Cineverse (CNVS) Q3 2025 earnings summary

Executive summary

• Achieved record quarterly revenue of $40.7 million, up 207% year-over-year, and net income of $7.2 million, a $9.9 million increase from the prior year quarter, driven by Terrifier 3's box office success and strong performance across all business lines.

• Adjusted EBITDA reached $10.8 million, up $9 million year-over-year, with an operating margin of 48% within the targeted 45%-50% range.

• Ended the quarter with over $13 million in cash and zero debt, with $7.5 million available on the line of credit.

• Terrifier 3 became the highest-grossing non-rated film ever with $54 million at the domestic box office, catalyzing new film releasing and marketing opportunities.

• All business lines, including streaming, podcast, advertising, and content distribution, showed robust growth.

Financial highlights

• Revenue for the quarter was $40.7 million, a 207% increase year-over-year and a 220% sequential increase from the previous quarter.

• Net income was $7.2 million, adjusted EBITDA $10.8 million, and diluted EPS $0.34, all exceeding analyst consensus.

• Streaming and digital revenues grew 48% year-over-year; podcast and other revenue grew 138%.

• SG&A expenses were $9.4 million, up $3 million due to Terrifier 3, but SG&A as a percentage of revenue dropped to 23% from 48% year-over-year.

• Working capital surplus reached $6.8 million, the largest in company history.

Outlook and guidance

• Expecting a material increase in revenue for fiscal Q4 2025 compared to the prior year quarter, driven by ancillary revenues from Terrifier 3 and continued growth in podcast and advertising.

• Direct operating margin expected to remain in the 45%-50% range.

• Targeting 8-10 wide and specialty theatrical releases per year within two years, with 3-4 films planned for the coming fiscal year.

• Subscription business targeted to double growth rate to 15%-20% annually.

• No plans to issue equity for current operations; exploring credit expansion for new content investments.