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Cineverse
(NASDAQ:CNVS)
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Rating:45Neutral
Price Target:
$2.50
▲(4.17% Upside)
Action:Reiterated
Date:09/06/26
The score is held down primarily by weak financial performance (ongoing losses and negative cash flow) and bearish technicals (below key moving averages with negative MACD). Earnings-call details provide some offset via reaffirmed guidance, integration-driven cost savings, and improved operating cash flow, but margin compression and near-term liquidity constraints remain significant risks.
Positive Factors
Strong revenue growth and recurring technology mix
The sharp revenue increase and growing technology contribution indicate broader monetization beyond traditional content licensing. A recurring technology mix and adoption by major industry customers could improve revenue durability and support scalable growth over the next several quarters.
Negative Factors
Persistent losses and negative cash generation
Cineverse is still consuming cash while reporting operating and net losses, so growth has not yet translated into self-funded expansion. Continued cash burn can increase reliance on financing and reduce flexibility to invest in content, technology, or strategic opportunities.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue growth and recurring technology mix
The sharp revenue increase and growing technology contribution indicate broader monetization beyond traditional content licensing. A recurring technology mix and adoption by major industry customers could improve revenue durability and support scalable growth 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
$53.01M
Dividend YieldN/A
Average Volume (3M)121.48K
Price to Earnings (P/E)―
Beta (1Y)1.41
Revenue Growth6.28%
EPS Growth-410.92%
CountryUS
Employees296
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)-0.59
Shares Outstanding23,771,387
10 Day Avg. Volume106,996
30 Day Avg. Volume121,480
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$9.00Price Target Upside275.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.21
Revenue Forecast (FY)$115.70M
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:Aug 13, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 16, 2026
Earnings Call Sentiment Neutral
The call highlights very strong top-line growth (revenues +175% YoY), improved streaming engagement, a return to positive adjusted EBITDA, meaningful operating cash flow improvement (+$13M YoY), and progress on integration and $13M of identified cost savings. Offsetting these positives are a sharp decline in direct operating margins (35% vs 57% prior year) largely driven by high revenue-share ad costs, an increased net loss ($5.8M), constrained near-term liquidity (cash $4.3M, negative NWC), and expected seasonal softness in Q2. Management presented concrete synergy and product monetization plans (including Vadio and theatrical releases) that support a constructive medium-term outlook, but near-term margin and liquidity pressures keep the picture balanced.Positive Updates
Revenue Growth
Total revenues of $30.6M in Q1 FY27, up 175% year-over-year from $11.1M, driven primarily by $19.4M incremental revenue from advertising technology and media services following the Giant Worldwide and IndiCue acquisitions.
Negative Updates
Decline in Direct Operating Margin
Direct operating margin declined to 35% from 57% year-over-year (a 22 percentage point drop), driven by the impact of the fourth-quarter acquisitions, a new ad-tech revenue stream with high supply partner revenue shares, and media services mix.
Read all updates
Q1-2027 Updates
Positive
Negative
Revenue Growth
Total revenues of $30.6M in Q1 FY27, up 175% year-over-year from $11.1M, driven primarily by $19.4M incremental revenue from advertising technology and media services following the Giant Worldwide and IndiCue acquisitions.
Read all positive updates
Company Guidance
Cineverse reaffirmed fiscal 2027 guidance of $115–$120 million of revenue and $10–$20 million of adjusted EBITDA while saying it expects most margin and cash benefits to materialize in Q3–Q4; in Q1 the company reported $30.6M revenue (up 175% YoY), $0.5M adjusted EBITDA (up $2.6M YoY), a $5.8M net loss, direct operating margin of 35% (vs. 57% a year ago), and improved operating cash flow by >$13M; management is targeting >$13M of annual cost and synergy upside (including >$8.3M of cuts already identified, $7.5M of which will realize this fiscal year), announced a Vadio steady‑state target of roughly a $12M run‑rate by year‑end, and expects margins to improve as the IndiCue/Giant integrations drive automation (3.39 trillion ad impressions/3.4 trillion ad opportunities in Q1), streaming growth (4.5B minutes streamed, 122.8M viewers, 1.52M SVOD subs), and seasonal box‑office and political ad tailwinds in the back half of the year; liquidity at quarter end was $4.3M cash with a $12.5M revolver and negative net working capital of $18.9M (including $18M of current deferred consideration that can be paid in equity).Cineverse Financial Statement Overview
Summary
Income Statement
36
Negative
Balance Sheet
58
Neutral
Cash Flow
29
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Jun 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 85.21M | 65.73M | 78.18M | 49.13M | 68.03M | 56.05M |
| Gross Profit | 34.05M | 29.10M | 39.41M | 30.00M | 31.66M | 35.16M |
| EBITDA | -5.17M | -6.60M | 12.03M | -16.42M | -4.46M | 6.41M |
| Net Income | -10.96M | -8.84M | 3.60M | -21.41M | -9.73M | 2.21M |
Balance Sheet | ||||||
| Total Assets | 135.16M | 130.28M | 72.52M | 64.38M | 88.08M | 104.64M |
| Cash, Cash Equivalents and Short-Term Investments | 4.32M | 3.39M | 13.94M | 5.17M | 7.15M | 13.06M |
| Total Debt | 26.07M | 22.38M | 462.00K | 7.16M | 6.21M | 749.00K |
| Total Liabilities | 95.09M | 86.91M | 34.72M | 32.23M | 49.01M | 63.69M |
| Stockholders Equity | 40.08M | 44.32M | 38.75M | 33.27M | 40.34M | 42.25M |
Cash Flow | ||||||
| Free Cash Flow | -17.73M | -30.85M | 16.24M | -11.66M | -10.24M | 4.24M |
| Operating Cash Flow | -12.97M | -26.50M | 17.41M | -10.59M | -8.97M | 4.88M |
| Investing Cash Flow | -16.34M | -14.32M | -635.00K | -531.00K | -1.27M | -12.30M |
| Financing Cash Flow | 31.66M | 30.24M | -8.00M | 9.14M | 4.33M | 2.64M |
Cineverse Technical Analysis
Negative
2.40
Price Trends
2.57
Negative
2.59
Negative
2.49
Negative
Market Momentum
-0.10
Positive
30.90
Neutral
11.16
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 2.4 is below the 20-day moving average (MA) of 2.47, below the 50-day MA of 2.57, and below the 200-day MA of 2.49, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 30.90 is Neutral, neither overbought nor oversold. The STOCH value of 11.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $160.81M | 13,300.00 | 0.06% | 12.41% | 24.86% | 98.15% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
57 Neutral | $37.94M | 8.20 | 32.16% | ― | -96.27% | ― | |
51 Neutral | $29.55M | -0.26 | -205.22% | ― | 27.16% | -18.55% | |
45 Neutral | $53.01M | -3.77 | -27.24% | ― | 6.28% | -410.92% | |
44 Neutral | $37.12M | -5.60 | -6.90% | 3.90% | 3.22% | -19.05% | |
43 Neutral | $54.02M | -2.25 | 114.87% | ― | -23.12% | 13.43% |
* Communication Services Sector Average
CNVS
Cineverse
2.21
-1.19
-35.00%
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TOON
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0.61
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LVO
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3.99
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-30.60%
CURI
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2.66
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ANGH
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3.38
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4.49%
Cineverse Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Cineverse Secures New Loan for Film Distribution Financing
Positive
Sep 4, 2026
On August 31, 2026, Cineverse Pans LLC, a wholly owned subsidiary of Cineverse Corp., entered into a Loan and Security Agreement with BondIt LLC for a term loan of up to $3,125,000 maturing on October 26, 2027. The loan carries a minimum interest ...
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.