Aug 13, 2026, 4:15 PM ETCommunication Services

Cineverse — Q1 FY 2027 Earnings Summary

CNVSCINEVERSE CORP

Financial Performance

Total revenue reached $30.6 million, a 175% increase from $11.1 million in the prior-year quarter.
Advertising Technology contributed $15.9 million in its first full quarter, exceeding Q4 FY 2026 revenue by $8.0 million.
Media Services contributed $3.5 million in its first full quarter.
Adjusted EBITDA was $0.5 million, an increase of $2.6 million compared to the prior-year quarter.
Net loss attributable to common stockholders was $5.8 million ($0.28 per share), compared to a loss of $3.6 million ($0.21 per share) in the prior year.
Cash flow from operations increased by $13 million year-over-year.
Direct operating margin declined from 57% in the prior year to 35% in the current quarter.
Revenue-share expenses in the Advertising Technology business represented 79% of gross revenue in the quarter.
SG&A expenses rose 30% to $11.6 million, driven by higher compensation, marketing, and professional consulting fees.
Cash and cash equivalents totaled $4.3 million as of June 30, 2026, with $1.1 million available under a $12.5 million line of credit.
Working capital was $(18.9) million as of June 30, 2026, compared to $(0.3) million in the prior year, including $18.0 million of deferred and earnout consideration from the IndiCue acquisition.
The digital content library was valued at approximately $45 million, significantly above its $4.8 million book value.

The Company reaffirmed full-year Fiscal 2027 revenue guidance of $115 million to $120 million.
The Company reaffirmed full-year Fiscal 2027 Adjusted EBITDA guidance of $10 million to $20 million.
Management expects cost reduction and synergy program impacts to be fully reflected in financials during Fiscal 3rd and 4th quarters.
Three high-potential wide release films are scheduled for the Fiscal 3rd and 4th quarters.
The Company anticipates studio and streaming operations, inclusive of corporate overhead, approaching run-rate profitability as actions take hold.

Technology-related revenue accounted for more than 60% of total revenues.
Matchpoint Dispatch automation transitioned multiple customer workflows, resulting in an estimated 40% time savings.
Giant Worldwide's media packaging and delivery operations are being migrated to the Matchpoint platform to expand Media Services gross margins.
Key standalone products are being integrated into the Matchpoint platform, expected to reduce engineering, sales, and marketing costs by approximately $2.7 million in annualized run-rate savings.
Launched Gorilla Comedy+, a premium ad-free streaming service on Matchpoint, featuring over 250 comedy specials.
Launched two Roku SVOD channels: the flagship Cineverse channel and So ... Real.
Docurama surpassed 100,000 subscribers; the Cineverse channel and RetroCrush reached all-time subscriber highs.
Streaming metrics included 4.5 billion minutes streamed (up 33% YoY), 122.8 million viewers (up 12%), and 1.52 million SVOD subscribers (up 12%).
IndiCue maintained approximately 98% net revenue retention with over 40 live clients and 75 additional publishers onboarding.
Launched VAUDIO, a proprietary ad-tech offering extending audio campaigns to CTV.

The quarter had no wide film releases, contrasting with the prior year which included the strong ancillary run of Terrifier 3.
The combined Matchpoint offering is winning studio work orders that neither Giant Worldwide nor IndiCue could have secured independently.
Cineverse's last five wide film releases starting with Terrifier 2 have generated high ROI.
The Company is shifting from integration to synergy capture and growth following the completion of core post-merger integration of Giant Worldwide and IndiCue.

Direct operating margin declined due to revenue share expenses in the Advertising Technology business and ongoing transformation efforts in Media Services.
SG&A expenses increased due to integration, audit, tax, and Sarbanes-Oxley compliance costs following acquisitions.
Working capital deficit increased significantly due to deferred and earnout consideration from the IndiCue acquisition.
The Company faces seasonally slow quarters across all business lines, with Q1 being one of the slowest.

CEO Chris McGurk described the quarter as "very strong," noting revenue growth was achieved despite no new theatrical releases and seasonal headwinds.
Management emphasized that technology is now the most important revenue source, representing over 60% of combined revenues with durable, recurring revenue streams.
President and CSO Erick Opeka stated the focus has shifted to capturing synergies and driving growth, with a pattern of costs coming down while revenue engines scale up.
Management highlighted the completion of core integration and the execution of three value-capture priorities: product portfolio streamlining, platform migration for Giant, and cost reduction initiatives.
CFO Sean McCabe was appointed to strengthen the finance organization for the scale of the post-acquisition business.

The Company reaffirms a Fiscal 2027 cost savings target of $8.0 million, with more than $3 million achieved in Q2, building on $2.0 million saved in Fiscal 2026.
Including the synergy program, the annual target for cost reductions and synergies is $13 million.
Subsequent to the quarter, the Company completed a reduction in force representing $1.8 million in annualized savings and identified an additional $4.8 million in cost reductions.
Substantially all cost reduction and synergy actions are expected to be completed by the end of the fiscal second quarter.
Announced a partnership with PEDIGREE® and Air Bud Entertainment for a multi-city summer movie series featuring Air Bud Returns.
Set the fiscal-year slate including the re-release of Pan's Labyrinth in 4K and 3D, production of the next Wolf Creek installment, and the Hulu premiere of Return to Silent Hill.
The Company has the option to settle $18.0 million of deferred and earnout consideration from the IndiCue acquisition in stock.