General Income of $12.4 Million

Direct Working Margin of 58%, a 7% Growth over Prior Moment Quarter

LOS ANGELES, Nov. 14, 2025 /PRNewswire/ — Cineverse Corp. (“Cineverse” or the “Company”) (NASDAQ: CNVS), a next-generation leisure studio, as of late introduced its monetary effects for its 2d quarter ended September 30, 2025 (“Q2 FY 2026”):

General Income declined 3% year-over-year, basically reflecting variations within the timing of earnings reputation for sure content material licensing word of honour. Within the prior-year quarter, the Corporate recorded $1.6 million from a Canine Whisperer licensing commitment, generation this quarter features a lately signed $1.1 million licensing offer for The Poisonous Avenger Unrated that might be identified in life classes. Apart from those timing results, efficiency around the Corporate’s core industry traces persisted to turn cast underlying enlargement.

Direct Working Margin advanced through 7% in comparison to the prior-year quarter. Web Loss and Adjusted EBITDA replicate larger SG&A pushed through roughly $2.3 million of promoting prices fix to the establishing of The Poisonous Avenger Unrated and ongoing investments to backup the growth of Cineverse’s theatrical slate and the build-out of its Generation staff’s industry construction, product, and gross sales features. The Poisonous Avenger Unrated is acting strongly in ancillary markets and is projected to generate an IRR of over 40%.

Next to quarter finish, Cineverse introduced some other key addition to its theatrical slate. In past due 2026, the Corporate will reissue the 20 th per annum version of Pan’s Labyrinth, the acclaimed Guillermo del Toro movie that received 3 Academy Awards and over 100 global honors. Cineverse will go back to the Cannes Movie Pageant subsequent Might for a different per annum presentation to kick off the promoting marketing campaign for a Fall 2026 extensive launch.

Q2 FY 2026 Highlights (all comparisons are to the prior yr fiscal quarter ended September 30, 2024, or Q2 FY 2025):

General quarterly earnings used to be $12.4 million as opposed to $12.7 million within the prior-year quarter, a three% cut, pushed through good points in streaming and virtual distribution, in addition to theatrical gross sales.

• Streaming and virtual revenues of $9.6 million, a (5)% cut from the prior yr earnings of $10.1 million.
• Bottom distribution earnings larger to $1.8 million, up 39% from the prior-year quarter, from $1.3 million within the prior-year quarter, basically because of theatrical launch of The Poisonous Avenger Unrated.

SG&A bills building up through $5.0 million, or 79%, to $11.4 million, reflecting larger repayment, advertising {and professional} services and products prices, on account of ramping up for an larger theatrical slate for the rest of the yr in addition to start-up prices related to our MicroCo mission. Integrated in SG&A all the way through the quarter used to be roughly $2.3 million of promoting prices related to the launch of The Poisonous Avenger Unrated.

Web loss because of familiar stockholders used to be $(5.7) million, or $(0.31) according to unsophisticated and diluted proportion, in comparison to a web lack of $1.4 million, or $(0.09) according to proportion, within the prior-year quarter. Adjusted EBITDA used to be $(3.7) million, in comparison to $0.5 million utmost yr.

Monetary Status Evaluate:

• Money and Money Equivalents of $2.3 million with $5.9 million to be had beneath the $12.5 million Order of Credit score Facility (expandable to $15 million) as of September 30, 2025.
• As of September 30, 2025, web running capital used to be $(1.3) million.
• The Corporate’s content material library, produced from greater than 66,000 titles, used to be valued as of March 31, 2025 with a Valuation Indication of $45 million, considerably above the $3.2 million store price of the library as of September 30, 2025.
• The Corporate continues to have its in the past licensed proportion repurchase program to be had which can proceed to be applied as suitable.

Operational Tendencies Right through the Quarter:

• Introduced a proposed mission with Lloyd Braun’s (former Chairman of ABC Leisure and WME) Banyan Ventures to Establishing MicroCo, a brandnew studio and platform for microseries – a marketplace projected to succeed in $10 billion through 2027. Former Showtime President Jana Winograde used to be named Co-founder and CEO, with Susan Rovner, former Chairman of NBC Common Tv and Streaming named Prominent Content material Officer.
• Cineverse familiar inventory used to be added to a couple of Russell indexes together with 3000E, Microcap, Expansion, and Worth Branchs.
• Expanded generation management staff with appointment of business veteran, Michele Edelman as EVP of Generation & Normal Supervisor of Matchpoint™.
• Introduced growth of Movement Footage Crew with addition of key executives: Steven Peros as VP, Inventive Building and Filmmaker Family members; Dan Fisher as VP, Acquisitions; and Cameron Moore as Advisor, Theatrical Distribution.
• Overjoyed fanatics at San Diego Comedian-Con with Corridor H Panel for the launch of The Poisonous Avenger Unrated – with skill appearances together with Peter Dinklage, Elijah Timber, Jacob Tremblay and a video message from Kevin publisher 1st baron verulam. Additionally debuted teaser for later extensive launch Serene Evening, Terrible Evening.
• Partnered with Liquid Loss of life, Moviefone, and nationwide non-profit Undue Clinical Debt as a part of theatrical marketing campaign for The Poisonous Avenger Unrated.
• Introduced establishing of newly-formed WITZ Podcast Community in partnership with summit comedy membership empire, The Rise Crew – that includes top-tier comedy form, together with Jay Mohr’s ‘Mohr Tales’.
• Introduced acquisition of US rights for Wind Bud Returns – the untouched installment within the iconic public franchise, in partnership with Wind Bud Leisure. Broad theatrical launch slated for summer time 2026.
• Introduced national skill seek for the subsequent Wind Bud, in partnership with Wind Bud Leisure, and invited fanatics to post canines for a prospect to be a part of certainly one of Hollywood’s maximum enduring public movie franchises – with featured protection on The Lately Display.
• Drove sturdy virtual and bodily preorders for The Poisonous Avenger Unrated – appearing Lengthy-Time period Income Alternatives.
• Introduced Historian – a brandnew channel from American Crowd Tv – with LG Channels as first FAST platform spouse.

Operational Tendencies Next to Quarter-Finish:

• Introduced Matchpoint™ 3.0 with brandnew options and brandnew logo Id.
• Gained DEG EnTech Rising Generation Award for cineSearch, Powered through Matchpoint™.
• Introduced Bloody Disgusting partnership with Veeps.com, to accomplish international livestream Halloween live performance of horror grasp and iconic composer John Chippie. The only-night-only match marks Chippie’s go back to the degree, streaming reside international on Halloween evening.
• Introduced partnership with Clarion Occasions to establishing Bloody Disgusting‘s first Horror fan conference slated for Fall 2026 — activating swamped fanatics throughout Cineverse’s owned media property to power price ticket gross sales.
• Bought unique rights to Guillermo del Toro’s vintage fiction movie Pan’s Labyrinth — to honour the 20 th per annum leveraging the Corporate’s cheap theatrical distribution fashion for a 2026 theatrical re-release. The multi-year offer contains all North American distribution rights.

Control Statement:

Chris McGurk, Cineverse Chairman and CEO, said: “Our year-over-year comparability displays variations within the timing of earnings reputation connected to content material licensing transactions. Within the prior-year duration, we identified $1.6 million from a distribution commitment for our Canine Whisperer streaming channel. This yr, we closed an important licensing commitment for The Poisonous Avenger Unrated all the way through the quarter, totaling roughly $1.1 million, for which earnings might be identified in life classes.

“Apart from the impact of those timing variations, our effects replicate cast efficiency throughout our core industry traces. Working margin expanded to 58%, an building up of seven share issues over the prior-year quarter. Adjusted EBITDA and web source of revenue had been suffering from deliberate investments in our wide-release movie industry and our Generation staff, and we predict those investments to give a contribution to life enlargement. We additionally proceed to take pleasure in value efficiencies thru our Cineverse Products and services Bharat operations.

“The Poisonous Avenger Unrated, excepted on August 29^th, didn’t carry out in addition to we had was hoping on the field place of job. Alternatively, our marketing campaign has helped generate important returns for the movie within the ancillary markets, in particular in VOD, bodily items and licensing. With an all-in acquisition and advertising launch funding of lower than $5 million, we predict the movie might be successful, with an IRR conservatively projected at over 40%. We personal the home distribution rights for the movie in endurance, and consider this is a splendid addition to our library. This efficiency additionally underscores the low chance/prime possible go back profile of our theatrical movie portfolio technique.

“Previous to quarter finish, we additionally introduced that we can be freeing the 20^th per annum version of Pan’s Labyrinth, the Academy Award successful masterpiece from acclaimed director Guillermo del Toro. Upcoming Might, to kick off the marketing campaign for a Fall 2026 launch, we plan to pluck the movie again to the Cannes Movie Pageant, the place it won the longest status ovation within the historical past of the Pageant upon its premiere in 2006. With a multi-year distribution window for this strange movie, we additionally consider it’s going to be some other sturdy addition to our library of rights.

“And our content material library of over 66,000 titles lately won an up to date sovereign valuation of $45 million, considerably above the $3.2 million store price recorded at quarter finish.

“We also continue to rapidly build out our pipeline of Matchpoint™ technology partnerships with major studio players and recently closed four of those deals.  We continue to move aggressively forward with MicroCo, our microdrama joint venture with Banyan Ventures. Expect additional significant announcements of our progress in both those businesses soon.”

Erick Opeka, Cineverse President and Prominent Technique Officer, said: “This quarter, we persisted to kill on our approach to develop Cineverse as each a generation and leisure chief generation keeping up a disciplined focal point on profitability. Our Matchpoint™ platform accomplished important momentum, including over 20 brandnew shoppers within the utmost 100 days and coming into a pilot program with a significant Hollywood studio. We also are in lively discussions with many others around the business, who’re in the hunt for platforms that may boost up integration, beef up automation, and meaningfully let go working prices. This rising adoption validates our generation management and positions us to scale successfully. We also are comparing strategic partnerships that would additional boost up growth, generation keeping up our focal point on monetary self-discipline and working leverage.

“Our microdrama platform industry, preliminarily named MicroCo, continues to progress forward of plan. We have now assembled an outstanding management staff with enjoy, having controlled greater than 50 million streaming subscribers, generating over 30 long-running tv form, and overseeing billions of bucks in content material earnings. Building is underway on our first slate of MicroCo initiatives and displays for establishing subsequent yr, supported through an important funding loyalty from a important mission capital company. We consider MicroCo can change into a significant contributor to life enlargement, and we’re managing its construction with the similar emphasis on value keep watch over and go back on funding that guides our core operations.

“On the identical generation, we’re keeping up best-in-class improper margins in our streaming and distribution industry through rationalizing SG&A thru focused efficiencies, and leveraging our Bharat-based generation and operations groups to decrease prices and beef up productiveness. Those movements, blended with a disciplined content material and launch technique, backup persisted margin development and more potent cash-flow efficiency.

“Our focus remains clear: to build a scalable, high-margin digital entertainment company that combines innovative technology with efficient content monetization. We are encouraged by the growing interest from leading Hollywood partners in our release model and technology platforms, and we remain committed to disciplined execution and long-term value creation for our shareholders.”

Convention Name

Cineverse will host a convention name at 4:30 p.m. EST/1:30 p.m. PST (Friday, November 14, 2025), all the way through which control will talk about the result of its fiscal 2d quarter ended September 30, 2025.

Name main points are as follows:

• The convention name might be obtainable on-line by way of the Cineverse Investor Family members web page, https://investor.cineverse.com.
• You’ll additionally sign in in progress to get entry to the reside convention name at: Cineverse Corp Fiscal 2026 Second Quarter Earnings Call.
• An audio recording of the convention name might be to be had for replay in a while nearest its final touch. To get entry to the replay, consult with the Occasions and Shows division of the Cineverse Investor Family members web page.

About Cineverse

Cineverse (Nasdaq: CNVS) is a next-generation leisure studio that empowers creators and entertains fanatics with a large breadth of content material throughout the energy of generation. It has advanced a brandnew blueprint for turning in leisure reports to passionate audiences, and effects for its companions with unheard of potency, and distributes greater than 66,000 top class motion pictures, form, and podcasts. Cineverse connects fanatics with daring, unique, sovereign tales. Homes come with the highest-grossing unrated film in U.S. history; dozens of streaming fandom channels; a premier podcast community; summit horror vacation spot Bloody Disgusting; and extra.  Powering visionary storytelling with state-of-the-art innovation, Cineverse’s proprietary streaming gear and AI generation power earnings and succeed in to redefine the subsequent day of leisure. For more info, consult with home.cineverse.com. 

Defend Harbor Observation

Traders and readers are cautioned that sure statements contained on this report, in addition to some statements in periodic press releases and a few oral statements of Cineverse officers all the way through displays about Cineverse, together with Cineverse’s filings with the Securities and Trade Fee, together with Cineverse’s registration statements, quarterly stories on Method 10-Q and annual file on Method 10-Okay, are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Occupation”). Ahead-looking statements come with statements which might be predictive in nature, which rely on or the following life occasions or statuses, which come with phrases corresponding to “expects,” “anticipates,” “intends,” “plans,” “may,” “would possibly,” “believes,” “seeks,” “estimates” or related expressions. As well as, any statements relating to life monetary efficiency (together with life revenues, profits, or enlargement charges), ongoing industry methods or potentialities, and conceivable life movements, that could be equipped through Cineverse’s control, also are forward-looking statements as outlined through the Occupation. Ahead-looking statements are in line with stream expectancies and projections about life occasions and are matter to numerous dangers, uncertainties, and suppositions about Cineverse, its generation, financial and marketplace components, and the industries by which Cineverse does industry, amongst alternative issues. Those statements don’t seem to be promises of life efficiency, and Cineverse undertakes disagree particular legal responsibility or purpose to replace those statements nearest the week of this launch.

For extra knowledge, please touch: 

Julie Milstead
424-281-5411
[email protected]

Adjusted EBITDA 

We outline Adjusted EBITDA as profits prior to hobby, taxes, depreciation and amortization, stock-based repayment expense, merger and acquisition prices, restructuring, transition and acquisitions expense, web, favor impairment and likely alternative pieces.

Adjusted EBITDA isn’t a dimension of monetary efficiency beneath GAAP and might not be similar to alternative in a similar way titled measures of alternative corporations. We worth Adjusted EBITDA as a monetary metric to measure the monetary efficiency of the industry, as a result of control believes it supplies extra knowledge with appreciate to the efficiency of its elementary industry actions. Because of this, we consider Adjusted EBITDA may also be helpful to others, together with our stockholders, as a worthy monetary metric.

We provide Adjusted EBITDA as a result of we consider that Adjusted EBITDA is an invaluable complement to web source of revenue (loss) from proceeding operations as a hallmark of working efficiency. We additionally consider that Adjusted EBITDA is a monetary measure that comes in handy each to control and traders when comparing our efficiency and evaluating our efficiency with that of our competition. We additionally worth Adjusted EBITDA for making plans functions, and to guage our monetary efficiency as a result of Adjusted EBITDA excludes sure incremental bills or non-cash pieces, corresponding to stock-based repayment fees, that we consider don’t seem to be indicative of our ongoing working efficiency.

We consider that Adjusted EBITDA is a efficiency measure and no longer a liquidity measure, and due to this fact a reconciliation between web source of revenue (loss) from operations and Adjusted EBITDA has been equipped within the monetary effects. Adjusted EBITDA will have to no longer be thought to be as an spare to web source of revenue (loss) from operations as a hallmark of efficiency, or as an spare to coins flows from working actions as a hallmark of money flows, in each and every case as ambitious according to GAAP, or as a measure of liquidity. As well as, Adjusted EBITDA does no longer remember adjustments in sure property and liabilities in addition to hobby and source of revenue taxes that may have an effect on coins flows. We don’t intend the presentation of those non-GAAP measures to be thought to be in isolation or as an alternative choice to effects ready according to GAAP. Those non-GAAP measures will have to be learn solely along with our consolidated monetary statements ready according to GAAP.

Following is the reconciliation of our consolidated web source of revenue (loss) to Adjusted EBITDA (in hundreds):

SOURCE Cineverse Corp.