Cineverse Reports Fourth Quarter and Fiscal Year 2026 Results

PR Newswire

LOS ANGELES, June 26, 2026

LOS ANGELES, June 26, 2026 /PRNewswire/ -- Cineverse Corp. ("Cineverse" or the "Company") (NASDAQ: CNVS), a global streaming technology and entertainment company, today announced its financial results for its fiscal fourth quarter ("Q4 FY 2026") and full year ended March 31, 2026 ("FY 2026"):

Courtesy of Cineverse

Fourth Quarter 2026 Highlights

(All comparisons are to the prior year fiscal quarter ended March 31, 2025, or "Q4 FY 2025")

(1) Reconciliation of this non-GAAP performance measure is provided in the tables below.

(2) Calculated by the following formula (Revenue – Direct Operating Costs) / Revenue.

Full-Year 2026 Highlights

(All comparisons are to the prior fiscal year ended March 31, 2025, or "FY 2025")

Fiscal 2026 was a transformative year for Cineverse. In a single quarter, the Company completed two strategic acquisitions — Giant Worldwide in January 2026 and IndiCue in February 2026 — that together vertically expand Cineverse into AI-driven advertising technology and media services, further diversify the Company's revenue base beyond entertainment content and streaming performance, and add significant new durable, recurring revenue streams. The Acquisitions contributed $11.6 million of revenue in their first partial quarter and are the foundation of the Company's reaffirmed fiscal 2027 guidance of $115 to $120 million of revenue and $10 to $20 million of Adjusted EBITDA — representing approximately 75% to 83% revenue growth over fiscal 2026.(3)

(3) The Company does not provide a reconciliation of forward-looking Adjusted EBITDA guidance due to the inherent difficulty in forecasting and quantifying adjustments necessary to calculate such a non-GAAP measure without unreasonable effort. Material changes to such adjustments, including warrant liability and non-core operating items, could affect future GAAP results.

Net income for the quarter benefited from a $4.3 million one-time, non-cash bargain purchase gain on the Giant acquisition, as detailed in the Adjusted EBITDA reconciliation below, as well as income tax benefits primarily driven by the IndiCue acquisition. While the bargain purchase gain is non-cash and non-recurring, it is strongly indicative of the quality of the deal price and the value creation opportunity the Company is beginning to realize from Giant.

Fiscal 2027 Outlook and Cost Reduction Trajectory

The Company reaffirms the fiscal 2027 guidance first issued in February 2026 in connection with the Acquisitions: revenue of $115 to $120 million and Adjusted EBITDA of $10 to $20 million. Key components of this outlook, each consistent with the Company's prior public disclosures, include:

Management Commentary

Chris McGurk, Cineverse Chairman and CEO, stated: "We feel that Fiscal 2026 was one of the most consequential years in Cineverse's history. Following the unprecedented success of Terrifier 3, the biggest unrated film release in history, we moved quickly and decisively to convert that momentum into a structurally stronger and even higher growth company — completing the acquisitions of Giant Worldwide and IndiCue in a single quarter. These deals fundamentally change what Cineverse is as a company. We are now a technology-first, AI-driven, fully integrated entertainment company with three powerful and mutually reinforcing engines — a proven, low-risk, high potential return wide release film slate strategy; a scaled streaming and podcast portfolio; and now a vertically integrated advertising technology and media services business built around our Matchpoint™ platform. The positive financial impact of this has been immediate, with the Acquisitions contributing $11.6 million of revenue in their first partial quarter and driving 67% total revenue growth. We fully expect the financial contribution from the Acquisitions to be even more significant in our next reported quarter based on strong preliminary results recorded to date."

"The strategic logic of these two transactions cannot be overstated. IndiCue brings a connected TV monetization platform serving more than 40 live clients, with an additional 75 publishers onboarding to the table. Giant Worldwide, now a Matchpoint™ company, brings deep and long-standing studio relationships directly into our automated media services ecosystem. Combined, all of this creates a powerful flywheel: Matchpoint's automated content supply chain feeds IndiCue's monetization engine, and IndiCue's advertiser demand increases the value of every channel, film and TV title and partner we serve. That flywheel — not any single film or streaming channel or distribution agreement — is the growth and performance engine behind our fiscal 2027 guidance of $115 to $120 million in revenue and $10 to $20 million of Adjusted EBITDA, which we are reaffirming today."

"At the same time, our franchise film strategy continues to perform exactly as designed — high upside with minimal financial risk. Our upcoming slate includes the 20th anniversary theatrical re-release of Guillermo del Toro's Oscar-winning masterpiece Pan's Labyrinth, presented for the first time in 4K and 3D formats, in October 2026, the nationwide theatrical relaunch of the beloved Air Bud family franchise in January 2027, and the latest installment of the Wolf Creek horror franchise in March 2027. Each of these films follows the Terrifier 2 and 3 blueprint of acquiring well known IP properties with avid built-in fan bases that have high upside potential and minimal financial risk to the Company and will generate long term recurring revenues by driving viewers and subscribers to our streaming channels, and becoming valuable long term additions to our library. With the integration of our Acquisitions on track, approximately $10 million of identified annualized cost reductions and synergies — including the $2 million in SG&A reductions we completed in January — and a clear line of sight to our guidance, we believe fiscal 2027 will demonstrate the full scale, trajectory, upside potential and earnings power of the new Cineverse."

Erick Opeka, Cineverse President and Chief Strategy Officer, stated: "This quarter marks the completion of Cineverse's evolution into a platform-first entertainment company. The Giant and IndiCue acquisitions connect distribution, data, and monetization into a single, unified solution, positioning Matchpoint™ as the only full-stack streaming distribution and monetization platform for studios and global digital platforms — and we are already compounding those advantages. Subsequent to quarter-end, we unveiled Matchpoint Hex™, an AI-powered 'Human Experience' metadata layer built on the acquired IndiCue technology, launched Gorilla Comedy+ powered by Matchpoint, and expanded distribution with new Roku SVOD channels. Our SCREAMBOX horror service grew subscribers 18% year-over-year, demonstrating the durability of our fandom-channel strategy."

"At the same time, we are maintaining the cost discipline we committed to last quarter. We completed approximately $2 million in SG&A cost reductions by March 2026 and remain on track to realize the vast majority of the remaining $5.5 million of our $7.5 million cost reduction program by the end of the second quarter of fiscal 2027, while also capturing approximately $2.5 million in annualized synergies from integrating Giant into Matchpoint™. Looking ahead, we are focused on becoming a unique, truly AI-native entertainment studio, with AI playing a critical role not just in distribution and monetization and cost control, but in development and production as well."

Fourth Quarter Results

Revenues in Q4 FY 2026 increased $10.4 million, or 67%, to $26.0 million from $15.6 million in Q4 FY 2025. The growth was primarily driven by $11.6 million in advertising technology and media services revenue, contributed by the Acquisitions in their first partial quarter with the Company. The Acquisitions were finalized on January 7, 2026 and February 12, 2026, respectively, leading to the recognition of partial results during the quarter. Our next reported quarter will recognize full results for the acquired entities.

Direct operating margin for the quarter was 40%, compared to 55% in the prior year quarter, in part attributable to the effect of the integration of the Acquisitions and partially reflective of the go-forward margin profile of the combined, more diversified business.

SG&A expenses increased $6.9 million, or 127%, primarily due to a $2.2 million increase in marketing spend supporting the Company's expanded theatrical slate, $1.0 million in M&A and acquisition integration costs, and $0.6 million of stock-based compensation. The Company has already completed approximately $2.0 million of the $7.5 million in targeted annualized SG&A cost reductions announced last quarter, and expects to realize the vast majority of the remaining $5.5 million by the end of the second quarter of fiscal 2027 as it completes the integration of the Acquisitions and further leverages Cineverse Services India.

Net income attributable to common stockholders was $1.1 million, or $0.05 per diluted share, compared to $0.8 million, or $0.04 per diluted share, in Q4 FY 2025. Net income benefited from the $4.3 million bargain purchase gain on the Giant acquisition and a $2.9 million income tax benefit, primarily stemming from the IndiCue acquisition.

Adjusted EBITDA was $0.1 million compared to $4.0 million in Q4 FY 2025, primarily due to the SG&A increases related to M&A, integration and marketing costs noted above.

Full-Year Results

FY 2026 consolidated revenue was $65.7 million compared to $78.2 million in FY 2025, a 16% decrease primarily driven by the comparison to the significant prior-year theatrical and ancillary revenues generated by Terrifier 3. This decline was partially offset by the $11.6 million revenue contribution from the Acquisitions in Q4 FY 2026. Correspondingly, direct operating costs decreased $8.1 million, primarily due to lower royalty expenses.

SG&A expenses increased $15.6 million, or 56%, compared to FY 2025, primarily due to higher marketing costs associated with a greater number of theatrical releases, as well as higher M&A, acquisition integration and compensation costs related to the Acquisitions.

Net loss attributable to common stockholders was $(9.2) million, or $(0.49) per diluted share, compared to net income of $3.2 million, or $0.16 per diluted share, in FY 2025. Adjusted EBITDA was $(3.4) million compared to $13.9 million in FY 2025.

Financial Condition Overview

Operational Developments During the Quarter

Operational Developments Subsequent to Quarter-End

Conference Call

Cineverse will host a conference call at 8:30 a.m. ET (Friday, June 26, 2026), during which management will discuss the results of the fiscal fourth quarter and year ended March 31, 2026. To participate in the conference call, please use the following dial-in numbers:

North America (Toll-Free): +1 833 439 1904
North America (Local): +1 206 407 3444
Meeting ID: 778 325 053
Access Code: 313318

The conference call can also be accessed by webcast at the Investors section of the Company's website at https://events.q4inc.com/attendee/778325053. 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 powered by AI and 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 more than 66,000 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 home.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 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,




2026



2025


ASSETS


Current Assets







Cash and cash equivalents


$

3,387



$

13,941


Accounts receivable, net



38,604




15,752


Content advances



7,507




6,736


Other current assets



1,280




1,652


Total Current Assets



50,778




38,081


Property and equipment, net



3,906




2,876


Intangible assets, net



44,114




18,168


Goodwill



21,218




6,799


Content advances, net of current portion



8,215




4,053


Other long-term assets, net



2,050




2,539


Total Assets


$

130,281



$

72,516


LIABILITIES AND STOCKHOLDERS' EQUITY


Current Liabilities







Accounts payable and accrued expenses


$

39,351



$

31,109


Line of credit, net



9,435




-


Deferred consideration



13,800




2,956


Current portion of operating lease liabilities



298




187


Deferred revenue



125




183


Total Current Liabilities



63,009




34,435


Operating lease liabilities, net of current portion     



105




275


Convertible notes payable, net



12,545




—


Earnout consideration



11,250




—


Other long-term liabilities



—




14


Total Liabilities



86,909




34,724


Stockholders' Equity







Preferred stock



3,559




3,559


Common stock



199




194


Additional paid-in capital



564,105




548,405


Treasury stock, at cost



(13,158)




(12,193)


Accumulated deficit



(510,099)




(500,908)


Accumulated other comprehensive loss



(282)




(305)


Total stockholders' equity of Cineverse Corp.



44,324




38,752


Deficit attributable to noncontrolling interest



(952)




(960)


Total equity



43,372




37,792


Total Liabilities and Equity


$

130,281



$

72,516


 

CINEVERSE CORP.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except for per share data)

(Unaudited)















For the Three Months
Ended
March 31,



For the Fiscal Year
Ended
March 31,



2026



2025



2026



2025

Revenues


$

25,971



$

15,575



$

65,733



$

78,181

Operating expenses












Direct operating



15,589




7,038




30,659




38,776

Selling, general and administrative



12,259




5,396




43,308




27,684

Change in fair value of acquisition-related deferred
consideration



950




—




950




—

Depreciation and amortization



2,561




1,014




5,972




3,797

Total operating expenses



31,359




13,448




80,889




70,257

Operating (loss) income



(5,388)




2,127




(15,156)




7,924

Interest expense



(393)




(1,255)




(457)




(4,365)

Gain on bargain purchase



4,250




—




4,250




—

Other (expense) income, net



(86)




73




(137)




311

Net (loss) income before income taxes



(1,617)




945




(11,500)




3,870

Income tax benefit (expense)



2,896




(87)




2,843




(106)

Net income (loss)



1,279




858




(8,657)




3,764

Net income attributable to noncontrolling interest



(41)




(7)




(178)




(162)

Net income (loss) attributable to controlling interests



1,238




851




(8,835)




3,602

Preferred stock dividends



(89)




(90)




(356)




(356)

Net income (loss) attributable to common stockholders


$

1,149



$

761



$

(9,191)



$

3,246

Net income (loss) per share attributable to common stockholders:












  Basic


$

0.06



$

0.04



$

(0.49)



$

0.18

  Diluted


$

0.05



$

0.04



$

(0.49)



$

0.16

Weighted average shares of common stock outstanding:












  Basic



20,476




15,958




18,777




15,814

  Diluted



24,438




18,518




18,777




17,818

 

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
March 31,



For the Fiscal Year Ended
March 31,




2026



2025



2026



2025


Net income (loss)


$

1,279



$

858



$

(8,657)



$

3,764


Add Backs:













Income tax (expense) benefit



(2,896)




87




(2,843)




106


Depreciation and amortization



2,690




1,355




6,355




4,138


Interest expense



393




1,255




457




4,365


Gain on bargain purchase



(4,250)




—




(4,250)




—


Change in fair value of acquisition-related deferred     
consideration



950




—




950




—


Stock-based compensation



1,046




462




2,987




1,925


Other expense (income), net



86




(39)




137




(311)


Net loss attributable to noncontrolling interest



(41)




(7)




(178)




(162)


Acquisition-related costs



820




—




1,423




—


Employee severance costs



—




65




214




92


Adjusted EBITDA


$

77



$

4,036



$

(3,405)



$

13,917


 

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SOURCE Cineverse Corp.