Financial Data and Key Metrics Changes - In Q4 2025, the company generated total revenue of $15.6 million, a 58% increase from the prior year [8][22] - Net income for the quarter was $858,000, a $15.5 million increase from the prior year [8][22] - Adjusted EBITDA was $4 million, reflecting a 158% increase over the prior year quarter [8][22] - For the full fiscal year 2025, total revenues increased by 59% to $78.2 million, with net income of $3.8 million and adjusted EBITDA of $13.9 million, a 216% increase over the previous year [9][24] Business Line Data and Key Metrics Changes - The growth was driven by all key lines of business, particularly streaming, digital, and podcast revenues [9] - The streaming business saw a 31% increase in subscribers following the success of "Terrifier 3" [27] - Podcast revenues increased by 57% over the prior year due to a more diverse content slate and increased advertiser demand [28] Market Data and Key Metrics Changes - The company reported a direct operating margin of 55% for Q4, exceeding the target of 45% to 50% [22] - SG&A expenses decreased to $5.4 million, representing 35% of revenues, a significant improvement from 69% in the prior year [23] Company Strategy and Development Direction - The company aims to build a high growth, high profit, low risk theatrical releasing business by following successful acquisition and marketing strategies [10] - A reorganization was implemented to focus on the streaming, content management, and AI technology, establishing a separate technology business group [11] - The company plans to expand its film slate to include genres beyond horror, such as family films and fantasy [55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining or exceeding the operating margin target of 45% to 50% going forward [57] - The company is optimistic about the future, with plans to leverage its unique assets and successful film releases to drive growth [10][39] Other Important Information - The company has a working capital surplus of $3.6 million as of March 31, 2025, reflecting an improving financial position [23] - The company is exploring licensing opportunities for AI training and expects traction in that area later this year [39] Q&A Session Summary Question: Plans for future film releases and licensing opportunities - Management indicated that more films will be announced soon, expanding from horror to family and fantasy genres [55] Question: Profitability and operating margins - Management confirmed a solid operating margin of 55% and expressed confidence in meeting future margin targets [57] Question: Pipeline opportunities for technology products - The focus has shifted to larger media companies, with potential deal sizes starting at mid-seven figures [62][66] Question: Podcast monetization strategy - The company is seeing higher CPMs for podcasts compared to CTV, with average deal sizes in the low six figures [71]

Core Insights - Cineverse Corp. reported significant financial growth in Q4 FY 2025, with total revenue of $15.6 million, a 58% increase compared to the prior year quarter, and net income of $0.9 million, a $15.5 million increase over the prior year quarter [1][2][11] - The success of the horror film "Terrifier 3" has been a major driver of revenue growth, contributing to both theatrical and ancillary revenues, and establishing itself as the biggest unrated film release of all time [2][3][16] Financial Performance - Full-year consolidated revenue for FY 2025 reached $78.2 million, up from $49.1 million in FY 2024, marking a 59% increase primarily due to "Terrifier 3" and growth in streaming, digital, and podcast businesses [5][7] - Adjusted EBITDA for FY 2025 increased to $13.9 million from $4.4 million in FY 2024, reflecting strong operational performance [7][29] - The company's direct operating margin for FY 2025 was 50%, consistent with its target range of 45% to 50% [6] Operational Developments - Cineverse has a strong financial position with nearly $14 million in cash and no outstanding debt, alongside a $12.5 million line of credit [4][15] - The company has announced a slate of upcoming film releases, including "The Toxic Avenger" and "Silent Night, Deadly Night," which are expected to generate additional revenue [3][16] - The podcast network has expanded significantly, now comprising over 74 series and achieving over 230 million lifetime downloads [18] Market Strategy - Cineverse's unique marketing approach, particularly for "Terrifier 3," has allowed it to achieve high box office results with minimal marketing expenditure, leveraging digital campaigns and owned channels [3][9] - The company is focusing on becoming an AI-native entertainment studio, with plans to integrate AI into various operational processes [16]

Core Insights - Cineverse and Fandor have announced their Summer programming slate, featuring genre-blending films and festival selections [1][7] - The focus is on bold storytelling that elevates emerging filmmakers alongside established auteurs, aiming for high-impact titles with global appeal [1] Company Overview - Cineverse (Nasdaq: CNVS) is a next-generation entertainment studio that operates a wide range of premium streaming brands, including ad-supported and subscription services [5][8] - The company distributes over 71,000 premium films, series, and podcasts, connecting fans with independent stories and innovative content delivery [8] Upcoming Titles - "Escape From The 21st Century" will be available on June 27, featuring a time-travel adventure with a responsibility to save the world [7] - "Else" will be available on July 8, presenting a romance threatened by a strange epidemic [7] - "A Samurai In Time," available on August 5, is a Japanese indie hit that follows a samurai transported to the present day [7] - "The Box Man," available on August 19, is an adaptation of a Kobo Abe novel exploring identity and societal interactions [7] Current Offerings - Fandor currently streams a variety of films, including "Hundreds of Beavers," "The Accident," and "Human Hibernation," among others [2] - Additional titles set to be released later this year include "The Things You Kill" and "Lesbian Space Princess" [2]