CINEDIGM DIGIT-A(CIDM) - 2025 Q4 - Annual Results

Financial & Business Highlights Fiscal Year 2025 Financial Highlights Cineverse achieved 59% revenue growth to $78.2 million in FY2025, turning a net loss into $3.2 million net income Metric (in millions) | Metric | FY 2025 (in millions) | FY 2024 (in millions) | Change | | :--- | :--- | :--- | :--- | | Consolidated Revenue | $78.2M | $49.1M | +59% | | Net Income (to common stockholders) | $3.2M | $(21.8)M | +$25.0M | | Diluted EPS | $0.16 | $(1.78) | +$1.94 | | Adjusted EBITDA | $13.9M | $4.4M | +216% | | Direct Operating Margin | 50% | N/A | - | - SG&A expenses remained flat year-over-year but decreased as a percentage of revenue from 57% in FY 2024 to 35% in FY 2025, reflecting successful cost-saving initiatives like the off-shoring program to Cineverse Services India[7] Fourth Quarter (Q4) FY 2025 Financial Highlights Cineverse's Q4 FY2025 revenue grew 58% to $15.6 million, achieving $0.9 million net income and $4.0 million Adjusted EBITDA Metric (in millions) | Metric | Q4 FY 2025 (in millions) | Q4 FY 2024 (in millions) | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $15.6M | $9.9M | +58% | | Net Income (to common stockholders) | $0.8M | $(14.8)M | +$15.6M | | Diluted EPS | $0.04 | $(1.10) | +$1.14 | | Adjusted EBITDA | $4.0M | $1.6M | +158% | | Direct Operating Margin | 55% | N/A | - | - SG&A expenses decreased by $1.4 million (21%) compared to the prior year quarter, improving as a percentage of revenue from 69% in Q4 FY 2024 to 35% in Q4 FY 2025[9] Financial Condition & Strategic Initiatives Strong financial position with $13.9 million cash and no debt, driven by 'Terrifier 3' success and streaming/podcast growth - As of quarter-end, the company had nearly $14 million in cash-on-hand and no outstanding debt, with a zero draw on its $12.5 million line of credit[4][13] - The horror film 'Terrifier 3' grossed over $54.0 million at the domestic box office and more than $8.5 million in ancillaries on a minimal paid media budget, demonstrating the effectiveness of the company's digital viral campaign and internal marketing assets[2][12] - The company is building a slate of wide-release films following the 'Terrifier 3' model, including 'The Toxic Avenger', 'Silent Night, Deadly Night', 'Return to Silent Hill', and 'Wolf Creek: Legacy'[3] Business Line | Business Line | Revenue/Metric (in millions) | YoY Growth | Key Drivers | | :--- | :--- | :--- | :--- | | Streaming & Digital | $44.4M | +19% | 45% increase in monthly viewership; successful channel launches (Dog Whisperer, Barney). | | Podcast & Other | N/A | +86% | Expansion to 62 podcasts, ranking in the top eight nationally. | Operational Developments Cineverse actively pursued content acquisition, technology partnerships, and international expansion, enhancing AI and advertising During Q4 FY2025 - SVOD subscriber base grew by approximately 17% (+62,000 subscribers) after launching the Cineverse-branded channel on Amazon Channels[16] - Formed a partnership with SymphonyAI to accelerate the AI capabilities of the Matchpoint Insights platform[16] - FAST and AVOD viewership across key channels (RetroCrush, Docurama, Midnight Pulp) rose by 50% in total minutes streamed compared to the prior quarter[16] Subsequent to Quarter-End - Expanded the line of credit facility with East West Bank from $7.5 million to $12.5 million (expandable to $15.0 million) and extended the term to April 2028[13][15] - Acquired U.S. rights for 'Return to Silent Hill' and announced the start of production for a reboot of 'Silent Night, Deadly Night'[18] - Commercially released cineSearch on Google Cloud Marketplace and initiated active pilot programs for Matchpoint Dispatch with major studio and OEM clients[18] Management Commentary Management highlighted strong performance, focusing on replicating 'Terrifier 3' success and reorganizing to become an AI-native studio - CEO Chris McGurk: Highlighted strong financial gains, a robust balance sheet, and the strategy to replicate the 'Terrifier 3' blueprint with a slate of new franchise films like 'The Toxic Avenger' and 'Return to Silent Hill'[17] - Company Reorganization: Tony Huidor was appointed President of Technology and Chief Product Officer to focus on Matchpoint licensing and AI product development (e.g., cineSearch). Yolanda Macias was named Chief Motion Pictures Officer to build out the wide-release film slate[17][19] - President & CSO Erick Opeka: Stated the company is evolving into a platform-first entity with strong performance in SVOD and FAST. The forward-looking strategy is to become an 'AI-native entertainment studio,' using AI in distribution, marketing, development, and production[19] Financial Statements Condensed Consolidated Balance Sheets Cineverse's balance sheet shows a stronger financial position with total assets at $72.5 million, cash at $13.9 million (in thousands) | (in thousands) | 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 | $0 | $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 FY2025 operations show a significant turnaround with 59% revenue growth to $78.2 million, achieving $7.9 million operating income For the 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) attributable to common stockholders | $3,246 | $(21,757) | | Diluted net income (loss) per share | $0.16 | $(1.78) | For the 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) attributable to common stockholders | $761 | $(14,811) | | Diluted net income (loss) per share | $0.04 | $(1.10) | Non-GAAP Measures: Adjusted EBITDA Reconciliation Adjusted EBITDA, a key non-GAAP metric, significantly increased to $13.9 million for FY2025 and $4.0 million for Q4 - Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization, stock-based compensation, M&A costs, restructuring, goodwill impairment, and other certain items. Management believes it is a useful metric for evaluating core operating performance[28][29] Reconciliation of Net Income (Loss) to Adjusted EBITDA (in thousands) | | For the Three Months Ended March 31, | For the Fiscal Year Ended March 31, | | | :--- | :--- | :--- | :--- | | | 2025 | 2024 | 2025 | 2024 | | Net Income (Loss) | $858 | $(14,676) | $3,764 | $(21,265) | | Goodwill impairment | $0 | $14,025 | $0 | $14,025 | | Other Adjustments | $3,144 | $(2,796) | $10,153 | $11,638 | | Adjusted EBITDA | $4,002 | $1,553 | $13,917 | $4,398 | Corporate Information About Cineverse Cineverse is a next-gen entertainment studio distributing over 71,000 films, series, and podcasts, leveraging AI and streaming tech - Cineverse is an entertainment studio distributing over 71,000 premium films, series, and podcasts[21] - Company properties include the highest-grossing unrated film in U.S. history, numerous streaming fandom channels, the Cineverse Podcast Network, and the horror brand Bloody Disgusting[21] Conference Call Information Cineverse will host a conference call on June 27, 2025, at 9:00 a.m. ET to discuss Q4 and FY2025 financial results - A conference call to discuss Q4 and FY 2025 results is scheduled for 9:00 a.m. ET on Friday, June 27, 2025[20] - Access is available via toll-free number +1 833 470 1428 (Access Code: 414024) or through a webcast on the company's investor relations website[20]