Cineverse (CNVS) Q3 2026 earnings summary

Executive summary

• Completed transformative acquisitions of Giant Worldwide and IndiCue, positioning the company as a leading AI-powered technology services provider for the entertainment industry.

• Transitioned to a streaming-focused business model, with continued investment in content and technology platforms.

• Net loss attributable to common stockholders was $1.0 million for the quarter, or $(0.05) per share, compared to net income of $7.0 million in the prior-year quarter.

• Integration of Giant is progressing smoothly, with positive industry response and increased work orders.

• Streaming audience grew 10% year-over-year to 149 million viewers, with total minutes streamed up 33%.

Financial highlights

• Fiscal Q3 revenue was $16.3 million, down 60% year-over-year from $40.7 million, but up sequentially from $12.4 million.

• Adjusted EBITDA was $2.4 million for the quarter, a $6 million improvement sequentially, but down from $10.9 million in the prior year.

• Direct operating margin improved to 69% from 48% year-over-year.

• Cash and equivalents were $2.5 million at quarter-end, with $4.2 million available under the credit facility.

• Net loss for the quarter was $875,000, a $4.7 million improvement over the prior quarter.

Outlook and guidance

• Fiscal 2027 guidance projects $115–$120 million in annual revenue and $10–$20 million in Adjusted EBITDA, including impact of recent acquisitions.

• Combined acquisitions expected to contribute over $50 million in revenue and $10 million in Adjusted EBITDA for fiscal 2027.

• Revenue synergies and cost savings are expected to provide upside to guidance, with $7.5 million in cost reductions built into EBITDA guidance.

• Cost reductions of $2 million completed post-quarter; majority of $5.5 million further reductions expected in next two quarters.

• Management expects continued investment in content and technology, with a focus on revenue growth from existing and new services.