Cineverse (CNVS) Q4 2026 earnings summary

Executive summary

• Fiscal Q4 revenue reached $26 million, up 67% year-over-year, driven by base business and partial quarter contributions from Giant Worldwide and IndiCue acquisitions.

• Net income attributable to stockholders was $1.1 million, a 51% increase year-over-year, aided by a $4.3 million bargain purchase gain and $2.9 million income tax benefit from acquisitions.

• Fiscal 2026 marked a strategic transformation into a technology-first, AI-driven, fully integrated entertainment company with three synergistic growth engines: film slate, streaming/podcast portfolio, and media services.

• Integration of acquisitions is progressing ahead of expectations, with realized and anticipated cross-business synergies enhancing performance.

• FY 2026 revenue was $65.7 million, down 16% from FY 2025 due to a tough comparison with the prior year's blockbuster film, partially offset by acquisition contributions.

Financial highlights

• Q4 revenue: $26 million (up 60% sequentially and 67% year-over-year), with $11.6 million from new ad tech and media services streams.

• Net income: $1.1 million, a $2.1 million improvement from last quarter’s net loss.

• Adjusted EBITDA: $0.1 million, down from $2.4 million last quarter and $4.0 million in Q4 FY 2025; direct operating margin at 40%, down from 69% last quarter and 55% prior year.

• Cash at quarter-end: $3.4 million; $12.5 million revolver available; ATM facility increased to $30 million.

• FY 2026 net loss attributable to common stockholders was $(9.2) million, compared to net income of $3.2 million in FY 2025.

Outlook and guidance

• Fiscal 2027 guidance reaffirmed: $115–$120 million in consolidated revenue and $10–$20 million in adjusted EBITDA.

• Over 50% of revenues expected to be technology-based and recurring.

• Margin and adjusted EBITDA improvement anticipated throughout fiscal 2027 as integration and cost savings are realized.

• $7.5 million SG&A cost reduction program underway; $2 million completed by March 2026, majority of remaining $5.5 million to be realized by Q2 FY 2027.

• Seasonality expected, with fiscal Q3 (calendar Q4) as the strongest quarter; political ad spend could provide upside.