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Jun 30
Cinedigm Q1 2026 Earnings Report
Cinedigm (Cineverse) reported a 22% year-over-year revenue increase in Q1 2026, driven by growth in streaming and theatrical segments despite a larger net loss due to higher SG&A expenses.
Key Takeaways
Cineverse delivered strong top-line growth in Q1 FY26, with streaming and theatrical content driving a 22% revenue increase. Operating margin improved, although increased investment in content and personnel led to a wider net loss.
Total revenue increased 22% YoY to $11.1 million
Direct operating margin reached 57%, up 6 percentage points YoY
Monthly viewership rose 38%, with Screambox and Dove Channel leading growth
Net loss widened to $3.6 million due to SG&A and theatrical slate expansion
Cinedigm
Cinedigm
Forward Guidance
Cineverse expects continued growth from its expanding film slate, streaming audience engagement, and new ventures like MicroCo, supported by strong brand IP and proprietary technology.
Positive Outlook
- Strong upcoming theatrical releases including The Toxic Avenger Unrated
- CineSearch commercial release on Google Cloud Marketplace
- Matchpoint pilots launched with major studio partners
- New MicroCo JV targets $10B microseries market
- Expanded ad sales and tech leadership to support revenue growth
Challenges Ahead
- Increased SG&A reduced EBITDA and net income
- Cash and cash equivalents declined from prior quarter
- Working capital position turned negative ($0.3M)
- Line of credit usage rose to $3.6M
- Physical media market continues to pose long-term risk