Cineverse Corp.

please press star followed by zero. Please note that this call is being recorded. I would now like to turn the call over to your host, Gary Lafredo, Chief Legal Officer, Secretary and Senior Advisor for Cineverse. Please go ahead.

Good morning, everyone. Thank you for joining us for Cineverse's fourth quarter and fiscal year 2025 financial results conference call. The press release announcing Cineverse's results for the fiscal fourth quarter and year-ended March 31, 2025, is available at the Investors section of the company's website at www.cineverse.com. A replay of this broadcast will also be made available at Cineverse's website after the conclusion of this call. Before we begin, I would like to point out that certain statements made on today's call may contain forward-looking statements. These statements are based on management's current expectations and are subject to risks, uncertainties, and assumptions. The company's periodic reports that are filed with the SEC describe potential risks and uncertainties that could cause the company's business and financial results to differ materially from these forward-looking statements. All the information presented on this call is as of today, June 27, 2025, and Cineverse does not assume any obligation state any of these forward-looking statements except as required by law. In addition, certain financial information presented in this call represent non-GAAP financial measures, and we encourage you to read our disclosures and the reconciliation tables to applicable GAAP measures in our earnings release carefully as you consider these metrics. I'm Gary LaFretto, Chief Legal Officer, Secretary, and Senior Advisor at Cineverse. With me today are Chris McGurk, Chairman and CEO, Eric Opica, President and Chief Strategy Officer, Tony Weidor, President of Technology and Chief Product Officer, Mark Lindsay, Chief Financial Officer, and Mark Torres, Chief People Officer, all of whom will be available for questions following the prepared remarks. On today's call, Chris will briefly discuss our fourth quarter and fiscal year 2025 financial highlights. the latest operational developments, outlook, and long-term growth strategy. Mark will follow with a review of our financial results for the fourth quarter and fiscal year. Eric will provide some details on our streaming business results and operating initiatives. And Tony will provide updates on our technology initiatives before opening the floor for questions. As the market opens at 9.30 a.m. this morning, we would like to conclude our comments and Q&A by that time. I will now turn the call over to Chris McGurk to begin.

Thanks, Gary, and thanks, everyone, for joining us today. As you recall, in February, we reported our third quarter results. That quarter was the best in the company's history, with over $41 million in total revenues, an increase of $27.5 million from the prior year quarter. And we also recorded net income of $7.2 million, a $9.9 million increase from the prior year. And we've continued that very strong financial and business momentum in our fourth fiscal quarter, generating impressive growth in all our financial performance measures and beating consensus analyst guidance on all key metrics. In the quarter, we generated total revenue of $15.6 million, a $5.7 million or 58% increase over the prior year, net income was $858,000, a $15.5 million increase over the prior year. Adjusted EBITDA was $4 million, a $2.4 million or 158% increase over the prior year quarter. Total direct operating margin was 55%, well above our stated margin target of 45 to 50%. Our full-year fiscal 2025 results were equally impressive. Total full-year revenues increased by 59% to $78.2 million. Total full-year net income was $3.8 million. And total full-year adjusted EBITDA was $13.9 million, a $9.5 million or 216% increase over last year. These strong results were driven by growth across all the company's key lines of business, particularly streaming, digital, and podcast revenues. But most importantly, by the unprecedented success of Terrifier 3, the most successful unrated film release of all time. Our goal now is to build a high growth, high profit, low risk, year-round wide theatrical releasing business by following the same acquisition, releasing, and marketing blueprints that worked so well on the Terrifier movies and astonished the entertainment industry. I will speak more about that in just a minute, and Eric will go into much more detail about all the operating successes and new initiatives we've been pursuing across our other lines of business. But first, let me speak about an important reorganization we've just implemented. First, to rapidly capture the growth and financial upside of our most important underlying assets, a proprietary streaming content management and AI technology, we have set up our technology business as a separate business group and put Tony Huidor in charge as president and chief product officer. This move was designed to focus all of Tony's considerable talent and experience in technology and business development on immediately turbocharging this business. With a focus on Matchpoint licensing and the development of new AI-based products, such as CineSearch, our industry leading AI search tool that we developed with Google. Tony is not only tasked with keeping the company at the forefront of industry AI innovation, but also ensuring that Cineverse becomes the first truly AI forward entertainment company in every operating process across every function of the company. In a few minutes, Tony will speak about all these key technology initiatives and the strong progress we're making in the marketplace with our Matchpoint and AI products. Second, we also reorganized our entertainment content business to create a dedicated theatrical motion pictures division. Yolanda Macias is now the company's chief motion pictures officer. In this role, Yolanda will focus 100% of her considerable experience and expertise to leverage the success of Terrifier 2 and 3 by building and releasing a wide release slate of theatrical movies that are well poised to successfully follow the Terrifier blueprint. We believe this business, given our unique new media assets and releasing formula, can be a major potential source of ongoing value creation for the company. We've already made great progress in this area based on the high potential slate of franchise IP properties we have secured for our release lineup over the remainder of this fiscal year, which I will describe in more detail now. Our next franchise release is The Toxic Avenger, a contemporary rendering of the classic trauma horror comedy. The film was produced by Major Studio Legendary Films, which counts the tremendously successful Dune movies and Godzilla vs. Kong among its recent mega hits. The film was directed by Macon Blair and stars Peter Dinklage, Kevin Bacon, and Elijah Wood. We have domestic rights for the film in perpetuity. and we'll be releasing it on August 29th. Like Terrifier 3, our all-in cash investment in this film for acquisition and release marketing will be less than $5 million. However, it's important to note that this film will generate approximately the same level of financial return to Cineverse as Terrifier 3 if it performs at only half of Terrifier's box office level, given the parameters of the economic deal we made on the film. Additionally, Our lifetime box office break, even on the film, is well below $10 million, underscoring again the favorable risk-reward profile of this property. And the film is very well made, directed, and acted, and currently has a 92% positive score on review aggregator Rotten Tomatoes. Like Terrifier 2 and 3, it will be an unrated release. After that, on December 12th, we will be releasing Silent Night, Deadly Night, a reinterpretation of the classic, controversial Christmas horror film that was banned from theaters years ago. We are releasing the film domestically and have partnered with international entertainment powerhouse Studio Canal, which is releasing it overseas. The film has finished principal photography and is currently in post-production. Total acquisition and releasing investment with this film will also be below $5 million. Next up will be Return to Silent Hill, the latest film installment of the enormously successful and popular video game horror franchise, which will be released on January 23, 2026. This film will also carry a total investment of less than $5 million. So we will have at least three wide-release films in this current fiscal year, all with investments of less than $5 million, all based on very well-known franchise IP all with very specific and reachable fan bases, and all perfectly poised to leverage the unique set of assets we have built at Cineverse. Our streaming channels, our podcast network, our social media platforms, our AI-based research tools, our targeted ad sales technology, and to use them all to follow the blueprint that was so successful, empowering the performance of the Terrifier movies. Expect more wide-release film announcements in the next few months, as we build our slate for fiscal year 2026. In addition, we continue to generate significant new advertising businesses by other studios using our ecosystem to market their theatrical releases as well. Yolanda will give a detailed update on all this on our next earnings call in August. And with that, I'll turn things over to Mark for a financial update. Mark.