Cineverse Corp.

Good day, everyone, and thank you for joining us, and welcome to the Cineverse Corporation Fiscal 2026 Third Quarter Earnings Call. My name is Luca, and I will be your operator today. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please raise your hand. If you have dialed in to today's call, please press star 9 to raise your hand and star 6 to unmute. I would now like to turn the call over to Gary Lofredo, Chief Legal Officer, Secretary and Senior Advisor for Cineverse. Please go ahead.

Good afternoon, everyone. Thank you for joining us for the Cineverse Fiscal Year 2026 Third Quarter Financial Results Conference Call. The press release announcing Cineverse's results for the fiscal third quarter ended December 31st, 2025 is available at the investor 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 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 discussed on this call is as of today, February 17th, 2026. And Cineverse does not assume any obligation to update 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 disclosure 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 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, Yolanda Macias, Chief Motion Pictures 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 fiscal year 2026 third quarter business highlights. Then Mark will follow with a review of our financial results. And Eric will provide further details on our two most recent acquisitions. I will now turn the call over to Chris McGurk to begin.

Hey, thanks, Gary. And thanks, everyone, for joining us on the call today. I'll first give a brief overview of our results and the anticipated impact of the two transformative acquisitions, Giant Worldwide and IndieQ, that we made after the end of our fiscal third quarter. Then Mark will go into our financial results and outlook in more detail, plus further outline both acquisitions to underscore why we believe they will be very accretive And we're done with very attractive valuations and have deal economics that will dramatically improve our financial growth and profitability outlook. After that, Eric will get into more detail about how these two acquisitions transform Cineverse into a powerhouse, comprehensive, AI-powered technology services provider to the entertainment industry with assets and reach that we believe none of our competitors can match. Then we'll take your questions. Okay, so we had been negotiating the giant and IndieQ acquisitions for months. And while we realized the dramatic impact both would have on our market position, go forward strategy and financial outlook, our first order of business, while we aggressively moved to close both deals, was to improve operating results in our base businesses to further set the stage for financial success in the future. And so in this last fiscal quarter, we concentrated on improving our cost structure and operating margins in our base businesses. And we generated some strong results, improving our direct operating margin to 69%, up from 48% in the prior year quarter, and generating adjusted EBITDA of $2.4 million, a $6 million improvement from the prior sequential quarter. This was a result of our intense and ongoing efforts to manage the cost side of the business, including leveraging Cineverse Services India, even as we ramped up operations on the technology side of the business in anticipation of these two acquisitions. And we are extremely pleased that we were able to successfully acquire both Giant and IndieCube. This one-two punch immediately transforms our company financially by adding significant revenues and adjusted EBITDA. Both acquisitions bring large, durable, and scalable streams of recurring revenues to the company and significantly solidify our position as a leading end-to-end AI-powered provider of technology services and infrastructure solutions for the entertainment industry. They both have an A-plus level roster of industry clients and will be easily integrated into our industry-leading Matchpoint technology ecosystems. Both acquisitions also bring very strong, experienced, and highly motivated management teams that clearly see the synergies and share our larger vision for the future of Matchpoint and Cineverse. Like the Cineverse team they are joining, our new team members have incentive plans based on generating Explosive future growth in revenues, margins, and profits. And in the case of IndieQ, those incentives also include a very significant earn-out potential over three years. So we believe we are completely aligned with our new team members to generate strong financial results and create significant value going forward. And already the integration of Giant has been going very smoothly. And the overwhelmingly positive industry response to joining Matchpoint has exceeded our expectations. If there are any doubts about the long-term potential of Matchpoint, those doubts have been roundly dismissed. The immediate response we received within days of our announcement proves that merging Matchpoint with an established media delivery company with highly coveted approved vendor badges is the ideal profile for the type of service provider entertainment companies seek. In the days following our announcement, Giant received more work orders than they have in the history of the company. And at this early juncture, we confirm our prior expectations for Giant's short and long-term revenue and profit contribution, and we feel very, very positive about how things are looking so far. And in addition, NDQ has consistently outperformed their own internal monthly revenue and profit forecast over the last several months while we were in negotiations. So both of those factors, combined with the financial improvement we generated in our base business this quarter, give us great confidence in the financial guidance we just issued for fiscal year 2027, which starts this April 1st. We project $115 million to $120 million in annual revenues and $10 to $20 million in adjusted EBITDA from our consolidated operations this next fiscal year. In the end, these acquisitions were the result of a long-term thesis built on closely tracking our industry's delayed transition to true AI integration and automation. The content volume needed to compete in the streaming wars accelerated. yet the video delivery infrastructure remained manual and slow to market, while costs for video in high volume became untenable. This created the opportunity for a unified, intelligent platform with a unique monetization component that redefines the current ecosystem. I believe we've finally achieved this. And with that, I will now turn things over to Mark and then Eric to get into all this in more detail. Thank you.