Core Insights - Cineverse Corp. reported third-quarter fiscal year 2026 earnings with revenue of $16.3 million, below the estimated $20 million, and an EPS of -$0.05, missing the estimated EPS of -$0.03 [1][6] Financial Performance - The company achieved a direct operating margin of 69%, a significant increase from 48% in the same quarter of the previous year, indicating improved operational efficiency [2][6] - Adjusted EBITDA for the quarter was $2.4 million, reflecting ongoing operational challenges despite the margin improvement [2] - The company has a negative price-to-earnings (P/E) ratio of approximately -42.19, indicating ongoing losses [2] Future Guidance - Cineverse projects revenue for fiscal year 2027 to be between $115 million and $120 million, with adjusted EBITDA expected to range from $10 million to $20 million [3][6] - The company completed two acquisitions anticipated to contribute approximately $53 million in annual revenue and around $10 million in adjusted EBITDA for fiscal year 2027 [3] Valuation Metrics - Cineverse has a price-to-sales ratio of about 0.66, suggesting the stock is valued at less than its sales revenue [4] - The enterprise value to sales ratio is approximately 0.73, reflecting the company's total valuation including debt and excluding cash [4] - The enterprise value to operating cash flow ratio is around -27.41, indicating challenges in generating positive cash flow from operations [4] Debt and Liquidity - The company's debt-to-equity ratio is about 0.19, indicating a relatively low level of debt compared to its equity [5] - The current ratio is approximately 0.95, suggesting potential challenges in covering short-term liabilities with short-term assets [5]
Cineverse Corp. (NASDAQ: CNVS) Earnings Report Highlights