#United States #Los Angeles #Cineverse #Terrifier 3 #Streaming

Cineverse's Financial Triumph in Q3 FY 2025

Cineverse Corp. (NASDAQ: CNVS), a prominent player in the global streaming technology and entertainment sector, has unveiled its robust financial performance for the third quarter of fiscal year 2025 (Q3 FY 2025) that ended on December 31, 2024. The financial highlights showcase an astonishing 207% growth in revenue, reaching $40.7 million, a significant leap from $13.3 million reported in the same quarter the previous year.

Central to this extraordinary growth is the overwhelming success of the horror film Terrifier 3, which debuted at the top of the North American box office, grossing over $54 million domestically. This low-budget horror flick, which saw a production budget of around $500,000, has not only revolutionized the genre’s profitability but also established itself as the highest-grossing unrated film in history, outpacing previous record holders.

Cineverse's innovative marketing strategy played a crucial role in this performance. By leveraging their unique ecosystem of media assets, including influential streaming platforms and a strong social media presence, Cineverse executed a digital viral campaign that dramatically minimized marketing costs. This hyper-focused approach not only engaged audiences effectively but also showcased how a single successful release could galvanize overall company performance.

Key Performance Metrics

• - Net Income: Cineverse reported a net income of $7.2 million, reversing a net loss of $2.9 million from the year-ago period. This meteoric rise translates to earnings per share of $0.38.
• - Adjusted EBITDA: The Adjusted EBITDA reached $10.8 million, an increase of $9.0 million from the previous year.
• - Direct Operating Margin: The company maintained an impressive direct operating margin of 48%, aligning well with their goal of 45% to 50%.

Cineverse’s diverse slate of offerings is expected to bolster its financial trajectories further. For the upcoming quarters, the release schedule includes several highly anticipated titles such as Silent Night Deadly Night, a reinterpretation of the cult classic horror film, and The Toxic Avenger, produced by the renowned Legendary Pictures, set for release on August 29, 2025. Furthermore, the company announced the acquisition of worldwide distribution rights for Wolf Creek Legacy, which anticipates contributing positively to revenue streams in the following years.

Growth Across All Segments

All lines of business within Cineverse showcased substantial progress, reinforcing its potential for sustained growth. Monthly viewership across channel portfolios surged by 47%, significantly driven by newly launched channels that capture diverse audience segments. Individually, notable increases were seen in the Dove Channel and expansions in the Cineverse Podcast Network, which remains amongst the top podcast networks in the country.

Podcasting revenues alone grew by 39%, solidifying Cineverse’s multifaceted approach to engaging audiences through various formats and platforms.

The financial health of Cineverse has significantly improved, with total cash exceeding $13 million and no debt, reflecting a strong balance sheet that positions the company for future investments in content and technological advancements.

Management Insights

Cineverse’s Chairman and CEO, Chris McGurk, commented on the remarkable results: "Our numbers in this quarter reflect not only growth but also our ability to innovate and adapt within the rapidly evolving entertainment landscape. With Terrifier 3's success acting as a beacon, we are keen on expanding our release slate with films that cater to niche audiences while also utilizing our unique marketing blueprint. We are excited about the new dynamics we've established, which open up multiple revenue avenues in the film industry."

President and CSO Erick Opeka emphasized that this quarter underscores Cineverse’s commitment to rewriting the playbook for content distribution and audience engagement. With a growing audience and technological prowess, Cineverse is set to redefine entertainment norms and continue maximizing value for stakeholders.

The upcoming months promise exciting developments as Cineverse continues to diversify its content offerings and expand its audience reach through its innovative platforms. As Cineverse comes closer to its vision of transforming storytelling with technology, fans and investors alike await the next chapter in this unfolding success story.

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