Cineverse (CNVS) AI Stock Analysis

• Market Cap: $102.14M
• Dividend Yield: N/A
• Average Volume (3M): 482.30K
• Price to Earnings (P/E): 39.4
• Beta (1Y): 1.52
• Revenue Growth: 59.13%
• EPS Growth: N/A
• Country: US
• Employees: 176
• Sector: Communication Services
• Sector Strength: 76
• Industry: Entertainment
• EPS (TTM): 0.04
• Shares Outstanding: 17,108,063
• 10 Day Avg. Volume: 298,066
• 30 Day Avg. Volume: 482,301
• PEG Ratio: 0.23
• Price to Book (P/B): 2.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.27
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 2.30
• Enterprise Value/Ebitda: -3.57
• 1Y Price Target: $9.50
• Price Target Upside: 63.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 75 Outperform
• Price Target: $7.00 ▲(20.48%Upside)

Cineverse's strong financial recovery, positive technical indicators, and successful strategic initiatives drive a solid overall score. The high P/E ratio indicates potential overvaluation, but current growth and sentiment remain favorable.

Positive Factors

Earnings

Cineverse beat the revised revenue estimate by almost $2 million, with all of that upside flowing through to EBITDA.

Financial Performance

Shares still trade at 7.5x conservative FY26E EBITDA and under 1x revenue, with no debt and $14 million in cash.

Revenue Streams

Revenue from advertising, subscription, licensing, and podcasting contributed to the upside, indicating strength in Cineverse's legacy divisions.

Negative Factors

Merchandising and Sales

Expectations are tempered by a combination of timing and lack of clarity around success in merchandising and physical sales contributions.

Cineverse Business Overview & Revenue Model

Company Description

Cineverse Corp. operates as a streaming technology and entertainment company. It owns and operates streaming channels, through its proprietary technology platform. The company also delivers curated content through subscription video on demand (SVOD), dedicated ad-supported (AVOD), and ad-supported streaming linear (FAST) channels, as well as social video streaming services and audio podcasts; operates OTT streaming entertainment channels. It entertains consumers worldwide by providing feature film and television programs, enthusiast streaming channels, and technology services. The company was formerly known as Cinedigm Corp. and changed its name to Cineverse Corp. in May 2023. Cineverse Corp. was incorporated in 2000 and is based in New York, New York.

How the Company Makes Money

Cineverse makes money through a multifaceted revenue model that includes subscription fees, advertising revenue, and content licensing. The company's primary revenue stream comes from subscription services, where users pay a recurring fee for access to its digital content library. Additionally, Cineverse generates income from advertising by offering ad-supported streaming options, allowing brands to reach targeted audiences. Content licensing also plays a significant role, as Cineverse licenses its content to third-party platforms and distributors, expanding its reach and monetizing its media assets. Strategic partnerships with content creators and distributors further bolster its revenue by enabling co-productions and exclusive content offerings.

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

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

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

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.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2021	Mar 2022
Income Statement
Total Revenue	78.18M	49.13M	68.03M	31.42M	56.05M
Gross Profit	39.41M	30.00M	27.90M	8.40M	30.59M
EBITDA	12.03M	-16.42M	-4.46M	-52.21M	6.41M
Net Income	3.60M	-21.41M	-9.73M	-62.82M	2.21M
Balance Sheet
Total Assets	72.52M	64.38M	88.08M	75.45M	104.64M
Cash, Cash Equivalents and Short-Term Investments	13.94M	5.17M	7.15M	16.85M	13.06M
Total Debt	462.00K	7.16M	6.21M	11.99M	749.00K
Total Liabilities	34.72M	32.23M	49.01M	59.56M	63.69M
Stockholders Equity	38.75M	33.27M	40.34M	17.24M	42.25M
Cash Flow
Free Cash Flow	16.24M	-11.66M	-10.24M	-22.62M	4.24M
Operating Cash Flow	17.41M	-10.59M	-8.97M	-20.01M	4.88M
Investing Cash Flow	-635.00K	-531.00K	-1.27M	-1.71M	-12.30M
Financing Cash Flow	-8.00M	9.14M	4.33M	24.27M	2.64M

Cineverse Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNVS, the sentiment is Positive. The current price of 5.81 is below the 20-day moving average (MA) of 6.04, above the 50-day MA of 4.60, and above the 200-day MA of 3.58, indicating a neutral trend. The MACD of 0.49 indicates Positive momentum. The RSI at 56.76 is Neutral, neither overbought nor oversold. The STOCH value of 19.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CNVS.

Cineverse Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CNVS	75 Outperform	$102.14M	39.42	10.01%	―	59.13%	―
Sector *	62 Neutral	$42.18B	-1.56	-12.06%	2.81%	2.10%	-71.01%
GAIA	58 Neutral	$102.30M	―	-6.03%	―	12.18%	5.88%
LVO	48 Neutral	$84.74M	―	154.70%	―	-3.41%	-18.54%
RDI	44 Neutral	$46.11M	―	-540.12%	―	-7.36%	18.52%
ANGH	40 Neutral	$31.13M	―	-270.84%	―	88.72%	-85.53%
AGAE	39 Underperform	$73.00M	―	-26.23%	―	1.52%	-439.93%

Cineverse Corporate Events

Cineverse Announces New Employment Agreement with Antonio Huidor

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.

The most recent analyst rating on (CNVS) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on Cineverse stock, see the CNVS Stock Forecast page.

Cineverse Updates Executive Employment Agreements

On May 1, 2025, Cineverse Corp. entered into new employment agreements with its top executives, including CEO Christopher J. McGurk, President Erick Opeka, and Chief Legal Officer Gary Loffredo. These agreements, which replace prior contracts, outline their roles, compensation, and conditions for termination or change in control, ensuring continuity in leadership and strategic direction for the company until at least April 30, 2027.