Cineverse Corp. SEC 10-Q Report

Cineverse Corp., a leading entertainment company specializing in digital streaming and theatrical releases, has released its Form 10-Q report for the third quarter of 2025. The report provides a comprehensive overview of the company's financial performance and operational highlights for the three and six months ended September 30, 2025. Financial Highlights Total Revenue: Cineverse Corp. reported total revenue of $12.4 million for the three months ended September 30, 2025, marking a 3% decrease compared to the same period in 2024. This decline was primarily due to lower licensing revenue. However, for the six months ended September 30, 2025, total revenue increased by 7% to $23.5 million, driven by growth in digital releases and subscription services.Operating Loss: The company experienced an operating loss of $(5.4) million for the three months ended September 30, 2025, compared to $(0.9) million in the same period in 2024. This increase in operating loss was attributed to higher marketing and compensation expenses. For the six months ended September 30, 2025, the operating loss widened to $(9.1) million from $(3.6) million in the same period in 2024, due to similar factors.Net Loss: Cineverse Corp. reported a net loss of $(5.5) million for the three months ended September 30, 2025, compared to $(1.2) million in the same period in 2024. The net loss for the six months ended September 30, 2025, was $(9.1) million, up from $(4.3) million in the same period in 2024, primarily due to increased operating expenses.Net Loss Per Share: The net loss per share was $(0.31) for the three months ended September 30, 2025, compared to $(0.09) in the same period in 2024. For the six months ended September 30, 2025, the net loss per share was $(0.53), compared to $(0.29) in the same period in 2024. Business Highlights Streaming and Digital Revenue: The streaming and digital segment saw a decrease in revenue for the three months ended September 30, 2025, primarily due to lower licensing revenue. However, the six-month period experienced an increase in revenue driven by the digital release of 'Terrifier 3' and growth in subscription-based platforms.Base Distribution Revenue: There was a notable increase in base distribution revenue for both the three and six months ended September 30, 2025. This growth was attributed to the theatrical release of 'Toxic Avenger' and the final theatrical revenue for 'Terrifier 3'.Podcast and Other Revenue: This segment experienced a decline in revenue for both the three and six months ended September 30, 2025, primarily due to lower podcast direct advertising. However, there was an increase in Matchpoint™ revenue.Direct Operating Expenses: Direct operating expenses decreased for both the three and six months ended September 30, 2025. This reduction was driven by lower variable costs such as royalty expenses and platform fees, despite increased theatrical distribution fees related to 'Toxic Avenger'.Selling, General and Administrative Expenses: These expenses increased significantly for both the three and six months ended September 30, 2025. The rise was due to higher compensation expenses from increased headcount, professional services, legal expenses, and marketing expenses related to 'Toxic Avenger'.Depreciation and Amortization: Amortization expenses increased due to higher capitalized content costs, reflecting the company's investment in content development.Future Outlook: Cineverse Corp. plans to continue investing in content development and acquisitions, expecting to obtain appropriate returns on these investments. Management is focused on increasing revenue from existing services and offering new services to improve income from operations.SEC Filing: Cineverse Corp. [ CNVS ] - 10-Q - Nov. 14, 2025