Cineverse (CNVS) AI Stock Analysis

• Market Cap: $40.79M
• Dividend Yield: N/A
• Average Volume (3M): 145.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.42
• Revenue Growth: 77.29%
• EPS Growth: 97.98%
• Country: US
• Employees: 176
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): -0.31
• Shares Outstanding: 19,150,402
• 10 Day Avg. Volume: 169,238
• 30 Day Avg. Volume: 145,780
• 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: 1.70
• Enterprise Value/Revenue: 0.87
• Enterprise Value/Gross Profit: 1.76
• Enterprise Value/Ebitda: 9.94
• 1Y Price Target: $7.50
• Price Target Upside: 252.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.3
• Revenue Forecast (FY): $67.00M

• Rating: 46 Neutral
• Price Target: $2.50 ▲(17.37% Upside)

Cineverse's overall stock score is primarily impacted by its financial challenges and bearish technical indicators. While the earnings call provided some positive insights into strategic initiatives and growth in streaming, the negative valuation metrics and technical analysis weigh heavily on the score.

Positive Factors

Revenue Growth

Sustained revenue growth indicates expanding market presence and successful content strategy, crucial for long-term business viability.

Content Library Expansion

A valuable content library enhances competitive positioning, attracting more subscribers and licensing opportunities, driving future growth.

Strategic Partnerships

New partnerships for Matchpoint technology indicate strong demand and potential for increased revenue streams, supporting long-term growth.

Negative Factors

Decline in Revenue

A decline in revenue suggests potential challenges in maintaining growth momentum, which could impact future financial performance.

Increased Net Loss

Rising losses and negative EBITDA highlight operational inefficiencies and financial strain, necessitating improved cost management.

Cash Flow Challenges

Declining cash flow growth indicates potential liquidity issues, affecting the company's ability to invest in growth and manage debt.

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

Cineverse faces substantial financial challenges, with declining revenue and profitability issues. Despite a strong equity position and manageable debt levels, negative cash flow growth and profitability ratios highlight the need for strategic improvements.

Income Statement

Cineverse's income statement reflects significant challenges. The TTM data shows a negative net profit margin of -1.49%, indicating losses. Revenue has decreased by 47.6% compared to the previous period, highlighting a declining growth trajectory. However, the gross profit margin remains relatively healthy at 50.87%, suggesting some operational efficiency. The EBIT and EBITDA margins are positive but low, at 3.29% and 8.52% respectively, indicating limited profitability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.19, suggesting manageable leverage. However, the return on equity is negative at -3.13%, reflecting poor profitability relative to shareholder equity. The equity ratio stands at 61.38%, indicating a strong equity base compared to total assets, which provides some financial stability.

Cash Flow

Cineverse's cash flow statement reveals significant issues, with a negative free cash flow growth rate of -171.99% in the TTM period. The operating cash flow to net income ratio is negative, indicating cash flow challenges. However, the free cash flow to net income ratio is positive at 1.53, suggesting that despite losses, the company is generating some free cash flow relative to its net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	79.79M	78.18M	49.13M	68.03M	56.05M	31.42M
Gross Profit	39.53M	39.41M	30.00M	27.90M	30.59M	8.40M
EBITDA	7.00M	12.03M	-16.42M	-4.46M	6.41M	-52.21M
Net Income	-1.19M	3.60M	-21.41M	-9.73M	2.21M	-62.82M
Balance Sheet
Total Assets	61.95M	72.52M	64.38M	88.08M	104.64M	75.45M
Cash, Cash Equivalents and Short-Term Investments	2.34M	13.94M	5.17M	7.15M	13.06M	16.85M
Total Debt	7.20M	462.00K	7.16M	6.21M	749.00K	11.99M
Total Liabilities	24.78M	34.72M	32.23M	49.01M	63.69M	59.56M
Stockholders Equity	38.03M	38.75M	33.27M	40.34M	42.25M	17.24M
Cash Flow
Free Cash Flow	-3.12M	16.24M	-11.66M	-10.24M	4.24M	-22.62M
Operating Cash Flow	-2.11M	17.41M	-10.59M	-8.97M	4.88M	-20.01M
Investing Cash Flow	-672.00K	-635.00K	-531.00K	-1.27M	-12.30M	-1.71M
Financing Cash Flow	2.71M	-8.00M	9.14M	4.33M	2.64M	24.27M

Cineverse Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 2.13 is below the 20-day moving average (MA) of 2.38, below the 50-day MA of 2.70, and below the 200-day MA of 3.71, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 33.95 is Neutral, neither overbought nor oversold. The STOCH value of 5.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	52 Neutral	$94.91M	-19.48	-5.63%	―	12.98%	27.93%
CNVS	46 Neutral	$40.79M	-24.68	-3.49%	―	77.29%	97.98%
RDI	44 Neutral	$40.11M	-1.67	―	―	7.11%	69.85%
LVO	43 Neutral	$55.35M	-2.02	―	―	-32.17%	-135.06%
AGAE	41 Neutral	$13.95M	-0.67	-35.18%	―	-14.24%	-104.12%
ANGH	41 Neutral	$16.58M	-0.22	―	―	88.72%	-85.54%

Cineverse Corporate Events

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.

Cineverse CFO Mark Lindsey Signs New Agreement

On September 23, 2025, Cineverse Corp. entered into a new employment agreement with its Chief Financial Officer, Mark Lindsey, effective from September 14, 2025. This agreement, which replaces a previous contract, extends until September 13, 2027, with provisions for automatic renewal. It includes an annual base salary of $350,000, a target bonus of $175,000, and restricted stock units, along with participation in executive benefit plans. The agreement outlines specific terms for termination and compensation in the event of a change in control, highlighting the company’s commitment to retaining key leadership amidst potential organizational changes.