Cineverse Corp. (CNVS)
NASDAQ:CNVS
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Cineverse
(NASDAQ:CNVS)
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Rating:55Neutral
Price Target:
$2.50
▲(1.63% Upside)
Action:ReiteratedDate: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
Transformative Acquisitions
The combined Giant and IndiCue deals materially increase recurring revenue and EBITDA scale, accelerating Cineverse’s pivot from ad hoc theatrical swings to a platform + services model. This adds diversified, repeatable cash flows and cross-sell opportunities that can sustain growth beyond 2–6 months if integrations hold.
Negative Factors
Revenue Volatility and Decline
Steep TTM revenue decline and historical swings (e.g., theatrical-driven revenue spikes) highlight an inconsistent top‑line base. Until recurring, tech-driven streams meaningfully scale, forecasting and margin visibility remain poor, making sustainable operating performance reliant on successful execution of the acquisitions.
Read all positive and negative factors
Positive Factors
Negative Factors
Transformative Acquisitions
The combined Giant and IndiCue deals materially increase recurring revenue and EBITDA scale, accelerating Cineverse’s pivot from ad hoc theatrical swings to a platform + services model. This adds diversified, repeatable cash flows and cross-sell opportunities that can sustain growth beyond 2–6 months if integrations hold.
Read all positive factors
Cineverse (CNVS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$52.39M
Dividend YieldN/A
Average Volume (3M)139.89K
Price to Earnings (P/E)―
Beta (1Y)1.35
Revenue Growth77.29%
EPS Growth97.98%
CountryUS
Employees176
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)-0.05
Shares Outstanding21,294,867
10 Day Avg. Volume140,346
30 Day Avg. Volume139,891
Financial Highlights & Ratios
PEG Ratio-0.13
Price to Book (P/B)1.29
Price to Sales (P/S)0.64
P/FCF Ratio3.08
Enterprise Value/Market Cap1.11
Enterprise Value/Revenue1.05
Enterprise Value/Gross Profit1.95
Enterprise Value/Ebitda-26.24
Forecast
1Y Price Target
$11.00Price Target Upside347.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.07
Revenue Forecast (FY)$85.23M
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 (SVO...
How the Company Makes Money
Cineverse makes money primarily by monetizing film and TV content through a mix of (1) advertising-supported streaming, (2) subscription and transactional digital viewing, and (3) content licensing and distribution services. Advertising revenue is...
Cineverse Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jun 25, 2026
Earnings Call Sentiment Positive
The call outlined a clear strategic pivot anchored by two transformative acquisitions (Giant Worldwide and IndiCue) that materially increase recurring revenue, EBITDA and product capability—positioning Matchpoint as a unified content delivery and monetization platform. Management highlighted meaningful operational progress (improved margins, adjusted EBITDA improvement, audience and subscriber growth, initial cost-savings realized) and early post-acquisition traction (efficiency gains, outsized order increases at Giant). Key near-term risks remain: a steep YoY revenue decline driven by last year’s theatrical results, a thin cash position entering the quarter, integration and earnout/financing complexity, and the need to fully convert manual workflows to software-like margins. On balance, the positives from high-accretion acquisitions, improved operating metrics, and a credible execution plan outweigh the lowlights, though execution risk and liquidity should be monitored closely.Positive Updates
Transformative Acquisitions Planned and Closed
Closed two strategic acquisitions (Giant Worldwide and IndiCue) after quarter end that are expected to add in excess of $50M of revenue and $10M of adjusted EBITDA for fiscal 2027. Giant was acquired as an all-cash asset purchase for $2.0M (with $350K initial payment and $1.65M deferred), and IndiCue was acquired for base consideration of $22M (with potential earnouts up to $40M).
Negative Updates
Year-Over-Year Revenue Decline
Reported revenue of $16.3M was down from $40.7M in the same quarter last year (≈ -60.0% YoY). Management attributed the prior-year period’s higher revenue to theatrical results from Terrifier 3 (> $20M).
Read all updates
Q3-2026 Updates
Positive
Negative
Transformative Acquisitions Planned and Closed
Closed two strategic acquisitions (Giant Worldwide and IndiCue) after quarter end that are expected to add in excess of $50M of revenue and $10M of adjusted EBITDA for fiscal 2027. Giant was acquired as an all-cash asset purchase for $2.0M (with $350K initial payment and $1.65M deferred), and IndiCue was acquired for base consideration of $22M (with potential earnouts up to $40M).
Read all positive updates
Company Guidance
Cineverse guided to $115–$120 million of revenue and $10–$20 million of adjusted EBITDA for fiscal 2027 (FY27 begins April 1, 2026), driven by two post‑quarter acquisitions that management expects to add in excess of $50 million of revenue and $10 million of adjusted EBITDA in FY27: Giant (a $2.0M asset purchase with $350k paid at close and $1.65M deferred) is forecast to contribute roughly $15–$17M of revenue and $3.5–$4M of adjusted EBITDA, and IndiCue (base consideration $22M with $12.8M paid at closing, potential earnouts to $40M, financed with $13M of convertible notes) is expected to contribute ~ $38M of revenue and roughly $7M of adjusted EBITDA for FY27 (management also cited IndiCue calendar‑’26 economics of ~$38M revenue and ~$9.6M EBITDA, ~25% margin); the guide builds on recent operational momentum (Q3 revenue $16.3M, adjusted EBITDA $2.4M, a $6M sequential improvement; direct operating margin 69% vs. 48% LY), $2.5M cash and $4.2M revolver availability, and planned cost savings of $7.5M (about $1.9M realized to date).Cineverse Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
66
Positive
Cash Flow
34
Negative
| 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
Neutral
2.46
Price Trends
2.50
Negative
2.40
Positive
3.38
Negative
Market Momentum
-0.06
Negative
47.40
Neutral
49.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNVS, the sentiment is Neutral. The current price of 2.46 is below the 20-day moving average (MA) of 2.46, below the 50-day MA of 2.50, and below the 200-day MA of 3.38, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 47.40 is Neutral, neither overbought nor oversold. The STOCH value of 49.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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% | |
56 Neutral | $69.69M | -20.19 | -5.18% | ― | 12.98% | 27.93% | |
55 Neutral | $52.39M | -10.97 | -24.20% | ― | 77.29% | 97.98% | |
52 Neutral | $54.05M | -3.34 | 128.06% | ― | -32.17% | -135.06% | |
42 Neutral | $11.54M | -1.64 | -35.18% | ― | -14.24% | -104.12% | |
41 Neutral | $38.57M | -1.69 | 100.56% | ― | 7.11% | 69.85% | |
41 Neutral | $35.17M | -0.36 | -270.84% | ― | 88.72% | -85.54% |
* Communication Services Sector Average
CNVS
Cineverse
2.46
-0.06
-2.38%
GAIA
Gaia
2.79
-0.60
-17.70%
AGAE
Allied Gaming & Entertainment
0.31
-0.57
-65.23%
RDI
Reading International
1.08
-0.11
-9.24%
LVO
LiveOne
4.64
-2.20
-32.14%
ANGH
Anghami Inc.
3.88
-2.02
-34.24%
Cineverse Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Cineverse Closes IndiCue Acquisition to Expand Streaming Infrastructure
Positive
Feb 17, 2026
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 performa...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Cineverse Acquires IndiCue to Boost CTV Monetization
Positive
Feb 12, 2026
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 advertisi...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Cineverse Acquires Giant Worldwide to Bolster AI Media Services
Positive
Jan 13, 2026
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. Th...
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.