CSSEN
CSSEN
Chicken Soup for the Soul Entertainment, Inc.Income Statement
| Period | Revenue | Operating Expense | Net Income | Net Profit Margin | Earnings Per Share | EBITDA |
|---|---|---|---|---|---|---|
| Q1-2024 | $27.4M ▼ | $26.38M ▼ | $-48.7M ▲ | -177.76% ▲ | $-1.63 ▲ | $-20.84M ▼ |
| Q4-2023 | $39.17M ▼ | $38.46M ▼ | $-96.75M ▲ | -246.98% ▲ | $-2.99 ▲ | $20.38M ▲ |
| Q3-2023 | $65.72M ▼ | $414.51M ▲ | $-429.79M ▼ | -653.94% ▼ | $-13.67 ▼ | $-403.29M ▼ |
| Q2-2023 | $79.91M ▼ | $40.48M ▼ | $-40.41M ▲ | -50.57% ▲ | $-1.39 ▲ | $-300.55K ▼ |
| Q1-2023 | $109.6M | $51.8M | $-55.56M | -50.7% | $-2.62 | $622.52K |
What's going well?
The company managed to cut its losses in half this quarter. Gross profit improved significantly, and operating expenses were reduced in line with lower sales.
What's concerning?
Revenue dropped sharply, and the company is still losing money on every sale. Interest costs are rising, and the business has not shown a path to profitability.
Balance Statement
| Period | Cash & Short-term | Total Assets | Total Liabilities | Total Equity |
|---|---|---|---|---|
| Q1-2024 | $4.88M ▲ | $414.08M ▼ | $970M ▲ | $-555.77M ▼ |
| Q4-2023 | $3.32M ▲ | $422.3M ▼ | $925.86M ▲ | $-503.41M ▼ |
| Q3-2023 | $406.82K ▼ | $481.33M ▼ | $890.06M ▲ | $-408.66M ▼ |
| Q2-2023 | $3.52M ▼ | $878.6M ▼ | $859.79M ▲ | $18.7M ▼ |
| Q1-2023 | $5.47M | $884.21M | $844.8M | $39.19M |
What's financially strong about this company?
Receivables are still being collected, and the company has managed to slightly increase its cash position. Most debt is long-term, so there is some breathing room on repayments.
What are the financial risks or weaknesses?
The company owes far more than it owns, with negative equity, rising debt, and not enough cash to pay upcoming bills. Most assets are intangible, and liabilities are growing much faster than assets.
Cash Flow Statement
| Period | Net Income | Cash From Operations | Cash From Investing | Cash From Financing | Net Change | Free Cash Flow |
|---|---|---|---|---|---|---|
| Q1-2024 | $-48.7M ▲ | $-502.73K ▲ | $-702.43K ▲ | $2.71M ▼ | $1.57M ▲ | $-1.21M ▲ |
| Q4-2023 | $-96.75M ▲ | $-1.91M ▼ | $-1.98M ▼ | $3.14M ▲ | $-747.24K ▲ | $-3.89M ▼ |
| Q3-2023 | $-429.95M ▼ | $521.44K ▲ | $-1.57M ▲ | $-1.76M ▼ | $-2.85M ▼ | $-1.05M ▲ |
| Q2-2023 | $-40.49M ▲ | $-5.85M ▲ | $-2.67M ▼ | $10.03M ▲ | $1.45M ▲ | $-8.52M ▲ |
| Q1-2023 | $-55.69M | $-16.07M | $-441.3K | $3.41M | $-13.27M | $-16.51M |
What's strong about this company's cash flow?
Cash burn is shrinking, with operating and free cash flow losses much smaller than last quarter. The company managed to increase its cash balance despite ongoing losses, helped by better working capital management.
What are the cash flow concerns?
The business is still not generating cash from operations and relies on outside funding and working capital changes to stay afloat. The cash cushion is thin, and improvements may be temporary if working capital swings reverse.
Revenue by Products
| Product | Q2-2023 | Q3-2023 | Q4-2023 | Q1-2024 |
|---|---|---|---|---|
Licensing and other | $20.00M ▲ | $20.00M ▲ | $0 ▼ | $0 ▲ |
Retail | $30.00M ▲ | $30.00M ▲ | $20.00M ▼ | $20.00M ▲ |
VOD and streaming | $30.00M ▲ | $20.00M ▼ | $20.00M ▲ | $10.00M ▼ |
Revenue by Geography
| Region | Q1-2018 | Q2-2018 | Q3-2018 |
|---|---|---|---|
CANADA | $0 ▲ | $0 ▲ | $0 ▲ |
Europe | $0 ▲ | $0 ▲ | $0 ▲ |
Other Foreign Countries | $0 ▲ | $0 ▲ | $0 ▲ |
UNITED STATES | $10.00M ▲ | $0 ▼ | $10.00M ▲ |
Q2 2023 Earnings Call Summary
Read Call Summary5-Year Trend Analysis
A comprehensive look at Chicken Soup for the Soul Entertainment, Inc.'s financial evolution and strategic trajectory over the past five years.
CSSEN’s main strengths were its rapid revenue growth, recognizable consumer brands (especially Chicken Soup for the Soul and Redbox), and a broad distribution footprint across streaming and physical media. It amassed a sizable content library and operated multiple ad-supported services that targeted value-conscious viewers. The company also showed an ability to raise capital and to execute complex acquisitions, building scale relatively quickly in a competitive industry.
The dominant risks were fundamental and ultimately proved decisive: structurally unprofitable operations, consistently negative cash flow, and an increasingly fragile balance sheet. Rising debt, negative equity, shrinking cash, and heavy dependence on acquisitions created a highly leveraged, high-risk capital structure. Competitive and technological pressures in streaming, combined with the decline of DVD rentals, meant that the core assets struggled to generate enough cash to service obligations. These factors culminated in bankruptcy and liquidation.
With the company having filed for Chapter 7 liquidation, there is no ongoing corporate outlook in the traditional sense; operations are being wound down and assets sold or redeployed under new ownership. As a historical case, CSSEN illustrates how rapid, debt-fueled expansion in a disruptive industry can create impressive top-line growth but still fail if unit economics and cash generation never become sustainable. Any future role for its brands and assets will likely occur under different capital structures and owners that may apply more disciplined investment and cost management strategies.
About Chicken Soup for the Soul Entertainment, Inc.
http://www.cssentertainment.comChicken Soup for the Soul Entertainment, Inc. is an advertising-supported video-on-demand (AVOD) company. It creates, acquires, and distributes films and TV series through its Screen Media and Chicken Soup for the Soul TV Group subsidiaries. Its flagship streaming services are Redbox, Crackle, and Chicken Soup for the Soul. The company was founded on May 4, 2016 and is headquartered in Cos Cob, CT.
Income Statement
| Period | Revenue | Operating Expense | Net Income | Net Profit Margin | Earnings Per Share | EBITDA |
|---|---|---|---|---|---|---|
| Q1-2024 | $27.4M ▼ | $26.38M ▼ | $-48.7M ▲ | -177.76% ▲ | $-1.63 ▲ | $-20.84M ▼ |
| Q4-2023 | $39.17M ▼ | $38.46M ▼ | $-96.75M ▲ | -246.98% ▲ | $-2.99 ▲ | $20.38M ▲ |
| Q3-2023 | $65.72M ▼ | $414.51M ▲ | $-429.79M ▼ | -653.94% ▼ | $-13.67 ▼ | $-403.29M ▼ |
| Q2-2023 | $79.91M ▼ | $40.48M ▼ | $-40.41M ▲ | -50.57% ▲ | $-1.39 ▲ | $-300.55K ▼ |
| Q1-2023 | $109.6M | $51.8M | $-55.56M | -50.7% | $-2.62 | $622.52K |
What's going well?
The company managed to cut its losses in half this quarter. Gross profit improved significantly, and operating expenses were reduced in line with lower sales.
What's concerning?
Revenue dropped sharply, and the company is still losing money on every sale. Interest costs are rising, and the business has not shown a path to profitability.
Balance Statement
| Period | Cash & Short-term | Total Assets | Total Liabilities | Total Equity |
|---|---|---|---|---|
| Q1-2024 | $4.88M ▲ | $414.08M ▼ | $970M ▲ | $-555.77M ▼ |
| Q4-2023 | $3.32M ▲ | $422.3M ▼ | $925.86M ▲ | $-503.41M ▼ |
| Q3-2023 | $406.82K ▼ | $481.33M ▼ | $890.06M ▲ | $-408.66M ▼ |
| Q2-2023 | $3.52M ▼ | $878.6M ▼ | $859.79M ▲ | $18.7M ▼ |
| Q1-2023 | $5.47M | $884.21M | $844.8M | $39.19M |
What's financially strong about this company?
Receivables are still being collected, and the company has managed to slightly increase its cash position. Most debt is long-term, so there is some breathing room on repayments.
What are the financial risks or weaknesses?
The company owes far more than it owns, with negative equity, rising debt, and not enough cash to pay upcoming bills. Most assets are intangible, and liabilities are growing much faster than assets.
Cash Flow Statement
| Period | Net Income | Cash From Operations | Cash From Investing | Cash From Financing | Net Change | Free Cash Flow |
|---|---|---|---|---|---|---|
| Q1-2024 | $-48.7M ▲ | $-502.73K ▲ | $-702.43K ▲ | $2.71M ▼ | $1.57M ▲ | $-1.21M ▲ |
| Q4-2023 | $-96.75M ▲ | $-1.91M ▼ | $-1.98M ▼ | $3.14M ▲ | $-747.24K ▲ | $-3.89M ▼ |
| Q3-2023 | $-429.95M ▼ | $521.44K ▲ | $-1.57M ▲ | $-1.76M ▼ | $-2.85M ▼ | $-1.05M ▲ |
| Q2-2023 | $-40.49M ▲ | $-5.85M ▲ | $-2.67M ▼ | $10.03M ▲ | $1.45M ▲ | $-8.52M ▲ |
| Q1-2023 | $-55.69M | $-16.07M | $-441.3K | $3.41M | $-13.27M | $-16.51M |
What's strong about this company's cash flow?
Cash burn is shrinking, with operating and free cash flow losses much smaller than last quarter. The company managed to increase its cash balance despite ongoing losses, helped by better working capital management.
What are the cash flow concerns?
The business is still not generating cash from operations and relies on outside funding and working capital changes to stay afloat. The cash cushion is thin, and improvements may be temporary if working capital swings reverse.
Revenue by Products
| Product | Q2-2023 | Q3-2023 | Q4-2023 | Q1-2024 |
|---|---|---|---|---|
Licensing and other | $20.00M ▲ | $20.00M ▲ | $0 ▼ | $0 ▲ |
Retail | $30.00M ▲ | $30.00M ▲ | $20.00M ▼ | $20.00M ▲ |
VOD and streaming | $30.00M ▲ | $20.00M ▼ | $20.00M ▲ | $10.00M ▼ |
Revenue by Geography
| Region | Q1-2018 | Q2-2018 | Q3-2018 |
|---|---|---|---|
CANADA | $0 ▲ | $0 ▲ | $0 ▲ |
Europe | $0 ▲ | $0 ▲ | $0 ▲ |
Other Foreign Countries | $0 ▲ | $0 ▲ | $0 ▲ |
UNITED STATES | $10.00M ▲ | $0 ▼ | $10.00M ▲ |
Q2 2023 Earnings Call Summary
Read Call Summary5-Year Trend Analysis
A comprehensive look at Chicken Soup for the Soul Entertainment, Inc.'s financial evolution and strategic trajectory over the past five years.
CSSEN’s main strengths were its rapid revenue growth, recognizable consumer brands (especially Chicken Soup for the Soul and Redbox), and a broad distribution footprint across streaming and physical media. It amassed a sizable content library and operated multiple ad-supported services that targeted value-conscious viewers. The company also showed an ability to raise capital and to execute complex acquisitions, building scale relatively quickly in a competitive industry.
The dominant risks were fundamental and ultimately proved decisive: structurally unprofitable operations, consistently negative cash flow, and an increasingly fragile balance sheet. Rising debt, negative equity, shrinking cash, and heavy dependence on acquisitions created a highly leveraged, high-risk capital structure. Competitive and technological pressures in streaming, combined with the decline of DVD rentals, meant that the core assets struggled to generate enough cash to service obligations. These factors culminated in bankruptcy and liquidation.
With the company having filed for Chapter 7 liquidation, there is no ongoing corporate outlook in the traditional sense; operations are being wound down and assets sold or redeployed under new ownership. As a historical case, CSSEN illustrates how rapid, debt-fueled expansion in a disruptive industry can create impressive top-line growth but still fail if unit economics and cash generation never become sustainable. Any future role for its brands and assets will likely occur under different capital structures and owners that may apply more disciplined investment and cost management strategies.

CEO
William J. Rouhana

