Cineverse Corp. announced financial results for Q2 FY 2026, with total revenue of $12.4 million and a 7% improvement in direct operating margin over the prior year quarter.
The revenue decline of 3% year-over-year was mainly due to timing differences in revenue recognition from licensing agreements.
Despite the decline, the core business lines showed solid underlying growth during the quarter.
Revenue Performance
Total revenue declined by 3% year-over-year, affected by timing differences in revenue recognition for licensing agreements.
Direct Operating Margin
Improved by 7% compared to the prior-year quarter, showcasing operational efficiency.
Marketing Investments
Approximately $2.3 million was spent on marketing tied to the launch of The Toxic Avenger Unrated, impacting net loss and Adjusted EBITDA.
Theatrical Slate Expansion
Cineverse announced the reissue of Pan's Labyrinth and other additions to its theatrical slate, setting the stage for future growth.
Financial Condition
Cash and cash equivalents stood at $2.3 million, with $5.9 million available under the credit facility as of September 30, 2025.
- The performance of The Toxic Avenger Unrated is strong in ancillary markets and is expected to yield an IRR of over 40%.
- Cineverse's strategic announcements for future releases and partnerships position the company for sustained growth and market expansion.
Cineverse's Q2 FY 2026 results demonstrate a balanced picture of revenue challenges and operational improvements. The Company's focus on content expansion and strategic investments sets the stage for future growth and market presence.