Cineverse (NASDAQ:CNVS) Posts Earnings Results

Cineverse (NASDAQ:CNVS) posted its earnings results on Thursday. The company reported ($0.28) earnings per share for the quarter, missing analysts’ consensus estimates 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 firm had revenue of $30.59 million for the quarter, compared to analysts’ expectations 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%

Cineverse stock traded down $0.03 during mid-day trading on Thursday, hitting $2.87. The company had a trading volume of 257,750 shares, compared to its average volume of 100,519. Cineverse has a 12 month low of $1.77 and a 12 month high of $6.25. The stock’s 50 day moving average price is $2.71 and its two-hundred day moving average price is $2.57. The company has a current ratio of 0.81, a quick ratio of 0.81 and a debt-to-equity ratio of 0.32.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the company. Weiss Ratings upgraded Cineverse from a “sell (d-)” rating to a “sell (d)” rating in a research report on Wednesday, July 8th. Wall Street Zen upgraded Cineverse from a “strong sell” rating to a “hold” rating in a report on Saturday, June 27th. Alliance Global Partners reaffirmed a “buy” rating on shares of Cineverse in a research report on Friday, June 26th. Finally, Benchmark reiterated a “buy” rating on shares of Cineverse in a research note on Wednesday, June 24th. Two research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $9.00.

Hedge Funds Weigh In On Cineverse

A number of hedge funds have recently bought and sold shares of the company. StoneX Group Inc. purchased a new position in Cineverse in the fourth quarter worth about $30,000. Prelude Capital Management LLC grew its holdings in shares of Cineverse by 31.1% during the third quarter. Prelude Capital Management LLC now owns 17,037 shares of the company’s stock valued at $57,000 after buying an additional 4,037 shares during the last quarter. XTX Topco Ltd increased its position in shares of Cineverse by 57.4% during the fourth quarter. XTX Topco Ltd now owns 29,126 shares of the company’s stock valued at $61,000 after acquiring an additional 10,621 shares in the last quarter. Cubist Systematic Strategies LLC bought a new stake in shares of Cineverse during the first quarter valued at approximately $68,000. Finally, Osaic Holdings Inc. raised its holdings in Cineverse by 61.3% in the 2nd quarter. Osaic Holdings Inc. now owns 22,902 shares of the company’s stock worth $109,000 after acquiring an additional 8,700 shares during the last quarter. Institutional investors own 8.19% of the company’s stock.

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.