Cineverse (NASDAQ:CNVS) Announces Earnings Results

Cineverse (NASDAQ:CNVS) issued its quarterly earnings results on Tuesday. The company reported ($0.05) EPS for the quarter, missing analysts’ consensus estimates of ($0.03) by ($0.02), FiscalAI reports. The company had revenue of $16.29 million during the quarter, compared to the consensus estimate of $20.00 million. Cineverse had a negative return on equity of 27.55% and a negative net margin of 16.67%.

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

• Management closed two transformative acquisitions — Giant Worldwide and IndiCue — that the company says will immediately add scale and make Cineverse an AI-powered, end‑to‑end media infrastructure and monetization provider, with the deals expected to contribute in excess of $50 million of revenue and $10 million of Adjusted EBITDA to fiscal 2027.
• Cineverse reported operational improvement in the quarter: revenues of $16.3M, a jump in direct operating margin to 69% (from 48% a year ago), and adjusted EBITDA of $2.4M — a $6M sequential improvement — driven by cost reductions and leverage of its India operations.
• The Giant deal was an asset purchase for $2M (only $350k paid at close) that management conservatively expects to generate $15–17M of revenue and $3.5–4M of Adjusted EBITDA in FY2027 and to realize 60–70% short‑term efficiency gains when integrated with Matchpoint.
• IndiCue was acquired for $22M base consideration ( $12.8M paid at close, $9.2M deferred within a year) with total consideration potentially rising to $40M via earn‑outs; IndiCue is projected to contribute ~>$38M revenue and ~$7M Adjusted EBITDA for FY2027 and was financed largely with $13M of convertible notes from existing shareholders (no warrants) plus a $3.2M share sale.
• Risks remain: IndiCue historically had customer concentration (management says it’s improving), integration and realization of synergies are early, and liquidity is limited entering the deals (quarter‑end cash $2.5M and $4.2M revolver availability), creating near‑term execution and funding risk.

Cineverse Price Performance

Cineverse stock traded up $0.26 during trading hours on Thursday, hitting $3.23. The stock had a trading volume of 281,212 shares, compared to its average volume of 330,244. The stock has a market capitalization of $61.85 million, a price-to-earnings ratio of -6.10 and a beta of 1.66. Cineverse has a 1-year low of $1.77 and a 1-year high of $7.39. The stock’s fifty day moving average is $2.14 and its two-hundred day moving average is $3.05.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on CNVS shares. Alliance Global Partners reaffirmed a “buy” rating on shares of Cineverse in a research report on Wednesday. Benchmark reissued a “speculative buy” rating on shares of Cineverse in a research note on Monday, November 17th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Cineverse in a research note on Monday, December 29th. Wall Street Zen lowered shares of Cineverse from a “hold” rating to a “sell” rating in a report on Saturday, October 25th. Finally, UBS Group set a $9.00 price target on Cineverse in a report on Friday, October 24th. Two analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat, Cineverse presently has an average rating of “Hold” and an average price target of $9.00.

Insider Buying and Selling

In other Cineverse news, insider Erick Opeka purchased 30,000 shares of the firm’s stock in a transaction dated Tuesday, February 17th. The stock was acquired at an average cost of $2.00 per share, with a total value of $60,000.00. Following the acquisition, the insider owned 224,146 shares of the company’s stock, valued at approximately $448,292. This represents a 15.45% increase in their position. The purchase was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Yolanda Macias bought 30,000 shares of the stock in a transaction that occurred on Tuesday, February 17th. The shares were purchased at an average cost of $2.00 per share, for a total transaction of $60,000.00. Following the completion of the acquisition, the insider owned 121,760 shares of the company’s stock, valued at $243,520. This trade represents a 32.69% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders have bought 187,500 shares of company stock valued at $375,000. 13.30% of the stock is owned by insiders.

Hedge Funds Weigh In On Cineverse

Several large investors have recently bought and sold shares of CNVS. Prelude Capital Management LLC raised its holdings in 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 acquiring an additional 4,037 shares during the period. Founders Financial Securities LLC raised its holdings in Cineverse by 38.5% during the 3rd quarter. Founders Financial Securities LLC now owns 18,000 shares of the company’s stock worth $60,000 after purchasing an additional 5,000 shares during the last quarter. Geode Capital Management LLC grew its stake in Cineverse by 4.3% during the fourth quarter. Geode Capital Management LLC now owns 168,711 shares of the company’s stock worth $356,000 after purchasing an additional 6,952 shares during the period. Dimensional Fund Advisors LP increased its stake in Cineverse by 11.5% in the fourth quarter. Dimensional Fund Advisors LP now owns 78,936 shares of the company’s stock valued at $166,000 after purchasing an additional 8,155 shares in the last quarter. Finally, Osaic Holdings Inc. raised its position in shares of Cineverse by 61.3% during the second 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. 8.19% of the stock is currently owned by institutional investors and hedge funds.

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.