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Cineverse Corp. (CNVS+8.01%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing an increase in total revenue to $40.7 million from $13.3 million in the same quarter the previous year. The increase is attributed to the release of Terrifier 3 and higher streaming and digital revenues.
Direct operating expenses for the quarter were $21 million, representing 52% of revenue, compared to 41% in the same quarter of the previous year. The increase is primarily due to higher royalty expenses and marketing costs associated with Terrifier 3.
The company reported a gross profit of $9.4 million for the quarter, compared to $0.4 million in the previous year, with the improvement attributed to increased revenue from Terrifier 3.
Selling, general, and administrative expenses increased to $9.4 million from $6.4 million, primarily due to higher compensation expenses and share-based compensation.
Net income for the quarter was $7.2 million, compared to a net loss of $2.7 million in the previous year. After preferred dividends, net income attributable to common stockholders was $7.0 million, compared to a loss of $2.9 million in the previous year.
Cash provided by operating activities was $5.0 million for the nine months ended December 31, 2024, while cash used in investing and financing activities was $0.7 million and $3.4 million, respectively.
Cineverse had a working capital surplus of $6.8 million as of December 31, 2024. The company plans to continue investing in content development and acquisition.
The filing also details various financial agreements, including a loan agreement with East West Bank and a sales agreement with A.G.P./Alliance Global Partners.
Cineverse does not anticipate cash dividend payments to common stockholders in the near future.
The company identified no material weaknesses in its internal controls over financial reporting.
Cineverse continues to focus on expanding its streaming services and content distribution through its MatchpointTM platform.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Cineverse Corp. quarterly 10-Q report dated February 14, 2025. To report an error, please email earnings@qz.com.