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Cineverse
(NASDAQ:CNVS)
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Rating:54Neutral
Price Target:
$3.00
▲(22.45% Upside)
Action:Reiterated
Date:06/28/26
The score is held down primarily by weak and volatile financial performance (renewed losses, sharply negative operating/free cash flow, and rising leverage). Offsetting these risks are strong technical momentum (price above key moving averages with positive MACD) and a generally constructive earnings-call outlook anchored by reaffirmed FY2027 revenue/EBITDA guidance and synergy/cost-save plans, though near-term margins and liquidity remain key constraints.
Positive Factors
Integrated tech-driven platform
The combination of Matchpoint, IndiCue and Giant builds a vertically integrated supply-to-monetization stack that reduces reliance on fragmented partners. This integration supports cross-selling, operational synergies, and improved yield on content monetization, creating a durable competitive advantage for monetization and distribution over the next several quarters.
Negative Factors
Negative cash generation
Material cash burn and negative operating/free cash flow increase reliance on external financing and available credit facilities, constraining investment in content and tech. Persisting negative cash generation elevates execution and liquidity risk over the coming quarters until operating cash flow turns positive or financing is secured on durable terms.
Read all positive and negative factors
Positive Factors
Negative Factors
Integrated tech-driven platform
The combination of Matchpoint, IndiCue and Giant builds a vertically integrated supply-to-monetization stack that reduces reliance on fragmented partners. This integration supports cross-selling, operational synergies, and improved yield on content monetization, creating a durable competitive advantage for monetization and distribution over the next several quarters.
Read all positive factors
Cineverse Key Performance Indicators (KPIs)
Any
Revenue by Type
Shows how much revenue comes from each part of the business—for example subscriptions, advertising, content licensing, theatrical releases, and distribution or services. Reveals which lines are driving growth, which are higher-margin or more stable, and how exposed Cineverse is to one-off or cyclical sources. Useful for judging whether the company is moving toward predictable, recurring income or relying on volatile revenue streams that can amplify downside risk.
Shows how much revenue comes from each part of the business—for example subscriptions, advertising, content licensing, theatrical releases, and distribution or services. Reveals which lines are driving growth, which are higher-margin or more stable, and how exposed Cineverse is to one-off or cyclical sources. Useful for judging whether the company is moving toward predictable, recurring income or relying on volatile revenue streams that can amplify downside risk.
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The Fly
The FlyCineverse (CNVS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$69.08M
Dividend YieldN/A
Average Volume (3M)123.07K
Price to Earnings (P/E)―
Beta (1Y)1.20
Revenue Growth-15.92%
EPS Growth-358.13%
CountryUS
Employees176
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)-0.52
Shares Outstanding23,417,020
10 Day Avg. Volume175,800
30 Day Avg. Volume123,066
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)1.02
Price to Sales (P/S)0.69
P/FCF Ratio-1.46
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue1.04
Enterprise Value/Gross Profit2.10
Enterprise Value/Ebitda-9.32
Forecast
1Y Price Target
$9.00Price Target Upside267.35% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.06
Revenue Forecast (FY)$113.65M
Cineverse Business Overview & Revenue Model
Company Description
Cineverse Corp. operates as a dynamic streaming technology and entertainment enterprise. Leveraging its proprietary, in-house technology platform, the company owns and manages a diverse portfolio of streaming channels. Its offerings encompass a wi...
How the Company Makes Money
Cineverse primarily makes money by monetizing film and TV content rights across multiple distribution windows and platforms. Key revenue streams include: (1) Advertising revenue from its ad-supported streaming channels/services (AVOD/FAST), where ...
Cineverse Earnings Call Summary
Earnings Call Date:Jun 26, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Aug 17, 2026
Earnings Call Sentiment Positive
The call highlighted material top-line acceleration driven by two strategic acquisitions, strong streaming engagement and subscriber growth, a clear technology-first positioning (Matchpoint + IndiCue + Giant) and reaffirmed FY2027 guidance. However, the quarter also showed near-term profitability and margin compression (adjusted EBITDA down to $0.1M, direct operating margin down to 40%), modest cash on hand and negative working capital (driven in part by deferred consideration), and near-term ad market CPM pressure. Management provided a clear plan for cost reductions and synergies that should improve margins through FY2027, and recurring/SaaS metrics (IndiCue ~98% NRR) underpin longer-term revenue quality. On balance, the positives from acquisitions, revenue growth, engagement, and strategic positioning materially outweigh the near-term financial and market headwinds.Positive Updates
Strong Quarterly Revenue Growth with Acquisition Contribution
Consolidated revenues of $26.0M in Q4, up 67% year-over-year (from $15.6M) and up 60% sequentially (from $16.3M). Revenues included $11.6M of partial-quarter contributions from recent acquisitions (Giant Worldwide and IndiCue).
Negative Updates
Adjusted EBITDA Compression
Adjusted EBITDA was $0.1M for the quarter, down $2.3M from $2.4M in the prior quarter, indicating near-breakeven operating performance on an adjusted basis after acquisition integration costs.
Read all updates
Q4-2026 Updates
Positive
Negative
Strong Quarterly Revenue Growth with Acquisition Contribution
Consolidated revenues of $26.0M in Q4, up 67% year-over-year (from $15.6M) and up 60% sequentially (from $16.3M). Revenues included $11.6M of partial-quarter contributions from recent acquisitions (Giant Worldwide and IndiCue).
Read all positive updates
Company Guidance
Management reaffirmed fiscal 2027 guidance of $115 million to $120 million in consolidated revenue and $10 million to $20 million in adjusted EBITDA, with management saying over 50% of those revenues will be technology‑based and durable/recurring and that margins and adjusted EBITDA should improve from Q1 to Q4 as integrations and cost saves are completed; they highlighted ~$2.5 million of anticipated annualized synergies from integrating Giant, roughly $2.0 million of SG&A reductions already realized with ~$5.5 million of the $7.5 million program remaining to be captured by end of Q2 FY27, and IndiCue’s net revenue retention of ~98%. For context they cited Q4 baselines of $26.0 million revenue (up 67% YoY and 60% sequential) with $11.6 million from acquisitions, Q4 adjusted EBITDA of $0.1 million (vs. $2.4 million prior quarter), a direct operating margin of 40% (down from 69%), net income attributable to stockholders of $1.1 million, cash of $3.4 million, a $12.5 million revolver, a $30 million ATM facility, and negative net working capital of $12.2 million (including $12.2 million deferred IndiCue consideration); key engagement metrics to drive the guidance include 1.52 million SVOD subscribers (+13% YoY), ~130 million streaming viewers (+66% YoY), and 4.4 billion minutes streamed (+58% YoY).Cineverse Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
58
Neutral
Cash Flow
33
Negative
| Breakdown | Mar 2026 | Mar 2025 | Jun 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 65.73M | 78.18M | 49.13M | 68.03M | 56.05M |
| Gross Profit | 29.10M | 39.41M | 30.00M | 31.66M | 35.16M |
| EBITDA | -6.60M | 12.03M | -16.42M | -4.46M | 6.41M |
| Net Income | -8.84M | 3.60M | -21.41M | -9.73M | 2.21M |
Balance Sheet | |||||
| Total Assets | 130.28M | 72.52M | 64.38M | 88.08M | 104.64M |
| Cash, Cash Equivalents and Short-Term Investments | 3.39M | 13.94M | 5.17M | 7.15M | 13.06M |
| Total Debt | 22.38M | 462.00K | 7.16M | 6.21M | 749.00K |
| Total Liabilities | 86.91M | 34.72M | 32.23M | 49.01M | 63.69M |
| Stockholders Equity | 44.32M | 38.75M | 33.27M | 40.34M | 42.25M |
Cash Flow | |||||
| Free Cash Flow | -30.85M | 16.24M | -11.66M | -10.24M | 4.24M |
| Operating Cash Flow | -26.50M | 17.41M | -10.59M | -8.97M | 4.88M |
| Investing Cash Flow | -14.32M | -635.00K | -531.00K | -1.27M | -12.30M |
| Financing Cash Flow | 30.24M | -8.00M | 9.14M | 4.33M | 2.64M |
Cineverse Technical Analysis
Positive
2.45
Price Trends
2.63
Positive
2.60
Positive
2.61
Positive
Market Momentum
0.10
Negative
56.15
Neutral
37.86
Neutral
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 2.45 is below the 20-day moving average (MA) of 2.80, below the 50-day MA of 2.63, and below the 200-day MA of 2.61, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 56.15 is Neutral, neither overbought nor oversold. The STOCH value of 37.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | $52.65M | -10.78 | -5.46% | ― | 7.48% | 15.04% | |
54 Neutral | $69.08M | -5.71 | -24.20% | ― | -15.92% | -358.13% | |
54 Neutral | $76.76M | -2.89 | 128.06% | ― | -32.57% | -7.51% | |
44 Neutral | $40.91M | -1.64 | 110.41% | ― | 1.12% | 35.50% | |
44 Neutral | $31.73M | -0.27 | -205.22% | ― | 27.16% | -18.55% |
* Communication Services Sector Average
CNVS
Cineverse
2.95
-3.09
-51.16%
GAIA
Gaia
2.08
-2.16
-50.94%
RDI
Reading International
1.27
<0.01
0.40%
LVO
LiveOne
5.66
-3.19
-36.02%
ANGH
Anghami Inc.
3.50
-1.50
-30.00%
Cineverse Corporate Events
Business Operations and StrategyExecutive/Board Changes
Cineverse Announces CFO Departure and Transition Consulting Role
Neutral
May 28, 2026
On April 15, 2026, Cineverse Corp. announced that Chief Financial Officer Mark Lindsey would leave his role effective May 10, 2026, and later executed a separation letter on May 21, 2026, dated as of May 8, 2026. Under this agreement, the company ...
Business Operations and StrategyPrivate Placements and Financing
Cineverse Announces Preferred Stock Exchange for Common Shares
Neutral
May 1, 2026
On April 27, 2026, Cineverse Corp. entered into an exchange agreement with preferred shareholder OCI-Cinedigm, LLC to swap 3.118 shares of Series A preferred stock for newly issued Class A common stock. The exchange, scheduled in five equal tranch...
Business Operations and StrategyExecutive/Board Changes
Cineverse Appoints Sean McCabe as New Chief Financial Officer
Positive
Apr 15, 2026
On April 15, 2026, Cineverse announced that Sean McCabe will become its Chief Financial Officer, effective April 20, 2026, succeeding current CFO Mark Lindsey, who is slated to transition into a senior financial consulting role after May 10, 2026....
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.