Cineverse Corp extends stock buyback plan

Published 06/03/2025, 15:04
Cineverse Corp extends stock buyback plan

Cineverse Corp. (NASDAQ:CNVS), whose stock has surged nearly 387% over the past six months, has announced the extension of its stock repurchase program, authorizing the buyback of an additional 500,000 shares of its Class A common stock. This move follows previous repurchases under the same scheme. The Board of Directors approved this extension on February 28, 2025. According to InvestingPro data, the company maintains a strong balance sheet with cash reserves exceeding debt levels.

The repurchase program allows the company to acquire shares through open market transactions, in line with Rule 10b-18 of the Securities Exchange Act of 1934, as well as through privately negotiated deals or other methods as deemed appropriate by the company. This decision reflects Cineverse Corp.’s ongoing commitment to managing its capital and providing value to its shareholders. With analysts maintaining a Strong Buy consensus and the stock currently trading below its Fair Value, this move could signal management’s confidence in the company’s prospects.

The extended buyback plan is set to expire on March 31, 2026, unless further modified by the company’s Board. The implementation of the program is subject to various consents.

This announcement is based on a recent SEC filing by Cineverse Corp. and does not include any speculative or forward-looking statements. The information is presented to provide shareholders and the investment community with a clear understanding of the company’s actions regarding its stock repurchase strategy.

In other recent news, Cineverse reported strong financial results for its third fiscal quarter of 2025, with revenue surpassing analyst estimates by nearly $2 million. This growth was attributed to the success of "Terrifier 3" and robust box office performance, which positively impacted the company’s EBITDA. Benchmark analyst Daniel L. Kurnos maintained a Speculative Buy rating on Cineverse, with a $10.00 price target, noting the company’s strategic plans to distribute more films and introduce a new advertising revenue stream. Meanwhile, Syniverse posted record revenue of $40.7 million for Q3 2023, marking a 207% increase from the previous year. The company also achieved a net income of $7.2 million, reversing a prior loss, and reported an adjusted EBITDA of $10.8 million. Syniverse’s expansion into AI content licensing and strategic partnerships has strengthened its market presence, with plans to double its streaming subscriber growth rate. Both companies have shown significant growth and strategic initiatives that could impact future earnings.

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