Cineverse (CNVS) AI Stock Analysis

• Market Cap: $61.31M
• Dividend Yield: N/A
• Average Volume (3M): 363.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.29
• Revenue Growth: 77.29%
• EPS Growth: 97.98%
• Country: US
• Employees: 176
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): -0.05
• Shares Outstanding: 21,069,866
• 10 Day Avg. Volume: 876,914
• 30 Day Avg. Volume: 363,281
• PEG Ratio: -0.13
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 0.64
• P/FCF Ratio: 3.08
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 1.15
• Enterprise Value/Gross Profit: 2.13
• Enterprise Value/Ebitda: -28.68
• 1Y Price Target: $11.00
• Price Target Upside: 253.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.46
• Revenue Forecast (FY): $65.10M

• Rating: 55 Neutral
• Price Target: $3.00 ▼(-3.54% Downside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

The score is held back primarily by weak and volatile recent financial performance, including steep TTM revenue decline, current losses, and negative free cash flow. This is partially offset by improving technical momentum and a more optimistic forward outlook from the earnings call, where management provided sizable FY2027 guidance tied to the Giant and IndiCue acquisitions, albeit with meaningful liquidity and integration execution risk.

Positive Factors

Accretive CTV ad‑tech acquisition (IndiCue)

Acquiring IndiCue materially shifts Cineverse toward higher‑margin, recurring ad‑tech revenue and adds an operating ad server stack and clients. This strengthens monetization control across CTV/AVOD, supports software‑like margin expansion, and reduces reliance on one‑off theatrical swings if integration sustains revenue and EBITDA contribution.

Giant Worldwide acquisition expands services scale

Giant brings recurring studio and platform services, global operations and preferred vendor relationships, creating a larger, less cyclical services base. Combined with Matchpoint’s automation, expected efficiency gains and cross‑selling tighten Cineverse’s grip on a fragmented post‑production market and support durable service revenues.

Large owned library and audience scale

Substantial content inventory and audience scale provide a persistent foundation for ad impressions, licensing and distribution revenue. High engagement and subscriber counts create recurring demand, enable higher yield on ad inventory, and give data advantages for optimized monetization across platforms over the medium term.

Negative Factors

Sharp revenue decline and negative margins

A steep, recent revenue contraction and negative operating margins indicate structural unpredictability in core content monetization. Persistent revenue volatility undermines free cash flow visibility, complicates planning for integration investments and makes sustained profitability dependent on successful execution of acquisitions and margin initiatives.

Weak and volatile cash generation

Negative OCF and FCF over the trailing twelve months reduce internal flexibility to fund capex, platform development and integration. The prior year showed strong cash generation, but the swing to cash burn signals unreliable conversion of earnings to cash, increasing dependence on external financing for durable growth initiatives.

Tight liquidity and integration / financing risk

A thin cash runway limits the company's ability to absorb integration delays or operational setbacks. Recent deal financing includes convertible notes and earnouts, which add dilution and governance complexity. Limited liquidity combined with integration risk raises the chance that realized synergies or revenue targets are delayed or not fully captured.

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 generates revenue through multiple streams. The primary revenue model includes subscription fees from users who subscribe to its streaming service. Additionally, the company earns income through ad placements in its AVOD service, allowing free access to content while monetizing through advertisements. Another significant revenue stream comes from licensing its content library to third-party platforms and broadcasters, which further diversifies its income. Partnerships with filmmakers and content creators also contribute to its earnings, as Cineverse collaborates to distribute exclusive content, enhancing its market presence and attracting a wider audience.

Cineverse Financial Statement Overview

Summary

Operating performance is currently weak and volatile: TTM revenue fell sharply (-30.6%) with negative profitability (net margin -16.7%, EBIT margin -12.0%) and negative operating/free cash flow (OCF -$11.1M, FCF -$12.6M). The balance sheet is comparatively steadier with modest leverage (TTM debt-to-equity ~0.23), but recent losses and the swing from strong 2025 cash generation back to TTM cash burn reduce confidence in near-term fundamentals.

Income Statement

Results are volatile and have deteriorated recently. TTM (Trailing-Twelve-Months) revenue fell sharply (-30.6%) and profitability is negative (net margin -16.7%, EBIT margin -12.0%), pointing to a weak earnings profile in the most recent period. That said, the prior annual period (2025) showed a meaningful turnaround with positive net income (net margin ~4.6%) and healthy EBITDA margin (~15.4%) versus deep losses in 2024, suggesting the business can be profitable but lacks consistency.

Balance Sheet

Leverage looks manageable overall, with modest debt relative to equity in the latest TTM (debt-to-equity ~0.23) and a solid equity base versus total assets. However, balance-sheet risk rose versus the most recent annual report (2025 debt-to-equity ~0.01), and negative returns on equity in TTM reflect current losses, which can pressure equity value if sustained.

Cash Flow

Cash generation is currently weak: TTM (Trailing-Twelve-Months) operating cash flow (-$11.1M) and free cash flow (-$12.6M) are both negative, indicating the business is consuming cash. While the 2025 annual period produced strong positive operating cash flow ($17.4M) and free cash flow ($16.2M), the swing back to negative TTM suggests elevated volatility and less dependable cash conversion.

Breakdown	TTM	Mar 2025	Jun 2024	Mar 2023	Mar 2022	Jun 2021
Income Statement
Total Revenue	55.34M	78.18M	49.13M	68.03M	56.05M	31.42M
Gross Profit	29.82M	39.41M	30.00M	27.90M	30.59M	8.40M
EBITDA	-2.21M	12.03M	-16.42M	-4.46M	6.41M	-52.21M
Net Income	-9.22M	3.60M	-21.41M	-9.73M	2.21M	-62.82M
Balance Sheet
Total Assets	68.57M	72.52M	64.38M	88.08M	104.64M	75.45M
Cash, Cash Equivalents and Short-Term Investments	2.46M	13.94M	5.17M	7.15M	13.06M	16.85M
Total Debt	8.94M	462.00K	7.16M	6.21M	749.00K	11.99M
Total Liabilities	30.83M	34.72M	32.23M	49.01M	63.69M	59.56M
Stockholders Equity	38.57M	38.75M	33.27M	40.34M	42.25M	17.24M
Cash Flow
Free Cash Flow	-12.59M	16.24M	-11.66M	-10.24M	4.24M	-22.62M
Operating Cash Flow	-11.09M	17.41M	-10.59M	-8.97M	4.88M	-20.01M
Investing Cash Flow	-1.41M	-635.00K	-531.00K	-1.27M	-12.30M	-1.71M
Financing Cash Flow	8.86M	-8.00M	9.14M	4.33M	2.64M	24.27M

Cineverse Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: 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 3.11 is above the 20-day moving average (MA) of 2.27, above the 50-day MA of 2.20, and below the 200-day MA of 3.51, indicating a neutral trend. The MACD of 0.22 indicates Negative momentum. The RSI at 76.07 is Negative, neither overbought nor oversold. The STOCH value of 76.89 is Neutral, 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
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GAIA	56 Neutral	$81.89M	-16.86	-5.63%	―	12.98%	27.93%
CNVS	55 Neutral	$61.31M	-5.45	-24.27%	―	77.29%	97.98%
LVO	48 Neutral	$60.56M	―	―	―	-32.17%	-135.06%
RDI	44 Neutral	$43.35M	-1.75	―	―	7.11%	69.85%
AGAE	42 Neutral	$11.84M	-0.57	-35.18%	―	-14.24%	-104.12%
ANGH	41 Neutral	$23.57M	-0.24	―	―	88.72%	-85.54%

Cineverse Corporate Events

Cineverse Closes IndiCue Acquisition to Expand Streaming Infrastructure

On February 13, 2026, Cineverse closed the $22 million acquisition of IndiCue, Inc., a profitable connected TV advertising technology platform, in a cash and stock deal with additional earnout potential of up to $18 million tied to future performance milestones. The transaction, which follows Cineverse’s acquisition of Giant Worldwide, is intended to deepen its transition from traditional distribution into a comprehensive streaming infrastructure provider with a stronger balance sheet and higher recurring technology-driven revenue.

The IndiCue platform, expected to generate about $38 million in revenue and $9.6 million in EBITDA in 2026, will be integrated into Cineverse’s Matchpoint suite to create a near end-to-end system for content preparation, distribution, monetization, reporting and real-time performance optimization across FAST, AVOD and CTV. IndiCue’s EBITDA-positive, transaction-driven model is expected to be immediately accretive, helping position Cineverse for a materially improved financial profile and supporting projected fiscal 2027 revenue of $115–$120 million and adjusted EBITDA of $10–$20 million.

Cineverse financed the acquisition partly through the issuance on February 12, 2026 of $13 million in 9% convertible notes to existing long-term shareholders, using a portion of the proceeds to fund the cash element of the purchase price and working capital. The notes are convertible at $2.00 per share, subordinated to existing secured debt, and grant investors certain governance rights, including a non-voting board observer, while aligning financing with shareholders who back the company’s strategic shift toward high-margin streaming infrastructure.

Strategically, combining IndiCue’s monetization stack with Matchpoint’s distribution and data capabilities creates a unified execution layer that allows Cineverse and its partners to dynamically optimize ad placement and yield across a fragmented CTV landscape. Management contends this makes Cineverse one of the only independent full-stack, white-label providers unifying content delivery and ad monetization, potentially reducing vendor complexity for studios and streaming operators and enhancing its competitive position in the ad-supported streaming market.

IndiCue’s leadership team, including executives now appointed to senior revenue, technology and product roles at Cineverse under multi-year agreements, is expected to bolster both platform development and monetization of Cineverse’s owned streaming properties. With IndiCue’s infrastructure and client base, Cineverse aims to scale recurring, transaction-linked ad technology revenues while leveraging automation and real-time analytics to drive software-like margins for itself and its customers.

The most recent analyst rating on (CNVS) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Cineverse stock, see the CNVS Stock Forecast page.

Cineverse Acquires IndiCue to Boost CTV Monetization

On February 12, 2026, Cineverse Corp. agreed to acquire IndiCue, Inc., a next‑generation connected TV monetization and engagement platform serving media owners, publishers, and streaming operators that seek greater control over CTV advertising. The deal values IndiCue at $22 million, to be paid in a mix of cash at closing and additional cash or Cineverse Class A common stock subject to adjustments, post‑closing earn‑outs tied to IndiCue’s revenue and margin performance, and seller non‑competition covenants.

The IndiCue acquisition, expected to close on or about February 13, 2026, is designed to strengthen Cineverse’s advertising technology stack and deepen its role in CTV monetization infrastructure for streaming partners. To help finance the purchase and bolster working capital, Cineverse entered into note purchase agreements on February 12, 2026, issuing $13 million of four‑year, 9% convertible notes that are junior to existing secured debt, optionally convertible to equity, and partially used to fund the cash portion of the IndiCue transaction, signaling an expansion‑oriented capital structure with potential dilution for shareholders and added flexibility for institutional investors.

The most recent analyst rating on (CNVS) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Cineverse stock, see the CNVS Stock Forecast page.

Cineverse Acquires Giant Worldwide to Bolster AI Media Services

On January 7, 2026, Cineverse announced the acquisition of Giant Worldwide, a global media services provider to Hollywood studios and streaming platforms, in an all-cash deal that is immediately accretive and structured to be capital-efficient. The acquisition plugs Giant’s long-standing studio and streaming clientele, global operations in Los Angeles, New York, and Warsaw, and MPA-certified facilities directly into Cineverse’s Matchpoint platform, with Giant to be rebranded as “Giant Worldwide, A Matchpoint Company” and its management team and most staff joining Cineverse. By integrating Giant’s recurring-revenue service relationships and preferred vendor status with key digital platforms into Matchpoint’s AI-native workflows, Cineverse aims to consolidate share in a fragmented $25+ billion post-production and media services market, capture efficiency gains of 60–70%, and expand software-like margins while accelerating the transition of studio workflows from manual, human-dependent processes to automated, AI-powered orchestration. The company projects Giant Worldwide will contribute pro forma revenue of $15–17 million and EBITDA of $3.5–$4 million in fiscal 2027, with about $2.5 million in expected annualized synergies in the first year, positioning Cineverse to build a dominant, industry-leading services business as it pursues a repeatable consolidation strategy in the digital media services sector.

The most recent analyst rating on (CNVS) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Cineverse stock, see the CNVS Stock Forecast page.

Cineverse Amends Equity Plan and Elects Board Members

On November 20, 2025, Cineverse Corp. amended its 2017 Equity Incentive Plan to increase the number of shares authorized for issuance from 2,504,913 to 3,504,913. During its Annual Meeting of Stockholders on the same day, all management nominees were elected to the Board of Directors, and several proposals were voted on, including the approval of executive compensation and the ratification of EisnerAmper LLP as independent auditors for the fiscal year ending March 31, 2026. The company also decided to include an annual advisory stockholder vote on executive compensation until at least 2031.

The most recent analyst rating on (CNVS) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Cineverse stock, see the CNVS Stock Forecast page.