Cineverse Corp.

Hello, everyone. Thank you for joining us and welcome to Cineverse fourth quarter and fiscal year 2026 earnings conference call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Gary Loffredo, Chief Legal Officer, Secretary, and Senior Advisor. Gary, please go ahead.

Good morning, everyone. Thank you for joining us for the Cineverse fourth quarter and fiscal year 2026 financial results conference call. The press release announcing Cineverse's results for the fiscal fourth quarter ended March 31st, 2026 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 on 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, June 26, 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 disclosures and the reconciliation tables to applicable GAAP measures in our earnings release carefully as you consider these metrics. I'm Gary Loffredo, Chief Legal Officer, Secretary, and Senior Advisor at Cineverse. With me today are Chris McGurk, Chairman and CEO, Erick Opeka, President and Chief Strategy Officer, Tony Huidor, President of Technology and Chief Product Officer, Sean McCabe, 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 fourth quarter and fiscal year 2026 business highlights. Then Sean will follow with a review of our financial results and Eric will provide further details on our two recent acquisitions. I will now turn the call over to Chris McGurk to begin.

Thank you, Gary, and thanks everyone for joining us on the call today. First, I want to note that we're very happy to have our new CFO, Sean McCabe, here with us on the call today. Sean was our controller previously and returns to the company as CFO, having acquired some valuable experience in the ad tech business, which, as you will hear today, is going to be a big part of our future following our acquisition of IndieQ and all the related synergies that that's going to create with the rest of our business. So let me first review are operating highlights for this quarter. Then Sean will get into more detail about our financial results and guidance. Eric will then explain our post acquisition strategy going forward as a scaled AI powered, fully integrated technology and service provider to the entertainment industry with assets and a synergy flywheel that we believe none of our competitors can match. After that, we'll take your questions. So we had a very strong fiscal fourth quarter. We generated $26 million in consolidated revenues, up 67% over the prior year period. This reflected solid performance in our base business, plus a partial quarter contribution from our two new acquisitions, Giant Worldwide and IndyQ, of $11.6 million. We acquired Giant Worldwide in January and IndyQ in the middle of February, so we fully expect and even bigger revenue contribution from those acquisitions when we record their full impact in our next reported quarter. Importantly, a significant portion of those revenues come from durable, recurring, fast growing technology-based revenue streams from a large array of major studio and streaming customers, which was a major rationale for the acquisitions themselves. Based on preliminary results so far, In our first fiscal quarter of 2027, we expect that these acquisitions will be an even bigger positive engine for our financial performance in the next reported quarter and beyond. We also recorded net income attributable to stockholders of $1.1 million, a 51% increase over the prior year period. This was driven by a $4.3 million bargain purchase gain on the Giant Worldwide acquisition and a $2.9 million income tax benefit primarily coming from the NDQ acquisition. Both of those upsides are additional strong indicators of the quality of the deals we cut for both companies, as well as their upside value creation potential for Senators. Overall, we believe that fiscal year 2026 was one of the most consequential years in our history. We followed up the unprecedented success of Terrifier 3, the highest performing unrated film in history, by quickly and decisively moving to convert that momentum into a structurally sounder and even higher growth company by completing the acquisitions of Giant Worldwide and then NDQ in the span of six weeks during this reported quarter. These deals fundamentally strengthen and change what Cineverse is as a company. We are now a technology first, AI driven, fully integrated entertainment company with three powerful and mutually reinforcing growth engines. A proven low risk, high potential return, wide release film slate strategy, a scaled streaming and podcast portfolio with a vertically integrated advertising technology and a media services business built around our Matchpoint technology platform. As I just described, the positive financial impact has been immediate and will only get bigger going forward as we report full quarter results, finish integrating the two companies into Cineverse and fully realize significant cross-business synergies across our technology and entertainment ecosystem. The strategic logic of these transactions is clear. NDQ brings to the table a connected TV modernization platform serving more than 40 live clients plus an additional 75 publishers onboarding. Giant Worldwide, now a Matchpoint company, brings deep and long-standing studio relationships directly into our automated media services ecosystem. Combined, this creates a powerful flywheel. Matchpoint's automated content supply chain feeds IndieQ's Advertiser Demand increases the value of every channel, film and TV title and partner we serve. This expanded Cineverse flywheel, not any single channel, film, TV series or distribution deal, is the key growth and performance engine behind our fiscal 2027 guidance of $115 to $120 million in consolidated revenue and $10 to $20 million in adjusted EBITDA. which we are reaffirming today. Again, a significant portion of those revenues will be durable and recurring and over 50% will be technology-based. At the same time, our franchise IP-based wide release film strategy continues to perform exactly as designed, high upside potential with limited financial risk. That's because our strategy fully utilizes the tightly coupled Cineverse ecosystem Technology Platform, and the flywheel I just described. Our upcoming slate includes the 20th anniversary theatrical re-release of Guillermo del Toro's Oscar-winning masterpiece Pan's Labyrinth this October, presented in 3D and 4K formats. When first released in 2006, the film received the longest standing ovation in the history of the Cannes Film Festival. That record still stands. We just took the film back to Cannes six weeks ago, where it was selected as the opening film of the festival. It screened before a packed house at the Palais Theater and received a tremendous ovation and great critical reaction once again. Next up after Pan's Labyrinth will be a much different type of film. However, it comes from an IP franchise that is also very beloved, this time by family audiences. Air Bud returns. in January, 2027. After that, we returned to our horror wheelhouse with the latest installment of Wolf Creek in March, 2027. All three of these films closely follow the Tarifier 2 and 3 blueprints of acquiring known IP properties with large built-in fan bases, high upside potential, and low financial risk. These titles will generate recurring revenues for Cineverse Thank you, Chris.