Overview
Cineverse Q2 FY 2026 revenue declined 3% yr/yr, missing analyst expectations
Company's direct operating margin improved by 7% over prior-year quarter
Outlook
Cineverse plans to reissue Pan's Labyrinth in late 2026
Company expects The Toxic Avenger Unrated to generate over 40% IRR
Cineverse advancing MicroCo venture with Banyan Ventures
Result Drivers
REVENUE TIMING - Revenue decline attributed to timing differences in content licensing agreements
MARGIN IMPROVEMENT - Direct operating margin improved by 7% over prior-year quarter
MARKETING COSTS - Increased SG&A expenses due to marketing costs for 'The Toxic Avenger Unrated' and investments in theatrical slate
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | $12.36 mln | $12.66 mln (2 Analysts) |
Q2 EPS | -$0.31 | ||
Q2 Net Income | -$5.55 mln | ||
Q2 Operating Expenses | $17.77 mln | ||
Q2 Operating Income | -$5.41 mln | ||
Q2 Pretax Profit | -$5.53 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the entertainment production peer group is "buy"
Wall Street's median 12-month price target for Cineverse Corp is $8.00, about 68.3% above its November 13 closing price of $2.54
Press Release: ID:nPn5MjDwSa
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)