Cineverse Reports Second Quarter Fiscal Year 2027 Results

Chris McGurk, Chairman and CEO of Cineverse

“We had a very strong quarter again both operationally and financially. Our revenues increased by 110% versus the prior year quarter, driven largely by the significant positive impact of the two acquisitions we closed in the fourth quarter of fiscal 2026, IndiCue and Giant Worldwide.”

Chris McGurk, Chairman and CEO of Cineverse

“Adjusted EBITDA was $1.7 million, a $5.4 million increase and our third consecutive quarter with positive and growing results.”

Chris McGurk, Chairman and CEO of Cineverse

“Net income was $3.2 million or $0.11 per diluted share, a $0.42 increase over the prior year quarter.”

Chris McGurk, Chairman and CEO of Cineverse

“Importantly, we generated these results in one of our slowest seasonal quarters.”

Chris McGurk, Chairman and CEO of Cineverse

“And this momentum is continuing: We generated over $10 million in revenues in September and preliminarily estimate total revenues of approximately $15 million in October, our biggest revenue month since the release of Terrifier 3 two years ago.”

Chris McGurk, Chairman and CEO of Cineverse

“Clearly, the positive impact of the acquisitions of Giant Worldwide and IndiCue is being significantly registered this quarter across the entire Company, as our technology business now represents the majority of Cineverse's revenue.”

Chris McGurk, Chairman and CEO of Cineverse

“We have seen enormous value from the technology platforms, customer relationships, and expert leadership brought to Cineverse through these acquisitions, with Advertising Technology and Media Services being the largest factor in more than doubling our quarterly revenue compared to the same period last year.”

Chris McGurk, Chairman and CEO of Cineverse

“Based on this quarter's results and clear forward momentum, we reaffirm our full year Fiscal 2027 guidance of $115 to $120 million in total revenues and $10 to $20 million in Adjusted EBITDA.”

Chris McGurk, Chairman and CEO of Cineverse

“We are very pleased to nominate Dr. Samrat Ganguly for election to our Board of Directors.”

Chris McGurk, Chairman and CEO of Cineverse

“Dr. Ganguly, a former long term Apple global infrastructure leader, is a technology pioneer and the founder behind the Matchpoint platform.”

Chris McGurk, Chairman and CEO of Cineverse

“Dr. Ganguly is now an AI infrastructure entrepreneur who will help Cineverse plan and execute our technology and AI future.”

Chris McGurk, Chairman and CEO of Cineverse

“On the entertainment content side of the business, just this morning, which happens to be Friday the 13th, we announced that we have secured North American rights to the newest feature film in the Jason Universe, bringing one of the greatest horror film icons of all time, the legendary Jason Voorhees, back to theaters for the 13th installment of this hugely successful film series.”

Chris McGurk, Chairman and CEO of Cineverse

“This should be another high impact theatrical release for us, and a tremendous addition to our library of film rights for decades to come.”

Chris McGurk, Chairman and CEO of Cineverse

“Our library was also just valued at approximately $45 million, more than seven times higher than its current book value.”

Chris McGurk, Chairman and CEO of Cineverse

“Importantly, despite the high profile and highly anticipated nature of this new Jason franchise property, which we plan to widely release in the theatrical market, we intend to fully fund it internally with no third-party capital.”

Chris McGurk, Chairman and CEO of Cineverse

“That is because of the unique aspects of our theatrical business model, the low risk, high potential return investment approach we employ, and also the low out-of-pocket economics of our marketing ecosystem.”

Erick Opeka, President and Chief Strategy Officer of Cineverse

“This quarter exactly demonstrates the strong operating leverage we built the new Cineverse to deliver.”

Erick Opeka, President and Chief Strategy Officer of Cineverse

“Revenue was seasonally lower by $4.6 million from the first quarter, and yet Adjusted EBITDA still more than tripled to $1.7 million.”

Erick Opeka, President and Chief Strategy Officer of Cineverse

“The clearest proof is SG&A. We are now carrying the overhead of two acquired companies along with the marketing spend behind our theatrical slate, and SG&A still came in at $10.1 million, $1.3 million below the prior year quarter and roughly $1.5 million below the first quarter of fiscal 2027.”

Erick Opeka, President and Chief Strategy Officer of Cineverse

“Direct operating margin expanded 300 basis points sequentially on top of that.”

Erick Opeka, President and Chief Strategy Officer of Cineverse

“Costs are coming down ahead of our strongest revenue quarters of the year, which is exactly the sequence we planned for.”

Erick Opeka, President and Chief Strategy Officer of Cineverse

“All three of our integration priorities are delivering: Our product portfolio has been consolidated into Matchpoint, and the standalone products we combined or pared are now out of our cost base.”

Erick Opeka, President and Chief Strategy Officer of Cineverse

“Giant Worldwide's packaging and delivery work is moving onto Matchpoint: the first customer migration is complete, delivering roughly 5,000 files in hours with about 40% less processing time than the manual workflow, and two more longstanding customers are next.”

Erick Opeka, President and Chief Strategy Officer of Cineverse

“Our cost reduction and synergy program has been increased to $14 million annualized, with more than $9 million implemented.”

Erick Opeka, President and Chief Strategy Officer of Cineverse

“Most of what remains is contract wind-downs, where the timing is set by negotiated exit terms, and we expect to exit the fiscal year at the full run rate.”

Erick Opeka, President and Chief Strategy Officer of Cineverse

“As a result, our studio and streaming operations, inclusive of corporate overhead, are now operating at near run-rate profitability.”

Erick Opeka, President and Chief Strategy Officer of Cineverse

“With political advertising in the current quarter, record home entertainment presales on Pan's Labyrinth, Air Bud Returns in January, and all-time horror icon Jason Voorhees joining our go forward slate, the second half of the fiscal year is where the earnings power of this Company should become fully visible.”