Core Insights - Cineverse Corp. reported a total revenue of $40.7 million for Q3 FY 2025, marking a 207% increase compared to the prior year quarter, primarily driven by the success of the film Terrifier 3 [1][6][12] - The company achieved a net income of $7.2 million, a significant increase of $9.9 million from the previous year, alongside an adjusted EBITDA of $10.8 million, up by $9 million [1][9][12] Financial Performance - Total revenue increased from $13.3 million in Q3 FY 2024 to $40.7 million in Q3 FY 2025, driven by the box office performance of Terrifier 3, which grossed over $54 million domestically [6][9] - The direct operating margin stood at 48%, consistent with the company's target range of 45% to 50%, despite a $15.5 million increase in direct operating expenses [7][9] - Selling, general, and administrative (SG&A) expenses rose by $3.0 million, or 47%, largely due to the performance of Terrifier 3, although cost-saving initiatives helped mitigate some of the increases [8][9] Box Office Success - Terrifier 3 debuted at number one in North American theaters, grossing $18.9 million in its opening weekend on a marketing budget of approximately $500,000 [3][6] - The film has become the highest-grossing non-rated film ever, surpassing previous records and contributing significantly to the company's financial results [3][12] Strategic Developments - The company is expanding its film slate with upcoming releases such as Silent Night Deadly Night and The Toxic Avenger, leveraging its unique marketing strategies that have proven successful with Terrifier 3 [4][13] - Cineverse's digital content library, valued at approximately $40 million, has seen significant growth, enhancing the company's asset base [11] Cash Position and Debt Management - As of the latest report, the company holds over $13 million in cash and has no debt, with a zero balance on its $7.5 million line of credit [5][12] - The company has a working capital surplus of $6.8 million, indicating a strong financial position to support future growth initiatives [11] Audience Engagement and Growth - Total monthly viewership across Cineverse's channel portfolio increased by 47% year-over-year, driven by successful channel launches [6][12] - The Cineverse Podcast Network expanded to 57 podcasts, achieving a 39% increase in related revenues, reinforcing its position as a top podcast network [6][12]
Cineverse Reports Third Quarter Fiscal Year 2025 Results