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Sep 30, 2024
Cinedigm Q2 2025 Earnings Report
Reported a solid quarter of growth and financial improvement, driven by content licensing, advertising, technology, and streaming businesses, despite not including financial results from Terrifier 3.
Key Takeaways
Cineverse reported Q2 FY 2025 results with a 20% increase in total revenue excluding the Digital Cinema business, a direct operating margin of 51%, reduced SG&A expenses, and a net loss of $1.4 million. The company's performance was driven by growth in content licensing, advertising, technology and streaming businesses. The financial results do not include any impact from Terrifier 3.
Total revenue increased by 20% excluding the Digital Cinema business, reaching $12.7 million.
Direct operating margin improved to 51%, exceeding the target of 45% to 50%.
SG&A expenses decreased by 7% due to cost savings initiatives.
Total monthly viewership across the channel portfolio increased by 54%.
Revenue by Segment
Forward Guidance
Cineverse anticipates a major positive financial impact from Terrifier 3 in the fiscal 3rd quarter and beyond, expecting at least $20 million in theatrical rental revenues alone.
Positive Outlook
- Terrifier 3's theatrical release is expected to generate at least $20 million in rental revenues in the next quarter.
- Significant additional revenue and high-margin profit streams are expected from domestic ancillary markets related to Terrifier 3.
- Profits and cash flow from Terrifier 3 are expected to contribute to a sustainable, self-funding balance sheet.
- Cineverse sees no need to raise any outside equity capital to fund operations for the foreseeable future.
- Cineverse aims to release more of its own films using the Terrifier 3 model and distribute other studio's releases.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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