Cineverse (NASDAQ:CNVS) Posts Quarterly Earnings Results, Misses Expectations By $0.02 EPS

Cineverse (NASDAQ:CNVS) released its earnings results on Tuesday. The company reported ($0.05) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.03) by ($0.02), FiscalAI reports. Cineverse had a negative net margin of 1.49% and a negative return on equity of 3.55%. The business had revenue of $16.29 million during the quarter, compared to analysts’ expectations of $20.00 million.

Here are the key takeaways from Cineverse’s conference call:

• Management closed two transformative acquisitions — Giant Worldwide and IndiCue — that the company says will immediately add scale and make Cineverse an AI-powered, end?to?end media infrastructure and monetization provider, with the deals expected to contribute in excess of $50 million of revenue and $10 million of Adjusted EBITDA to fiscal 2027.
• Cineverse reported operational improvement in the quarter: revenues of $16.3M, a jump in direct operating margin to 69% (from 48% a year ago), and adjusted EBITDA of $2.4M — a $6M sequential improvement — driven by cost reductions and leverage of its India operations.
• The Giant deal was an asset purchase for $2M (only $350k paid at close) that management conservatively expects to generate $15–17M of revenue and $3.5–4M of Adjusted EBITDA in FY2027 and to realize 60–70% short?term efficiency gains when integrated with Matchpoint.
• IndiCue was acquired for $22M base consideration ( $12.8M paid at close, $9.2M deferred within a year) with total consideration potentially rising to $40M via earn?outs; IndiCue is projected to contribute ~>$38M revenue and ~$7M Adjusted EBITDA for FY2027 and was financed largely with $13M of convertible notes from existing shareholders (no warrants) plus a $3.2M share sale.
• Risks remain: IndiCue historically had customer concentration (management says it’s improving), integration and realization of synergies are early, and liquidity is limited entering the deals (quarter?end cash $2.5M and $4.2M revolver availability), creating near?term execution and funding risk.

Cineverse Trading Up 7.2%

Shares of CNVS opened at $2.91 on Wednesday. The firm’s 50 day moving average is $2.13 and its 200-day moving average is $3.05. Cineverse has a 12 month low of $1.77 and a 12 month high of $7.39. The stock has a market capitalization of $55.65 million, a PE ratio of -21.07 and a beta of 1.66.

Insider Activity at Cineverse

In other Cineverse news, insider Erick Opeka bought 30,000 shares of Cineverse stock in a transaction on Tuesday, February 17th. The shares were purchased at an average cost of $2.00 per share, with a total value of $60,000.00. Following the acquisition, the insider directly owned 224,146 shares of the company’s stock, valued at $448,292. The trade was a 15.45% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Mark Torres bought 25,000 shares of the business’s stock in a transaction on Tuesday, February 17th. The shares were bought at an average cost of $2.00 per share, for a total transaction of $50,000.00. Following the completion of the acquisition, the insider directly owned 183,274 shares in the company, valued at approximately $366,548. This trade represents a 15.80% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have purchased a total of 187,500 shares of company stock worth $375,000 in the last 90 days. Corporate insiders own 13.30% of the company’s stock.

Hedge Funds Weigh In On Cineverse

Institutional investors and hedge funds have recently modified their holdings of the business. Hillsdale Investment Management Inc. bought a new stake in shares of Cineverse during the second quarter worth about $48,000. Sugar Maple Asset Management LLC bought a new stake in Cineverse during the third quarter worth $42,000. Kathmere Capital Management LLC purchased a new position in Cineverse in the third quarter worth $44,000. StoneX Group Inc. bought a new position in Cineverse in the 4th quarter valued at $30,000. Finally, Prelude Capital Management LLC raised its position in Cineverse by 31.1% in the third quarter. Prelude Capital Management LLC now owns 17,037 shares of the company’s stock worth $57,000 after acquiring an additional 4,037 shares during the period. 8.19% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

CNVS has been the topic of several recent analyst reports. Benchmark reiterated a “speculative buy” rating on shares of Cineverse in a report on Monday, November 17th. Alliance Global Partners restated a “buy” rating on shares of Cineverse in a research report on Wednesday. Wall Street Zen cut Cineverse from a “hold” rating to a “sell” rating in a report on Saturday, October 25th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Cineverse in a research report on Monday, December 29th. Finally, UBS Group set a $9.00 target price on shares of Cineverse in a research report on Friday, October 24th. Two investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $9.00.

Key Headlines Impacting Cineverse

Here are the key news stories impacting Cineverse this week:

• Positive Sentiment: Company completed two post?quarter acquisitions expected to add roughly $53M of annual revenue and about $10M of adjusted EBITDA for FY2027; management says the deals are immediately accretive. Acquisitions & Results
• Positive Sentiment: Heavy insider buying on Feb 17—multiple insiders (including CFO Mark Wayne Lindsey) bought shares at $2.00, materially increasing their stakes; this signals management confidence in the company’s outlook. Insider Filings
• Positive Sentiment: Operational performance showed margin improvement: direct operating margin rose to 69% (vs. 48% year?ago) and adjusted EBITDA was $2.4M—supporting management’s FY2027 adjusted EBITDA guidance of $10–20M. Results & Margin
• Neutral Sentiment: Market commentary and the earnings call explain why the stock rose despite misses—investors prioritized guidance, acquisition accretion and insider purchases over the quarter’s misses. Earnings Transcript
• Neutral Sentiment: Short?interest feeds show 0 shares short and NaN changes — this appears to be a reporting anomaly and is not a useful signal for immediate squeeze risk.
• Negative Sentiment: Q3 missed consensus: EPS was a ($0.05) loss vs. a ($0.03) estimate and revenue was $16.29M vs. $20.0M expected; the company still reports a negative net margin and negative ROE, underscoring ongoing profitability challenges. Quarterly Release

Cineverse Company Profile

Cineverse (NASDAQ: CNVS), formerly known as Cinedigm, is a digital entertainment company that acquires, produces and distributes film and television content across a range of platforms. Through its streaming division, the company offers a portfolio of direct-to-consumer channels and apps—spanning genres such as horror, faith and family, documentaries and classic cinema—on both AVOD (ad-supported) and FAST (free ad-supported television) services. Cineverse also licenses its curated libraries to third-party streaming platforms, pay-TV operators and retail video-on-demand providers.

In addition to its consumer-facing streaming business, Cineverse operates a digital cinema network that supplies hardware, software and content delivery solutions to cinema exhibitors throughout North America.