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Cineverse (CNVS)
NASDAQ:CNVS
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Cineverse (CNVS) AI Stock Analysis

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CNVS

Cineverse

(NASDAQ:CNVS)

Rating:75Outperform
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 (CNVS) vs. SPDR S&P 500 ETF (SPY)

Cineverse Business Overview & Revenue Model

Company DescriptionCineverse 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 MoneyCineverse 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 Earnings Call Summary

Earnings Call Date:Jun 27, 2025
(Q4-2025)
|
% Change Since: 39.00%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Positive
The earnings call for Cineverse highlighted significant growth in revenue and net income, driven by successful film releases and expansion in streaming and podcasting. The company also reported strong operational margins and promising advancements in technology and AI. However, challenges remain in the programmatic advertising market and FAST channel segments. Overall, the sentiment is positive with strong financial performance and strategic growth initiatives outweighing the challenges.
Q4-2025 Updates
Positive Updates
Record-Breaking Quarter and Year
Cineverse reported the best quarter in the company's history for Q3 with over $41 million in total revenues and a net income of $7.2 million. For Q4, the company achieved a revenue of $15.6 million, a 58% increase over the prior year, and net income of $858,000, a $15.5 million increase over the previous year.
Strong Full-Year Financial Performance
For fiscal year 2025, Cineverse reported total revenues of $78.2 million, a 59% increase over last year. Total full-year net income was $3.8 million, and total full-year adjusted EBITDA was $13.9 million, a 216% increase over last year.
Operational Margin Improvements
The direct operating margin for Q4 was 55%, exceeding the guidance range of 45% to 50%, attributed to cost optimization initiatives. SG&A expenses were reduced by $1.4 million compared to the prior year.
Successful Film Releases and Strategic Slate
The release of 'Terrifier 3' contributed significantly to revenue. Upcoming releases include 'The Toxic Avenger', 'Silent Night, Deadly Night', and 'Return to Silent Hill', all with investments of less than $5 million.
Expansion of Streaming and Podcasting
Streaming engagement increased with over 3.2 billion minutes streamed, a 45% increase year-over-year. Subscriber growth was reported at 4% year-over-year. Podcast revenues were up 57% over the prior year with new licensing agreements.
Technology and AI Initiatives
The company has focused on its proprietary streaming content management and AI technology. Matchpoint and cineSearch are positioned as valuable assets for major studios, with prospects for significant revenue from these technologies.
Negative Updates
Pressure on Programmatic Advertising
The programmatic advertising environment remained depressed due to companies pulling back on discretionary advertising spend, affecting overall revenue from these channels.
Challenges in the FAST Channel Market
The growth in competitive channels from studios has put pressure on CPMs and fill rates, affecting the short to mid-term revenue from FAST channels.
Company Guidance
In the Cineverse Fourth Quarter and Fiscal Year 2025 Financial Results Conference Call held on June 27, 2025, the company highlighted its continued financial and operational success. Total revenue for the fourth quarter was $15.6 million, marking a 58% increase over the prior year, while the net income saw a substantial rise to $858,000, a $15.5 million improvement. Adjusted EBITDA increased by 158% to $4 million. The direct operating margin was reported at 55%, exceeding the target range of 45% to 50%. For the full fiscal year, Cineverse achieved a 59% revenue growth, totaling $78.2 million, with net income at $3.8 million and adjusted EBITDA at $13.9 million, a 216% increase from the previous year. The company attributed its strong results to multiple revenue streams, notably from streaming, digital, and podcast sectors, and highlighted the significant impact of the film Terrifier 3. Looking forward, Cineverse plans to expand its theatrical slate, enhance its technology offerings like Matchpoint and cineSearch, and grow its podcast network, aiming for a high-growth, high-profit, and low-risk business model.

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
Positive
Last Price5.81
Price Trends
50DMA
4.60
Positive
100DMA
3.86
Positive
200DMA
3.58
Positive
Market Momentum
MACD
0.49
Positive
RSI
56.76
Neutral
STOCH
19.08
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 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 (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$102.14M39.4210.01%59.13%
62
Neutral
$42.18B-1.56-12.06%2.81%2.10%-71.01%
58
Neutral
$102.30M-6.03%12.18%5.88%
48
Neutral
$84.74M154.70%-3.41%-18.54%
44
Neutral
$46.11M-540.12%-7.36%18.52%
40
Neutral
$31.13M-270.84%88.72%-85.53%
39
Underperform
$73.00M-26.23%1.52%-439.93%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CNVS
Cineverse
5.81
5.01
626.25%
GAIA
Gaia
4.07
-1.00
-19.72%
AGAE
Allied Gaming & Entertainment
1.94
0.51
35.66%
RDI
Reading International
1.34
-0.06
-4.29%
LVO
LiveOne
0.73
-0.91
-55.49%
ANGH
Anghami Inc.
0.45
-0.53
-54.08%

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.

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.

Executive/Board Changes
Cineverse Updates Executive Employment Agreements
Neutral
May 7, 2025

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.

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: Jul 22, 2025