Cineverse Reports First Quarter Fiscal Year 2027 Results
Rhea-AI Summary
Cineverse (NASDAQ: CNVS) reported Q1 FY 2027 revenue of $30.6 million, up 175% from $11.1 million a year earlier, mainly from newly acquired Advertising Technology ($15.9 million) and Media Services ($3.5 million). More than 60% of total revenue was technology-related.
Adjusted EBITDA was $0.5 million, a $2.6 million year-over-year improvement, while net loss attributable to common shareholders widened to $5.8 million ($0.28 per share). Direct operating margin fell to 35% from 57%, reflecting revenue share and Media Services mix, and SG&A rose 30% to $11.6 million.
Cash was $4.3 million with $1.1 million available under a $12.5 million credit line; working capital stood at negative $18.9 million, including $18 million of deferred and earnout consideration from the IndiCue acquisition that may be settled in stock. Streaming usage reached a record 4.5 billion minutes, up 33% year over year, with 1.52 million SVOD subscribers, also up 12%. The company reaffirmed FY 2027 guidance of $115–$120 million in revenue and $10–$20 million in adjusted EBITDA and expanded its identified annualized cost reductions and synergies program to $13 million.
Positive
- Revenue $30.6 million, up 175% year over year
- Advertising Technology revenue $15.9 million in first full quarter
- Media Services revenue $3.5 million in first full quarter
- Adjusted EBITDA improved by $2.6 million to $0.5 million
- Operating cash flow improved by more than $13 million year over year
- Record 4.5 billion streaming minutes, up 33% year over year
- Identified $13 million in annualized cost reductions and synergies
- Reaffirmed FY 2027 revenue guidance of $115–$120 million
- Reaffirmed FY 2027 adjusted EBITDA guidance of $10–$20 million
- Content library valued at about $45 million versus $4.8 million book value
Negative
- Net loss attributable to common stockholders increased to $5.8 million
- Direct operating margin declined from 57% to 35%
- SG&A expenses rose 30% to $11.6 million
- Working capital at June 30, 2026 was negative $18.9 million
- Line of credit balance increased to $11.4 million from $9.4 million
- Total liabilities rose to $95.1 million from $86.9 million
- Current portion of earnout consideration increased to $3.8 million
News Explained
Potential stock settlement of acquisition consideration leaves existing ownership conditional on whether shares are issued; post-quarter cost actions are underway, not complete.
Cineverse has reported Q1 FY2027 results, with
The release describes that settlement as an option, so the potential dilution is conditional rather than completed.
The cost program is partly executed rather than wholly complete: after quarter-end, Cineverse says it completed a reduction in force generating approximately
Market Reaction – CNVS
Following this news, CNVS has gained 1.74%, reflecting a mild positive market reaction. Argus tracked a trough of -6.7% from its starting point during tracking. Our momentum scanner has triggered 7 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $2.92. Trading volume is elevated at 2.7x the average, suggesting notable buying interest.
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Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jun 26 | Q4 FY26 earnings | Positive | +17.5% | Revenue increased 67%, while fiscal 2027 revenue and EBITDA guidance was reaffirmed. |
| Feb 17 | Q3 FY26 earnings | Positive | +9.6% | Revenue and Adjusted EBITDA increased, with fiscal 2027 guidance initiated. |
| Nov 14 | Q2 FY26 earnings | Negative | +6.6% | Revenue declined and Adjusted EBITDA remained negative despite improved direct operating margin. |
| Aug 14 | Q1 FY26 earnings | Negative | -13.4% | Net loss widened despite revenue and streaming growth. |
| Jun 27 | Q4 FY25 earnings | Positive | +14.8% | Quarterly and annual revenue increased, with annual net income turning positive. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Among five tag-specific earnings events, four aligned with the subsequent price reaction and one diverged.
Key Terms
adjusted ebitda financial
net revenue retention financial
sarbanes-oxley regulatory
svod technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
- First Quarter Revenue of
$30.6 Million $19.5 Million 175% Increase Over the Prior Year Quarter - More Than
60% of Total Revenues Were Technology Related - Adjusted EBITDA of
$0.5 Million $2.6 Million - Cash Flow From Operations Increased
$13 Million - Building on
$2.0 Million $8.0 Million $3 Million - Including the Company's Synergy Program, Annual Target Upside is
$13 million - Most-Watched Streaming Quarter in Company History: 4.5 Billion Minutes Streamed, Up
33% Year-Over-Year. - Company Reaffirms Full Year Fiscal 2027 Guidance of
$115 $120 Million $10 $20 Million
Q1 FY 2027 Highlights (all comparisons are to the prior year fiscal quarter ended June 30, 2025 ("Q1 FY 2026"):
Total quarterly revenue was
- In their first full quarter:
- Advertising Technology contributed
$15.9 million $8.0 million - Media Services contributed
$3.5 million - During the first quarter, the Company successfully transitioned multiple customer labor-intensive manual asset delivery workflows into the automated workflows of Matchpoint. As a result, the Company realized an estimated time savings of approximately
40% relative to prior manual processes, improving operating efficiency and increasing capacity to support future growth.
- During the first quarter, the Company successfully transitioned multiple customer labor-intensive manual asset delivery workflows into the automated workflows of Matchpoint. As a result, the Company realized an estimated time savings of approximately
- Advertising Technology contributed
- The Company's traditional revenue streams otherwise were largely consistent with the prior year. Notably, this quarter had no wide film releases, in comparison to last year which had Terrifier 3, the best performing unrated film release of all time, still in its strong ancillary distribution market run.
As anticipated, direct operating margin declined from
- Revenue share expenses within our Advertising Technology business, which are amounts owed to supplier partners for advertising inventory and related services. In the first quarter of fiscal 2027, revenue-share expense represented
79% of gross Advertising Technology revenue. - The Media Services revenue stream, for which the Company has an ongoing transformation effort focused on streamlining workflows, increasing automation, and optimizing resource allocation.
SG&A expenses rose
Adjusted EBITDA was
Financial Condition Overview:
- Cash and cash equivalents totaled
$4.3 million $1.1 million $12.5 million - As of June 30, 2026, working capital was
$(18.9) million $(0.3) million $18.0 Million - The Company's digital content library, which includes more than 66,000 titles, has been valued at approximately
$45 million $4.8 million
Operational Developments During the Quarter:
- Substantially completed the core post-merger integration of Giant Worldwide and IndiCue, unifying systems, teams and workflows on the Cineverse platform as the Company shifts from integration to synergy capture and growth.
- Strengthened IndiCue's commercial durability by nearly halving customer concentration since acquisition, while maintaining approximately
98% net revenue retention, with more than 40 live clients and 75 additional publishers onboarding. - Began migrating Giant Worldwide's media packaging and delivery operations to the Matchpoint platform, a transition expected to substantially expand Media Services gross margins as automation replaces manual workflows. The combined offering is already winning studio work orders that neither company could have secured independently.
- Began streamlining the Company's product portfolio by integrating key standalone products into the Matchpoint platform. This simplifies the customer offering and is expected to substantially reduce engineering, sales and marketing costs, contributing approximately
$2.7 million - Delivered the most-watched streaming quarter in Company history, with 4.5 billion minutes streamed, up
33% year over year; 122.8 million streaming viewers, up12% ; and 1.52 million SVOD subscribers, up12% . Docurama surpassed 100,000 subscribers for the first time, while the flagship Cineverse channel and RetroCrush ended the quarter at all-time subscriber highs. - Launched Gorilla Comedy+, a premium ad-free streaming service on Matchpoint, on May 5, featuring more than 250 comedy specials and backed by 800 Pound Gorilla's network of more than 20 million monthly comedy fans. The Company also launched two Roku SVOD channels—the flagship Cineverse channel and So ... Real—through Roku Premium Subscriptions.
- Set the fiscal-year theatrical and streaming slate, including the October 9 wide theatrical re-release of Guillermo del Toro's Oscar-winning Pan's Labyrinth in 4K and 3D with Fathom Entertainment following its Cannes Classics screening; production of the next Wolf Creek installment; the Hulu premiere of Return to Silent Hill, which debuted in the platform's weekend Top 15; and the exclusive Screambox release of Silent Night, Deadly Night as part of the "Halfway to Halloween" slate.
- Announced Sean McCabe's appointment as Chief Financial Officer, returning to the Company from ad-tech leader Freestar to strengthen the finance organization for the scale of the post-acquisition business.
Operational Developments Subsequent to Quarter-End:
- Completed a reduction in force representing approximately
$1.8 million $4.8 million $13 million - Launched VAUDIO, a proprietary ad-tech offering extending brands' audio campaigns onto CTV, developed by the executive team that joined with the IndiCue acquisition on our expanded technology platform.
- Announced a partnership with PEDIGREE® and Air Bud Entertainment for a multi-city summer movie series across
Los Angeles ,Chicago , andKansas City , featuring an exclusive first look at Air Bud Returns ahead of its January 2027 theatrical release.
Management Commentary
Chris McGurk, Cineverse Chairman and CEO, stated: "We registered another very strong quarter: Fueled by the acquisitions of Giant Worldwide and IndiCue, our total revenues increased by
"Going forward, we expect to see more and more of the impact of our cost reduction and synergy program initiatives reflected in our financials as we fully complete the integration of our two key acquisitions, further rationalize the business to focus on our highest potential core products and services, and increase operating margins. We are well on our way to generating our target of
"Given that, we reaffirm our full year Fiscal 2027 guidance of
Erick Opeka, Cineverse President and Chief Strategy Officer, stated: "With the acquisitions of Giant Worldwide and IndiCue complete, this quarter was about one thing: integration and execution. The core integration of both companies is now substantially complete, and our focus has shifted to capturing synergies and driving growth. Q1 absorbed the full cost weight of both acquisitions, including integration, audit, and transition expenses, while we still improved Adjusted EBITDA by
"We are executing against three value-capture priorities. First, we are streamlining our product portfolio by integrating key standalone products as features within Matchpoint, which simplifies our offering and substantially reduces engineering, sales, and marketing costs. Second, we are moving Giant's packaging and delivery operations onto the Matchpoint platform, which we expect to meaningfully expand Media Services gross margins as automation replaces manual workflows. Third, we have expanded our identified cost reduction and synergy program to
Conference Call
Cineverse will host a conference call at 4:30 p.m. EST/1:30 p.m. PST (Thursday, August 13, 2026), during which management will discuss the results of its fiscal first quarter ended June 30, 2026. The conference call can be accessed by webcast at the Investors section of the Company's website at https://events.q4inc.com/attendee/516480513. Those who are unable to attend the live conference call may access the recording at the above webcast link, which will be made available shortly after the conclusion of the call.
About Cineverse
Cineverse (Nasdaq: CNVS) is an entertainment technology company and studio. Fiercely innovative and independent, Cineverse develops and invests in technology and content that drives the future of the industry. Core to its business is Matchpoint® – a growing tech ecosystem designed to prepare, distribute, monetize, and continuously improve content across any platform. Matchpoint helps studios large and small operate at scale and improve performance and efficiency in an increasingly fragmented distribution environment. Additionally, Cineverse distributes a vast library of premium films, series, and podcasts, across theatrical, home entertainment, and streaming; operates dozens of digital properties that super serve passionate fandoms around the world; and works with leading brands to connect them with audiences they value. From award-winning technology to the highest-grossing unrated film in U.S. history, Cineverse has created a playbook that marries tech and content to redefine the next era of entertainment. For more information, visit cineverse.com.
Safe Harbor Statement
Investors and readers are cautioned that certain statements contained in this document, as well as some statements in periodic press releases and some oral statements of Cineverse officials during presentations about Cineverse, along with Cineverse's filings with the Securities and Exchange Commission, including Cineverse's registration statements, quarterly reports on Form 10-Q and annual report on Form 10-K, are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Forward-looking statements include statements that are predictive in nature, which depend upon or refer to future events or conditions, which include words such as "expects," "anticipates," "intends," "plans," "could," "might," "believes," "seeks," "estimates" or similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings, or growth rates), ongoing business strategies or prospects, and possible future actions, which may be provided by Cineverse's management, are also forward-looking statements as defined by the Act. Forward-looking statements are based on current expectations and projections about future events and are subject to various risks, uncertainties, and assumptions about Cineverse, its technology, economic and market factors, and the industries in which Cineverse does business, among other things. These statements are not guarantees of future performance, and Cineverse undertakes no specific obligation or intention to update these statements after the date of this release.
For additional information, please contact:
Julie Milstead
424-281-5411
investorrelations@cineverse.com
CINEVERSE CORP. | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(in thousands) | ||||||||
As of | ||||||||
June 30, | March 31, | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 4,319 | $ | 3,387 | ||||
Accounts receivable, net | 43,057 | 38,604 | ||||||
Content advances | 6,789 | 7,507 | ||||||
Other current assets | 1,370 | 1,280 | ||||||
Total Current Assets | 55,535 | 50,778 | ||||||
Property and equipment, net | 4,160 | 3,906 | ||||||
Intangible assets, net | 41,922 | 44,114 | ||||||
Goodwill | 21,293 | 21,218 | ||||||
Content advances, net of current portion | 8,542 | 8,215 | ||||||
Other long-term assets, net | 3,712 | 2,050 | ||||||
Total Assets | $ | 135,164 | $ | 130,281 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable and accrued expenses | $ | 42,948 | $ | 39,351 | ||||
Line of credit, net | 11,358 | 9,435 | ||||||
Deferred consideration | 15,380 | 13,800 | ||||||
Current portion of earnout consideration | 3,800 | — | ||||||
Current portion of operating lease liabilities | 836 | 298 | ||||||
Deferred revenue | 94 | 125 | ||||||
Total Current Liabilities | 74,416 | 63,009 | ||||||
Operating lease liabilities, net of current portion | 1,289 | 105 | ||||||
Convertible notes payable, net | 12,583 | 12,545 | ||||||
Earnout consideration, net of current portion | 6,800 | 11,250 | ||||||
Total Liabilities | 95,088 | 86,909 | ||||||
Stockholders' Equity | ||||||||
Preferred stock | 3,245 | 3,559 | ||||||
Common stock | 516 | 199 | ||||||
Additional paid-in capital | 565,644 | 564,105 | ||||||
Treasury stock, at cost | (13,158) | (13,158) | ||||||
Accumulated deficit | (515,870) | (510,099) | ||||||
Accumulated other comprehensive loss | (301) | (282) | ||||||
Total stockholders' equity of Cineverse Corp. | 40,076 | 44,324 | ||||||
Deficit attributable to noncontrolling interest | — | (952) | ||||||
Total equity | 40,076 | 43,372 | ||||||
Total Liabilities and Equity | 135,164 | $ | 130,281 | |||||
CINEVERSE CORP. | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
(In thousands, except for per share data) | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
2026 | 2025 | |||||||
Revenues | $ | 30,595 | $ | 11,119 | ||||
Operating expenses | ||||||||
Direct operating | 19,936 | 4,807 | ||||||
Selling, general and administrative | 11,618 | 8,952 | ||||||
Change in fair value of acquisition-related deferred consideration | 2,000 | — | ||||||
Change in fair value of acquisition-related earnout consideration | (650) | — | ||||||
Depreciation and amortization | 2,815 | 1,062 | ||||||
Total operating expenses | 35,719 | 14,821 | ||||||
Operating loss | (5,124) | (3,702) | ||||||
Interest (expense) income | (558) | 278 | ||||||
Other income (expense), net | 11 | (78) | ||||||
Net loss before income taxes | (5,671) | (3,502) | ||||||
Income tax expense | (19) | (14) | ||||||
Net income (loss) | (5,690) | (3,516) | ||||||
Net loss attributable to noncontrolling interest | — | (44) | ||||||
Net income (loss) attributable to controlling interests | (5,690) | (3,560) | ||||||
Preferred stock dividends | (81) | (89) | ||||||
Net income (loss) attributable to common stockholders | $ | (5,771) | $ | (3,649) | ||||
Net income (loss) per share attributable to common stockholders: | ||||||||
Basic | $ | (0.28) | $ | (0.21) | ||||
Diluted | $ | (0.28) | $ | (0.21) | ||||
Weighted average shares of common stock outstanding: | ||||||||
Basic | 20,671 | 16,992 | ||||||
Diluted | 20,671 | 16,992 | ||||||
Adjusted EBITDA
We define Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, stock-based compensation expense, merger and acquisition costs, restructuring, transition and acquisitions expense, net, goodwill impairment and certain other items.
Adjusted EBITDA is not a measurement of financial performance under GAAP and may not be comparable to other similarly titled measures of other companies. We use Adjusted EBITDA as a financial metric to measure the financial performance of the business, because management believes it provides additional information with respect to the performance of its fundamental business activities. For this reason, we believe Adjusted EBITDA will also be useful to others, including our stockholders, as a valuable financial metric.
We present Adjusted EBITDA because we believe that Adjusted EBITDA is a useful supplement to net income (loss) from continuing operations as an indicator of operating performance. We also believe that Adjusted EBITDA is a financial measure that is useful both to management and investors when evaluating our performance and comparing our performance with that of our competitors. We also use Adjusted EBITDA for planning purposes, and to evaluate our financial performance because Adjusted EBITDA excludes certain incremental expenses or non-cash items, such as stock-based compensation charges, that we believe are not indicative of our ongoing operating performance.
We believe that Adjusted EBITDA is a performance measure and not a liquidity measure, and therefore a reconciliation between net income (loss) from operations and Adjusted EBITDA has been provided in the financial results. Adjusted EBITDA should not be considered as an alternative to net income (loss) from operations as an indicator of performance, or as an alternative to cash flows from operating activities as an indicator of cash flows, in each case as determined in accordance with GAAP, or as a measure of liquidity. In addition, Adjusted EBITDA does not take into account changes in certain assets and liabilities as well as interest and income taxes that can affect cash flows. We do not intend the presentation of these non-GAAP measures to be considered in isolation or as a substitute for results prepared in accordance with GAAP. These non-GAAP measures should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.
Following is the reconciliation of our consolidated net income (loss) to Adjusted EBITDA (in thousands):
Three Months Ended | ||||||||
2026 | 2025 | |||||||
Net (loss) income | $ | (5,690) | $ | (3,516) | ||||
Add Back: | ||||||||
Income tax (expense) benefit | (19) | 14 | ||||||
Depreciation and amortization | 2,859 | 1,147 | ||||||
Interest expense | 558 | (278) | ||||||
Change in fair value of acquisition-related deferred consideration | 2,000 | — | ||||||
Change in fair value of acquisition-related earnout consideration | (650) | — | ||||||
Stock-based compensation | 948 | 418 | ||||||
Other (income) expense, net | (11) | 78 | ||||||
Net loss attributable to noncontrolling interest | — | (44) | ||||||
Acquisition-related costs | 78 | — | ||||||
Employee severance costs | 385 | 47 | ||||||
Adjusted EBITDA | $ | 458 | $ | (2,134) | ||||
Note: Depreciation and amortization within the Adjusted EBITDA table above includes | ||||||||
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SOURCE Cineverse Corp.