Overview

• Entertainment technology firm's fiscal Q4 revenue rose 67% yr/yr, driven by recent acquisitions

• Net income attributable to common stockholders increased 51%, aided by one-time acquisition gains

• Adjusted EBITDA fell sharply due to higher SG&A tied to M&A and integration costs

Outlook

• Cineverse reaffirms FY 2027 revenue guidance of $115 mln to $120 mln

• Company expects FY 2027 adjusted EBITDA of $10 mln to $20 mln

• Technology platforms expected to represent more than 50% of FY 2027 revenue

Result Drivers

• ACQUISITIONS - Revenue growth in Q4 was primarily driven by $11.6 mln from the acquisitions of IndiCue and Giant Worldwide, which expanded advertising technology and media services revenue

• STREAMING GROWTH - Continued growth in streaming viewers and minutes streamed contributed to performance, with viewers up 66% and minutes streamed up 58% yr/yr

• HIGHER SG&A - Operating margin declined due to increased SG&A expenses from marketing, M&A, and integration costs related to the acquisitions

Company press release: ID:nPn7g35M9a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Revenue	Beat	$25.97 mln	$23.11 mln (2 Analysts)
Q4 Net Income		$1.28 mln
Q4 Operating Expenses		$31.36 mln
Q4 Operating Income		-$5.39 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the entertainment production peer group is "buy"

• Wall Street's median 12-month price target for Cineverse Corp is $11.00, about 310.4% above its June 25 closing price of $2.68

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