Cineverse Corp. Reports 207% Revenue Increase to $40.7 Million, Achieves Net Income of $7.2 Million

Cineverse Corp. reported significant financial improvements in its latest quarterly results, with revenues reaching $40.7 million for the three months ended December 31, 2024, compared to $13.3 million in the same period last year, marking a 207% increase. The nine-month revenue also saw a substantial rise, totaling $62.6 million, up from $39.3 million in the prior year. The company achieved a net income of $7.2 million for the quarter, a stark contrast to the net loss of $2.7 million reported in the same quarter of 2023. For the nine months, net income attributable to common stockholders was $2.5 million, compared to a loss of $6.9 million in the previous year.

The substantial revenue growth was primarily driven by the successful theatrical release of "Terrifier 3," which significantly boosted base distribution revenue by $21.7 million. Streaming and digital revenues also increased by $4.6 million, attributed to favorable content release timing. However, direct operating expenses surged to $21.0 million, up from $5.5 million, largely due to increased royalty expenses and marketing costs associated with the film's release. Selling, general, and administrative expenses rose to $9.4 million, reflecting higher compensation and share-based compensation expenses.

Cineverse's operational metrics indicate a growing user base and engagement, with the company continuing to expand its content portfolio. As of December 31, 2024, the company reported total current assets of $50.5 million, up from $32.7 million at the end of the previous fiscal period. The increase in accounts receivable, which rose to $33.9 million from $15.1 million, reflects the company's expanding revenue base. The company also maintained a working capital surplus of $6.8 million, indicating improved liquidity.

Strategically, Cineverse has been active in securing financing to support its growth initiatives. The company has a $7.5 million line of credit facility with East West Bank, of which $3.8 million was outstanding as of December 31, 2024. Additionally, Cineverse entered into a term loan agreement for $3.7 million to fund distribution arrangements for "Terrifier 3," which has since been repaid. The company is also exploring opportunities to raise up to $15 million through a sales agreement for common stock, although no shares have been sold under this agreement to date.

Looking ahead, Cineverse plans to continue investing in content development and acquisition, believing these investments will yield appropriate returns. The company anticipates that its cash and cash equivalents, along with available credit, will be sufficient to support operations for at least the next twelve months. Despite a history of net losses, the recent turnaround in profitability and revenue growth positions Cineverse favorably for future expansion in the competitive streaming market.