Cineverse (NASDAQ:CNVS) Releases Earnings Results, Beats Estimates By $0.34 EPS

Key Points

• Cineverse reported EPS of $0.11, beating the consensus estimate of a $0.23 loss, and revenue of $25.95 million, above the $24.31 million estimate. Revenue more than doubled year over year, and adjusted EBITDA was $1.7 million for a third consecutive positive quarter.
• Management reaffirmed fiscal 2027 guidance of $115 million–$120 million in revenue and $10 million–$20 million in adjusted EBITDA. It expects to deliver $14 million in annualized cost savings, with more than $9 million already implemented.
• Cineverse ended the quarter with $3.6 million in cash and negative net working capital of $9.7 million, while direct operating margin declined to 38% from 58% a year earlier. Management expects margins to improve through automation, cost cuts, and seasonal revenue gains.

Cineverse (NASDAQ:CNVS - Get Free Report) issued its quarterly earnings results on Friday. The company reported $0.11 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.23) by $0.34, FiscalAI reports. The company had revenue of $25.95 million for the quarter, compared to the consensus estimate of $24.31 million. Cineverse had a negative return on equity of 50.16% and a negative net margin of 12.87%.

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

• Revenue more than doubled year over year to $26 million, while adjusted EBITDA was $1.7 million—Cineverse’s third consecutive positive quarter. Net income was $3.2 million, though a non-recurring $7 million decrease in acquisition-related liabilities contributed to the improvement.
• Management reaffirmed fiscal 2027 guidance of $115 million–$120 million in revenue and $10 million–$20 million in adjusted EBITDA. It cited preliminary October revenue of about $15 million and expects to complete $14 million in annualized cost savings, with more than $9 million already implemented.
• The Giant Worldwide and IndiCue acquisitions are driving growth in ad tech and media services, but direct operating margin fell to 38% from 58% a year ago as the business mix shifted. Management expects margins to improve through automation, cost reductions, and seasonal revenue gains.
• Cineverse secured 25-year North American rights to the next Jason Voorhees film and says it expects to fund its release internally, with a lower all-in investment than for Terrifier 3. Management sees the film as a potential profitable release and addition to its library.
• The company ended the quarter with $3.6 million in cash and negative net working capital of $9.7 million, although it can settle $8 million of related liabilities in equity. Management said spending ahead of theatrical releases contributed to cash use.

Cineverse Stock Up 20.7%

Shares of NASDAQ CNVS traded up $0.38 during midday trading on Friday, hitting $2.19. 1,876,415 shares of the company's stock were exchanged, compared to its average volume of 216,727. The company has a market cap of $58.19 million, a PE ratio of -3.70 and a beta of 1.81. The company has a debt-to-equity ratio of 0.34, a current ratio of 0.75 and a quick ratio of 0.75. Cineverse has a twelve month low of $1.40 and a twelve month high of $3.44. The firm's fifty day simple moving average is $1.85 and its 200-day simple moving average is $2.38.

Wall Street Analyst Weigh In

Several analysts recently issued reports on the company. Benchmark reissued a "buy" rating and issued a $14.00 target price (up from $12.00) on shares of Cineverse in a research note on Friday, August 14th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Cineverse in a research report on Friday, October 2nd. Two analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $14.00.

Insider Activity at Cineverse

In other news, insider Mark Antonio Huidor sold 15,000 shares of the business's stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $2.68, for a total transaction of $40,200.00. Following the completion of the sale, the insider directly owned 183,170 shares of the company's stock, valued at $490,895.60. The trade was a 7.57% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 10.80% of the stock is currently owned by corporate insiders.

Cineverse Company Profile

Cineverse NASDAQ: CNVS is a digital entertainment and streaming technology company that develops, distributes and operates content across streaming, digital, television and physical-media platforms. The company serves audiences through advertising-supported, subscription and transactional models, as well as through licensing and distribution arrangements with content owners and platform partners. Cineverse operates a portfolio of streaming services and entertainment brands focused on areas such as anime, Asian cinema, horror, documentaries and classic film and television.

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