Cineverse Corp. Q1 FY2026 earnings call

• Chris McGurk noted strong revenue growth across key business lines, investments in SG&A and marketing with expected strong returns from Q2. Mentioned The Toxic Avenger Unrated releases in 2 weeks, similar low investment to Terrifier 3, and added Air Bud Returns to the slate. Announced a 50-50 joint venture for MicroCo. - Mark Lindsey reviewed financial results, noting revenue and gross margin details, cash position, and SG&A investments. - Erick Opeka discussed acceleration across streaming, advertising, and platform services, including streaming metrics like minutes viewed and subscriber growth, advertising performance, and outlined MicroCo's strategy to build the micro drama platform. - Yolanda Macias outlined the theatrical slate, including upcoming releases like The Toxic Avenger Unrated, Silent Night, Deadly Night, Return to Silent Hill, Wolf Creek: Legacy, and Air Bud Returns, and discussed marketing strategies and theatrical release approach.

Revenue for the quarter was $11.1 million, a 22% increase compared to the prior year quarter. Gross margin was 57% versus 51% last year. Net loss was $3.5 million and adjusted EBITDA was negative $2.1 million. In streaming, total minutes viewed were 4 billion, up 38% year-over-year; FAST minutes streamed were 3.8 billion, a 39% increase; total streaming viewers reached 214 million, up 24%; subscriber count was 1.4 million, a 5% year-over-year increase. Advertising direct business grew 57% year-over-year.

• Expect strong top and bottom line results in the remainder of the fiscal year due to upfront SG&A investments starting to pay off in Q2. - In streaming, expect aggressive growth over the next 2 quarters through new partnerships, bundling strategies, and marketing execution. - MicroCo aims to build the infrastructure for the micro drama space as a first mover in the $10 billion market by 2027.

Q: On the MicroCo announcement, why partner with Cineverse, how much money is put to work in the space, and how to monetize it, as well as expense leverage?

A: Chris McGurk stated partners see Cineverse's unique assets and ability to be a first mover. Erick Opeka mentioned Cineverse has assembled assets no one else has and will build the home base for the micro drama industry. Details on investment and monetization to be revealed as the financing strategy progresses.

Q: On Matchpoint progress, sales cycle and feedback from studios?

A: Tony Huidor said significant inroads with Matchpoint, pipeline tripled, strong traction with studios, and a pilot with a major TV OEM.

Q: Strategy to drive podcast revenue?

A: Erick Opeka said they built scale audience in podcasting, brought in dedicated sales team, and have seen mid-6-figure deals coming in