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Sep 30, 2025
Cinedigm Q2 2026 Earnings Report
Cineverse reported a Q2 net loss of $5.7 million on revenue of $12.4 million, citing increased marketing expenses and timing of revenue recognition.
Key Takeaways
Cineverse's Q2 FY26 saw a slight decline in revenue due to timing differences in licensing revenue, while higher SG&A costs from marketing investments led to a wider net loss.
Revenue was $12.4 million, down 3% year-over-year due to timing of content licensing deals.
Net loss widened to $5.7 million, impacted by $2.3 million in marketing spend for The Toxic Avenger Unrated.
Direct operating margin improved to 58%, up 7 percentage points from the prior year.
Adjusted EBITDA came in at $(3.7) million, compared to a positive $0.5 million in Q2 FY25.
Forward Guidance
Cineverse expects future growth driven by its technology ventures, low-cost theatrical distribution strategy, and upcoming re-releases including Pan’s Labyrinth.
Positive Outlook
- Matchpoint™ platform added over 20 new customers in 100 days.
- Projected over 40% IRR from The Toxic Avenger Unrated in ancillary markets.
- Upcoming 20th anniversary re-release of Pan's Labyrinth expected to drive revenue.
- MicroCo venture expected to launch slate of shows in 2026.
- Strong adoption of Cineverse Services India supporting cost efficiencies.
Challenges Ahead
- The Toxic Avenger Unrated underperformed at the box office.
- High SG&A costs led to wider net losses.
- Cash and equivalents dropped to $2.3 million from $13.9 million in March.
- Negative working capital of $1.3 million.
Historical Earnings Impact
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