Cineverse (CNVS) Q2 2025 earnings summary

Executive summary

• Q2 revenue was $12.7 million, up 20% year-over-year excluding non-recurring digital cinema revenue, and up 40% sequentially from Q1.

• Direct operating margin reached 51%, surpassing guidance, with positive adjusted EBITDA of $0.5 million.

• Net loss attributable to common stockholders was $1.4 million ($0.09 per share), compared to $0.4 million ($0.04 per share) last year, mainly due to the absence of prior year non-recurring digital cinema revenue.

• Terrifier 3, released after Q2, became a record-breaking box office hit with over $54 million domestic revenue on under $1 million marketing spend, expected to drive significant future profits.

• Leveraged proprietary ecosystem—streaming, social, podcast, and ad tech—to drive cost-efficient marketing and audience engagement.

Financial highlights

• Q2 revenue was $12.7 million, up 20% year-over-year (excluding $2.4 million non-recurring digital cinema revenue from prior year), and up 40% sequentially.

• Adjusted EBITDA was $0.5 million, compared to $2.4 million in the prior year quarter.

• SG&A expenses decreased 7% year-over-year, with annualized savings of $11.4 million over six quarters.

• Cash and equivalents at quarter-end were $2.4 million, with $2.9 million to $4.7 million drawn on a $7.5 million facility.

• Licensing revenue from Dog Whisperer with Cesar Millan channel was $1.6 million.

Outlook and guidance

• Terrifier 3 expected to generate over $20 million in theatrical revenue in Q3, with further upside from digital, DVD/BluRay, and streaming.

• Management anticipates Terrifier 3 profits and cash flow will support a self-funding balance sheet, reducing the need for outside equity capital.

• SG&A to remain flat or decline as a percentage of revenue.

• Cash and available credit are expected to be sufficient to support operations for at least twelve months from the filing date.

• No plans to raise outside equity capital; anticipate operating cash flow positive for full fiscal year 2025.