Cineverse Corp.
For the period ended Dec 31, 2025. Filed Feb 17, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Dec 31, 2025 · Filed Feb 17, 2026
CNVS$1.52+0.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-14.
0001193125-25-283349
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-12-31; filed 2026-02-17.
0001193125-26-055008
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 56 previous paragraphs and 55 current paragraphs.
33 unchanged; 19 reworded; 3 added; 4 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 10 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (3)
Current report
Streaming and digital revenue for the three months ended December 31, 2025 decreased by $2.6 million, primarily due to strong digital release revenue of $2.8 million from Terrifier 3 in the prior period. This is partially offset by revenue growth of $1.5 million in our top channels. Programmatic revenue decreased by $1.2 million due to reduced advertiser demand.
Current report
For the three months ended December 31, 2025, compared with the same period in 2024, interest expense decreased by $2.1 million to $0.2 million primarily due to higher interest participation in the prior year related to the T3 Loan, which was obtained and repaid during the prior fiscal year, lower borrowings under our line of credit, and lower interest rates.
Current report
Base distribution revenue decreased by $19.8 million for the nine months ended December 31, 2025, compared to the same period in 2024, primarily due to the strong theatrical release revenue of $22.8 million in the prior period. This is partially offset by the theatrical and physical releases bringing in $2.0 million in the current period.
Removed paragraphs (4)
Previous report
Streaming and digital revenue for the three months ended September 30, 2025 decreased by $0.5 million, primarily due to lower licensing revenue. The same period in 2024 included $1.6 million license fee revenue related to the licensing of the Dog Whisperer content. In the prior-year quarter, the Company recorded $1.6 million from a Dog Whisperer licensing agreement, while this quarter includes a recently signed $1.1 million licensing deal for The Toxic Avenger Unrated that will be recognized in future periods. Excluding these timing effects, performance across the Company’s core business lines continued to show solid underlying growth.
Previous report
For the three months ended September 30, 2025, interest expense decreased by $0.2 million to $0.1 million compared to the prior year quarter. The decrease is primarily the result of a lower average balance on the Line of Credit Facility during the quarter compared to the prior year quarter.
Previous report
The $1.2 million increase in Base distribution revenue for the six months ended September 30, 2025, compared to the same period in 2024, due to the theatrical release of Toxic Avenger and final theatrical revenue for Terrifier 3.
Previous report
(2) - Primarily includes employee severance related costs.
Reworded paragraphs (19)
Previous wording
As of September 30, 2025, the Company has an accumulated deficit of $510.2 million and negative working capital of $1.3 million. For the three and six months ended September 30, 2025, the Company had a net loss attributable to the Company's common stock, par value $0.001 per share (the "Common Stock") holders of $9.3 million. Net cash used in operating activities for the six months ended September 30, 2025 was $21.7 million, which included $4.2 million of incremental investment in our content portfolio via advances or minimum guarantee payouts. We may continue to generate net losses for the foreseeable future. During the six months ended September 30, 2025, 1.9 million warrants were exercised for net proceeds of $5.8 million.
Current wording
As of December 31, 2025, the Company has an accumulated deficit of $(511.2) million and negative working capital of $(1.4) million. For the three and nine months ended December 31, 2025, the Company had a net loss attributable to the Company's common stock holders of $(1.0) million and $(10.3) million, respectively. Net cash used in operating activities for the nine months ended December 31, 2025 was $23.3 million, which included $7.9 million of incremental investment in our content portfolio via advances or minimum guarantee payouts. We may continue to generate net losses for the foreseeable future. During the nine months ended December 31, 2025, 1.9 million warrants were exercised for net proceeds of $5.8 million.
Previous wording
The Company is party to a Loan, Guaranty, and Security Agreement, as amended on April 8, 2025, with East West Bank (the "Line of Credit Facility") providing for borrowings of up to $12.5 million and expandable to $15.0 million, guaranteed by substantially all of our material subsidiaries and secured by substantially all of our and our subsidiaries’ assets. As of September 30, 2025, $6.6 million was outstanding on the Line of Credit Facility.
Current wording
The Company is party to a Loan, Guaranty, and Security Agreement, as amended on April 8, 2025, with East West Bank (the "Line of Credit Facility") providing for borrowings of up to $12.5 million guaranteed by substantially all of our material subsidiaries and secured by substantially all of our and our subsidiaries’ assets. The facility includes provisions that allow for an increase in total borrowing capacity up to $15.0 million, subject to lender approval. As of December 31, 2025, $8.3 million was outstanding on the Line of Credit Facility.
Previous wording
The Company will continue to invest in content development and acquisitions, from which it believes it will obtain an appropriate return on its investment. As of September 30, 2025 and March 31, 2025, short-term content advances were $5.4 million and $6.7 million, respectively, and content advances, net of current portion, were $7.9 million and $4.1 million, respectively.
Current wording
The Company will continue to invest in content development and acquisitions, from which it believes it will obtain an appropriate return on its investment. As of December 31, 2025 and March 31, 2025, short-term content advances were $7.9 million and $6.7 million, respectively, and long-term content advances, net of current portion, were $9.2 million and $4.1 million, respectively.
Previous wording
Our capital requirements will depend on many factors, and we may need to use existing capital resources and/or undertake equity or debt offerings, if necessary and opportunistically available, for further capital needs. We believe our cash and cash equivalents and availability under our Line of Credit Facility as of September 30, 2025 will be sufficient to support our operations for at least twelve months from the filing of this report.
Current wording
Our capital requirements will depend on many factors, and we may need to use existing capital resources and/or undertake equity or debt offerings, if necessary and opportunistically available, for further capital needs. We believe our cash and cash equivalents, availability under our Line of Credit Facility and ability to use our ATM as of December 31, 2025 will be sufficient to support our operations for at least twelve months from the filing of this report.
Previous wording
The $0.5 million increase in Base distribution revenue for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, primarily attributable to approximately $1.1 million of revenue recognized from the theatrical release of Toxic Avenger and the final theatrical revenue for Terrifier 3, offset by a decrease in physical sales.
Current wording
Base distribution revenue decreased by $21.0 million for the three months ended December 31, 2025 compared to the three months ended December 31, 2024, primarily attributable to the strong theatrical release revenue of $22.8 million from Terrifier 3 in the prior period. This is partially offset by theatrical release revenue of $1.2 million in the current period.
Previous wording
Podcast and other revenue declined by $0.3 million during the three months ended September 30, 2025, compared to same period in 2024 due to lower podcast direct advertising.
Current wording
Podcast and other revenue decreased by $0.8 million during the three months ended December 31, 2025, compared to same period in 2024 due to lower podcast direct advertising.
Previous wording
The $1.0 million decrease in Direct operating expenses for the three months ended September 30, 2025 was primarily driven by lower variable costs compared to the prior year quarter, including royalty expense, platform fees, manufacturing, freight, and fulfillment charges, offset by an increase in theatrical distribution fees related to Toxic Avenger.
Current wording
The $15.9 million decrease in Direct operating expenses for the three months ended December 31, 2025 was primarily driven by lower variable costs compared to the prior year quarter, which included royalty expenses for Terrifier 3, platform fees, freight, and fulfillment charges, offset by an increase in manufacturing costs related to Toxic Avenger.
Previous wording
For the three months ended September 30, 2025 compared to three months ended September 30, 2024, Compensation expense increased by $1.2 million due to increased employee headcount. Corporate expenses increased by $0.8 million reflecting higher professional services and legal expenses associated with strategic business and content acquisitions. Marketing expenses increased by $2.8 million primarily due to Toxic Avenger. For the three months ended September 30, 2024, $0.3 million Marketing expenses were included in Direct operating expenses.
Current wording
For the three months ended December 31, 2025 compared to three months ended December 31, 2024, compensation expense decreased by $1.8 million primarily due to a lower bonus accrual. Corporate expenses increased by $0.8 million reflecting higher professional services and legal expenses associated with strategic business and content acquisitions. Marketing expenses increased by $2.0 million primarily due to Toxic Avenger. For the three months ended December 31, 2024, $0.6 million Marketing expenses were included in Direct operating expenses.
Previous wording
Amortization expense increased during the three months ended September 30, 2025 compared to the prior year quarter primarily due to increased capitalized content costs.
Current wording
Amortization expense increased by $0.3 million during the three months ended December 31, 2025 compared to the prior year quarter primarily due to increased capitalized content costs.
Previous wording
Results of Operations for the six months ended September 30, 2025 and 2024(unaudited) (in thousands):
Current wording
Results of Operations for the nine months ended December 31, 2025 and 2024(unaudited) (in thousands):
Previous wording
Streaming and digital revenue for the six months ended September 30, 2025 increased by $0.9 million compared to the same period in 2024, primarily driven by $0.5 million from the digital release of Terrifier 3, and continued growth across the Company’s subscription-based platforms.
Current wording
Streaming and digital revenue for the nine months ended December 31, 2025 decreased by $1.8 million compared to the same period in 2024, primarily driven by primarily due to strong digital release revenue of $2.8 million for Terrifier 3 in the prior period. This is partially offset by growth of $1.4 million in our top channels.
Previous wording
Podcast and other revenue declined by $0.4 million during the six months ended September 30, 2025 compared to same period in 2024, due to direct advertising offset by an increase in Matchpoint™ revenue.
Current wording
Podcast and other revenue declined by $1.2 million during the nine months ended December 31, 2025 compared to same period in 2024, due to lower podcast direct advertising.
Previous wording
The decrease of $0.7 million in Direct Operating Expenses for the six months ended September 30, 2025, compared to the six months ended September 30, 2024 was primarily driven by lower variable costs, including royalty expenses, platform fees, and freight and fulfillment charges. The reduction also reflects higher recoupements on our content advances resulting in lower provision for royalty advance allowance. These decreases were partially offset by increased theatrical distribution fees related to Toxic Avenger and licensor costs.
Current wording
The decrease of $16.7 million in Direct operating Expenses for the nine months ended December 31, 2025, compared to the nine months ended December 31, 2024 was primarily driven by lower variable costs, including royalty expenses and platform fees. The reduction also reflects higher recoupements on our content advances resulting in lower provision for royalty advance allowance. These decreases were partially offset by increased theatrical distribution fees related to Toxic Avenger and licensor costs.
Previous wording
For the six months ended September 30, 2025 compared to six months ended September 30, 2024, Compensation expenses increased by $2.6 million due to increased employee headcount. Corporate expenses increased by $0.9 million reflecting higher professional services and legal expenses associated with strategic business and content acquisitions. Marketing expenses increased by primarily due to Toxic Avenger. For the six months ended September 30, 2024, $0.3 million Marketing expenses were included in Direct operating expenses. Other operating expenses increased by $0.7 million primarily due to increased administrative costs.
Current wording
For the nine months ended December 31, 2025 compared to nine months ended December 31, 2024, Compensation expenses increased by $0.8 million due to increased employee headcount. Corporate expenses increased by $1.7 million reflecting higher professional services and legal expenses associated with strategic business and content acquisitions. Marketing expenses increased primarily due to costs associated with Toxic Avenger. For the nine months ended December 31, 2024, $0.8 million of marketing expenses were included in Direct operating expenses. Other operating expenses increased by $0.6 million primarily due to increased administrative costs.
Previous wording
Amortization expense increased by $0.5 million during the six months ended September 30, 2025, compared to 2024, primarily due to increased capitalized content costs.
Current wording
Amortization expense increased by $0.8 million during the nine months ended December 31, 2025, compared to 2024, primarily due to increased capitalized content costs.
Previous wording
For the six months ended September 30, 2025 compared to the same period of 2024, interest expense decreased by $0.9 million primarily due to higher outstanding debt balances and increased interest rates in 2024, along with a $0.4 million discount to accrued interest provided by the Terrifier 3 lender during the six months ended September 30, 2025 in return for the final payment made in the quarter.
Current wording
For the nine months ended December 31, 2025, compared with the same period in 2024, interest expense decreased by $3.0 million, primarily due to higher interest participation in the prior year related to the T3 Loan, which was obtained and repaid during prior fiscal year, lower borrowings under our line of credit, and lower interest rates. In addition, during the nine months ended December 31, 2025, we recognized a $0.4 million discount on accrued interest provided by the T3 lender in exchange for the final payment made during the period.
Previous wording
(1) - Includes $129 thousand and $214 thousand of amortization included in direct operating expenses on our Consolidated Statements of Operations for the three and six months ended September 30, 2025, respectively.
Current wording
(1) - Includes $129 thousand and $344 thousand of amortization included in direct operating expenses on our Condensed Consolidated Statements of Operations for the three and nine months ended December 31, 2025, respectively, and $85 thousand and $256 thousand for the three and nine months ended December 31, 2024, respectively.
Previous wording
For the six months ended September 30, 2025, net cash used in operating activities was primarily driven by loss from operations, excluding non-cash expenses such as depreciation, amortization and stock-based compensation, and other changes in working capital. Specifically, the adjustments are primarily driven by net cash outflows related to content advances made to partners for which initial expenditures are generally recovered within six to twelve months and operating prepayments and a decrease in accounts payable and accrued expenses. Operating cash flows are typically seasonally lower during the first two fiscal quarters and higher during our fiscal third and fourth quarters, resulting from revenues earned during the holiday season.
Current wording
For the nine months ended December 31, 2025, net cash used in operating activities was primarily driven by loss from operations, excluding non-cash expenses such as depreciation, amortization and stock-based compensation, and other changes in working capital. Specifically, the adjustments are primarily driven by net cash outflows related to content advances made to partners for which initial expenditures are generally recovered within six to twelve months and operating prepayments and a decrease in accounts payable and accrued expenses.
Previous wording
For the six months ended September 30, 2024, net cash used in operating activities was primarily driven by loss from operations, excluding non-cash expenses such as depreciation, amortization, reserve for credit losses and stock-based compensation, including capitalized content spend and other changes in working capital. Operating cash flows are typically seasonally lower during the first two fiscal quarters and higher during our fiscal third and fourth quarters, resulting from revenues earned during the holiday season.
Current wording
For the three and nine months ended December 31, 2024, net cash used in operating activities was primarily driven by loss from operations, excluding non-cash expenses such as depreciation, amortization, reserve for credit losses and stock-based compensation, including capitalized content spend and other changes in working capital.