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]
Cineverse (CNVS) - 2025 Q4 - Earnings Call Transcript