Cineverse Corp. Q4 FY2026 earnings call

### Strategic Transformational Acquisitions - Completed two acquisitions (Giant Worldwide in January 2026, IndieQ in February 2026) in a six-week window, fundamentally restructuring Cineverse into a technology-first, AI-driven integrated entertainment company. - The combined business creates a unique, fully unified end-to-end media supply chain technology platform (Matchpoint) that no competitor offers at scale; enterprise customers can either build their own unified stack over years or partner with Cineverse, creating a strong competitive moat. - IndieQ brings a connected TV advertising modernization platform with 40+ live clients and 75 additional publishers in onboarding, with 98% net revenue retention for its recurring SaaS revenue stream, and customer concentration cut nearly in half since acquisition. - Giant Worldwide brings 20+ years of deep, trusted relationships with major studios that have already opened new large enterprise opportunities for the combined Matchpoint platform.

### Industry Alignment - Three ongoing industry shifts play directly to Cineverse's new strategy: 1) Industry consolidation is driving demand for a single integrated technology stack to replace disjointed, siloed vendor systems; 2) consolidation creates space for small focused platform providers to scale quickly, and Cineverse offers the fastest, most affordable path for new content providers to become full streaming platforms; 3) ad-supported streaming (AVOD) now accounts for 74% of all U.S. streaming viewing time, reaching over 200 million U.S. consumers, creating massive demand for integrated AVOD technology solutions that Cineverse provides.

### Film Slate Pipeline - The low-risk, high-upside franchise IP film strategy continues, following the *Terrifier 2/3* blueprint of acquiring known IP with built-in fan bases. Upcoming releases include: October 2026 3D/4K 20th anniversary re-release of *Pan's Labyrinth*, January 2027 release of *Air Bud*, and March 2027 release of a new *Wolf Creek* installment.

### Operational Restructuring & Cost Discipline - Restructured the MicroDramas joint venture (rebranded as Atwist) into a passive minority stake, allowing Cineverse to retain upside while focusing capital and attention on core ad tech acquisitions, and participate as a

Cineverse is structured around three core mutually reinforcing growth segments: 1) Wide Release Film Slate: This segment generated the majority of Cineverse's legacy pre-acquisition revenue, with the 2025 release of *Terrifier 3* (the highest-performing unrated film in history) driving outsized ancillary revenue in the year-ago fiscal Q4 2026 period. 2) Streaming and Podcast Portfolio: As of fiscal Q4 2026, the segment counted 1.52 million SVOD subscribers, up 13% year-over-year. Total streaming viewers hit 130 million (+66% YoY), and total minutes streamed reached 4.4 billion (+58% YoY). Ad-supported FAST channels delivered record engagement, with Midnight Pulp (ad-supported) growing more than 10-fold YoY, The Dog Whisperer up 84% YoY, and Screenbox up 40% YoY. 3) Advertising Technology and Media Services: This new segment (formed via the Q4 2026 acquisitions of IndieQ and Giant Worldwide) contributed $11.6 million in partial-quarter revenue in fiscal Q4 2026, equal to 44.6% of the quarter's total $26 million consolidated revenue. Going forward, management expects technology-based revenue to account for over 50% of total annual consolidated revenue. For the full fiscal 2026 fourth quarter, Cineverse posted consolidated revenue of $26 million (+67% YoY, +60% QoQ), net income attributable to stockholders of $1.1 million (a $2.1 million improvement from the prior quarter's $1.1 million net loss), and adjusted EBITDA of $0.1 million.

- Management reaffirms its full fiscal year 2027 guidance of $115 million to $120 million in consolidated revenue, and $10 million to $20 million in adjusted EBITDA. - Management expects that 2024 U.S. political advertising seasonality could represent an upside boost to the current guidance, as the ad tech business follows typical DSP ad tech seasonal patterns tied to political ad spend. - Cost reduction and synergy targets are maintained: the company is on track to complete the full $7.5 million total SGA cost reduction program by the end of the second quarter of fiscal 2027, with $2 million already completed as of fiscal Q4 2026. The company also expects to capture $2.5 million in annualized cost synergies from the Giant Worldwide integration. - Seasonality for the combined business will remain broadly aligned with historical patterns: fiscal Q3 (calendar Q4) will remain the heaviest quarter for revenue, though the ad tech business is expected to soften the typical Q1 seasonal revenue dip.

- Near-term ad market pressure: A flood of new ad inventory from major studio and streamer FAST channel launches created temporary downward pressure on CPMs and ad fill rates for the legacy streaming ad business. - Liquidity: As of March 31, 2026, net working capital was negative $12.2 million, which includes $12.2 million of deferred consideration for the IndieQ acquisition that the company can pay in equity. The company has a $30 million increased ATM equity facility and $12.5 million revolving credit facility for liquidity support. - The microdrama space requires very high levels of capital investment for marketing and content to compete with deep-pocketed existing players, creating unfavorable return on capital dynamics for a direct operating strategy.

Q: Post-acquisition, what initial learnings, new revenue opportunities, and synergy cadence do you see? / A: Management reports both acquisitions are performing better than expected, and the cross-business