Cineverse (CNVS) - 2025 Q3 - Quarterly Report

Revenue Growth - For the three months ended December 31, 2024, total revenue increased by $27.5 million to$40.74 million, representing a 207% growth compared to the same period in 2023[162] - Total revenue for the nine months ended December 31, 2024, increased by $23.3 million (59$62.6 million compared to $39.3 million in the same period of 2023[169] - Streaming and digital revenue rose by$4.6 million to $14.13 million, a 48$2.9 million (10%) to $31.9 million, driven by$1.6 million from licensing the Dog Whisperer content and favorable timing of other content releases[169] - Podcast and other revenue grew by $2.4 million (124$4.4 million, with direct advertising contributing $1.7 million and Bloody Disgusting podcast content adding$0.7 million[170] - Base distribution revenue surged by $21.7 million to$24.48 million, a 771% increase, mainly driven by the theatrical release of Terrifier 3 in October 2024[164] - Base distribution revenue surged by $21.6 million (477$26.2 million, primarily due to the theatrical release of Terrifier 3 in October 2024[171] Expenses - Direct operating expenses for the three months ended December 31, 2024, increased by $15.5 million to$20.99 million, largely due to a $13.0 million rise in royalty expenses related to Terrifier 3[165] - Direct operating expenses increased by$14.6 million (86%) to $31.7 million, largely due to higher royalty expenses and marketing costs associated with Terrifier 3[172] - Selling, general and administrative expenses rose by$3.0 million to $9.36 million, a 47$1.2 million (6%) to $22.3 million, influenced by bonus accruals from Terrifier 3 revenue and increased share-based compensation[173] - Interest expense for the three months ended December 31, 2024, increased by$2.1 million to $2.3 million, primarily due to higher drawings on the line of credit and increased interest rates[168] - Interest expense increased by$2.3 million to $3.1 million, primarily due to higher line of credit drawings and increased interest rates[176] Profitability - The company reported a net income attributable to common stockholders of$7.0 million for the three months ended December 31, 2024[153] - Adjusted EBITDA for the nine months ended December 31, 2024, was $9.9 million, compared to$2.8 million in the same period of 2023[181] - Net cash provided by operating activities was $4.98 million for the nine months ended December 31, 2024, a significant improvement from a cash outflow of$9.29 million in the prior year[182] Financial Position - As of December 31, 2024, the company had an accumulated deficit of $501.7 million and a working capital surplus of$6.8 million[153] - The company has a $7.5 million Line of Credit Facility with East West Bank, with$3.8 million outstanding as of December 31, 2024[154] Future Outlook - The company plans to continue investing in content development and acquisition, with short-term content advances totaling $8.8 million as of December 31, 2024[158] - The company does not anticipate future revenue from the Digital Cinema business, which saw a decrease of$3.6 million in non-recurring revenue[171]