Cineverse (NASDAQ:CNVS) Posts Quarterly Earnings Results, Misses Estimates By $0.10 EPS

Key Points

• Cineverse missed earnings expectations, reporting a quarterly loss of $0.28 per share versus the $0.18 consensus loss, though revenue of $30.6 million exceeded estimates and rose 175% year over year.
• Management reaffirmed fiscal 2027 guidance of $115 million–$120 million in revenue and $10 million–$20 million in adjusted EBITDA, citing planned cost savings, synergies and upcoming advertising and theatrical opportunities.
• Despite stronger streaming engagement and a second consecutive positive adjusted-EBITDA quarter, Cineverse posted a $5.8 million net loss and faced constrained liquidity, with $4.3 million in cash and negative working capital of $18.9 million.

Cineverse (NASDAQ:CNVS - Get Free Report) announced its quarterly earnings results on Thursday. The company reported ($0.28) earnings per share for the quarter, missing the consensus estimate of ($0.18) by ($0.10), FiscalAI reports. Cineverse had a negative return on equity of 45.60% and a negative net margin of 13.44%.The company had revenue of $30.59 million for the quarter, compared to analyst estimates of $25.67 million.

Here are the key takeaways from Cineverse's conference call:

• Positive Sentiment: First-quarter revenue rose 175% year over year to $30.6 million, while adjusted EBITDA increased $2.6 million to $0.5 million, marking the company’s second consecutive positive EBITDA quarter.
• Positive Sentiment: Management reaffirmed fiscal 2027 guidance of $115 million–$120 million in revenue and $10 million–$20 million in adjusted EBITDA, supported by expected cost savings, political and holiday advertising, and upcoming theatrical releases.
• Positive Sentiment: Cineverse identified more than $13 million in annualized cost reductions and synergies, with most expected to appear in the third and fourth quarters; automating Giant’s workflows through Matchpoint could also lift gross margins from the mid-40% range to the mid-70% range or higher.
• Negative Sentiment: The company reported a $5.8 million net loss, wider than $3.6 million a year earlier, while direct operating margin declined to 35% due partly to acquisition-related revenue-sharing costs and lower-margin media services. Liquidity remained constrained, with $4.3 million of cash and negative working capital of $18.9 million, although management expects cash flow to improve.
• Positive Sentiment: Streaming engagement strengthened, with minutes streamed up 33% to 4.5 billion, viewers up 12% to 122.8 million, and SVOD subscribers up 12% to 1.52 million; management also expects VAUDIO to develop toward a roughly $12 million annual run rate by fiscal year-end.

Cineverse Trading Down 1.0%

NASDAQ:CNVS traded down $0.03 on Thursday, hitting $2.87. The stock had a trading volume of 257,750 shares, compared to its average volume of 246,999. The company has a fifty day moving average price of $2.70 and a two-hundred day moving average price of $2.56. The stock has a market cap of $67.22 million, a price-to-earnings ratio of -5.52 and a beta of 1.50. The company has a quick ratio of 0.81, a current ratio of 0.81 and a debt-to-equity ratio of 0.32. Cineverse has a 1-year low of $1.77 and a 1-year high of $6.25.

Analysts Set New Price Targets

A number of research analysts have recently issued reports on CNVS shares. Benchmark reiterated a "buy" rating on shares of Cineverse in a research report on Wednesday, June 24th. Wall Street Zen raised shares of Cineverse from a "strong sell" rating to a "hold" rating in a report on Saturday, June 27th. Weiss Ratings upgraded shares of Cineverse from a "sell (d-)" rating to a "sell (d)" rating in a research report on Wednesday, July 8th. Finally, Alliance Global Partners reiterated a "buy" rating on shares of Cineverse in a report on Friday, June 26th. Two research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $9.00.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in CNVS. StoneX Group Inc. acquired a new stake in Cineverse during the fourth quarter worth $30,000. Prelude Capital Management LLC lifted its stake in shares of Cineverse by 31.1% in the 3rd quarter. Prelude Capital Management LLC now owns 17,037 shares of the company's stock valued at $57,000 after purchasing an additional 4,037 shares during the last quarter. Cubist Systematic Strategies LLC acquired a new position in shares of Cineverse in the 1st quarter valued at $68,000. Osaic Holdings Inc. grew its holdings in shares of Cineverse by 61.3% during the 2nd quarter. Osaic Holdings Inc. now owns 22,902 shares of the company's stock worth $109,000 after purchasing an additional 8,700 shares during the period. Finally, XTX Topco Ltd grew its holdings in shares of Cineverse by 57.4% during the 4th quarter. XTX Topco Ltd now owns 29,126 shares of the company's stock worth $61,000 after purchasing an additional 10,621 shares during the period. 8.19% of the stock is currently owned by hedge funds and other institutional investors.

Cineverse Company Profile

Cineverse NASDAQ: CNVS, formerly known as Cinedigm, is a digital entertainment company that acquires, produces and distributes film and television content across a range of platforms. Through its streaming division, the company offers a portfolio of direct-to-consumer channels and apps—spanning genres such as horror, faith and family, documentaries and classic cinema—on both AVOD (ad-supported) and FAST (free ad-supported television) services. Cineverse also licenses its curated libraries to third-party streaming platforms, pay-TV operators and retail video-on-demand providers.

In addition to its consumer-facing streaming business, Cineverse operates a digital cinema network that supplies hardware, software and content delivery solutions to cinema exhibitors throughout North America.

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