Terrifier 3
February 17, 2026
With a difference a financial quarter makes without the fiscal largess of a signature blockbuster slasher movie.
Cineverse reported third-quarter (ended Dec. 31) revenue of $16.3 million, which was down 60% from revenue of $40.7 million from the previous-year period that included $22.8 million of theatrical revenue from Terrier 3, the distributor’s outsized franchise hit.
The company posted a net loss of $1 million compared with a profit of $7 million in the prior-year quarter.
Terrifier 3, with a $2 million production budget, excluding marketing, generated $90 million at the global box office, including almost $55 million across North American screens.
Driving the Q3 loss was the impact of increased SG&A expenses (up 14%, or $1.3 million) due to marketing costs related to theatrical releases of The Toxic Avenger and Silent Night, Deadly Night during the quarter, combined with higher professional services and legal expenses associated with recent acquisitions.
Both movies underperformed at the domestic box office relative to their marketing and distribution costs. Toxic Avenger and Silent Night generated $2.9 million and $1.5 million in ticket sales, respectively.
On the digital distribution side, total streaming viewers increased approximately 10% year-over-year to 149 million from 135.5 million last year, with total minutes streamed up 33% to more than 3.4 billion (from 2.6 billion minutes) and FAST channel minutes up 33% to 3.2 billion from 2.4 billion minutes.
SVOD subscribers grew approximately 15% year-over-year to 1.55 million, from 1.35 million in the prior year period.
In the quarter, Cineverse acquired exclusive rights to director Guillermo del Toro’s classic fantasy film Pan’s Labyrinth — to celebrate the film’s 20th anniversary by leveraging the company’s theatrical distribution model for a theatrical re-release in 3D and 4K Ultra HD. The multiyear deal includes all North American distribution rights.
CEO Chris McGurk focused on the positives surrounding the company’s acquisitions of Giant Worldwide, a digital media services provider, and CTV monetization company IndiCue. McGurk said the acquisitions are already positively impacting operating margins in the current fourth quarter.
“The Giant and IndiCue acquisitions are truly transformative for [us],” McGurk said in a statement. “Both immediately add significant revenue and pre-tax earnings to the company.”
McGurk said the acquisitions bring “large, durable and scalable streams of
recurring revenue” and significantly strengthen Cineverse’s market position as an AI-powered technology services and infrastructure provider for the entertainment industry.
“We believe both acquisitions featured favorable valuations and deal structures and will be strongly accretive,” he said.
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