Cineverse Reports Fourth Quarter and Fiscal Year 2025 Results
Cineverse (NASDAQ: CNVS) reported strong Q4 and FY 2025 results, with total revenue reaching $15.6 million in Q4 (58% YoY increase) and $78.2 million for FY 2025 (59% YoY increase). The company achieved net income of $3.2 million for FY 2025, compared to a loss of $21.8 million in FY 2024.
Key highlights include the success of Terrifier 3, which grossed over $54 million domestically on minimal marketing spend, and strong performance across streaming and podcast divisions. The company maintains a solid financial position with $13.9 million in cash, no debt, and an unused $12.5 million credit facility.
The company announced several upcoming theatrical releases including The Toxic Avenger, Silent Night, Deadly Night, and Return to Silent Hill, while restructuring its management to focus on technology and motion pictures growth.
Cineverse (NASDAQ: CNVS) ha riportato risultati solidi nel quarto trimestre e nell'intero anno fiscale 2025, con un fatturato totale che ha raggiunto i 15,6 milioni di dollari nel Q4 (aumento del 58% su base annua) e 78,2 milioni di dollari per l'anno fiscale 2025 (incremento del 59% su base annua). L'azienda ha registrato un utile netto di 3,2 milioni di dollari per l'anno fiscale 2025, rispetto a una perdita di 21,8 milioni di dollari nel 2024.
Tra i punti salienti c'è il successo di Terrifier 3, che ha incassato oltre 54 milioni di dollari a livello nazionale con una spesa minima in marketing, oltre a ottime performance nei settori streaming e podcast. L'azienda mantiene una solida posizione finanziaria con 13,9 milioni di dollari in cassa, nessun debito e una linea di credito inutilizzata di 12,5 milioni di dollari.
La società ha annunciato diverse prossime uscite cinematografiche tra cui The Toxic Avenger, Silent Night, Deadly Night e Return to Silent Hill, ristrutturando nel contempo il management per concentrarsi sulla crescita nel settore tecnologico e cinematografico.
Cineverse (NASDAQ: CNVS) reportó sólidos resultados en el cuarto trimestre y en el año fiscal 2025, con ingresos totales que alcanzaron los 15.6 millones de dólares en el Q4 (un aumento interanual del 58%) y 78.2 millones de dólares para el año fiscal 2025 (un incremento del 59% interanual). La compañía logró un ingreso neto de 3.2 millones de dólares para el año fiscal 2025, en comparación con una pérdida de 21.8 millones en 2024.
Los aspectos destacados incluyen el éxito de Terrifier 3, que recaudó más de 54 millones de dólares a nivel nacional con un gasto mínimo en marketing, y un fuerte desempeño en las divisiones de streaming y podcast. La empresa mantiene una sólida posición financiera con 13.9 millones de dólares en efectivo, sin deudas y una línea de crédito no utilizada de 12.5 millones de dólares.
La compañía anunció varios próximos estrenos en cines, incluyendo The Toxic Avenger, Silent Night, Deadly Night y Return to Silent Hill, mientras reestructura su gestión para enfocarse en el crecimiento tecnológico y en la industria cinematográfica.
Cineverse (NASDAQ: CNVS)는 2025 회계연도 4분기 및 연간 실적에서 강력한 성과를 보고했습니다. 4분기 총 매출은 1,560만 달러(전년 대비 58% 증가), 2025 회계연도 총 매출은 7,820만 달러(전년 대비 59% 증가)를 기록했습니다. 회사는 2025 회계연도에 320만 달러의 순이익을 달성했으며, 이는 2024 회계연도의 2,180만 달러 손실과 비교됩니다.
주요 성과로는 최소한의 마케팅 비용으로 국내에서 5,400만 달러 이상의 수익을 올린 Terrifier 3의 성공과 스트리밍 및 팟캐스트 부문의 강력한 실적이 포함됩니다. 회사는 1,390만 달러의 현금, 부채 없음, 1,250만 달러의 미사용 신용 한도로 견고한 재무 상태를 유지하고 있습니다.
회사는 The Toxic Avenger, Silent Night, Deadly Night, Return to Silent Hill 등 다수의 향후 극장 개봉작을 발표했으며, 기술 및 영화 성장에 집중하기 위해 경영진 구조조정을 진행 중입니다.
Cineverse (NASDAQ: CNVS) a publié de solides résultats pour le quatrième trimestre et l'exercice 2025, avec un chiffre d'affaires total atteignant 15,6 millions de dollars au quatrième trimestre (augmentation de 58 % en glissement annuel) et 78,2 millions de dollars pour l'exercice 2025 (augmentation de 59 % en glissement annuel). La société a réalisé un bénéfice net de 3,2 millions de dollars pour l'exercice 2025, contre une perte de 21,8 millions de dollars en 2024.
Parmi les faits marquants, on note le succès de Terrifier 3, qui a généré plus de 54 millions de dollars au niveau national avec un budget marketing minimal, ainsi que de solides performances dans les divisions streaming et podcast. La société conserve une position financière solide avec 13,9 millions de dollars en liquidités, aucune dette et une facilité de crédit inutilisée de 12,5 millions de dollars.
La société a annoncé plusieurs sorties cinématographiques à venir, dont The Toxic Avenger, Silent Night, Deadly Night et Return to Silent Hill, tout en restructurant sa direction pour se concentrer sur la croissance technologique et cinématographique.
Cineverse (NASDAQ: CNVS) meldete starke Ergebnisse für das vierte Quartal und das Geschäftsjahr 2025, wobei der Gesamtumsatz im vierten Quartal 15,6 Millionen US-Dollar erreichte (58 % Steigerung im Jahresvergleich) und im Geschäftsjahr 2025 78,2 Millionen US-Dollar (59 % Steigerung im Jahresvergleich). Das Unternehmen erzielte einen Nettoertrag von 3,2 Millionen US-Dollar für das Geschäftsjahr 2025, im Vergleich zu einem Verlust von 21,8 Millionen US-Dollar im Geschäftsjahr 2024.
Zu den Highlights zählt der Erfolg von Terrifier 3, der mit minimalem Marketingaufwand über 54 Millionen US-Dollar im Inland einspielte, sowie starke Leistungen in den Bereichen Streaming und Podcasts. Das Unternehmen verfügt über eine solide Finanzlage mit 13,9 Millionen US-Dollar in bar, keiner Verschuldung und einer ungenutzten 12,5 Millionen US-Dollar Kreditlinie.
Das Unternehmen kündigte mehrere kommende Kinostarts an, darunter The Toxic Avenger, Silent Night, Deadly Night und Return to Silent Hill, und restrukturiert seine Geschäftsführung, um sich auf Wachstum im Bereich Technologie und Film zu konzentrieren.
- Net income improved significantly to $3.2 million in FY 2025 from a $21.8 million loss in FY 2024
- Total revenue increased 59% to $78.2 million in FY 2025
- Strong financial position with $13.9 million cash and zero debt
- Terrifier 3 generated $54 million box office on just $500,000 marketing budget
- Direct operating margin of 55% in Q4, exceeding target of 45-50%
- SG&A expenses decreased from 57% to 35% of revenue
- Streaming viewership increased 45% year-over-year
- Credit facility expanded to $12.5 million (expandable to $15 million)
- Working capital surplus remains relatively low at $3.6 million
- Digital content library book value of $2.5 million is significantly below its $40 million valuation
Insights
Cineverse delivers strong Q4 with 58% revenue growth and profitability turnaround, fueled by horror film success and streaming expansion.
Cineverse has achieved a remarkable 58% year-over-year revenue increase to
The company's direct operating margin has strengthened to
Cineverse's balance sheet shows considerable strength with
Beyond theatrical success, their diversified revenue streams show healthy growth. Streaming and digital revenues increased
The recent reorganization focusing on technology monetization and motion pictures appears strategically sound, given the success demonstrated in both areas. Their digital content library valuation of approximately
Total Revenue of
Net income of
Adjusted EBITDA of
Total Fourth Quarter Direct Operating Margin of
The Company's financial results for the quarter and fiscal year reflect increases in revenue, direct operating margin, and net income when compared to the prior year quarter and fiscal year reflecting growth across all of the Company's key lines of business and the continued ancillary revenue contribution of Terrifier 3, the Company's breakout horror film success, which was the biggest unrated film release of all time.
Based on our ability to achieve outstanding box office results with Terrifier 3 by utilizing our unique ecosystem of new media assets to spend a fraction of what other studios would have spent to promote and market the movie, we continue to build a slate of additional wide release films that we believe can provide a strong and ongoing source of profits for the Company. We have already announced that we are releasing The Toxic Avenger, produced by major studio Legendary Films (Dune, Godzilla x Kong, etc.) on August 29, 2025, and then Silent Night, Deadly Night, a re-interpretation of the classic controversial horror film, on December 12, 2025. Next will be Return to Silent Hill, the latest film installment of the enormously successful video game franchise, on January 23, 2026. We will also be releasing Wolf Creek: Legacy, the third installment of the classic Australian Outback horror/thriller film, in 2026. In addition, based on the results of Terrifier 2 and Terrifier 3, other major studios continue to utilize our new media ecosystem to market their releases, emphasizing the impact our unique and innovative marketing approach has had on the industry.
The Company continues to be in a strong financial position with almost
FY 2025 Financial Highlights (all comparisons are to the prior year ended March 31, 2024, or FY 2024):
Full-year consolidated revenue was
- After opening to No. 1 at the box office at
on a$18.9 million ~ paid media budget, Terrifier 3 has grossed more than$500,000 at the domestic box office and more than$54.0 million in ancillaries. This unprecedented return on investment was achieved by executing a highly digital viral campaign, and leveraging internal assets, owned channels and our subsidiary editorial platform, Bloody Disgusting, to dramatically reduce marketing costs and efficiently target a highly engaged fan base.$8.5 million - Streaming and digital revenues of
, a$44.4 million 19% improvement from the prior year revenue of . Total monthly viewership across our channel portfolio increased$37.3 million 45% versus the same period last year, driven in large part by successful recent channel launches such as Dog Whisperer with Cesar Millan, Barney, and Garfield and Friends. In addition, Dove Channel viewership increased16% for the same comparable periods. - Podcast and other revenues were up
86% versus last year, following our expansion to 62 podcasts, continuing to rank the Cineverse Podcast Network in the top eight nationally.
The Company's direct operating margin for the year was
SG&A expenses remained relatively flat for the current year compared to FY 2024, but decreased as a percentage of revenue from
Net income attributable to common stockholders was
Q4 FY 2025 Highlights (all comparisons are to the prior year fiscal quarter ended March 31, 2024, or Q4 FY 2024):
Total revenue was
The Company's direct operating margin for the quarter was
SG&A expenses decreased
Net income attributable to common stockholders was
Financial Condition Overview:
- Cash and Cash Equivalents of
and$13.9 million in unused capacity under our line of credit facility as of March 31, 2025. As of today, the balance on our line of credit facility with$12.5 million East West Bank is with an available capacity of$0 .$12.5 million - In April 2025, the line of credit facility with
East West Bank was increased from to$7.5 million (expandable to$12.5 million ), and the term extended to April 8, 2028.$15.0 million - A working capital surplus of
as of March 31, 2025, compared to$3.6 million as of March 31, 2024.$1.5 million - The Company's Digital content library, comprised of more than 71,000 titles, was valued as of March 31, 2024 at approximately
, a significant increase over the 2023 valuation and well above the$40 million book value of the library as of March 31, 2025.$2.5 million - The Company continues to have its previously approved share repurchase program available which will continue to be utilized as appropriate.
Operational Developments During the Quarter:
- Announced acquisition of Legendary Pictures' highly-acclaimed horror comedy reboot, The Toxic Avenger, directed by Macon Blair and starring Peter Dinklage – with an unrated wide release planned for August 29, 2025.
- Announced MatchpointTM multi-year software services deal with Multicom Entertainment Group and venture-backed streaming service, Joysauce.
- Announced Silent Night, Deadly Night sale to Studio Canal for rest of world distribution.
- Announced acquisition of North American rights for Wolf Creek: Legacy, the hotly anticipated third installment of the Outback slasher film franchise.
- Terrifier 3 premiered on Screambox for an exclusive SVOD window beginning on Valentine's Day, February 14th.
- Celebrated Halfway to Halloween with slate of films including Art Attack!, The Behind the Scenes Look at Terrifier 3.
- Announced 2025 release of Terrifier 3 novelization through our publishing arm, Bloody Press.
- Signed Highlander franchise multi-year digital rights deal with Davis-Panzer Productions.
- Announced partnership with comedy club brand The Stand Group to launch WITZ podcast network through new development and distribution pact.
- Announced partnership with The Trade Desk, to Optimize Programmatic Ad Inventory through OpenPath.
- Announced partnership with SymphonyAI, to accelerate AI capabilities of our Matchpoint Insights platform.
- Expanded content partnership with Fubo, launching two of Cineverse's free, ad-supported streaming television (FAST) channels – Dog Whisperer with Cesar Millan and Go Pro.
- SVOD subscriber base grew by approximately
17% , adding over 62,000 subscribers following the launch of the Cineverse-branded channel on Amazon Channels. - Screambox saw a
23% increase in monthly active users, driven by the streaming premiere of Terrifier 3. - FAST and AVOD viewership across RetroCrush, Docurama, and Midnight Pulp rose by
50% in total minutes streamed compared to the prior quarter. - Podcast business expanded its direct sales footprint with two new senior hires of industry sales veterans, Laura Schumer and Ben Cabonargi, to support strong demand and expected year-over-year growth in podcast ad revenue.
Operational Developments Subsequent to Quarter-End:
- Announced expansion of existing line of credit facility with
East West Bank to with a three-year term.$15 Million - Fandor expanded its library with two award-winning festival titles, The Things You Kill and Lesbian Space Princess, increasing its value to indie and arthouse film fans.
- Announced the formation of internal Motion Pictures Group to accelerate the building of high-growth feature film business.
- Demonstrated a continued dedication to technology monetization, with launch of Technology Group.
- Announced start of production for unrated reboot of famously controversial horror franchise, Silent Night, Deadly Night.
- Announced acquisition of
U.S. rights for Return to Silent Hill, the newest installment in the popular video game Horror franchise. - Demonstrated dedication to driving advertising sales revenue by announcing the expansion of sales team -- hiring industry veteran Tim Russell and promoting Terry City to EVP, Direct Sales.
- Promoted John Squires and Megan Navarro to Co-Managing Directors of leading Horror brand, Bloody Disgusting.
- Announced acquisition of
U.S. rights to acclaimed thriller, The Things You Kill; with a fourth quarter theatrical release planned. - Announced acquisition of streaming rights to classic sci-fi anime series Future Boy Conan from acclaimed director Hayao Miyazaki – to be part of exclusive RetroCrush slate.
- Announced theatrical tickets on sale for bold, genre-blending, time-travel adventure Escape From The 21st Century – which hit theaters in limited release on June 9, 2025.
- Expanded international FAST footprint with the launch of Dog Whisperer with Cesar Millan and Bob Ross channels on Samsung TV Plus Australia, contributing to projected
35% growth in international viewing hours. - Commercial release of cineSearch, now available on Google Cloud Marketplace and direct integration partners.
- Matchpoint Dispatch entered active pilot programs with major studio and OEM clients.
- Podcast network rebranded as the Cineverse Podcast Network, now comprising 74+ series and over 230 million lifetime downloads.
Management Commentary
Chris McGurk, Cineverse Chairman and CEO, stated: "We had another extremely strong quarter: We posted significant gains in revenues, adjusted EBITDA and net income, all exceeding our analyst's consensus guidance. This was driven by growth across all of our key lines of business and the continued strong contribution of Terrifier 3, the most successful unrated film release of all time, in the ancillary distribution markets. Our balance sheet remains very strong, with almost
"Importantly, we also recently implemented a Company-wide reorganization to focus senior management resources on two of the most important growth areas for the Company. First, Tony Huidor is now President of Technology and Chief Product Officer. This move was designed to focus all of Tony's talent and experience in technology and business development against rapidly building our technology business, with a focus on MatchpointTM licensing, and the development and sales of new AI based products such as cineSearch, our industry leading AI search tool that we developed with Google. Tony is also tasked with not only keeping the Company at the forefront of industry AI innovation, but also ensuring that we become the first truly AI-forward entertainment studio in every process across the entire Company."
"Second, we also reorganized our film division. Yolanda Macias is now the company's Chief Motion Pictures Officer. In this role, Yolanda will focus all of her expertise and experience to leverage the success of Terrifier 2 and Terrifier 3, and build a wide release slate of movies that can successfully follow the Terrifier blueprint. She has already achieved great success based on the high potential slate of franchise properties now in our release lineup. We think this business will be a major potential source of value creation going forward."
Erick Opeka, Cineverse President and Chief Strategy Officer, stated: "This quarter reflects the continued evolution of Cineverse into a platform-first entertainment company. We delivered strong performance across our SVOD and FAST streaming businesses, driven by subscriber growth from the Cineverse Amazon launch, and the ongoing success of Screambox following the release of Terrifier 3. Our podcast network also expanded with the launch of WITZ, while FAST viewership climbed internationally across key titles and channels. On the technology front, we are seeing strong early traction for cineSearch and Matchpoint Dispatch, particularly among studios and OEMs looking to automate and streamline their operations. Looking ahead, we are focused on becoming the first truly AI-native entertainment studio, with AI playing a critical role, not just in distribution and marketing, but in development and production as well. We are also exploring emerging new formats like microdramas that we believe represent the next generation of storytelling. These innovations are designed to meet the changing ways fans discover, consume, and engage with content."
Conference Call
Cineverse will host a conference call at 9:00 a.m. ET (Friday, June 27, 2025), during which management will discuss the results of the fiscal fourth quarter and year ended March 31, 2025. To participate in the conference call, please use the following dial-in numbers:
Access Code: 414024
The conference call can also be accessed by webcast at the Investors section of the Company's website at https://investor.cineverse.com/events-and-presentations/default.aspx. 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 a next-generation entertainment studio that empowers creators and entertains fans with a wide breadth of content through the power of technology. It has developed a new blueprint for delivering entertainment experiences to passionate audiences and results for its partners with unprecedented efficiency, and distributes more than 71,000 premium films, series, and podcasts. Cineverse connects fans with bold, authentic, independent stories. Properties include the highest-grossing unrated film in
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 March 31, | |||||||
2025 | 2024 | ||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 13,941 | $ | 5,167 | |||
Accounts receivable, net | 15,752 | 15,106 | |||||
Employee retention tax credit | 79 | 1,671 | |||||
Content advances | 6,736 | 9,345 | |||||
Other current assets | 1,573 | 1,432 | |||||
Total Current Assets | 38,081 | 32,721 | |||||
Property and equipment, net | 2,876 | 2,276 | |||||
Intangible assets, net | 18,168 | 18,328 | |||||
Goodwill | 6,799 | 6,799 | |||||
Content advances, net of current portion | 4,053 | 2,551 | |||||
Other long-term assets | 2,539 | 1,703 | |||||
Total Assets | $ | 72,516 | $ | 64,378 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable and accrued expenses | $ | 31,109 | $ | 20,817 | |||
Line of credit, net | — | 6,301 | |||||
Current portion of earnout and deferred consideration on purchase of business | 2,956 | 3,294 | |||||
Operating lease liabilities | 187 | 401 | |||||
Current portion of deferred revenue | 183 | 436 | |||||
Total Current Liabilities | 34,435 | 31,249 | |||||
Deferred consideration on purchase, net of current portion | — | 457 | |||||
Operating lease liabilities, net of current portion | 275 | 462 | |||||
Other long-term liabilities | 14 | 59 | |||||
Total Liabilities | 34,724 | 32,228 | |||||
Stockholders' Equity | |||||||
Preferred stock | 3,559 | 3,559 | |||||
Common Stock | 194 | 194 | |||||
Additional paid-in capital | 548,405 | 545,996 | |||||
Treasury stock, at cost | (12,193) | (11,978) | |||||
Accumulated deficit | (500,908) | (504,153) | |||||
Accumulated other comprehensive loss | (305) | (345) | |||||
Total stockholders' equity of Cineverse Corp. | 38,752 | 33,273 | |||||
Deficit attributable to noncontrolling interest | (960) | (1,122) | |||||
Total equity | 37,792 | 32,151 | |||||
Total Liabilities and Equity | $ | 72,516 | $ | 64,378 |
CINEVERSE CORP. | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(In thousands, except for per share data) | |||||||||||||||
(Unaudited) | |||||||||||||||
For the Three Months Ended | For the Fiscal Year Ended | ||||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||
Revenues | $ | 15,575 | $ | 9,863 | $ | 78,181 | $ | 49,131 | |||||||
Operating expenses | |||||||||||||||
Direct operating | 7,038 | 2,033 | 38,776 | 19,131 | |||||||||||
Selling, general and administrative | 5,396 | 6,816 | 27,684 | 27,904 | |||||||||||
Depreciation and amortization | 1,014 | 984 | 3,797 | 3,771 | |||||||||||
Goodwill impairment | — | 14,025 | — | 14,025 | |||||||||||
Total operating expenses | 13,448 | 23,859 | 70,257 | 64,831 | |||||||||||
Operating income (loss) | 2,127 | (13,995) | 7,924 | (15,700) | |||||||||||
Interest expense | (1,255) | (286) | (4,365) | (1,066) | |||||||||||
Gain (loss) from investment in Metaverse | 34 | (538) | 176 | (4,299) | |||||||||||
Other (expense) income, net | 39 | 141 | 135 | (190) | |||||||||||
Net income (loss) before income taxes | 945 | (14,678) | 3,870 | (21,255) | |||||||||||
Income tax (expense) benefit | (87) | 2 | (106) | (10) | |||||||||||
Net income (loss) | 858 | (14,676) | 3,764 | (21,265) | |||||||||||
Net income attributable to noncontrolling interest | (7) | (48) | (162) | (142) | |||||||||||
Net income (loss) attributable to controlling interests | 851 | (14,724) | 3,602 | (21,407) | |||||||||||
Preferred stock dividends | (90) | (87) | (356) | (350) | |||||||||||
Net income (loss) attributable to common stockholders | $ | 761 | $ | (14,811) | $ | 3,246 | $ | (21,757) | |||||||
Net income (loss) per share attributable to common stockholders: | |||||||||||||||
Basic | $ | 0.04 | $ | (1.10) | $ | 0.18 | $ | (1.78) | |||||||
Diluted | $ | 0.04 | $ | (1.10) | $ | 0.16 | $ | (1.78) | |||||||
Weighted average shares of common stock outstanding: | |||||||||||||||
Basic | 15,958 | 13,525 | 15,814 | 12,253 | |||||||||||
Diluted | 18,518 | 13,525 | 17,818 | 12,253 |
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):
For the Three Months Ended | For the Fiscal Year Ended | ||||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||
Net Income (Loss) | $ | 858 | $ | (14,676) | $ | 3,764 | $ | (21,265) | |||||||
Add Backs: | |||||||||||||||
Income tax (benefit) expense | 87 | (2) | 106 | 10 | |||||||||||
Depreciation and amortization | 1,355 | 984 | 4,138 | 3,771 | |||||||||||
Interest expense | 1,255 | 286 | 4,365 | 1,066 | |||||||||||
Stock-based compensation | 462 | 347 | 1,925 | 1,439 | |||||||||||
(Gain) loss from equity investment in Metaverse | (34) | 538 | (176) | 4,299 | |||||||||||
Other expense (income), net | (39) | (142) | (135) | (140) | |||||||||||
Net income attributable to noncontrolling interest | (7) | (48) | (162) | (142) | |||||||||||
Goodwill impairment | — | 14,025 | — | 14,025 | |||||||||||
Transition-related costs | 65 | 241 | 92 | 1,335 | |||||||||||
Adjusted EBITDA | $ | 4,002 | $ | 1,553 | $ | 13,917 | $ | 4,398 |
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SOURCE Cineverse Corp.