Cineverse Stock Soars As Terrifier 3 Lifts Q4 Revenue: Retail Optimism Abounds

Cineverse Corp.(CNVS) has reported a sharp revenue increase in the fourth-quarter of 2025, crediting the success of its horror franchise Terrifier 3 for much of the growth in the quarter. 

The streaming and entertainment firm announced that revenue rose to $15.6 million in the three-month period ending March 31, 2025, marking a 58% increase from the same quarter a year earlier, above the analysts consensus estimate of $14.29 million, as per Finchat data.

Following the earnings, Cineverse stock traded over 7% higher in Friday morning after bell.  

Terrifier 3, a low-budget horror hit, emerged as a key revenue driver. Ancillary revenues from the film were cited as a major contributor to both topline and bottom-line growth.

The company's earnings per share (EPS) of $0.04 also surpassed the consensus estimate of $0.01. This compares to a loss per share of $1.10 in the same quarter last year.

The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) more than doubled to $4.0 million. 

The company's direct operating margin reached 55%, surpassing its internal targets of 45% to 50%, while general and administrative expenses declined 21%, aided by cost-cutting measures, including an outsourcing program in India.

As of March 31, Cineverse held $13.9 million in cash and had $12.5 million in unused borrowing capacity. 

The company recently expanded its credit line with East West Bank from $7.5 million to $12.5 million, with the potential to extend up to $15 million, and pushed its maturity to April 2028.

Working capital improved to a $3.6 million surplus, up from $1.5 million a year ago. Although the company's digital content library is recorded at a book value of $2.5 million, an external valuation places it closer to $40 million as of March 2024.

On Stocktwits, retail sentiment toward Cineverse improved to 'extremely bullish' from 'bullish' territory the previous day amid 'extremely high' message volume levels.

Cineverse stock has gained over 14% year-to-date and has nearly surged fivefold in the last 12 months.

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