Cineverse Posts $26 Million in Q2 Revenue, Up 110%
Key Facts
Cineverse said on November 13, 2026, that revenue reached $26.0 million in the second quarter of fiscal 2027, an increase of $13.6 million, or 110%, from the year-earlier period. The company said net income was $3.2 million, or $0.11 per diluted share. The results marked a return to profitability in the reported quarter, after a $5.8 million net loss attributable to common stockholders in the first quarter. It said more than 50% of second-quarter revenue came from technology-related sources. That puts the technology revenue mix at the center of the revenue increase and bottom-line results.
Second-quarter revenue was below the $30.6 million the company reported in the first quarter of fiscal 2027, but was higher than in the year-earlier period. First-quarter revenue had risen 175% year over year from $11.1 million, a jump the company attributed mainly to new revenue streams from its technology acquisitions. Adjusted EBITDA in that quarter was $0.5 million, while the company recorded a $5.8 million net loss attributable to common stockholders, or a loss of $0.28 per share. The comparison highlights the different picture between first-quarter revenue growth and the move to positive net income in the second quarter. The latest share of technology revenue also points to the continued weight of these activities in the company’s business.
Cineverse reaffirmed its fiscal 2027 guidance, projecting revenue of between $115 million and $120 million and adjusted EBITDA of between $10 million and $20 million. The guidance comes against fiscal 2026 revenue of $65.7 million, down 16% from $78.2 million in the prior year. The company attributed the prior fiscal year’s decline mainly to comparison with the exceptional revenue from the film Terrifier 3. In that year’s fourth quarter, revenue rose 67% to $26.0 million from $15.6 million, driven mainly by $11.6 million in revenue from advertising, technology and media services related to the two acquisitions. This background shows how year-over-year comparisons and the addition of new technology activities intersected in the company’s revenue changes.
The revenue increase came alongside differences in earnings across recent fiscal years: the company recorded a $9.2 million net loss attributable to common stockholders in fiscal 2026, after posting net income of $3.2 million in fiscal 2025. Adjusted EBITDA also shifted from $13.9 million in fiscal 2025 to a loss of $3.4 million in fiscal 2026. At the end of March 2026, cash and cash equivalents totaled $3.4 million, with $9.4 million drawn from a $12.5 million credit facility at East West Bank. These figures provide a broader financial backdrop to the positive net income the company reported for the second quarter. The company is also tracking its annual guidance and revenue mix across its different activities.
A technology acquisition and a plan to integrate operations and cut costs are among the pillars of the operational turnaround. In its first-quarter filing, the company said the core integration of Giant Worldwide and IndiCue was largely complete and that it had begun moving Giant’s media preparation and delivery operations to the Matchpoint platform. It also said the workforce reductions implemented represented approximately $1.8 million in annual savings, and identified an additional $4.8 million in cost reductions and synergies as part of a program with a stated annual total of up to $13 million. These developments came after the end of the first quarter and were presented by the company in August as part of its integration and cost update. In that update, Chief Executive Chris McGurk said a large portion of the savings was expected to be fully realized in the third and fourth fiscal quarters, which he described as the strongest seasonally across its business lines.
On viewing activity, the company said in its first-quarter announcement that its services recorded 4.5 billion minutes viewed, up 33% year over year, describing it as the highest level in its history. McGurk also said when the company announced fiscal 2026 results that it was focused on becoming an entertainment studio “built on AI,” with the technology playing a role in distribution, monetization and cost control, as well as development and production. These remarks fit within the company’s effort to expand the role of technology activities in its business, as their share exceeded half of second-quarter revenue. These operational indicators provide a parallel strategic backdrop to the quarterly figures and annual guidance. Their impact on results in coming periods will depend on the actual figures the company reports.
Cineverse had previously announced that results for the second quarter, ended September 30, 2026, would be released before the market opened on November 13, and scheduled a conference call for the same day at 8:30 a.m. Eastern time. The available closing share price of $1.81 is from the November 12 session, before the results announcement, and does not represent the market’s response to it. The figures therefore followed a release date the company had set for investors. Comparing results with annual guidance remains one focus in tracking its performance through the rest of the fiscal year. The company is also looking ahead to the third and fourth quarters, which it said are seasonally strongest and when a large portion of cost savings is expected to emerge.