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Cineverse
(NASDAQ:CNVS)
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Rating:46Neutral
Price Target:
$2.00
▼(-16.67% Downside)
Action:Reiterated
Date:09/17/26
CNVS scores below average primarily due to weak financial quality—ongoing losses and negative operating/free cash flow despite solid revenue growth—alongside a bearish technical setup (price below major moving averages with negative MACD). The latest earnings call provides a partial offset via reaffirmed FY27 guidance, positive adjusted EBITDA, and meaningful YoY operating cash flow improvement, but near-term margin compression and liquidity constraints keep the overall score restrained; valuation support is limited given the negative P/E and no dividend yield data.
Positive Factors
Strong Revenue Growth
The sharp revenue increase demonstrates substantial post-acquisition scale expansion and stronger monetization of Cineverse’s media and advertising capabilities. If retained, this broader revenue base can support operating leverage, deeper platform relationships, and more durable earnings growth over the coming quarters.
Negative Factors
Persistent Losses and Cash Burn
Cineverse is still consuming cash despite strong revenue growth, while ongoing net losses show that scale has not yet translated into durable earnings power. Continued negative operating and free cash flow can restrict reinvestment capacity and increase dependence on financing or successful execution of planned improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
The sharp revenue increase demonstrates substantial post-acquisition scale expansion and stronger monetization of Cineverse’s media and advertising capabilities. If retained, this broader revenue base can support operating leverage, deeper platform relationships, and more durable earnings growth over the coming 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.
Data provided by:
The Fly
The FlyCineverse (CNVS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$45.40M
Dividend YieldN/A
Average Volume (3M)110.60K
Price to Earnings (P/E)―
Beta (1Y)1.38
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. Volume112,244
30 Day Avg. Volume110,600
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 Cap1.90
Enterprise Value/Revenue1.01
Enterprise Value/Gross Profit2.54
Enterprise Value/Ebitda-16.70
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.21
Revenue Forecast (FY)$118.59M
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 makes money primarily by monetizing film and TV content through multiple distribution and licensing channels. Key revenue streams typically include: (1) Digital distribution and licensing: licensing and distributing titles to third-party...
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
2.34
Negative
2.49
Negative
2.45
Negative
Market Momentum
-0.12
Negative
26.86
Positive
16.97
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 above the 20-day moving average (MA) of 2.04, above the 50-day MA of 2.34, and below the 200-day MA of 2.45, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 26.86 is Positive, neither overbought nor oversold. The STOCH value of 16.97 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 | $166.15M | 13,921.50 | 0.06% | 11.79% | 24.86% | 98.15% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
57 Neutral | $33.86M | 7.31 | 32.16% | ― | -96.27% | ― | |
49 Neutral | $34.17M | -0.28 | -205.22% | ― | 27.16% | -18.55% | |
46 Neutral | $45.40M | -3.26 | -27.24% | ― | 6.28% | -410.92% | |
45 Neutral | $37.02M | -1.54 | 114.87% | ― | -23.12% | 13.43% | |
44 Neutral | $33.82M | -5.60 | -6.90% | 3.90% | 3.22% | -19.05% |
* Communication Services Sector Average
CNVS
Cineverse
1.91
-1.30
-40.50%
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TOON
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0.54
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LVO
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2.70
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-35.71%
CURI
CuriosityStream
2.80
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ANGH
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3.77
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29.11%
Cineverse Corporate Events
Business Operations and StrategyM&A TransactionsRegulatory Filings and ComplianceShareholder Meetings
Cineverse Shareholders Approve IndiCue Acquisition Stock Issuance
Positive
Sep 17, 2026
At a Special Meeting of Stockholders held on September 15, 2026, Cineverse Corp. shareholders approved the issuance of Class A common stock tied to the acquisition of IndiCue Inc. and the conversion and interest payments under outstanding converti...
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.