Cineverse shares surge 11.74% intraday after reporting 58% operating margin, $1.1M licensing deal, and analyst upgrade to Speculative Buy.

Cineverse surged 11.74% intraday following its Q2 earnings call, which highlighted a 7% year-over-year improvement in operating margins to 58%, a $1.1 million licensing deal for "Toxic Avenger," and a 47% year-over-year rise in streaming viewers to 143.8 million. The company also reported a $45 million revaluation of its content library and successful adoption of Matchpoint 3.0 technology, which attracted major studios. While revenue declined 3% to $12.7 million and net losses widened, the earnings call emphasized strategic growth in ancillary markets and operational efficiency, bolstering investor confidence. These positives, including the licensing deal and streaming momentum, overshadowed short-term revenue challenges, driving the intraday rally.