Total Revenue of $11.1 Million, a $2.0 million or 22% Increase over Prior Year Quarter

Direct Operating Margin of 57%, a 6% Improvement over Prior Year Quarter

LOS ANGELES, Aug. 14, 2025 /PRNewswire/ -- Cineverse Corp. ("Cineverse" or the "Company") $(CNVS)$, a global streaming technology and entertainment company, today announced its financial results for its first quarter ended June 30, 2025 ("Q1 FY 2026"):

The Company's Total Revenue and Direct Operating Margin improved significantly over the prior year quarter while Net Loss and Adjusted EBITDA decreased slightly due to increased SG&A costs directly attributable to the investments required to support our increased theatrical slate and build out of an enhanced business development, product and sales team for our Technology group.

Following the unprecedented success of Terrifier 3, the most successful unrated film release of all time, we continue to build a slate of additional wide release films that we believe can provide a strong and ongoing source of profits for the Company. The Toxic Avenger Unrated, produced by major studio Legendary Films (Dune, Godzilla x Kong, etc.), hits theatres on August 29, 2025. After that, Silent Night, Deadly Night, a re-interpretation of the classic controversial horror film, is scheduled for release on December 12, 2025. Next will be Return to Silent Hill, the latest film installment of the enormously successful video game franchise, on January 23, 2026. Additionally, in summer 2026, we will release Air Bud Returns, the latest installment of the beloved family film franchise. We will also be releasing Wolf Creek: Legacy, the third installment of the classic Australian Outback horror/thriller film, in 2027. Based on the results of Terrifier 2 and Terrifier 3, other major studios also continue to utilize our new media ecosystem to market their releases, emphasizing the impact our unique and innovative marketing approach has had on the industry.

The Company continues to be in a strong financial position as of June 30, 2025 with almost $10.9 million in cash-on-hand and availability on our current $12.5 million line of credit facility with East West Bank.

Q1 FY 2026 Highlights (all comparisons are to the prior year fiscal quarter ended June 30, 2024, or Q1 FY 2025):

Total quarterly revenue was $11.1 million versus $9.1 million in the prior-year period, a 22% increase, driven by gains in streaming and digital distribution, as well as theatrical and physical sales.

   -- Streaming and digital revenues of $9.1 million, an 18% improvement from 
      the prior year revenue of $7.7 million. Total monthly viewership across 
      our channel portfolio increased 38% versus the same quarter last year, 
      driven in large part by strong growth from Screambox, Dog Whisperer with 
      Cesar Millan, Barney and Yu-Gi-Oh. In addition, viewership increased 25% 
      and 22% for the Dove Channel and Fandor, respectively. 
 
   -- Base Distribution revenue increased to $1.0 million, up 192% from the 
      prior-year quarter, from $0.4 million in the prior-year quarter, due to 
      stronger theatrical and DVD sales primarily driven by Terrifier 3. 

SG&A expenses increased by $2.4 million, or 36%, to $9.0 million, reflecting increased compensation, marketing and legal costs as a result of ramping up for an increased theatrical slate for the remainder of the year. The Company's SG&A costs are typically higher in the first quarter of the fiscal year due to increased costs associated with year-end audit, tax and Sarbanes-Oxley compliance.

Net loss attributable to common stockholders was $3.6 million, or $(0.21) per basic and diluted share, compared to a net loss of $3.2 million, or $(0.20) per share, in the prior-year quarter. Adjusted EBITDA was $(2.1) million, compared to $(1.4) million last year.

Financial Condition Overview:

   -- Cash and Cash Equivalents of $2.0 million with $8.9 available under the 
      $12.5 million Line of Credit Facility (expandable to $15 million) as of 
      June 30, 2025. As of the date of this release, we have $12 million 
      available on our Line of Credit Facility. 
 
   -- As of June 30, 2025, working capital was ($0.3) million, versus $3.6 
      million for the prior year quarter end. 
 
   -- The Company's Digital content library, comprised of more than 71,000 
      titles, was valued as of March 31, 2024 at approximately $40 million, a 
      significant increase over the 2023 valuation and well above the $2.9 
      million book value of the library as of June 30, 2025. 
 
   -- The Company continues to have its previously approved share repurchase 
      program available which will continue to be utilized as appropriate. 
 
   -- Subsequent to June 30, 2025, 1,947,500 warrants to purchase shares of 
      common stock were redeemed for $5.8 million in proceeds. 

Operational Developments During the Quarter:

   -- Streaming audience growth: Total streaming viewers increased 
      approximately 20% year-over-year in Q1 FY26 to 209 million, with total 
      minutes streamed up 38% to more than 4.0 billion and FAST channel minutes 
      up 20% to 3.8 billion. 
 
   -- Platform engagement: Screambox viewership rose 27% since the release of 
      Terrifier 3 on the service, while the Cineverse channel audience grew 
      more than 4,300% since January 2025. 
 
   -- SVOD expansion: SVOD subscribers grew approximately 6% year-over-year to 
      1.38 million. 
 
   -- Content expansion: Expanded Fandor with festival award-winners The Things 
      You Kill and Lesbian Space Princess; secured Return to Silent Hill and 
      the unrated reboot of Silent Night, Deadly Night; added streaming rights 
      for Hayao Miyazaki's Future Boy Conan to RetroCrush; and released Escape 
      From The 21st Century in limited theatrical run. 
 
   -- Technology and monetization: Commercial release of cineSearch on Google 
      Cloud Marketplace; launched Matchpoint Dispatch pilots with a major 
      studio; expanded international FAST footprint with Dog Whisperer with 
      Cesar Millan and Bob Ross channels on Samsung TV Plus Australia, 
      contributing to projected 35% growth in international viewing hours. 
 
   -- Organizational growth: Formed internal Motion Pictures Group; expanded ad 
      sales leadership with industry veteran Tim Russell and promotion of Terry 
      City to EVP, Direct Sales; promoted John Squires and Megan Navarro to 
      Co-Managing Directors of Bloody Disgusting; and rebranded the Cineverse 
      Podcast Network, now with 74+ series and over 230 million lifetime 
      downloads. 

Operational Developments Subsequent to Quarter-End:

   -- Announced 50/50 joint venture with Lloyd Braun's (former Chairman of ABC 
      Entertainment and WME) Banyan Media Ventures to Launch MicroCo, a new 
      studio and platform for microseries -- a market projected to reach $10 
      billion by 2027. Former Showtime President Jana Winograde was named 
      Co-founder and CEO, with former Chairman of NBC Universal Television and 
      Streaming Susan Rovner to join in October as Chief Content Officer. 
 
   -- Announced acquisition of US rights for Air Bud Returns -- the latest 
      installment in the iconic family franchise -- in partnership with Air Bud 
      Entertainment. Wide theatrical release slated for summer 2026. 
 
   -- Announced launch of newly-formed WITZ Podcast Network in partnership with 
      top comedy club empire The Stand Group -- featuring top-tier comedy 
      series, including Jay Mohr's 'Mohr Stories'. 
 
   -- Expanded technology leadership team with appointment of industry veteran, 
      Michele Edelman as EVP of Technology & General Manager of Matchpoint. 
 
   -- Cineverse common stock was added to multiple Russell indexes including 
      3000E, Microcap, Growth, and Value Segments. 
 
   -- Thrilled fans at San Diego Comic-Con with Hall H Panel for upcoming wide 
      release The Toxic Avenger Unrated -- with talent appearances including 
      Peter Dinklage, Elijah Wood, Jacob Tremblay and a video message from 
      Kevin Bacon. Also debuted teaser for upcoming wide release Silent Night, 
      Deadly Night. 
 
   -- Announced expansion of Motion Pictures Group with addition of key 
      executives: Steven Peros as VP, Creative Development and Filmmaker 
      Relations; Dan Fisher as VP, Acquisitions; and Cameron Moore as 
      Consultant, Theatrical Distribution. 
 
   -- Partnered with Moviefone to bring back their iconic phone number for 
      first time in 10 years -- inviting fans to call in and to connect with 
      the Toxic Avenger Unrated ahead of the August 29 theatrical release. 
 
   -- Announced nationwide talent search for the next Air Bud, in partnership 
      with Air Bud Entertainment, and invited fans to submit dogs for a chance 
      to be part of one of Hollywood's most enduring family film franchises -- 
      with featured coverage on The Today Show. 

Management Commentary:

Chris McGurk, Cineverse Chairman and CEO, stated: "We had another strong quarter from a Revenue standpoint, with significant growth across all of our lines of business. Our total Operating Margin also increased significantly. Investments in SG&A and marketing to support our expanding theatrical business and our Technology Group impacted our Adjusted EBITDA and Net Income. However, we expect to begin to see returns from those investments beginning in our fiscal second quarter."

"The Toxic Avenger Unrated hits theaters on August 29, and received a strong response at Comic-Con last month. Similar to Terrifier 3, our total investment in this film, including release marketing, is less than $5 million. However, since we bought out all domestic rights in all media for the film in perpetuity under a unique deal structure, the risk/reward profile for this film is much more favorable for Cineverse."

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August 14, 2025 16:01 ET (20:01 GMT)