Cineverse (NASDAQ:CNVS) Releases Earnings Results

Cineverse (NASDAQ:CNVS) announced its earnings results on Friday. The company reported ($0.24) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.11) by ($0.13), Zacks reports. The company had revenue of $25.97 million during the quarter, compared to the consensus estimate of $22.00 million. Cineverse had a negative return on equity of 45.60% and a negative net margin of 13.44%.

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

• Cineverse reported a strong fiscal fourth quarter with $26 million in revenue, up 67% year over year, driven largely by the early contribution from its new acquisitions, Giant Worldwide and IndiCue.
• Management reaffirmed fiscal 2027 guidance of $115 million to $120 million in revenue and $10 million to $20 million in adjusted EBITDA, saying the recently acquired businesses should add more meaningfully in future quarters.
• Executives said the acquisitions are already creating a stronger business model, with a “flywheel” linking Matchpoint, Giant Worldwide, and IndiCue to drive more recurring, technology-based revenue and cross-selling opportunities.
• While engagement metrics improved sharply, the company noted adjusted EBITDA fell to $0.1 million and direct operating margin declined to 40%, reflecting acquisition integration costs and a lower near-term margin profile.
• Management highlighted strong operating momentum in streaming and ad-supported channels, including subscriber growth, record viewing minutes, and several channels hitting all-time highs, while also expecting more cost savings and synergies to support margin improvement later in fiscal 2027.

Cineverse Price Performance

CNVS stock opened at $2.97 on Wednesday. The firm’s fifty day moving average is $2.61 and its 200 day moving average is $2.45. The company has a debt-to-equity ratio of 0.32, a quick ratio of 0.95 and a current ratio of 0.81. Cineverse has a 52 week low of $1.77 and a 52 week high of $7.39. The firm has a market cap of $69.56 million, a P/E ratio of -5.71 and a beta of 1.54.

Analyst Ratings Changes

CNVS has been the subject of several analyst reports. Alliance Global Partners reiterated a “buy” rating on shares of Cineverse in a research note on Friday. Weiss Ratings restated a “sell (d-)” rating on shares of Cineverse in a research note on Wednesday, June 24th. Benchmark restated a “buy” rating on shares of Cineverse in a report on Wednesday, June 24th. Finally, Wall Street Zen raised shares of Cineverse from a “strong sell” rating to a “hold” rating in a research report on Saturday. Two investment analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $9.00.

Institutional Investors Weigh In On Cineverse

A number of large investors have recently added to or reduced their stakes in CNVS. Prelude Capital Management LLC raised its position in Cineverse by 31.1% during 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. Geode Capital Management LLC lifted its stake in Cineverse by 4.3% in the fourth quarter. Geode Capital Management LLC now owns 168,711 shares of the company’s stock worth $356,000 after acquiring an additional 6,952 shares during the period. Dimensional Fund Advisors LP lifted 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 worth $166,000 after acquiring an additional 8,155 shares during the period. Osaic Holdings Inc. boosted its holdings in Cineverse by 61.3% in the second quarter. Osaic Holdings Inc. now owns 22,902 shares of the company’s stock valued at $109,000 after acquiring an additional 8,700 shares in the last quarter. Finally, XTX Topco Ltd increased its position in Cineverse by 57.4% during the 4th quarter. XTX Topco Ltd now owns 29,126 shares of the company’s stock valued at $61,000 after purchasing an additional 10,621 shares during the period. 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.