Cineverse (NASDAQ:CNVS) Announces Quarterly Earnings Results, Misses Expectations By $0.10 EPS

Cineverse (NASDAQ:CNVS) posted its earnings results on Thursday. The company reported ($0.28) EPS for the quarter, missing analysts’ consensus estimates of ($0.18) by ($0.10), FiscalAI reports. Cineverse had a negative net margin of 13.44% and a negative return on equity of 45.60%. The company had revenue of $30.59 million during the quarter, compared to analyst estimates 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 Stock Up 2.8%

CNVS stock traded up $0.08 during midday trading on Friday, hitting $2.95. The company’s stock had a trading volume of 204,458 shares, compared to its average volume of 246,699. The company has a quick ratio of 0.81, a current ratio of 0.81 and a debt-to-equity ratio of 0.32. Cineverse has a 52-week low of $1.77 and a 52-week high of $5.48. The firm has a market capitalization of $70.12 million, a P/E ratio of -5.67 and a beta of 1.50. The firm has a 50-day simple moving average of $2.71 and a 200-day simple moving average of $2.57.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on CNVS shares. Wall Street Zen upgraded shares of Cineverse from a “strong sell” rating to a “hold” rating in a report on Saturday, June 27th. Weiss Ratings raised Cineverse from a “sell (d-)” rating to a “sell (d)” rating in a research report on Wednesday, July 8th. Benchmark restated a “buy” rating and set a $14.00 price target (up from $12.00) on shares of Cineverse in a research note on Friday. Finally, Alliance Global Partners restated a “buy” rating on shares of Cineverse in a research report on Friday, June 26th. Two analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $11.50.

Institutional Trading of Cineverse

Hedge funds have recently modified their holdings of the stock. StoneX Group Inc. purchased a new position in Cineverse in the fourth quarter worth approximately $30,000. Prelude Capital Management LLC raised its holdings in shares of 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 purchasing an additional 4,037 shares in the last quarter. XTX Topco Ltd raised its holdings in shares of Cineverse by 57.4% in 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 in the last quarter. Cubist Systematic Strategies LLC acquired a new position in shares of Cineverse during the first quarter worth $68,000. Finally, Osaic Holdings Inc. grew its stake 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 in the last quarter. 8.19% of the stock is currently owned by institutional investors and hedge funds.

About Cineverse

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.