Core Insights - Cineverse Corp reported a total revenue of $16.3 million for Q3 FY 2026, a 60% decrease compared to $40.7 million in the prior year quarter, primarily due to a significant theatrical revenue from "Terrifier 3" in the previous year [1][2] - The company achieved a direct operating margin of 69%, up from 48% in the prior year, indicating improved cost management [1][2] - Adjusted EBITDA for the quarter was $2.4 million, a decrease from $10.9 million year-over-year, but an improvement of $6.0 million from the previous sequential quarter [1][2] Financial Performance - Revenue for Q3 FY 2026 was $16.3 million, down from $40.7 million in Q3 FY 2025, reflecting a 60% decline [1][2] - Direct operating margin increased to 69% from 48% year-over-year, showcasing effective cost management strategies [1][2] - SG&A expenses rose by 14% to $10.7 million, attributed to increased marketing and professional service costs [1][2] - Net loss attributable to common stockholders was $(1.0) million, or $(0.05) per share, compared to a net profit of $7.0 million, or $0.34 per share, in the prior year [1][2] - Adjusted EBITDA was $2.4 million, down from $10.9 million year-over-year, but improved by $6.0 million sequentially [1][2] Acquisitions and Future Guidance - Cineverse completed two acquisitions expected to add approximately $53 million in annual revenue and $10 million in Adjusted EBITDA for FY 2027 [1][2] - The acquisition of Giant Worldwide is anticipated to contribute $15 to $17 million in revenue and $3.5 to $4 million in Adjusted EBITDA for FY 2027 [1][2] - The acquisition of IndiCue, Inc. for $22 million is expected to generate approximately $38 million in revenue and $7 million in Adjusted EBITDA for FY 2027 [1][2] - The company provided guidance for FY 2027, projecting revenue between $115 to $120 million and Adjusted EBITDA between $10 to $20 million [1][2] Operational Developments - Cineverse launched a new streaming network, JoySauce, and expanded its international streaming channels [2] - Total streaming viewers increased by approximately 10% year-over-year to 149 million, with total minutes streamed up 33% to over 3.4 billion [2] - SVOD subscribers grew approximately 15% year-over-year to 1.55 million, driven by the flagship Cineverse channel [2] - The company announced the launch of Matchpoint™ 3.0, an AI-driven media supply chain platform with advanced features [2] Management Commentary - Management emphasized the focus on improving operating results and the positive impact of the Giant and IndiCue acquisitions on revenue and EBITDA [2] - The CEO highlighted the favorable valuations and accretive nature of the acquisitions, strengthening Cineverse's market position [2] - The company aims to maintain cost discipline while enhancing its subscription business and achieving targeted cost reductions [2]