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Cineverse (NASDAQ: CNVS) posts 175% Q1 revenue surge and reaffirms 2027 outlook

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Cineverse Corp. reported fiscal Q1 2027 revenue of $30.6 million, up 175% from $11.1 million a year earlier, driven mainly by new advertising technology and media services revenue from recent acquisitions. Technology-related streams represented more than 60% of total revenue.

Adjusted EBITDA improved to $0.5 million, a $2.6 million year-over-year increase, while net loss attributable to common stockholders widened to $5.8 million or $0.28 per share. Streaming engagement reached a company record with 4.5 billion minutes streamed, 122.8 million viewers, and 1.52 million SVOD subscribers, each up 12% or more.

Cash was $4.3 million with $1.1 million available under a $12.5 million credit line, and working capital stood at $(18.9) million, including $18.0 million of deferred and earnout consideration from the IndiCue acquisition that can be settled in stock. Management reaffirmed full-year fiscal 2027 guidance of $115–$120 million in revenue and $10–$20 million in Adjusted EBITDA and outlined a cost-reduction and synergy program targeting $13 million in annualized savings.

Positive

  • Revenue surged 175% year-over-year to $30.6 million, driven primarily by new advertising technology and media services revenue from recent acquisitions.
  • Adjusted EBITDA turned positive to $0.5 million, a $2.6 million improvement from a negative $(2.1) million in the prior-year quarter.
  • Streaming metrics hit records, with 4.5 billion minutes streamed (up 33%) and SVOD subscribers up 12% to 1.52 million.
  • Management reaffirmed full-year fiscal 2027 guidance of $115–$120 million in revenue and $10–$20 million in Adjusted EBITDA, supporting the growth and profitability narrative.
  • The company has identified $13 million in annualized cost reductions and synergies, with more than $8 million actioned and substantial completion expected by the end of fiscal Q2.

Negative

  • Net loss attributable to common stockholders widened to $(5.8) million from $(3.6) million, despite significant revenue growth.
  • Working capital was deeply negative at $(18.9) million as of June 30, 2026, reflecting higher payables and acquisition-related deferred and earnout obligations.
  • Direct operating margin declined from 57% to 35% year-over-year, largely due to high revenue-share expenses in the advertising technology business.
  • Selling, general and administrative expenses increased 30% to $11.6 million, driven by higher compensation, marketing, and professional fees linked to acquisitions and compliance.
  • Total liabilities increased to $95.1 million, including $12.6 million of convertible notes and higher deferred and earnout consideration balances.

Filing Explained

The filing adds that Cineverse’s direct operating margin fell from 57% to 35% year over year, while revenue-share expense consumed 79% of gross Advertising Technology revenue; the new revenue therefore carried substantial partner-related costs before direct operating profit.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q1 FY 2027 Revenue $30.6 million Three months ended June 30, 2026; up 175% from $11.1 million in prior-year quarter
Adjusted EBITDA $0.5 million Three months ended June 30, 2026; $2.6 million improvement from prior-year quarter
Net loss attributable to common stockholders $(5.8) million Three months ended June 30, 2026; $(0.28) per basic and diluted share
Cash and cash equivalents $4.3 million Balance as of June 30, 2026; $1.1 million also available under $12.5 million credit line
Working capital $(18.9) million As of June 30, 2026; includes $18.0 million IndiCue deferred and earnout consideration optionable in stock
Streaming engagement 4.5 billion minutes Most-watched quarter in company history; up 33% year-over-year
Cost reduction and synergy target $13 million Annualized program of cost reductions and synergies, with substantially all actions expected by end of fiscal Q2
Full-year 2027 revenue guidance $115–$120 million Reaffirmed full-year fiscal 2027 total revenue outlook
Adjusted EBITDA financial
"Adjusted EBITDA was $0.5 million, an increase of $2.6 million over the prior year."
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
earnout consideration financial
"Current portion of earnout consideration | 3,800 | | | —"
Earnout consideration is the portion of a purchase price that one party pays later only if the acquired business meets agreed future targets, like sales or profit goals. Think of it as a performance-linked bonus that shifts some risk from the buyer to the seller; investors watch earnouts because they affect how much value will actually be paid, influence future cash flow, and can change reported earnings or liabilities if targets are missed or met.
Deferred consideration financial
"This notably includes $18.0 Million of Deferred and Earnout Consideration from the IndiCue Inc. acquisition"
Deferred consideration is part of a purchase price in a business deal that is paid after the initial transaction, often only if agreed future targets or conditions are met. It matters to investors because it changes when cash actually leaves or enters a company, shifts risk between buyer and seller, and can affect future reported profits and liabilities — like part of a sale price kept as an IOU tied to future performance.
reduction in force financial
"Completed a reduction in force representing approximately $1.8 million in annualized savings"
A reduction in force is an organized cutback in a company's workforce—commonly known as layoffs—intended to lower costs or reshape operations. Like trimming a household budget or pruning a garden, it can improve long-term financial health but often brings one-time costs, reduced capacity, and morale or execution risks that can affect revenue, expenses, and the company’s stock performance. Investors watch these moves for signals about future profitability and operational stability.
net revenue retention financial
"while maintaining approximately 98% net revenue retention, with more than 40 live clients"
Net revenue retention measures how much revenue a company keeps from its existing customers over a set period after accounting for customers who leave, reductions in spending, and any increases from upsells or cross-sells. For investors it shows whether a company can grow sales from the customers it already has—like checking whether a store is making more or less money from its regular shoppers—which signals business health and future revenue durability.
revenue-share expense financial
"In the first quarter of fiscal 2027, revenue-share expense represented 79% of gross Advertising Technology revenue."
Revenue $30.6 million Increased 175% from $11.1 million in the prior-year quarter
Adjusted EBITDA $0.5 million Improved by $2.6 million from $(2.1) million in the prior-year quarter
Net loss attributable to common stockholders $(5.8) million Worsened from $(3.6) million in the prior-year quarter
Streaming minutes 4.5 billion Increased 33% year-over-year, the most-watched streaming quarter in company history
Guidance

Company reaffirmed full-year fiscal 2027 guidance of $115–$120 million in revenues and $10–$20 million in Adjusted EBITDA.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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FAQ

How did Cineverse (CNVS) perform financially in Q1 FY 2027?
Cineverse reported Q1 FY 2027 revenue of $30.6 million, up 175% from $11.1 million, and Adjusted EBITDA of $0.5 million, a $2.6 million improvement. Net loss attributable to common stockholders was $(5.8) million or $(0.28) per share.

What drove Cineverse (CNVS) revenue growth in this quarter?
Revenue growth was mainly driven by new advertising technology and media services streams from the Giant Worldwide and IndiCue acquisitions. Advertising technology contributed $15.9 million, and media services added $3.5 million in their first full quarter.

What is Cineverse (CNVS) saying about full-year fiscal 2027 guidance?
Management reaffirmed full-year fiscal 2027 guidance of $115–$120 million in revenue and $10–$20 million in Adjusted EBITDA. They expect cost reductions and synergies, plus a slate of wide film releases, to support this outlook.

What are Cineverse (CNVS) key cost savings and synergy targets?
Cineverse has identified $13 million in annualized cost reductions and synergies, including a $1.8 million annual run-rate reduction in force. Over $8 million has been actioned, with substantially all initiatives expected by the end of fiscal Q2.

How strong were Cineverse (CNVS) streaming metrics in Q1 FY 2027?
The company delivered its most-watched streaming quarter, with 4.5 billion minutes streamed (up 33%), 122.8 million viewers (up 12%), and 1.52 million SVOD subscribers (up 12%). Several channels, including Docurama, reached record subscriber levels.

What does Cineverse’s (CNVS) balance sheet look like after Q1 FY 2027?
As of June 30, 2026, Cineverse held $4.3 million in cash and $1.1 million available under a $12.5 million credit line. Working capital was $(18.9) million, including $18.0 million of IndiCue deferred and earnout consideration that can be settled in stock.

How did recent acquisitions impact Cineverse (CNVS) margins and expenses?
Acquisitions added high-growth tech revenue but increased costs. Direct operating margin fell to 35% due to 79% revenue-share expense in advertising technology. SG&A rose 30% to $11.6 million, reflecting compensation, marketing, integration, and compliance costs.
0001173204false00011732042026-08-132026-08-13

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 13, 2026

 

 

Cineverse Corp.

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware

001-31810

22-3720962

(State or Other Jurisdiction
of Incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

 

 

 

 

 

224 W. 35th St.

Suite 500, #947

 

New York, New York

 

10001

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: (212) 206-8600

 

 

 

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class

 

Trading
Symbol(s)

 


Name of each exchange on which registered

CLASS A COMMON STOCK, PAR VALUE $0.001 PER SHARE

 

CNVS

 

The Nasdaq Stock Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Item 2.02 Results of Operations and Financial Condition.

On August 13, 2026, Cineverse Corp. (the “Company”) issued a press release announcing its financial results for the three months ended June 30, 2026.

A copy of such press release is attached as Exhibit 99.1 hereto and incorporated herein by reference.

The information in this Item 2.02 of Form 8-K and Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing.

Item 9.01 Financial Statements and Exhibits.

99.1

Press Release dated August 13, 2026 announcing Cineverse's financial results for the three months ended June 30, 2026.

104

 

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

 

 

 

 

Date:

 August 13, 2026

By:

/s/ Gary S. Loffredo

 

 

Name:

Title:

Gary S. Loffredo
Chief Legal Officer, Secretary and Senior Advisor

 

 

Exhibit 99.1

img216377341_0.gif

Cineverse Reports First Quarter Fiscal Year 2027 Results

•
First Quarter Revenue of $30.6 Million, a $19.5 Million or 175% Increase Over the Prior Year Quarter
•
More Than 60% of Total Revenues Were Technology Related
•
Adjusted EBITDA of $0.5 Million, a $2.6 Million Increase Over the Prior Year Quarter
•
Cash Flow From Operations Increased $13 Million Over the Prior Year Quarter
•
Building on $2.0 Million of Savings Achieved in Fiscal 2026, Company Reaffirms Its Fiscal 2027 Cost Savings Target of $8.0 Million, with More Than $3 Million Achieved to Date in Q2.
•
Including the Company’s Synergy Program, Annual Target Upside is $13 million in Cost Reductions and Synergies.
•
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 to $120 Million in Revenues and $10 to $20 Million in Adjusted EBITDA

 

LOS ANGELES, August 13 2026 – Cineverse Corp. (“Cineverse” or the “Company”) (NASDAQ: CNVS), a global streaming technology and entertainment company, today announced its financial results for its fiscal first quarter (“Q1 FY 2027”):

 

Q1 FY 2027 Highlights (all comparisons are to the prior year fiscal quarter ended June 30, 2025 ("Q1 FY 2026"):

 

Total quarterly revenue was $30.6 million versus $11.1 million in the prior-year period, a 175% increase, driven mainly by the addition of new revenue streams from our strategic technology acquisitions in the fourth quarter of the prior fiscal year.

•
In their first full quarter:
o
Advertising Technology contributed $15.9 million of revenue, continuing its pre-Acquisition growth trajectory and exceeding fiscal 2026 fourth quarter revenue by $8.0 million.
o
Media Services contributed $3.5 million in its first full quarter, while focusing on the development of an end-to-end customer base which utilizes Matchpoint Dispatch automation.
▪
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.

1

 

•
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 57% in the prior year quarter to 35% this quarter, due to the evolution of the Company's business, including:

•
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 $2.7 million, or 30%, to $11.6 million, primarily due to higher compensation costs of $1.1 million, including $0.3 million of severance and $0.6 million of unpaid bonus accruals that the Company may settle in equity; $0.5 million of higher marketing costs tied to the committed theatrical release slate, and $0.4 million of increased professional consulting fees related to integration and year-end audit, tax and Sarbanes-Oxley compliance costs following the fourth quarter fiscal 2026 acquisitions.

 

Adjusted EBITDA was $0.5 million, an increase of $2.6 million over the prior year. Net loss attributable to common stockholders was $(5.8) million, or $(0.28) per basic and diluted share, compared with $(3.6) million, or $(0.21) per share, in the prior-year.

 

Financial Condition Overview:

•
Cash and cash equivalents totaled $4.3 million as of June 30, 2026 with $1.1 million available under the $12.5 million line of credit facility.
•
As of June 30, 2026, working capital was $(18.9) million, compared with $(0.3) million at the prior year quarter end. This notably includes $18.0 Million of Deferred and Earnout Consideration from the IndiCue Inc. acquisition that the Company has the option to settle in stock.
•
The Company’s digital content library, which includes more than 66,000 titles, has been valued at approximately $45 million, significantly above its $4.8 million book value as of June 30, 2026.

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 in annualized run-rate savings.
•
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, up 12%; and 1.52 million SVOD subscribers, up 12%. Docurama surpassed 100,000 subscribers for the first time, while the flagship Cineverse channel and RetroCrush ended the quarter at all-time subscriber highs.

2

 

•
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 in annualized savings and identified an additional $4.8 million in cost reductions and synergies, bringing the Company's total identified program to $13 million in annualized cost reductions and synergies, with substantially all actions expected to be completed by the end of the fiscal second quarter.
•
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, and Kansas 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 175% and we increased Adjusted EBITDA by $2.6 million. This is impressive given that we had no new theatrical film releases during the quarter, and this is also one of our seasonally slowest quarters across all of our business lines. Importantly, technology now continues to be the most important source of revenue for the Company, representing over 60% of our combined revenues, with much of that revenue durable and recurring with long term customers.”

“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 $13 million in annual cost reductions and synergies, and much of that is expected to be fully recognized during our Fiscal 3rd and 4th quarters, which are also our strongest seasonal quarters across our business lines. In addition, we have three high potential wide release films in the lineup for those quarters as well. Our last five wide film releases starting with Terrifier 2 have generated high ROI and are strong additions to our library, which has been valued at approximately $45 million. It is also worth emphasizing that we improved operating cash flows by over $13 million and should require a far lower CAPEX to generate that cash going forward than in the past.”

 

"Given that, we reaffirm our full year Fiscal 2027 guidance of $115 to $120 million in total revenues and $10 to $20 million in Adjusted EBITDA.”

 

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

3

 

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 $2.6 million year over year, and delivered the most-watched streaming quarter in our history. That is the pattern we anticipate providing to investors from here: costs coming down while the revenue engines scale up."

"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 $13 million on an annualized basis, of which more than $8 million has been actioned to date, with substantially all remaining actions expected to be completed by the end of the second quarter. As these actions take hold, we believe our studio and streaming operations, inclusive of corporate overhead, are approaching run-rate profitability, and the full earnings power of the new Cineverse will become visible in our results through the balance of the fiscal year."

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

4

 

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

 

5

 

CINEVERSE CORP.

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

(in thousands)

 

 

 

As of

 

 

 

June 30,
2026

 

 

March 31,
2026

 

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

 

 

 

6

 

CINEVERSE CORP.

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

(In thousands, except for per share data)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

Three Months Ended
June 30,

 

 

 

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

)

7

 

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

 

8

 

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
June 30,

 

 

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 $44 thousand of non-cash barter amortization included within Direct Operating costs.

9

Source: View Original Filing on SEC EDGAR

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