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Cineverse Corp. Faces Financial Uncertainty Amid Goodwill Impairment Risks and Share Price Volatility

Cineverse Corp. Faces Financial Uncertainty Amid Goodwill Impairment Risks and Share Price Volatility

Cineverse Corp. (CNVS) has disclosed a new risk, in the Share Price & Shareholder Rights category.

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Cineverse Corp. faces a significant risk of goodwill impairment due to the sustained decline in its share price, which fell from $8.40 in March 2023 to $1.39 in March 2024, before partially recovering to $3.16 in March 2025. Under ASC 350, such a decline is a triggering event requiring the company to test for impairment, and it incurred a $14.0 million goodwill impairment in the year ending March 2024. Although no impairment was recognized in the year ending March 2025 due to the stock price recovery, the risk remains that further declines in share price could lead to additional impairment expenses. This ongoing volatility in share price poses a potential financial challenge for Cineverse Corp., impacting its financial health and investor confidence.

The average CNVS stock price target is $9.50, implying 83.75% upside potential.

To learn more about Cineverse Corp.’s risk factors, click here.

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