# EDGAR Filing Document

**Accession Number:** 0001173204
**File Stem:** 0001193125-26-054528
**Filing Date:** 2026-2
**Character Count:** 29508
**Document Hash:** 3e1c0cb3afe373723637f8dc9f9e9d27
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-054528.hdr.sgml**: 20260217

**ACCESSION NUMBER**: 0001193125-26-054528

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 12

**CONFORMED PERIOD OF REPORT**: 20260217

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260217

**DATE AS OF CHANGE**: 20260217

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Cineverse Corp.
- **CENTRAL INDEX KEY:** 0001173204
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-VIDEO TAPE RENTAL [7841]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 223720962
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0331

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-31810
- **FILM NUMBER:** 26640635

**BUSINESS ADDRESS:**
- **STREET 1:** 224 W. 35TH ST.
- **STREET 2:** SUITE 500, #947
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10001
- **BUSINESS PHONE:** 212-206-8600

**MAIL ADDRESS:**
- **STREET 1:** 224 W. 35TH ST.
- **STREET 2:** SUITE 500, #947
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10001

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Cinedigm Corp.
- **DATE OF NAME CHANGE:** 20130925

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Cinedigm Digital Cinema Corp.
- **DATE OF NAME CHANGE:** 20091006

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Access Integrated Technologies, Inc. d/b/a Cinedigm Digital Cinema Corp.
- **DATE OF NAME CHANGE:** 20081202

?xml version='1.0' encoding='ASCII'? 8-K

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549**

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## FORM 8-K

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**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported):** February 17, 2026<br>

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Cineverse Corp.

**(Exact name of Registrant as Specified in Its Charter)**

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| | | |
|:---|:---|:---|
| Delaware | 001-31810 | 22-3720962 |
| **(State or Other Jurisdiction<br>of Incorporation)** | **(Commission File Number)** | **(IRS Employer<br>Identification No.)** |
| 224 W. 35th St.<br>Suite 500, #947 |  |  |
| New York**,** New York |  | 10001 |
| **(Address of Principal Executive Offices)** |  | **(Zip Code)** |

---

**Registrant's Telephone Number, Including Area Code:** (212) 206-8600<br>

**Not Applicable**<br>

**(Former Name or Former Address, if Changed Since Last Report)**

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

**Securities registered pursuant to Section 12(b) of the Act:**

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| | | |
|:---|:---|:---|
| **<br>Title of each class** | **Trading<br>Symbol(s)** | **<br>Name of each exchange on which registered** |
| CLASS A COMMON STOCK, PAR VALUE $0.001 PER SHARE | CNVS | The Nasdaq Stock Market |

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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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## Item 2.02 Results of Operations and Financial Condition.
On February 17, 2026, Cineverse Corp. (the "Company") issued a press release announcing its financial results for the three and nine months ended December 31, 2025.

A copy of such press release is attached as Exhibit 99.1 hereto and incorporated herein by reference.

The information in this Item 2.02 of Form 8-K and Exhibit 99.1 attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing.

## Item 9.01 Financial Statements and Exhibits.
99.1 [<u>Press Release dated February 17, 2026 announcing Cineverse's financial results for the three and nine months ended December 31, 2025</u>](cnvs-ex99_1.htm) <br> 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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| | | | |
|:---|:---|:---|:---|
|  |  |  | Cineverse Corp. |
| Date: | February 17, 2026 | By:  | /s/ Gary S. Loffredo |
|  |  | Name:<br>Title: | Gary S. Loffredo<br>Chief Legal Officer, Secretary and Senior Advisor |

---

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## Exhibit 99.1

**<u>Exhibit 99.1</u>**

![img216377341_0.jpg](img216377341_0.jpg)

# <u>Cineverse Reports Third Quarter Fiscal Year 2026 Results</u> 
**Total Revenue of $16.3 Million**

**Direct Operating Margin of 69%, compared to 48% in Prior Year Quarter**

**Adjusted EBITDA of $2.4 Million**

**Announces Guidance of $115 to $120 Million of Revenue and $10 to $20 Million of Adjusted EBITDA for Fiscal Year 2027, Commencing April 1, 2026**

**LOS ANGELES, February 17, 2026 – Cineverse Corp. ("Cineverse" or the "Company") (NASDAQ: CNVS)**, a global streaming technology and entertainment company, today announced its financial results for its fiscal third quarter ended December 31, 2025 ("Q3 FY 2026"):

**<u>Acquisitions (Subsequent Events)</u>**

Subsequent to quarter end, the Company completed two acquisitions expected to add approximately $53 million in annual Revenue and approximately $10 million in Adjusted EBITDA for Fiscal Year 2027 (April 1, 2026 to March 31, 2027). Both transactions were completed at valuations the Company believes are favorable relative to the acquired businesses' growth profiles and are expected to be immediately accretive. Together, they accelerate Cineverse's positioning as an integrated, AI-powered platform for media distribution and monetization, while adding durable, recurring revenue streams to the business.

**<u>Giant Worldwide Acquisition</u>**

Subsequent to quarter end, Cineverse purchased the assets of **Giant Worldwide ("Giant")**, a global media services provider serving the world's leading Hollywood studios and streaming platforms. Cineverse expects **Giant** to contribute Revenue of $15 to $17 million and Adjusted EBITDA of $3.5 to $4 million in fiscal year 2027. The majority of the Revenue is recurring in nature, derived from ongoing service relationships with major Hollywood studio and streaming platform clients. Within the first year, the Company anticipates approximately $2.5 million in additional annualized synergies through integration with **Matchpoint™**.

**<u>IndiCue, Inc. Acquisition</u>**

Subsequent to quarter end, Cineverse acquired **IndiCue, Inc**. **("IndiCue")** for $22 million in cash and shares of Cineverse common stock, subject to adjustments. Concurrent with the closing, the Company raised $13 million in convertible notes from existing long-term shareholders to support the transaction. IndiCue operates a proprietary white-label CTV monetization platform that enables publishers and streaming operators to manage, optimize, and grow their advertising revenue. Founded in 2023, **IndiCue** has scaled to more than 40 live clients — including IMAX, Freecast, and others — with 75 additional publishers in onboarding. IndiCue is expected to contribute approximately $38 million in revenue and approximately $7 million in Adjusted EBITDA for fiscal year 2027, representing an 18% EBITDA margin. Revenue is transaction-driven, scaling with advertising volume across the CTV ecosystem. The acquisition integrates **IndiCue's** monetization technology directly into the **Matchpoint™** platform, creating an end-to-end white-label solution unifying content delivery and ad monetization for studios and streaming operators.

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We are initiating financial guidance for Fiscal Year 2027 that includes the anticipated impact of the **Giant** and **IndiCue** transactions. Revenue is expected to be $115 to $120 million and Adjusted EBITDA is expected to be $10 to $20 million<sup>(1)</sup>.

(1) The Company does not provide a reconciliation of forward-looking Adjusted EBITDA guidance due to the inherent difficulty in forecasting and quantifying adjustments necessary to calculate such non-GAAP measure without unreasonable effort. Material changes to such adjustments, including warrant liability and non-core operating items, could affect future GAAP results.

**<u>Q3 FY 2026 Highlights</u>** *<u>(all comparisons are to the prior year fiscal quarter ended December 31, 2024, or Q3 FY 2025):</u>*

Revenue for the quarter was $16.3 million versus $40.7 million in the prior-year quarter, a 60% decrease, due to approximately $22.8 million of theatrical revenue from ***Terrifier 3*** in the prior year fiscal quarter.

Direct Operating Margin was 69%, compared to 48% in the prior year quarter, reflecting the Company's continued focus on cost management.

SG&A expenses increased by $1.3 million, or 14%, to $10.7 million over the prior year quarter, primarily due to increased marketing expenses related to our theatrical releases of ***The Toxic Avenger*** and ***Silent Night, Deadly Night*** during the quarter combined with higher professional services and legal expenses associated with our recent acquisitions. These increases are offset by an approximate $1.8 million decrease in compensation expense over the prior year quarter.

Net loss attributable to common stockholders was $(1.0) million, or $(0.05) per basic and diluted share, compared to a net profit of $7.0 million, or $0.34 per share, in the prior-year quarter. Adjusted EBITDA was $2.4 million, compared to $10.9 million last year. However, Adjusted EBITDA improved by $6.0 million over the prior sequential quarter, indicating the success of our efforts to reduce costs and improve margins in our base businesses.

**Financial Condition Overview:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Cash and Cash Equivalents of $2.5 million with $4.2 million available under the $12.5 million Line of Credit Facility (expandable to $15 million) as of December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•As of December 31, 2025, net working capital was $(1.4) million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The Company's content library, comprised of more than 66,000 titles, was valued as of March 31, 2025 with a Valuation Indication of $45 million, significantly above the $3.2 million book value of the library as of December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The Company continues to have its previously approved share repurchase program available which will continue to be utilized as appropriate.

**Operational Developments During the Quarter:**

**Streaming audience growth:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Total streaming viewers increased approximately 10% year-over-year in Q3 FY26 to 149 million, with total minutes streamed up 33% to more than 3.4 billion and FAST channel minutes up 33% to 3.2 billion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Expanded international lineup of owned and/or operated streaming fandom channels through LG Channels in Australia & New Zealand, Rock Bot, and The Roku Channel UK.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Launched new streaming network, ***JoySauce***, dedicated to 'American Asian' entertainment.

**SVOD expansion:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Led by our flagship Cineverse channel, SVOD subscribers grew approximately 15% year-over-year to 1.55 million.

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**Technology:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Announced launch of **Matchpoint™** 3.0, an automated AI-driven media supply chain platform featuring advanced automation, conversational analytics, deeper ad integration, and a fresh new UI/brand identity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Announced four new customers for **Matchpoint™** media supply chain platform: ATPN, The Asylum, Spark, and Waypoint.

**Motion Picture & Premium Content Releasing:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Acquired exclusive rights to the award-winning global director Guillermo del Toro's classic fantasy film ***Pan's Labyrinth*** — to celebrate the 20th anniversary by leveraging the Company's theatrical distribution model for a 2026 theatrical re-release in 3D and 4k. The multi-year deal includes all North American distribution rights.

**Bloody Disgusting & Podcast Business Development:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Announced Bloody Disgusting partnership with <u>Veeps.com</u>, to perform a global livestream Halloween concert of horror master and iconic composer John Carpenter. The one-night-only event marks Carpenter's return to the stage, streaming live worldwide on Halloween night.

**Operational Developments Subsequent to Quarter-End:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Announced acquisition of Giant and the integration of service into **Matchpoint™** platform – bringing deep studio relationships into its automated media services ecosystem. Also announced new leadership team for Giant, a Matchpoint™ company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Completed approximately $2 million of SG&A cost reductions subsequent to quarter end in January 2026, and expect to realize the vast majority of the remaining $5.5 million in targeted cost reductions over the next two quarters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Ended the quarter with approximately 44,600 subscribers to the **Cineverse**-branded streaming service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Announced Hulu's acquisition of the streaming rights for ***The Toxic Avenger****,* to debut on the platform on January 8, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Announced innovative partnership with GameStop to promote ***Return to Silent Hill*** theatrical release.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Announced theatrical release date for ***Air Bud Returns*** *–* August 21, 2026. The film also recently completed principal photography.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Launched **Matchpoint® Creative Labs** – leveraging generative AI to enable creative services for FAST and ad-supported streaming services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Announced release *of* ***Silent Night, Deadly Night*** on digital, with dates announced for physical releases.

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**Management Commentary:**

**Chris McGurk**, **Cineverse Chairman and CEO**, stated: "Our financial objective during this quarter was to focus on improving operating results in our base business in anticipation of closing the transformative **Giant** and **IndiCue** acquisitions. We are very pleased that these efforts paid off, with significant increases in both Direct Operating Margins and Adjusted EBITDA. Our Direct Operating Margin climbed to 69% versus 48% last year and we recorded Adjusted EBITDA of $2.4 million, up $6.0 million from the prior sequential quarter."

"The **Giant** and **IndiCue** acquisitions are truly transformative for Cineverse. Both immediately add significant revenues and Adjusted EBITDA to the Company. They both also bring large, durable and scalable streams of recurring revenues to the Company and significantly strengthen our market position as an AI-powered comprehensive technology services and infrastructure solutions provider for the entertainment industry. We believe both acquisitions featured favorable valuations and deal structures and will be strongly accretive."

"Already, we have seen extremely positive results from the **Giant** acquisition over the last 6 weeks, and **IndiCue's** month-over-month financial performance prior to acquisition was scaling up very rapidly. Therefore, we feel very confident in the financial guidance we are issuing for Fiscal Year 2027, which begins April 1, 2026, of $115 to $120 million in Revenue and $10 to $20 million in Adjusted EBITDA."

**Erick Opeka, Cineverse President and Chief Strategy Officer**, stated: "Our focus continues to be on identifying and executing accretive acquisitions that deepen the competitive moat for **Matchpoint™** and shifts the Company toward durable, recurring revenue streams. The **Giant** and **IndiCue** acquisitions do exactly that – together they connect distribution, data, and monetization into a single, unified solution, positioning **Matchpoint™** as the only full-stack streaming distribution and monetization platform for studios and global digital platforms."

"At the same time, we are continuing to improve margins and see meaningful growth in our recurring subscription business. We ended the quarter and the 2025 calendar year adding a net 45,000 streaming subscribers to our newest channel, **Cineverse**. We believe our low-cost theatrical model drives substantial brand awareness for this service, and we will continue to maintain cost discipline in that channel while completing our focus on SG&A reductions. We completed approximately $2 million of cost cuts subsequent to quarter end in January 2026, and expect to realize the vast majority of the remaining $5.5 million in cost reductions over the next two quarters. Combined with the anticipated stellar performance of our two new business units, we are confident in our guidance for the coming fiscal year."

**Conference Call**

Cineverse will host a conference call at 4:30 p.m. EST/1:30 p.m. PST (Tuesday, February 17, 2026), during which management will discuss the results of its fiscal third quarter ended December 31, 2025.

Call details are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The conference call will be accessible online via the Cineverse Investor Relations website, https://investor.cineverse.com.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•You can also register in advance to access the live conference call at: Cineverse Corp Fiscal 2026 Third Quarter Earnings Call.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•An audio recording of the conference call will be available for replay shortly after its completion. To access the replay, visit the Events and Presentations section of the Cineverse Investor Relations website.

**About Cineverse**

**Cineverse** (Nasdaq: CNVS) is a next-generation entertainment studio that empowers creators and entertains fans with a wide breadth of content through the power of technology. It has developed a new blueprint for delivering entertainment experiences to passionate audiences and results for its partners with unprecedented efficiency, and distributes more than 66,000 premium films, series, and podcasts.

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Cineverse connects fans with bold, authentic, independent stories. Properties include the highest-grossing unrated film in U.S. history; dozens of streaming fandom channels; a premier podcast network; top horror destination Bloody Disgusting; and more. Powering visionary storytelling with cutting-edge innovation, Cineverse's proprietary streaming tools and AI technology drive revenue and reach to redefine the next era of entertainment. For more information, visit home.cineverse.com.

**Safe Harbor Statement**

Investors and readers are cautioned that certain statements contained in this document, as well as some statements in periodic press releases and some oral statements of Cineverse officials during presentations about Cineverse, along with Cineverse's filings with the Securities and Exchange Commission, including Cineverse's registration statements, quarterly reports on Form 10-Q and annual report on Form 10-K, are "forward-looking'' statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act''). Forward-looking statements include statements that are predictive in nature, which depend upon or refer to future events or conditions, which include words such as "expects," "anticipates,'' "intends,'' "plans,'' "could," "might," "believes,'' "seeks," "estimates'' or similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings, or growth rates), ongoing business strategies or prospects, and possible future actions, which may be provided by Cineverse's management, are also forward-looking statements as defined by the Act. Forward-looking statements are based on current expectations and projections about future events and are subject to various risks, uncertainties, and assumptions about Cineverse, its technology, economic and market factors, and the industries in which Cineverse does business, among other things. These statements are not guarantees of future performance, and Cineverse undertakes no specific obligation or intention to update these statements after the date of this release.

**For additional information, please contact:** 

Julie Milstead

424-281-5411

investorrelations@cineverse.com

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| | | |
|:---|:---|:---|
| **CINEVERSE CORP.** | **CINEVERSE CORP.** | **CINEVERSE CORP.** |
| **CONDENSED CONSOLIDATED BALANCE SHEETS** | **CONDENSED CONSOLIDATED BALANCE SHEETS** | **CONDENSED CONSOLIDATED BALANCE SHEETS** |
| *(in thousands)* | *(in thousands)* | *(in thousands)* |
|  | **As of** | **As of** |
|  | **December 31,<br>2025** | **March 31,<br>2025** |
|  | *(Unaudited)* |  |
| **ASSETS** | **ASSETS** | **ASSETS** |
| **Current Assets** |  |  |
| Cash and cash equivalents | $2461 | $13941 |
| Accounts receivable, net | 17400 | 15752 |
| Content advances | 7949 | 6736 |
| Other current assets | 1424 | 1652 |
| &nbsp;&nbsp;**Total current assets** | 29234 | 38081 |
| Property and equipment, net | 3528 | 2876 |
| Intangible assets, net | 17733 | 18168 |
| Goodwill | 6799 | 6799 |
| Content advances, net of current | 9239 | 4053 |
| Other long-term assets | 2041 | 2539 |
| **Total Assets** | $68574 | $72516 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** | **LIABILITIES AND STOCKHOLDERS' EQUITY** | **LIABILITIES AND STOCKHOLDERS' EQUITY** |
| **Current Liabilities** |  |  |
| Accounts payable and accrued expenses | $22068 | $31109 |
| Line of credit | 8281 |  |
| Current portion of deferred consideration |  | 2956 |
| Current portion of operating lease liabilities | 290 | 187 |
| Other current liabilities | 8 | 183 |
| &nbsp;&nbsp;**Total current liabilities** | 30647 | 34435 |
| Operating lease liabilities, net of current | 182 | 275 |
| Other long-term liabilities | 1 | 14 |
| **Total Liabilities** | $30830 | $34724 |
| **Commitments and contingencies** |  |  |
| **Stockholders' Equity** |  |  |
| Preferred stock | 3559 | 3559 |
| Common Stock | 197 | 194 |
| Additional paid-in capital | 559496 | 548405 |
| Treasury stock, at cost | (13158) | (12193) |
| Accumulated deficit | (511248) | (500908) |
| Accumulated other comprehensive loss | (279) | (305) |
| Total stockholders' equity of Cineverse Corp. | 38567 | 38752 |
| Deficit attributable to noncontrolling interest | (823) | (960) |
| Total equity | 37744 | 37792 |
| **Total Liabilities and Equity** | $68574 | $72516 |

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| | | |
|:---|:---|:---|
| **CINEVERSE CORP.** | **CINEVERSE CORP.** | **CINEVERSE CORP.** |
| **CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS** | **CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS** | **CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS** |
| (In thousands, except for per share data) | (In thousands, except for per share data) | (In thousands, except for per share data) |
| *(Unaudited)* | *(Unaudited)* | *(Unaudited)* |
|  | **Three Months Ended <br>December 31,** | **Three Months Ended <br>December 31,** |
|  | **2025** | **2024** |
| **Revenues** | $16286 | $40740 |
| **Operating expenses** |  |  |
| &nbsp;&nbsp;Direct operating | 5049 | 20997 |
| &nbsp;&nbsp;Selling, general and administrative | 10690 | 9361 |
| &nbsp;&nbsp;Depreciation and amortization | 1203 | 946 |
| **Total operating expenses** | 16942 | 31304 |
| Operating (loss) income | (656) | 9436 |
| &nbsp;&nbsp;Interest expense | (195) | (2342) |
| &nbsp;&nbsp;Other (expense) income, net | (5) | 73 |
| **Net (loss) income before income taxes** | (856) | 7167 |
| &nbsp;&nbsp;Income tax expense | (19) | (6) |
| **Net (loss) income** | (875) | 7161 |
| Net income attributable to noncontrolling interest | (49) | (48) |
| Net (loss) income attributable to controlling interests | (924) | 7113 |
| &nbsp;&nbsp;Preferred stock dividends | (89) | (89) |
| **Net (loss) income attributable to common stock holders** | $(1013) | $7024 |
| Net (loss) income per share attributable to common stock holders: |  |  |
| &nbsp;&nbsp;Basic | $(0.05) | $0.38 |
| &nbsp;&nbsp;Diluted | $(0.05) | $0.34 |
| Weighted average shares of common stock outstanding: |  |  |
| &nbsp;&nbsp;Basic | 19218 | 15880 |
| &nbsp;&nbsp;Diluted | 19218 | 17774 |

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**Adjusted EBITDA** 

We define Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, stock-based compensation expense, merger and acquisition costs, restructuring, transition and acquisitions expense, net, goodwill impairment and certain other items.

Adjusted EBITDA is not a measurement of financial performance under GAAP and may not be comparable to other similarly titled measures of other companies. We use Adjusted EBITDA as a financial metric to measure the financial performance of the business, because management believes it provides additional information with respect to the performance of its fundamental business activities. For this reason, we believe Adjusted EBITDA will also be useful to others, including our stockholders, as a valuable financial metric.

We present Adjusted EBITDA because we believe that Adjusted EBITDA is a useful supplement to net income (loss) from continuing operations as an indicator of operating performance. We also believe that Adjusted EBITDA is a financial measure that is useful both to management and investors when evaluating our performance and comparing our performance with that of our competitors. We also use Adjusted EBITDA for planning purposes, and to evaluate our financial performance because Adjusted EBITDA excludes certain incremental expenses or non-cash items, such as stock-based compensation charges, that we believe are not indicative of our ongoing operating performance.

We believe that Adjusted EBITDA is a performance measure and not a liquidity measure, and therefore a reconciliation between net income (loss) from operations and Adjusted EBITDA has been provided in the financial results. Adjusted EBITDA should not be considered as an alternative to net income (loss) from

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operations as an indicator of performance, or as an alternative to cash flows from operating activities as an indicator of cash flows, in each case as determined in accordance with GAAP, or as a measure of liquidity. In addition, Adjusted EBITDA does not take into account changes in certain assets and liabilities as well as interest and income taxes that can affect cash flows. We do not intend the presentation of these non-GAAP measures to be considered in isolation or as a substitute for results prepared in accordance with GAAP. These non-GAAP measures should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.

Following is the reconciliation of our consolidated net income (loss) to Adjusted EBITDA *(in thousands)*:

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| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>December 31,** | **Three Months Ended<br>December 31,** |
|  | **2025** | **2024** |
| **Net (loss) income** | $(875) | $7161 |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>Add Back:</u> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax expense | 19 | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization ⁽¹⁾ | 1332 | 1031 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 195 | 2342 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 1027 | 490 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other expense (income), net | 5 | (73) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income attributable to noncontrolling interest | (49) | (48) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition-related costs | 603 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employee severance costs | 97 |  |
| **Adjusted EBITDA** | $2354 | $10909 |

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(1) - Includes $129 thousand and $85 thousand of amortization included in direct operating expenses on our Condensed Consolidated Statements of Operations for the three months ended December 31, 2025 and 2024, respectively

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