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]
Cineverse (CNVS) - 2026 Q2 - Quarterly Results