Overview

* Cineverse ( CNVS ) Q2 FY 2026 revenue declined 3% yr/yr, missing analyst expectations

* Company's direct operating margin improved by 7% over prior-year quarter

Outlook

* Cineverse ( CNVS ) plans to reissue Pan's Labyrinth in late 2026

* Company expects The Toxic Avenger Unrated to generate over 40% IRR

* Cineverse ( CNVS ) advancing MicroCo venture with Banyan Ventures

Result Drivers

* REVENUE TIMING - Revenue decline attributed to timing differences in content licensing agreements

* MARGIN IMPROVEMENT - Direct operating margin improved by 7% over prior-year quarter

* MARKETING COSTS - Increased SG&A expenses due to marketing costs for 'The Toxic Avenger Unrated' and investments in theatrical slate

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $12.36 $12.66

Revenue mln mln (2

Analysts

)

Q2 EPS -$0.31

Q2 Net -$5.55

Income mln

Q2 $17.77

Operatin mln

g

Expenses

Q2 -$5.41

Operatin mln

g Income

Q2 -$5.53

Pretax mln

Profit

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 ( CNVS ) is $8.00, about 68.3% above its November 13 closing price of $2.54

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)