousands) | Fiscal Year Ending March 31, | Operating Lease Commitments (in thousands) | | :--------------------------- | :--------------------------------------- | | 2025 (remainder) | $152 | | 2026 | $210 | | 2027 | $71 | | Thereafter | $0 | | Total Lease Payments | $433 | [9. Income Taxes](index=24&type=section&id=9.%20INCOME%20TAXES) Explains the company's income tax expense, effective tax rate, and the impact of recent tax legislation - Income tax expense was **$14 thousand** for the three months ended June 30, 2025, primarily attributable to taxable income earned in India and U.S. state income taxes. A valuation allowance is provided for all U.S. net deferred tax assets[124](index=124&type=chunk)[125](index=125&type=chunk) Income Tax Metrics (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :----- | :------------------------------- | :------------------------------- | | Income Tax Expense (in thousands) | $14 | $7 | | Effective Tax Rate | (0.4)% | (0.3)% | - The 'One Big Beautiful Bill Act' (OBBBA), signed July 4, 2025, introduces significant changes to the Internal Revenue Code, including restoring **100% bonus depreciation** and permitting immediate expensing of domestic research and experimental costs. These provisions are treated as a non-recognized subsequent event as enactment occurred after June 30, 2025[126](index=126&type=chunk)[127](index=127&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Provides management's perspective on the company's financial condition, operational results, and liquidity, including a business overview [Business Overview](index=25&type=section&id=Business%20Overview) Describes Cineverse's transformation into a leading independent streaming company, leveraging technology for entertainment distribution - Cineverse has transformed from a digital cinema equipment and physical content distributor to a leading independent streaming company, leveraging technology to transform the entertainment industry[131](index=131&type=chunk) - The core business includes a portfolio of owned and operated streaming channels, large-scale global aggregation and distribution of feature films and television programs, and a proprietary technology software-as-a-service platform (Matchpoint™) for OTT app development and content distribution[132](index=132&type=chunk)[133](index=133&type=chunk) [Financial Condition and Liquidity](index=25&type=section&id=Financial%20Condition%20and%20Liquidity) Assesses the company's financial health, including accumulated deficit, working capital, net loss, and liquidity sources - As of June 30, 2025, the company had an accumulated deficit of **$504.6 million** and a working capital deficit of **$(0.3) million**, with a net loss attributable to common stock holders of **$3.6 million** for the three months ended June 30, 2025. Net cash used in operating activities was **$14.5 million**, including **$1.2 million** of incremental investment in content[135](index=135&type=chunk) - Subsequent to June 30, 2025, **1.9 million warrants** were exercised for net proceeds of **$5.8 million**[135](index=135&type=chunk) - The company has a Line of Credit Facility of up to **$12.5 million** (expandable to **$15.0 million**), with **$3.6 million** outstanding as of June 30, 2025. Management believes current cash and the Line of Credit Facility will be sufficient to support operations for at least the next twelve months[136](index=136&type=chunk)[137](index=137&type=chunk)[139](index=139&type=chunk) [Critical Accounting Estimates](index=26&type=section&id=Critical%20Accounting%20Estimates) Discusses management's significant assumptions and judgments in financial reporting, which may impact reported amounts - The preparation of financial statements requires management to make assumptions and estimates about future events and apply judgments that affect reported amounts of assets, liabilities, revenue, and expenses. These estimates are reviewed regularly, but actual results could differ materially[140](index=140&type=chunk) [Results of Operations for the Three Months Ended June 30, 2025 and 2024 (Unaudited)](index=26&type=section&id=Results%20of%20Operations%20for%20the%20Three%20Months%20Ended%20June%2030%2C%202025%20and%202024%20(Unaudited)) Analyzes the company's financial performance, including revenue, expenses, and profitability, for the specified periods [Revenue](index=26&type=section&id=Revenue) Details the sources and changes in total revenue, including streaming, podcast, and base distribution segments | Revenue Source (in thousands) | 2025 | 2024 | $ Change | % Change | 2025 (% of Total) | 2024 (% of Total) | | :---------------------------- | :----------- | :----------- | :------- | :------- | :---------------- | :---------------- | | Streaming and digital | $9,104 | $7,703 | $1,401 | 18% | 82% | 84% | | Podcast and other | $989 | $1,043 | $(54) | (5)% | 9% | 11% | | Base distribution | $1,024 | $351 | $673 | 192% | 9% | 4% | | Other and non-recurring | $2 | $30 | $(28) | (93)% | —% | —% | | Total Revenue | $11,119 | $9,127 | $1,992 | 22% | 100% | 100% | - Total revenue increased by **$2.0 million (22%)** year-over-year. Streaming and digital revenue increased by **$1.4 million**, driven by subscriber revenue, Terrifier 3 transaction revenue, and barter revenue. Base distribution revenue increased by **$0.7 million** due to increased physical sales for the Terrifier 3 DVD release[142](index=142&type=chunk)[143](index=143&type=chunk) [Direct Operating Expenses](index=26&type=section&id=Direct%20Operating%20Expenses) Analyzes the changes in direct operating expenses, primarily driven by variable costs associated with revenue increases | Metric (in thousands) | 2025 | 2024 | $ Change | % Change | 2025 (% of Revenue) | 2024 (% of Revenue) | | :-------------------- | :------ | :------ | :------- | :------- | :------------------ | :------------------ | | Direct operating expenses | $4,807 | $4,479 | $328 | 7% | 43% | 49% | - Direct operating expenses increased by **$0.3 million**, primarily driven by higher variable costs associated with the increase in revenue, including royalty and participation expenses, and manufacturing, freight, and fulfillment charges[146](index=146&type=chunk) [Selling, General and Administrative Expenses](index=27&type=section&id=Selling%2C%20General%20and%20Administrative%20Expenses) Examines the increase in SG&A expenses, attributed to higher compensation, marketing, and legal costs | Metric (in thousands) | 2025 | 2024 | $ Change | % Change | 2025 (% of Revenue) | 2024 (% of Revenue) | | :-------------------- | :------ | :------ | :------- | :------- | :------------------ | :------------------ | | Compensation expense | $5,129 | $4,051 | $1,078 | 27% | 46% | 44% | | Corporate expenses | $1,196 | $1,012 | $184 | 18% | 11% | 11% | | Share-based compensation | $418 | $470 | $(52) | (11)% | 4% | 5% | | Other operating expenses | $2,209 | $1,030 | $1,179 | 114% | 20% | 11% | | Total SG&A | $8,952 | $6,563 | $2,389 | 36% | 81% | 72% | - Selling, general and administrative expenses increased by **$2.4 million (36%)**, driven by a **$1.1 million increase** in compensation expense due to increased headcount and a **$1.2 million increase** in other operating expenses primarily from higher marketing and legal costs associated with increased theatrical offerings[147](index=147&type=chunk) [Depreciation and Amortization Expense](index=27&type=section&id=Depreciation%20and%20Amortization%20Expense) Discusses the increase in depreciation and amortization, mainly due to internally developed software assets | Metric (in thousands) | 2025 | 2024 | $ Change | % Change | 2025 (% of Revenue) | 2024 (% of Revenue) | | :-------------------- | :------ | :------ | :------- | :------- | :------------------ | :------------------ | | Amortization of intangible assets | $957 | $709 | $248 | 35% | 9% | 8% | | Depreciation of property and equipment | $105 | $154 | $(49) | (32)% | 1% | 2% | | Total D&A | $1,062 | $863 | $199 | 23% | 10% | 9% | - Depreciation and amortization expense increased by **$0.2 million (23%)** compared to the prior year quarter, primarily due to internally developed software assets being placed into service[148](index=148&type=chunk) [Interest expense, net](index=27&type=section&id=Interest%20expense%2C%20net) Explains the decrease in net interest expense due to a lower Line of Credit balance and a discount from a lender - Net interest expense decreased by **$0.7 million** to **$(0.3) million** for the three months ended June 30, 2025, primarily due to a lower average balance on the Line of Credit Facility and a **$0.4 million discount** to accrued interest provided by the Terrifier 3 lender[149](index=149&type=chunk) [Adjusted EBITDA](index=27&type=section&id=Adjusted%20EBITDA) Presents Adjusted EBITDA as a non-GAAP measure used by management to assess financial performance - Adjusted EBITDA is a non-GAAP measure used by management to assess financial performance, excluding interest, taxes, depreciation and amortization, stock-based compensation expense, merger and acquisition costs, restructuring, transition and acquisitions expense, net, goodwill impairment and certain other items[150](index=150&type=chunk)[151](index=151&type=chunk)[152](index=152&type=chunk) Adjusted EBITDA (in thousands) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | | Net loss | $(3,516) | $(3,050) | | Adjusted EBITDA | $(2,134) | $(1,356) | [Cash Flow](index=28&type=section&id=Cash%20Flow) Analyzes changes in cash flows from operating, investing, and financing activities, highlighting seasonal patterns | Cash Flow Activity (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Net cash used in operating activities | $(14,524) | $(2,344) | | Net cash used in investing activities | $(16) | $151 | | Net cash provided by financing activities | $2,568 | $925 | | Net Change in Cash and Cash Equivalents | $(11,972) | $(1,267) | - Net cash used in operating activities significantly increased to **$(14.5) million**, primarily driven by loss from operations, content advances, operating prepayments, and a decrease in accounts payable and accrued expenses. Operating cash flows are typically seasonally lower during the first two fiscal quarters[156](index=156&type=chunk)[158](index=158&type=chunk)[159](index=159&type=chunk) - Cash provided by financing activities increased to **$2.6 million**, primarily driven by proceeds, net of payments, on the Line of Credit Facility[158](index=158&type=chunk) [Off-balance sheet arrangements](index=29&type=section&id=Off-balance%20sheet%20arrangements) Confirms the company has no material off-balance sheet arrangements, except for an unconsolidated VIE - The company is not a party to any off-balance sheet arrangements, other than its **100% equity interest in CDF2 Holdings**, an unconsolidated variable interest entity (VIE) for which it is not the primary beneficiary[161](index=161&type=chunk) [Item 4. Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Management evaluated the effectiveness of disclosure controls and procedures, concluding they were effective, with no material changes in internal control - Disclosure controls and procedures are designed to reasonably ensure that information required to be disclosed in reports filed under the Exchange Act is recorded, processed, summarized, and reported timely and communicated to management[163](index=163&type=chunk) - As of June 30, 2025, the principal executive officer and principal financial and accounting officer concluded that the company's disclosure controls and procedures were effective[164](index=164&type=chunk) - There have been no material changes in the company's internal control over financial reporting during the three months ended June 30, 2025[165](index=165&type=chunk) [PART II - OTHER INFORMATION](index=31&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This section provides additional information including legal proceedings, risk factors, equity sales, defaults, and other disclosures [Item 1. Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no legal proceedings during the period - None[166](index=166&type=chunk) [Item 1A. Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K - There have been no material changes to the Risk Factors disclosed in Item 1A of the Annual Report on Form 10-K for the fiscal year ended March 31, 2025[167](index=167&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=31&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds - None[168](index=168&type=chunk) [Item 3. Defaults Upon Senior Securities](index=31&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - None[169](index=169&type=chunk) [Item 4. Mine Safety Disclosures](index=31&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - Not Applicable[170](index=170&type=chunk) [Item 5. Other Information](index=31&type=section&id=Item%205.%20Other%20Information) The company plans to move its 2025 annual meeting of stockholders, affecting deadlines for proposals and nominations - The company is planning to move its 2025 annual meeting of stockholders ahead by more than 30 days of the date of the 2024 annual meeting[171](index=171&type=chunk) - Stockholder proposals for inclusion in the proxy statement must be received by **August 30, 2025**. Advance notice proposals and nominations must be received between **July 15, 2025, and August 24, 2025**[172](index=172&type=chunk)[173](index=173&type=chunk) [Item 6. Exhibits](index=31&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the Form 10-Q, including officer certifications and XBRL documents - Exhibits include Officer's Certificates (31.1, 31.2), Certification of Chief Executive Officer (32.1), Certification of Chief Financial Officer (32.2), and Inline XBRL documents (101.INS, 101.SCH, 104)[177](index=177&type=chunk) [Signatures](index=33&type=section&id=Signatures) The report is duly signed by the Chief Executive Officer and Chief Financial Officer of Cineverse Corp - The report was signed by Christopher J. McGurk (Chief Executive Officer and Chairman of the Board of Directors) and Mark Lindsey (Chief Financial Officer) on **August 14, 2025**[181](index=181&type=chunk)
Cineverse (CNVS) - 2026 Q1 - Quarterly Results
2025-08-14 20:31
[Executive Summary and Q1 FY2026 Highlights](index=1&type=section&id=Executive%20Summary%20and%20Q1%20FY2026%20Highlights) [Overall Financial Performance](index=1&type=section&id=1.1%20Overall%20Financial%20Performance) Cineverse saw strong Q1 FY2026 revenue growth and improved operating margin, but increased SG&A impacted net loss and adjusted EBITDA Key Financial Metrics | Metric | Q1 FY2026 (million USD) | Q1 FY2025 (million USD) | Change (%) | | :---------------------- | :-------------------- | :-------------------- | :------- | | **Total Revenue** | 11.1 | 9.1 | +22% | | **Direct Operating Margin** | 57% | 51% | +6% | | **SG&A Expenses** | 9.0 | 6.6 | +36% | | **Net Loss** | (3.6) | (3.2) | -12.5% | | **Adjusted EBITDA** | (2.1) | (1.4) | -50% | - Increased SG&A expenses primarily resulted from investments supporting expanded theatrical release schedules and the development of technology, product, and sales teams[1](index=1&type=chunk)[5](index=5&type=chunk) [Key Business Drivers](index=1&type=section&id=1.2%20Key%20Business%20Drivers) Revenue growth was driven by strong streaming, digital distribution, and theatrical/physical sales, significantly boosted by *Terrifier 3* Revenue by Category | Revenue Category | Q1 FY2026 (million USD) | Q1 FY2025 (million USD) | Change (%) | | :----------------- | :-------------------- | :-------------------- | :------- | | **Streaming and Digital Revenue** | 9.1 | 7.7 | +18% | | **Underlying Distribution Revenue** | 1.0 | 0.4 | +192% | - Total monthly viewership increased by **38% year-over-year**, driven by strong growth in channels like Screambox, Dog Whisperer with Cesar Millan, Barney, and Yu-Gi-Oh[5](index=5&type=chunk) - The success of *Terrifier 3* boosted theatrical and DVD sales, significantly increasing underlying distribution revenue[5](index=5&type=chunk) [Strategic Initiatives and Operational Progress](index=1&type=section&id=1.3%20Strategic%20Initiatives%20and%20Operational%20Progress) The company expands theatrical distribution and leverages its media ecosystem for studio marketing, maintaining a solid financial position - The company is building a new theatrical release slate, including *The Toxic Avenger Unrated*, *Silent Night, Deadly Night*, *Return to Silent Hill*, *Air Bud Returns*, and *Wolf Creek: Legacy*[2](index=2&type=chunk) - Other major studios continue to utilize Cineverse's new media ecosystem for marketing, highlighting the impact of its unique approach[2](index=2&type=chunk) - As of June 30, 2025, the company held nearly **$10.9 million in cash** and had **$12.5 million available** under its credit facility[3](index=3&type=chunk) [Financial Condition Overview](index=2&type=section&id=Financial%20Condition%20Overview) [Liquidity and Capital Resources](index=2&type=section&id=2.1%20Liquidity%20and%20Capital%20Resources) Cineverse held $2.0 million cash and $8.9 million available credit, with warrant redemptions providing $5.8 million despite negative working capital Liquidity and Capital Resources Summary | Metric | June 30, 2025 (million USD) | March 31, 2025 (million USD) | | :----------------------- | :----------------------- | :----------------------- | | **Cash and Cash Equivalents** | 2.0 | 13.9 | | **Credit Facility Availability** | 8.9 (Total 12.5) | - | | **Working Capital** | (0.3) | 3.6 | - As of the release date, the company had **$12.0 million available** under its credit facility[10](index=10&type=chunk) - Subsequent to quarter-end, the company received **$5.8 million** from the redemption of **1,947,500 common stock warrants**[10](index=10&type=chunk) [Digital Content Library Valuation](index=2&type=section&id=2.2%20Digital%20Content%20Library%20Valuation) The company's digital content library, with over 71,000 titles, was valued at $40 million, significantly exceeding its $2.9 million book value Digital Content Library Valuation Summary | Metric | Amount (million USD) | | :--------------------- | :-------------- | | **Digital Content Library Valuation (March 31, 2024)** | 40.0 | | **Digital Content Library Book Value (June 30, 2025)** | 2.9 | - The digital content library comprises over **71,000 titles**, with its valuation showing significant growth since 2023[10](index=10&type=chunk) [Operational Developments](index=2&type=section&id=Operational%20Developments) [Developments During the Quarter](index=2&type=section&id=3.1%20Developments%20During%20the%20Quarter) Cineverse made significant Q1 progress in streaming audience growth, platform engagement, SVOD subscriptions, content expansion, and technology - Total streaming audience grew approximately **20% year-over-year** to **209 million**, with total watch time increasing **38%** to over **4 billion minutes**, and FAST channel watch time up **20%** to **3.8 billion minutes**[10](index=10&type=chunk) - Screambox viewership increased **27%** since the release of *Terrifier 3*, and Cineverse channel audience grew over **4,300%** since January 2025[10](index=10&type=chunk) - SVOD subscribers increased approximately **6% year-over-year** to **1.38 million**[10](index=10&type=chunk) - Content expansion included Fandor acquiring rights to *Return to Silent Hill* and *Silent Night, Deadly Night*, and launching cineSearch Commercial and the Matchpoint Dispatch pilot program[10](index=10&type=chunk) - An internal film group was established, the ad sales leadership team expanded, and the Cineverse Podcast Network was relaunched, featuring **74+ series** and over **230 million lifetime downloads**[10](index=10&type=chunk) [Developments Subsequent to Quarter-End](index=2&type=section&id=3.2%20Developments%20Subsequent%20to%20Quarter-End) Post-quarter, Cineverse formed MicroCo for micro-series, acquired *Air Bud Returns* rights, launched WITZ Podcast Network, and strengthened tech leadership - Formed MicroCo, a **50/50 joint venture** with Lloyd Braun's Banyan Media Ventures, targeting the micro-series market, projected to reach **$10 billion by 2027**[9](index=9&type=chunk)[11](index=11&type=chunk) - Announced the acquisition of US rights for *Air Bud Returns*, with a wide theatrical release planned for Summer 2026[12](index=12&type=chunk) - Launched the WITZ Podcast Network in partnership with The Stand Group and strengthened the technology leadership team with Michele Edelman as EVP of Technology and GM of Matchpoint[12](index=12&type=chunk) - Cineverse common stock was included in multiple Russell indices, including the Russell 3000E, Microcap, Growth, and Value indices[12](index=12&type=chunk) - Successfully promoted upcoming films *The Toxic Avenger Unrated* and *Silent Night, Deadly Night* at San Diego Comic-Con[12](index=12&type=chunk) [Management Commentary](index=3&type=section&id=Management%20Commentary) [CEO's Remarks](index=3&type=section&id=4.1%20CEO's%20Remarks) CEO Chris McGurk noted strong revenue growth and improved operating margins, with SG&A investments expected to yield returns, highlighting strategic film and MicroCo potential - The company achieved significant growth across all business lines, with a substantial increase in overall operating margins[11](index=11&type=chunk) - Investments in SG&A and marketing impacted Adjusted EBITDA and net income, but returns on these investments are anticipated to begin in Q2 FY2026[11](index=11&type=chunk) - Investment in *The Toxic Avenger Unrated*, including distribution and marketing, was less than **$5 million**, with a favorable risk/reward profile due to securing permanent domestic rights across all media[11](index=11&type=chunk) - The MicroCo joint venture will leverage Cineverse's unique streaming, content, technology, and AI capabilities to establish a leading position in the micro-series market, projected to reach **$10 billion by 2027**[11](index=11&type=chunk) [President and CSO's Remarks](index=3&type=section&id=4.2%20President%20and%20CSO's%20Remarks) President and CSO Erick Opeka explained Cineverse's low-cost studio-level visibility through integrated ad tech and theatrical strategy, driving streaming growth, and envisioned MicroCo setting the micro-series standard - Cineverse achieves high market visibility at significantly lower costs than traditional studios by integrating proprietary ad tech, exclusive media networks, and disciplined theatrical acquisition strategies[11](index=11&type=chunk)[13](index=13&type=chunk) - The same system driving theatrical visibility also fueled streaming business growth, with total watch time increasing **38% year-over-year** to over **4 billion minutes**, and FAST viewership up **20%**[13](index=13&type=chunk) - The MicroCo joint venture aims to build the infrastructure layer for the entire micro-series sector, leveraging Cineverse's proprietary technology and AI capabilities to support various content generation forms and define the future of short-form storytelling[13](index=13&type=chunk) [Company Information](index=5&type=section&id=Company%20Information) [About Cineverse](index=5&type=section&id=5.1%20About%20Cineverse) Cineverse is a next-gen entertainment studio leveraging proprietary streaming and AI to distribute over 71,000 titles, connecting fans with authentic stories - Cineverse is a global streaming technology and entertainment company with over **71,000 premium films, series, and podcasts**[14](index=14&type=chunk) - The company utilizes its proprietary streaming tools and AI technology to drive revenue and reach, redefining the next era of entertainment[14](index=14&type=chunk) - Its assets include the highest-grossing unrated film in US box office history, dozens of streaming fan channels, a top podcast network, and the horror content destination Bloody Disgusting[14](index=14&type=chunk) [Safe Harbor Statement](index=5&type=section&id=5.2%20Safe%20Harbor%20Statement) This report contains forward-looking statements, subject to risks and uncertainties, based on current expectations, with no obligation for the company to update them - Forward-looking statements include predictive statements that depend on future events or conditions and contain words such as 'anticipate,' 'expect,' 'intend,' and 'plan'[15](index=15&type=chunk) - These statements are not guarantees of future performance, and the company undertakes no specific obligation or intention to update them after the date of this release[15](index=15&type=chunk) [Investor Relations and Conference Call](index=5&type=section&id=5.3%20Investor%20Relations%20and%20Conference%20Call) Cineverse held a conference call on August 14, 2025, to discuss Q1 FY2026 results, accessible online via its investor relations website with a replay available - Cineverse held a conference call on Thursday, August 14, 2025, at 4:30 PM ET / 1:30 PM PT to discuss its Q1 FY2026 results[14](index=14&type=chunk) - The conference call is accessible online via the Cineverse investor relations website at https://investor.cineverse.com, with a replay also available post-call[16](index=16&type=chunk) [Condensed Consolidated Financial Statements](index=6&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Balance Sheets](index=6&type=section&id=6.1%20Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, Cineverse's total assets decreased to $61.534 million, primarily due to reduced cash, with total liabilities also declining Condensed Consolidated Balance Sheets Summary | Item | June 30, 2025 (thousand USD) | March 31, 2025 (thousand USD) | | :----------------------- | :----------------------- | :----------------------- | | **Total Assets** | 61,534 | 72,516 | | **Current Assets** | 24,863 | 38,081 | | **Cash and Cash Equivalents** | 1,985 | 13,941 | | **Total Liabilities** | 25,380 | 34,724 | | **Current Liabilities** | 25,139 | 34,435 | | **Total Cineverse Corp. Stockholders' Equity** | 37,070 | 38,752 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=6.2%20Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 FY2026, Cineverse reported $11.119 million revenue, up 22%, but increased operating expenses led to an operating loss and net loss Condensed Consolidated Statements of Operations Summary | Item | Three Months Ended June 30, 2025 (thousand USD) | Three Months Ended June 30, 2024 (thousand USD) | | :----------------------- | :-------------------------- | :-------------------------- | | **Revenue** | 11,119 | 9,127 | | **Direct Operating Expenses** | 4,807 | 4,479 | | **Selling, General and Administrative Expenses** | 8,952 | 6,563 | | **Total Operating Expenses** | 14,821 | 11,905 | | **Operating Loss** | (3,702) | (2,778) | | **Net Loss Attributable to Common Stockholders** | (3,649) | (3,162) | | **Net Loss Per Share - Basic and Diluted** | (0.21) | (0.20) | [Non-GAAP Financial Measures](index=8&type=section&id=Non-GAAP%20Financial%20Measures) [Adjusted EBITDA Reconciliation](index=8&type=section&id=7.1%20Adjusted%20EBITDA%20Reconciliation) Cineverse defines Adjusted EBITDA as earnings before specific non-cash and non-recurring items, using it as a non-GAAP metric to assess financial performance and facilitate comparisons - Adjusted EBITDA is a non-GAAP financial measure used to assess business financial performance and should not be considered a substitute for GAAP net income (loss) or cash flow from operating activities[21](index=21&type=chunk)[22](index=22&type=chunk)[24](index=24&type=chunk) Adjusted EBITDA Reconciliation Table | Item | Three Months Ended December 31, 2025 (thousand USD) | Three Months Ended December 31, 2024 (thousand USD) | | :----------------------- | :-------------------------- | :-------------------------- | | **Net Loss** | (3,516) | (3,050) | | **Add-back Items:** | | | | Income tax expense | 14 | 7 | | Depreciation and amortization | 1,147 | 948 | | Interest (income) expense | (278) | 431 | | Stock-based compensation | 418 | 470 | | Other (expense) income, net | 78 | (166) | | Net income attributable to non-controlling interests | (44) | (23) | | Transition-related costs | 47 | 27 | | **Adjusted EBITDA** | (2,134) | (1,357) |
Cineverse Reports First Quarter Fiscal Year 2026 Results
Prnewswire· 2025-08-14 20:01
Core Insights - Cineverse Corp. reported total revenue of $11.1 million for Q1 FY 2026, marking a 22% increase compared to the prior year quarter [1][4] - The direct operating margin improved to 57%, reflecting a 6% enhancement over the previous year [1] - The company experienced a net loss of $3.6 million, slightly higher than the net loss of $3.2 million in the prior year quarter [6] Financial Performance - Total revenue increased from $9.1 million in Q1 FY 2025 to $11.1 million in Q1 FY 2026, driven by growth in streaming, digital distribution, theatrical, and physical sales [4][8] - Streaming and digital revenues reached $9.1 million, an 18% improvement from $7.7 million in the prior year [8] - SG&A expenses rose by $2.4 million, or 36%, to $9.0 million, primarily due to increased compensation, marketing, and legal costs [5] Operational Developments - The company continues to expand its film slate, with upcoming releases including "The Toxic Avenger Unrated" and "Air Bud Returns" [2][14] - Total streaming viewers increased approximately 20% year-over-year to 209 million, with total minutes streamed up 38% to over 4.0 billion [13] - Cineverse's digital content library, valued at approximately $40 million, comprises over 71,000 titles [9] Financial Condition - As of June 30, 2025, the company had nearly $10.9 million in cash and access to a $12.5 million line of credit [3][9] - Working capital was reported at ($0.3) million, a decrease from $3.6 million in the prior year [9] - The company’s total assets were valued at $61.5 million, while total liabilities stood at $25.4 million [19][20]
Cineverse and Lloyd Braun's Banyan Ventures Form JV to Launch MicroCo, a New Studio and Platform for Microseries - a Market Projected to Reach $10B by 2027
Prnewswire· 2025-08-13 14:00
Core Insights - Cineverse and Banyan Ventures have launched MicroCo, a 50/50 joint venture aimed at creating high-quality Microseries, which are short-form, serialized content designed for modern viewing habits [1][2] - The Microdrama market has seen significant growth, with a $7 billion market in China and projected to reach $10 billion outside of China by 2027 [1][5] - MicroCo aims to leverage advanced streaming technology and AI to produce low-cost, high-quality content that engages genre-driven audiences [1][6] Company Overview - MicroCo will be the first U.S.-based studio and AI-native platform specifically for Microseries, targeting the untapped potential of this content format [1][4] - The leadership team includes experienced executives such as Lloyd Braun, Chris McGurk, Jana Winograde, and Susan Rovner, who bring a wealth of industry knowledge and creative expertise [3][7][8] Market Potential - The Microseries format is designed for binge-watching, with episodes running approximately 1-3 minutes, and will cover various genres including romance and horror [5][6] - The platform aims to meet the evolving viewing habits of audiences, focusing on fast, social, and mobile-first experiences [6][9] Technology and Innovation - MicroCo will utilize Cineverse's proprietary technology, including the Matchpoint™ streaming infrastructure, to enhance content delivery and audience engagement [8][9] - The company plans to explore diverse revenue models, including advertising and in-app transactions, to support its creator economy [8][9] Audience Engagement - MicroCo will provide tools and analytics for creators to streamline storytelling and enhance audience connections [8][9] - The company has a significant fandom reach of over 150 million fans across various genres, leveraging its marketing strategies to maximize engagement [13]
Cineverse Technology Group's Flagship Brand Matchpoint™ Announces New Deals for its Proprietary Streaming Supply Chain Platform
Prnewswire· 2025-08-12 16:40
Core Insights - Cineverse has signed several new customers for its automated media supply chain platform, Matchpoint™, which is transforming video content management and delivery [1][6] - Michele Edelman has been appointed as the new EVP, Technology & General Manager of Matchpoint, indicating a strategic move to enhance the platform's capabilities [2] - The new customers include various studios and streaming services utilizing Matchpoint Dispatch and Blueprint for automated content management and app building [3][4] Company Overview - Cineverse is a next-generation entertainment studio that leverages technology to deliver a wide range of content, distributing over 71,000 premium films, series, and podcasts [8] - The company is recognized for its innovative technology solutions, particularly in video streaming and content management, with a strong development team based in India [7] - Cineverse's proprietary tools, including cineSearch and the C360 programmatic audience network, enhance user experience and advertising capabilities [7] Product Details - Matchpoint™ is an award-winning platform that automates the media supply chain, significantly reducing costs and human error while facilitating content ingestion and delivery across multiple platforms [6] - Matchpoint Dispatch helps launch and grow streaming businesses through a fully automated content management system powered by AI tools [3][5] - Matchpoint Blueprint offers scalable app-building capabilities, further enhancing the platform's utility for media companies [3]
Cineverse Technology Group Appoints Accomplished Industry Executive Michele Edelman EVP, Technology & General Manager, Matchpoint™
Prnewswire· 2025-08-11 13:00
Company Overview - Cineverse Corp (Nasdaq: CNVS) is a next-generation entertainment studio that focuses on empowering creators and entertaining fans through technology [11] - The company distributes over 71,000 premium films, series, and podcasts, and has developed a new blueprint for delivering entertainment experiences efficiently [11] Key Executive Appointment - Michele Edelman has been appointed as EVP, Technology & General Manager of Matchpoint™, effective immediately [1] - Edelman previously served as a consultant to the Cineverse Technology Group, where she significantly impacted the service identity and launched several new Matchpoint customers [3][4] Role and Responsibilities - In her new role, Edelman will oversee Cineverse's go-to-market strategy, including sales, marketing, and daily operations of Matchpoint, which is a leading media supply chain platform [2] - She is also responsible for driving the sales and marketing strategy for cineSearch for Business, an AI-powered content search and discovery platform [5] Technology and Innovation - Matchpoint™ is designed to transform video content management and delivery by replacing traditional processes with a fully automated workflow, reducing costs and human error [8] - Cineverse's proprietary technology leverages advances in AI to enhance streaming content management and distribution [10] Industry Recognition and Experience - Edelman has a rich background in the entertainment industry, having spent 20 years at Warner Bros. in various senior roles, including VP of Worldwide Marketing [6] - She has received numerous accolades, including recognition among the Top 40 in Streaming Media and the Women in Home Entertainment Award [7]
Cineverse and Air Bud Entertainment Announce Nationwide Talent Search for The Next Air Bud in Advance of Air Bud Returns
Prnewswire· 2025-08-08 14:00
Group 1 - Cineverse and Air Bud Entertainment announced the return of the Air Bud franchise with a new film titled "Air Bud Returns," set to release in Summer 2026 [1][6] - A nationwide talent search is being launched to find a new golden retriever to star in the film, inviting dog owners to submit their purebred golden retrievers [3][4] - The film will feature a storyline about a 12-year-old boy named Jacob who, after moving to his father's childhood home, discovers an original VHS of the Air Bud movie and forms a bond with a neglected golden retriever named Buddy [5] Group 2 - Cineverse is expanding its portfolio with upcoming releases, including "Air Bud Returns," which will be its first kids and family theatrical release [6] - Air Bud Entertainment has a long history of creating family films, with "Air Bud Returns" marking the 50th movie produced by founder Robert Vince [9] - The collaboration between Cineverse and Air Bud Entertainment aims to blend positive messages and unique storytelling, continuing the legacy of the beloved franchise [9]
Cineverse and The Stand Group's Newly-Formed WITZ Podcast Network Launches Slate of Top-Tier Comedy Series Including Jay Mohr's 'Mohr Stories'
Prnewswire· 2025-08-07 15:00
Goal to Double Podcast Revenue in Next 24 Months as Comedy Expansion Unlocks New Monetization Opportunities The slate also includes a plethora of shows spanning interviews, sketch comedy, prank calls, celebrity impressions, pop culture commentary and more, all designed to tap into the fast-growing comedy podcast category. This is part of a significant expansion of Cineverse into podcasting's fastest-growing genre, building on the success of its top-10 podcast network, which has been driven by horror, true c ...