Cineverse Reports Q2 FY 2027 Revenue of $26 Million, Net Income of $3.2 Million

Cineverse Corp. announced its financial results for the second quarter ended September 30, 2026 (Q2 FY 2027), reporting a significant increase in revenue and net income compared to the prior year period. The company reported total quarterly revenue of $26.0 million, which represents a $13.6 million or 110% increase over the $12.4 million generated in the prior year quarter.

Net income attributable to common stockholders for the quarter was $3.2 million, or $0.11 per diluted share. This compares to a net loss of $(5.7) million, or $(0.31) per share, in the prior year quarter. The company reported Adjusted EBITDA of $1.7 million, a $5.4 million increase over the prior year quarter, marking the third consecutive quarter of positive and growing EBITDA.

Revenue growth was driven by the company's Technology and Media Services revenue streams, which now account for 55% of total revenue, compared to less than 5% in the prior year quarter. This shift is attributed to the acquisitions of IndiCue, Inc. and Giant Worldwide completed in the fourth quarter of fiscal year 2026. Despite a seasonal decline in revenue of $4.6 million compared to the previous quarter, the company's direct operating margin improved by 300 basis points to 38%.

Regarding financial condition, Cineverse reported cash and cash equivalents of $3.6 million as of September 30, 2026. The company's reported net working capital was negative $9.7 million, though it has the right to settle $8.0 million of acquisition-related liabilities in equity. The company reaffirmed its fiscal year 2027 guidance of $115 to $120 million in total revenue and $10 to $20 million in Adjusted EBITDA.

On the operational front, the company completed the integration of Giant Worldwide, resulting in Media Services revenue of $3.1 million in its second full quarter. Streaming engagement metrics also grew, with total minutes streamed rising 8% year-over-year to 4.05 billion. The company launched new advertising and podcast platforms, including VAUDIO and Mohr Stories with Jay Mohr, and announced a sponsorship with PEDIGREE for a summer movie series.

Subsequent to the quarter-end, Cineverse announced it had secured North American distribution rights to the 13th feature film in the Jason Universe franchise. The company also announced the nomination of Dr. Samrat Ganguly for election to its Board of Directors.