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Dec 31, 2025
Cinedigm Q3 2026 Earnings Report
Cineverse reported its financial results for the fiscal third quarter ended December 31, 2025, with total revenue of $16.3 million and an adjusted EBITDA of $2.4 million.
Key Takeaways
Cineverse reported a significant decrease in total revenue to $16.3 million, primarily due to the absence of theatrical revenue from 'Terrifier 3' which contributed $22.8 million in the prior year. Despite the revenue drop, the company improved its direct operating margin to 69% and achieved an adjusted EBITDA of $2.4 million, reflecting successful cost management and accretive acquisitions.
Total revenue for Q3 FY26 was $16.3 million, a 60% decrease compared to $40.7 million in the prior-year quarter, mainly due to the absence of theatrical revenue from 'Terrifier 3'.
Direct Operating Margin significantly improved to 69% from 48% in the prior-year quarter, indicating effective cost management.
Adjusted EBITDA was $2.4 million, a decrease from $10.9 million in the prior-year quarter, but showed a $6.0 million improvement over the prior sequential quarter.
The company announced two subsequent acquisitions, Giant Worldwide and IndiCue, Inc., expected to add approximately $53 million in annual revenue and $10 million in Adjusted EBITDA for Fiscal Year 2027.
Forward Guidance
Cineverse is initiating financial guidance for Fiscal Year 2027, anticipating revenue between $115 million and $120 million and Adjusted EBITDA between $10 million and $20 million, driven by recent acquisitions and continued operational improvements.
Positive Outlook
- The Giant and IndiCue acquisitions are expected to add approximately $53 million in annual revenue and $10 million in Adjusted EBITDA for Fiscal Year 2027.
- Both acquisitions are believed to be immediately accretive and strengthen Cineverse's market position as an AI-powered technology services provider.
- IndiCue's monetization technology will integrate directly into the Matchpoint™ platform, creating an end-to-end white-label solution for content delivery and ad monetization.
- The company expects to realize the vast majority of the remaining $5.5 million in targeted SG&A cost reductions over the next two quarters.
- Continued growth in recurring subscription business, with 45,000 net streaming subscribers added to the Cineverse channel in the 2025 calendar year.
Challenges Ahead
- The guidance for Adjusted EBITDA does not include a reconciliation to GAAP due to inherent difficulties in forecasting and quantifying necessary adjustments.
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