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 operating expenses[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), a decline from $532,000 in the same period of 2024[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[31] Expenses - SG&A expenses rose by $5.0 million, or 79%, to $11.4 million, driven by increased marketing costs of approximately $2.3 million for The Toxic Avenger Unrated[5] - Selling, general and administrative expenses increased to $11,407,000 for the three months ended September 30, 2025, compared to $6,364,000 for the same period in 2024[31] Revenue Streams - Streaming and digital revenues decreased by 5% to $9.6 million from $10.1 million in the prior year[6] - Base distribution revenue increased by 39% to $1.8 million, up from $1.3 million in the prior-year quarter, primarily due to the theatrical release of The Toxic Avenger Unrated[6] 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[29] - Total liabilities decreased to $24,784,000 as of September 30, 2025, from $34,724,000 as of March 31, 2025[29] - Cash and cash equivalents were $2,336,000 as of September 30, 2025, down from $13,941,000 as of March 31, 2025[29] Strategic Initiatives - Cineverse announced a new venture, MicroCo, projected to tap into a market expected to reach $10 billion by 2027[10] - Cineverse plans to reissue the 20th anniversary edition of Pan's Labyrinth in Fall 2026, with a marketing campaign kicking off at the Cannes Film Festival[3] Content Performance - The Toxic Avenger Unrated is projected to generate an internal rate of return (IRR) of over 40% despite underperforming at the box office[2] - The company's content library, valued at $45 million, significantly exceeds the $3.2 million book value recorded at quarter end[16] Share Information - The weighted average shares of common stock outstanding for the three months ended September 30, 2025, were 18,447,000, compared to 15,721,000 for the same period in 2024[31]
CINEDIGM DIGIT-A(CIDM) - 2026 Q2 - Quarterly Results