Chicken Soup for the Soul Entertainment, Inc.

Second quarter revenue was $79.9 million, up 112% year over year, and adjusted EBITDA was $700,000. Blended gross profit margin was 22%, versus 16% in the prior year and 12% in Q1. Operating loss was $25.9 million versus $16.8 million last year, with higher amortization from the Redbox merger cited as the driver. Cash on hand was $6.9 million at June 30, and the company said it raised $10.8 million in a public offering earlier in the quarter for working capital. For the full year, management cut revenue guidance to $400 million-$450 million from $500 million and set adjusted EBITDA guidance at $75 million-$100 million, while saying free cash flow should improve in the second half and should be positive this year.

William Rouhana framed the quarter as a transition toward a cash-flow-focused business model amid a tougher media and advertising backdrop. He said the company is de-risking by reducing cash-intensive content commitments, monetizing kiosks in more ways, expanding distribution and ad products, and pursuing cost cuts across digital, G&A, and office footprint. His tone was cautious but confident, emphasizing that the company has a large asset base and is adapting to generate cash rather than chasing revenue growth.

Jason Meier said the quarter’s performance reflects a pivot to higher cash-generating activities, with gross margin improving to 22% and adjusted EBITDA reaching $700,000. He highlighted about $12 million in annualized G&A savings from a 4% headcount reduction since January 1, plus about $15 million of incremental cash-flow savings from digital and distribution streamlining. He also noted $6.9 million of cash at quarter-end, the $10.8 million stock offering for working capital, and favorable HPS debt terms with no financial covenants for two years and the ability to PIK interest through February 2024.

Analysts pressed on the revenue mix, the pace of kiosk growth, and whether the new EBITDA guide implies a heavy second-half lift. Management said it turned away about $30 million of upfront-cash licensing deals, that third-quarter licensing already more than doubled Q2, and that the new EBITDA outlook is supported by deals already locked in with limited cash spend. On kiosks, management said demand is mainly affected by sporadic new title availability and that the answer is to lower the cash breakeven through servicing, digital out-of-home ads, and other monetization channels.