Cineverse (CNVS) - 2025 Q4 - Annual Results

Financial and Operational Highlights Fourth Quarter and Fiscal Year 2025 Performance Summary Cineverse reported substantial Q4 and FY2025 growth in revenue, net income, and Adjusted EBITDA, driven by the success of "Terrifier 3" Q4 FY2025 Key Financial Metrics vs. Prior Year Quarter | Metric | Q4 FY2025 | Change vs. Q4 FY2024 | Percentage Change | | :--- | :--- | :--- | :--- | | Total Revenue | $15.6 Million | +$5.7 Million | +58% | | Net Income | $0.9 Million | +$15.5 Million | N/A (Turnaround from loss) | | Adjusted EBITDA | $4.0 Million | +$2.4 Million | +158% | - The strong financial performance is attributed to growth across all key business lines and the significant ancillary revenue contribution from the breakout horror film "Terrifier 3," the biggest unrated film release of all time[2] - The company is building a slate of wide-release films to replicate the success of "Terrifier 3," including "The Toxic Avenger," "Silent Night, Deadly Night," "Return to Silent Hill," and "Wolf Creek: Legacy"[3] - Cineverse is in a strong financial position with nearly $14 million in cash-on-hand and a zero draw on its $12.5 million line of credit as of quarter-end[4] Fiscal Year 2025 Financial Highlights For FY2025, consolidated revenue rose 59% to $78.2 million, turning a prior year net loss into a $3.2 million net income Fiscal Year 2025 vs. 2024 Financial Performance | Metric | FY 2025 | FY 2024 | Change | | :--- | :--- | :--- | :--- | | Consolidated Revenue | $78.2 million | $49.1 million | +59% | | Net Income (to common stockholders) | $3.2 million | $(21.8) million | +$25.0 million | | Diluted EPS | $0.16 | $(1.78) | +$1.94 | | Adjusted EBITDA | $13.9 million | $4.4 million | +216% | - The direct operating margin for the year was 50%, which is within the company's stated target range of 45% to 50%[7] - SG&A expenses decreased as a percentage of revenue from 57% in FY 2024 to 35% in FY 2025, reflecting successful cost-saving initiatives[7] Fourth Quarter 2025 Financial Highlights Q4 FY2025 revenue grew 58% to $15.6 million, achieving a net income of $0.8 million versus a prior-year $14.8 million loss Q4 FY2025 vs. Q4 FY2024 Financial Performance | Metric | Q4 FY 2025 | Q4 FY 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $15.6 million | $9.9 million | +58% | | Net Income (to common stockholders) | $0.8 million | $(14.8) million | +$15.6 million | | Diluted EPS | $0.04 | $(1.10) | +$1.14 | | Adjusted EBITDA | $4.0 million | $1.6 million | +150% | - The direct operating margin for the quarter was 55%, exceeding the company's stated target of 45% to 50%[9] - SG&A expenses decreased by $1.4 million (21%) year-over-year, and as a percentage of revenue, dropped from 69% to 35%[9] Financial Condition and Key Business Drivers The company's strong financial condition is supported by $13.9 million in cash, an undrawn credit line, and key growth from "Terrifier 3" - "Terrifier 3" grossed over $54.0 million at the domestic box office and more than $8.5 million in ancillaries, achieved with a minimal paid media budget[12] Revenue Stream Growth (FY2025 vs. FY2024) | Revenue Stream | FY2025 Revenue | YoY Growth | | :--- | :--- | :--- | | Streaming and Digital | $44.4 million | +19% | | Podcast and Other | N/A | +86% | - As of March 31, 2025, the company had $13.9 million in cash and $12.5 million in unused capacity under its line of credit, which was subsequently expanded and extended[13] - The company's digital content library of over 71,000 titles was valued at approximately $40 million as of March 31, 2024, significantly above its $2.5 million book value as of March 31, 2025[16] Operational Developments Cineverse expanded its film slate, technology offerings, and content partnerships during and after the quarter During the Quarter Key quarterly activities included the "Terrifier 3" premiere, a "Highlander" franchise deal, and new ad-tech partnerships - Content Premieres & Deals: "Terrifier 3" premiered on Screambox, a "Highlander" franchise digital rights deal was signed, and a novelization of "Terrifier 3" was announced[16] - Partnerships & Growth: Partnered with The Stand Group to launch the WITZ podcast network, The Trade Desk to optimize ad inventory, and SymphonyAI to accelerate AI capabilities[16] - Viewership Growth: SVOD subscriber base grew by 17% after the Amazon Channels launch, Screambox saw a 23% increase in monthly active users, and FAST/AVOD viewership rose by 50% in total minutes streamed[16] Subsequent to Quarter-End Post-quarter, the company expanded its credit facility, acquired high-profile film rights, and launched its cineSearch tool - Film Slate Expansion: Acquired rights for "The Toxic Avenger," "Wolf Creek: Legacy," "Return to Silent Hill," and started production on a reboot of "Silent Night, Deadly Night"[16][18] - Corporate & Financial: Expanded the line of credit facility with East West Bank to $15 million with a three-year term and formed an internal Motion Pictures Group and a Technology Group[15][18] - Technology & Network Growth: Commercially released cineSearch on Google Cloud Marketplace, and the podcast network was rebranded as the Cineverse Podcast Network, growing to 74+ series[18] Management Commentary Management detailed its strategy to replicate the "Terrifier 3" success, reorganize for growth, and become an AI-native studio - CEO Chris McGurk highlighted the strategy to replicate the "Terrifier 3" release blueprint—targeting films with built-in fan bases for strong upside and minimal financial risk[17] - The company reorganized senior management to focus on two growth areas: technology licensing and AI product development under a new CPO, and building a wide-release film slate under a new CMPO[17][19] - President & CSO Erick Opeka stated the company is evolving into a "platform-first" entity and aims to become the first "AI-native entertainment studio," using AI across the business[19] Financial Statements Condensed Consolidated Balance Sheets The balance sheet shows total assets of $72.5 million, total liabilities of $34.7 million, and a significant increase in cash to $13.9 million Key Balance Sheet Items (in thousands) | Item | As of March 31, 2025 | As of March 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $13,941 | $5,167 | | Total Current Assets | $38,081 | $32,721 | | Total Assets | $72,516 | $64,378 | | Line of credit, net | $— | $6,301 | | Total Current Liabilities | $34,435 | $31,249 | | Total Liabilities | $34,724 | $32,228 | | Total equity | $37,792 | $32,151 | Condensed Consolidated Statements of Operations The company reported FY2025 revenues of $78.2 million and a net income of $3.8 million, a major turnaround from the prior year's loss Fiscal Year Ended March 31 (in thousands, except per share data) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Revenues | $78,181 | $49,131 | | Operating income (loss) | $7,924 | $(15,700) | | Net income (loss) | $3,764 | $(21,265) | | Diluted net income (loss) per share | $0.16 | $(1.78) | Three Months Ended March 31 (in thousands, except per share data) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Revenues | $15,575 | $9,863 | | Operating income (loss) | $2,127 | $(13,995) | | Net income (loss) | $858 | $(14,676) | | Diluted net income (loss) per share | $0.04 | $(1.10) | Non-GAAP Financial Measures: Adjusted EBITDA Adjusted EBITDA, a key non-GAAP metric, rose to $13.9 million for FY2025 and $4.0 million for Q4, showing strong core performance - Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, amortization, and other certain items, providing a useful metric for fundamental business performance[28][29] Reconciliation of Net Income (Loss) to Adjusted EBITDA (in thousands) | Period | Net Income (Loss) | Adjusted EBITDA | | :--- | :--- | :--- | | For the Fiscal Year Ended | | | | March 31, 2025 | $3,764 | $13,917 | | March 31, 2024 | $(21,265) | $4,398 | | For the Three Months Ended | | | | March 31, 2025 | $858 | $4,002 | | March 31, 2024 | $(14,676) | $1,553 | Additional Information Conference Call Information A conference call to discuss financial results is scheduled for June 27, 2025, at 9:00 a.m. ET, with access details provided Conference Call Details | Item | Detail | | :--- | :--- | | Date | Friday, June 27, 2025 | | Time | 9:00 a.m. ET | | US Toll-Free | +1 833 470 1428 | | Access Code | 414024 | About Cineverse Cineverse is a tech-driven entertainment studio distributing over 71,000 titles through its streaming channels and podcast network - Cineverse is a technology-driven entertainment studio that distributes a library of over 71,000 premium films, series, and podcasts[21] - Key properties include numerous streaming channels, a podcast network, and the horror brand Bloody Disgusting[21] Safe Harbor Statement This section cautions that forward-looking statements are subject to risks and are not guarantees of future performance - The document contains "forward-looking'' statements as defined by the Private Securities Litigation Reform Act of 1995, which are subject to various risks and are not guarantees of future performance[22]