← Back to All US Stocks

CNVS Stock Analysis - Cineverse Corp. AI Rating

CNVS Nasdaq Services-Video Tape Rental DE CIK: 0001173204
Recently Updated • Analysis: Mar 22, 2026 • SEC Data: 2025-12-31
AI Rating
STRONG SELL
92% Confidence

📊 CNVS Key Takeaways

Revenue: $39.8M
Net Margin: -2.2%
Free Cash Flow: $-24.4M
Current Ratio: 0.95x
Debt/Equity: 0.08x
EPS: $-0.57
AI Rating: STRONG SELL with 92% confidence

Investment Thesis

Cineverse Corp exhibits severe operational distress with persistent operating losses (-24.6% margin), significantly negative free cash flow (-$24.4M), and deteriorating liquidity (0.95x current ratio). The company is burning cash at an unsustainable rate while generating minimal revenue growth, indicating fundamental business model challenges in the legacy video rental sector.

CNVS Strengths

  • + Conservative debt levels with Debt/Equity of only 0.08x, providing borrowing capacity
  • + Positive net income improvement trend with net loss narrowing by 16% YoY and EPS improving 109% YoY
  • + Modest equity base of $38.6M remains positive, reducing immediate insolvency risk

CNVS Risks

  • ! Severe cash burn with operating cash flow of -$23.3M and free cash flow of -$24.4M consuming equity rapidly
  • ! Critical liquidity position with current ratio of 0.95x indicating inability to cover near-term obligations
  • ! Stagnant revenue with 0% YoY growth in declining industry sector, suggesting structural business model obsolescence
  • ! Negative interest coverage of -2.2x indicates inability to service debt from operations
  • ! Unsustainable free cash flow margin of -61.3% demonstrates losses exceed revenue

Key Metrics to Watch

CNVS Financial Metrics

Revenue
$39.8M
Net Income
$-875.0K
EPS (Diluted)
$-0.57
Free Cash Flow
$-24.4M
Total Assets
$68.6M
Cash Position
$2.5M

💡 AI Analyst Insight

The current ratio below 1.0x warrants monitoring of short-term liquidity.

CNVS Profitability Ratios

Gross Margin N/A
Operating Margin -24.6%
Net Margin -2.2%
ROE -2.3%
ROA -1.3%
FCF Margin -61.3%

CNVS vs Default Sector

How Cineverse Corp. compares to Default sector averages

Net Margin
CNVS -2.2%
vs
Sector Avg 12.0%
CNVS Sector
ROE
CNVS -2.3%
vs
Sector Avg 15.0%
CNVS Sector
Current Ratio
CNVS 1.0x
vs
Sector Avg 1.8x
CNVS Sector
Debt/Equity
CNVS 0.1x
vs
Sector Avg 0.7x
CNVS Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

CNVS Balance Sheet & Liquidity

Current Ratio
0.95x
Quick Ratio
0.95x
Debt/Equity
0.08x
Debt/Assets
45.0%
Interest Coverage
-2.24x
Long-term Debt
$3.0M

CNVS 5-Year Financial Trend

CNVS 5-year financial data: Year 2021: Revenue $1.4M, Net Income -$14.7M, EPS $-0.34. Year 2023: Revenue $68.0M, Net Income $2.3M, EPS $0.20. Year 2024: Revenue $68.0M, Net Income -$9.7M, EPS $-1.13. Year 2025: Revenue $78.2M, Net Income -$21.3M, EPS $-1.78.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Cineverse Corp.'s revenue has grown significantly by 5,484% over the 5-year period, indicating strong business expansion. The most recent EPS of $-1.78 indicates the company is currently unprofitable.

CNVS Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-61.3%
Free cash flow / Revenue

CNVS Quarterly Performance

Quarterly financial performance data for Cineverse Corp. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2026 $16.3M -$875.0K $-0.05
Q2 2026 $12.4M -$1.2M $-0.09
Q1 2026 $9.1M -$3.1M $-0.20
Q3 2025 $13.3M -$317.0K $0.12
Q2 2025 $12.7M -$317.0K $-0.04
Q1 2025 $9.1M -$3.1M $-0.20
Q3 2024 $13.3M -$317.0K $-0.22
Q2 2024 $13.0M -$317.0K $-0.04

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

CNVS Capital Allocation

Operating Cash Flow
-$23.3M
Cash generated from operations
Capital Expenditures
$1.1M
Investment in assets
Dividends
None
No dividend program

CNVS SEC Filings

Access official SEC EDGAR filings for Cineverse Corp. (CIK: 0001173204)

📋 Recent SEC Filings

Date Form Document Action
Feb 17, 2026 4 xslF345X05/ownership.xml View →
Feb 17, 2026 4 xslF345X05/ownership.xml View →
Feb 17, 2026 4 xslF345X05/ownership.xml View →
Feb 17, 2026 4 xslF345X05/ownership.xml View →
Feb 17, 2026 4 xslF345X05/ownership.xml View →

Frequently Asked Questions about CNVS

What is the AI rating for CNVS?

Cineverse Corp. (CNVS) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.

What are CNVS's key strengths?

Conservative debt levels with Debt/Equity of only 0.08x, providing borrowing capacity. Positive net income improvement trend with net loss narrowing by 16% YoY and EPS improving 109% YoY.

What are the risks of investing in CNVS?

Severe cash burn with operating cash flow of -$23.3M and free cash flow of -$24.4M consuming equity rapidly. Critical liquidity position with current ratio of 0.95x indicating inability to cover near-term obligations.

What is CNVS's revenue and growth?

Cineverse Corp. reported revenue of $39.8M.

Does CNVS pay dividends?

Cineverse Corp. does not currently pay dividends.

Where can I find CNVS SEC filings?

Official SEC filings for Cineverse Corp. (CIK: 0001173204) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is CNVS's EPS?

Cineverse Corp. has a diluted EPS of $-0.57.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 22, 2026 | Data as of: 2025-12-31 | Powered by Claude AI