Cineverse Corp. (NASDAQ: CNVS) Q4 2025 Earnings | 6/27/2025

Cineverse Q4 2025: Record-Breaking Quarter Driven by Terrifier 3, Strategic Reorganization, and AI Focus

Cineverse Corp. announced strong fourth quarter and fiscal year 2025 results, with significant growth across all key financial measures. The company attributed this success, particularly, to the "unprecedented success of Terrifier 3" and is now moving to capitalize on this momentum through strategic reorganization and increased focus on its proprietary technology and a wide theatrical release business.

Q4 and Full-Year Fiscal 2025 Financial Highlights:

• Q4 Total Revenue: $15.6 million, a 58% increase ($5.7 million) over the prior year.

• Q4 Net Income: $858,000, a $15.5 million increase over the prior year.

• Q4 Adjusted EBITDA: $4 million, a 158% increase ($2.4 million) over the prior year.

• Total Direct Operating Margin (Q4): 55%, well above the target of 45-50%.

• Full-Year FY25 Revenue: Increased 59% to $78.2 million.

• Full-Year FY25 Net Income: $3.8 million.

• Full-Year FY25 Adjusted EBITDA: $13.9 million, a 216% increase ($9.5 million) over last year.

• SG&A Expenses (Q4): $5.4 million, a decrease of $1.4 million year-over-year, and improved to 35% of revenues (from 69% prior year).

• Cash & Equivalents: $13.9 million as of March 31, 2025, with no outstanding debt on its working capital facility.

• Net Cash from Operations (FY25): $18.5 million, a $29.1 million improvement over the prior year.

• Content Library Valuation: Valued at $40 million, almost entirely off-balance sheet, suggesting undervaluation of the stock.

Strategic Reorganization and Growth Pillars:

Cineverse has implemented a significant reorganization to accelerate growth and capitalize on its assets:

• Cineverse Technology Group: Formed as a separate business unit, led by Tony Huidor (President and Chief Product Officer). This move focuses on Matchpoint licensing and the development of new AI-based products like CineSearch (an industry-leading AI search tool developed with Google). The goal is for Cineverse to become the first truly AI-forward entertainment company.

  • Matchpoint: Reached advanced maturity and is now targeting major Hollywood studios and media companies. Currently in two RFPs and fast-tracked for a pilot with one major studio, potentially leading to mid-seven-figure annual revenue. It aims to solve the industry's reliance on manual, fragmented content delivery workflows.

  • CineSearch: Completed development, offering superior content recommendations with a "depth of understanding that large AI models lack." Will be licensed as a full product, and CineCore (proprietary film dataset) as a standalone dataset.

  • Internal AI Transformation: Initiative to fully transform the company into a "next-generation studio" by utilizing agentic AI across all departments for automation and scaling output.

• Dedicated Theatrical Motion Pictures Division: Led by Yolanda Macias (Chief Motion Pictures Officer), this division will build and release a wide slate of theatrical movies, leveraging the successful "Terrifier blueprint."

  • Upcoming Franchise Releases (FY26):

    • The Toxic Avenger: (August 29th) Produced by Legendary Films, starring Peter Dinklage, Kevin Bacon, Elijah Wood. All-in cash investment under $5 million, expected to yield similar financial return to Terrifier 3 at half the box office performance.

    • Silent Night, Deadly Night: (December 12th) Reinterpretation of the classic horror film, investment also under $5 million.

    • Return to Silent Hill: (January 23, 2026) Latest installment of the video game franchise, investment under $5 million.

  • All planned wide releases have investments under $5 million, are based on well-known franchise IP, and will leverage Cineverse's unique ecosystem (streaming channels, podcast network, social media, AI tools, ad sales tech).

Operating and Strategic Growth Initiatives:

• Content Licensing & Distribution:

  • Terrifier 3 Ancillary: Continued strong transactional and home entertainment revenues. Secured concurrent windowing deals with Amazon and Peacock while preserving a window on Cineverse's own services, maximizing revenue and subscriber growth for ScreenBox (up 31% since T3's home premiere).

  • Expanded footprint with FAST channel launches (Google TV FreePlay, international rollout of brands like Dog Whisperer).

• Podcasting: Cineverse Podcast Network grew rapidly (up 57% year-over-year) with a diverse content slate (62 current shows, 4 new original series in development). Focusing on premium, high-quality shows for direct sales, with CPMs higher than CTV. Partnering with WITS for a major push into comedy. Exploring health, wellness, and family segments.

• Streaming Channels:

  • Over 3.2 billion minutes streamed across owned and operated services in Q4 (up 45%).

  • Subscribers grew 4% year-over-year to 1.42 million.

  • Strong momentum from ScreenBox (top 4 horror service in North America) and the new Cineverse channel on Amazon (30% month-over-month subscriber growth).

  • Focusing investments on four flagship services with scale potential: ScreenBox, Dove, Fandor, and Midnight Pulp.

  • FAST channels facing pressure on CPMs and fill rates due to market oversupply and macro environment; focusing on direct sales, C360, and private marketplace deals.

• Advertising:

  • Becoming a "must-buy destination" for entertainment marketers, working with major studios and brands (Sony Pictures, Expedia, Hulu, Warner Bros., Progressive, Universal Pictures, etc.).

  • Offers a full 360-degree strategy (CTV, mobile, display, podcasts, live events).

  • C360 (proprietary ad platform): Strongest quarter to date (290% YOY revenue growth). Integrates with Trade Desk and CineCore for revolutionary targeting.

• YouTube and Social Video: Managing nearly 24 million social followers. Built a low seven-figure business by placing premium content on YouTube, leveraging its position as the #1 platform by watch time.

• Short-Form Content: Exploring high-growth formats like scripted microdramas and short-form video (global market $34 billion, growing 32% annually).

• Future Content Licensing: Robust theatrical slate will drive licensing value of its vast catalog. Strong position to secure an output deal with a major streaming company. Actively engaged in dialogues to license content for AI training.