tiprankstipranks
Trending News
More News >
Cineverse (CNVS)
NASDAQ:CNVS
Advertisement

Cineverse (CNVS) AI Stock Analysis

Compare
1,253 Followers

Top Page

CNVS

Cineverse

(NASDAQ:CNVS)

Rating:65Neutral
Price Target:
$4.50
▲(19.05% Upside)
Cineverse's overall stock score is driven by strong financial recovery and positive earnings call guidance, indicating potential for future growth. However, bearish technical indicators and a high P/E ratio suggest caution. The absence of a dividend yield and mixed advertising performance are additional concerns.
Positive Factors
Digital Segment Performance
Cineverse's key streaming and digital segment outperformed expectations, with direct sales growing 57% year over year as investment in sales capabilities began to pay off.
Transformation and Innovation
Cineverse is witnessing an acceleration in the Company’s transformation through advancements for C360 and a new innovative joint venture with Banyan, suggesting potential for a significant valuation increase.
Negative Factors
Quarterly Revenue Challenges
F1Q26 is considered the most meaningless quarter of the year due to the absence of any wide release films and disruption in the ad market, affecting revenue potential.
Valuation and Market Perception
Shares still trade at 7.5x conservative FY26E EBITDA and under 1x revenue, with no debt and $14 million in cash.

Cineverse (CNVS) vs. SPDR S&P 500 ETF (SPY)

Cineverse Business Overview & Revenue Model

Company DescriptionCineverse (CNVS) is a multimedia entertainment company that operates in the film, television, and digital content sectors. The company focuses on providing a wide range of content through its streaming platform, which includes films, series, and documentaries. Cineverse aims to cater to diverse audience preferences by offering a mix of independent and mainstream productions, as well as original content, thereby enhancing the viewing experience for its subscribers and viewers.
How the Company Makes MoneyCineverse generates revenue primarily through subscription fees from its streaming service, allowing users unlimited access to its library of content for a monthly or annual fee. Additionally, the company earns revenue through advertising on its free-tier content, where viewers can watch films and shows in exchange for viewing ads. Licensing deals with other platforms and networks also contribute to revenue, as Cineverse sells distribution rights for its content. Strategic partnerships with content creators and production studios further enhance its content library, attracting more subscribers and advertisers, ultimately boosting overall earnings.

Cineverse Earnings Call Summary

Earnings Call Date:Aug 14, 2025
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Nov 17, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong revenue and streaming growth, expansion of the theatrical slate, and positive feedback for upcoming releases. Despite the decrease in cash and increased net loss due to strategic investments, the company's initiatives and market positioning suggest future positive outcomes. Advertising performance was mixed, with growth in direct business but challenges in open market programmatic.
Q1-2026 Updates
Positive Updates
Strong Revenue Growth
Cineverse reported $11.1 million in revenue for the quarter, representing a 22% increase over the prior year quarter. The gross margin was 57%, up from 51% last year.
Increase in Streaming Metrics
Total streaming minutes viewed increased by 38% year-over-year and 20% sequentially. FAST minutes streamed were up 39%, and total streaming viewers climbed by 24%. Subscriber count grew by 5% year-over-year.
Expansion of Theatrical Slate
Cineverse added 'Air Bud Returns' to its slate and announced a 50-50 joint venture for MicroCo, a new studio for Microseries, targeting a projected $10 billion market by 2027.
Positive Reception of 'The Toxic Avenger'
The upcoming release of 'The Toxic Avenger' received positive feedback at Comic-Con, with significant marketing and distribution advantages.
Negative Updates
Decrease in Cash and Increased Net Loss
Cineverse reported a net loss of $3.5 million and adjusted EBITDA of negative $2.1 million compared to the previous year. Cash and cash equivalents decreased due to content acquisition and royalty payments.
Mixed Advertising Performance
While direct business advertising grew by 57% year-over-year, overall advertising faced headwinds from open market programmatic challenges.
Company Guidance
During the Cineverse Corp. First Quarter Fiscal Year 2026 Financial Results Conference Call, significant guidance was provided concerning the company's performance and future outlook. Revenue for the quarter reached $11.1 million, marking a 22% increase over the prior year, with a gross margin of 57%, exceeding their guidance of 45% to 50%. Despite a net loss of $3.5 million and an adjusted EBITDA of negative $2.1 million, the company anticipates strong returns in the upcoming quarters due to strategic SG&A investments. Streaming metrics were robust, with total minutes viewed at 4 billion, up 38% year-over-year, and streaming viewers increasing to 214 million, up 24%. Subscriber count rose to 1.4 million, growing by 5% year-over-year. The company also highlighted their expansion into theatrical releases, with a focus on low-risk, high-reward investments such as "The Toxic Avenger Unrated," and announced the launch of MicroCo, a new venture targeting the microseries market projected to reach $10 billion by 2027.

Cineverse Financial Statement Overview

Summary
Cineverse has shown significant improvement with strong profitability, cost management, and cash flow generation. The net profit margin turned positive, and free cash flow growth was robust. However, the decrease in the asset base may limit future growth.
Income Statement
74
Positive
Cineverse has shown significant improvement in its financial performance over the years. The gross profit margin has increased, reaching 50.4% in the latest period, indicating improved cost management. The net profit margin turned positive to 4.6% after sustained losses, reflecting a return to profitability. Revenue growth was strong at 59% compared to the previous year. EBIT and EBITDA margins improved significantly, suggesting better operational efficiency.
Balance Sheet
68
Positive
The company's debt-to-equity ratio is low at 0.01, indicating minimal reliance on debt financing. Return on equity has improved to 9.3%, showing better returns for shareholders. The equity ratio stands at 53.4%, reflecting a stable capital structure. However, the overall asset base has decreased, which may limit future growth.
Cash Flow
82
Very Positive
Cineverse demonstrated strong cash flow performance with robust free cash flow growth, turning positive from substantial previous deficits. The operating cash flow to net income ratio is high at 4.83, indicating efficient conversion of earnings into cash. The free cash flow to net income ratio is also favorable, further supporting liquidity and financial flexibility.
BreakdownMar 2025Mar 2024Mar 2023Mar 2021Mar 2022
Income Statement
Total Revenue78.18M49.13M68.03M31.42M56.05M
Gross Profit39.41M30.00M27.90M8.40M30.59M
EBITDA12.03M-16.42M-4.46M-52.21M6.41M
Net Income3.60M-21.41M-9.73M-62.82M2.21M
Balance Sheet
Total Assets72.52M64.38M88.08M75.45M104.64M
Cash, Cash Equivalents and Short-Term Investments13.94M5.17M7.15M16.85M13.06M
Total Debt462.00K7.16M6.21M11.99M749.00K
Total Liabilities34.72M32.23M49.01M59.56M63.69M
Stockholders Equity38.75M33.27M40.34M17.24M42.25M
Cash Flow
Free Cash Flow16.24M-11.66M-10.24M-22.62M4.24M
Operating Cash Flow17.41M-10.59M-8.97M-20.01M4.88M
Investing Cash Flow-635.00K-531.00K-1.27M-1.71M-12.30M
Financing Cash Flow-8.00M9.14M4.33M24.27M2.64M

Cineverse Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.78
Price Trends
50DMA
5.49
Negative
100DMA
4.40
Negative
200DMA
4.02
Negative
Market Momentum
MACD
-0.36
Positive
RSI
30.72
Neutral
STOCH
9.19
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNVS, the sentiment is Negative. The current price of 3.78 is below the 20-day moving average (MA) of 5.04, below the 50-day MA of 5.49, and below the 200-day MA of 4.02, indicating a bearish trend. The MACD of -0.36 indicates Positive momentum. The RSI at 30.72 is Neutral, neither overbought nor oversold. The STOCH value of 9.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CNVS.

Cineverse Risk Analysis

Cineverse disclosed 34 risk factors in its most recent earnings report. Cineverse reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Cineverse Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$77.25M27.699.22%77.07%
65
Neutral
$142.37M-5.74%12.22%19.18%
60
Neutral
$46.28B4.13-13.12%4.13%1.85%-42.71%
53
Neutral
$52.92M-540.12%7.59%61.22%
47
Neutral
$58.09M154.70%-18.76%-21.72%
44
Neutral
$41.82M-30.92%0.52%-225.42%
41
Neutral
$20.86M-270.84%88.72%-85.54%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CNVS
Cineverse
3.78
3.00
384.62%
GAIA
Gaia
5.66
0.75
15.27%
AGAE
Allied Gaming & Entertainment
1.02
-0.26
-20.31%
RDI
Reading International
1.50
-0.29
-16.20%
LVO
LiveOne
0.45
-1.13
-71.52%
ANGH
Anghami Inc.
3.28
-5.51
-62.68%

Cineverse Corporate Events

Executive/Board Changes
Cineverse Announces New Employment Agreement with Antonio Huidor
Neutral
May 20, 2025

On May 14, 2025, Cineverse Corp. announced a new employment agreement with Antonio Huidor, effective May 1, 2025, which supersedes the previous agreement. Under this agreement, Mr. Huidor will serve as President of Technology and Chief Product Officer, with a term ending on April 30, 2027, and an automatic one-year renewal option. The agreement outlines his compensation, including an annual base salary of $430,000, a target bonus of $301,000, and RSUs for 76,820 shares of Common Stock. The agreement also details conditions for termination and compensation in the event of a change in control, highlighting the company’s commitment to securing key leadership roles and ensuring stability in its executive team.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 03, 2025