CSSEN - Chicken Soup for t... Stock Analysis | Stock Taper
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Chicken Soup for the Soul Entertainment, Inc.

CSSEN

Chicken Soup for the Soul Entertainment, Inc. NASDAQ
$0.87 100.00% (+0.87)

Market Cap $3.42 M
52w High $0.91
52w Low $0.87
P/E 0
Volume 1.04M
Outstanding Shares 3.94M

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 Q2-2023Q3-2023Q4-2023Q1-2024
Licensing and other
Licensing and other
$20.00M $20.00M $0 $0
Retail
Retail
$30.00M $30.00M $20.00M $20.00M
VOD and streaming
VOD and streaming
$30.00M $20.00M $20.00M $10.00M

Revenue by Geography

Region Q1-2018Q2-2018Q3-2018
CANADA
CANADA
$0 $0 $0
Europe
Europe
$0 $0 $0
Other Foreign Countries
Other Foreign Countries
$0 $0 $0
UNITED STATES
UNITED STATES
$10.00M $0 $10.00M

Q2 2023 Earnings Call Summary

Read Call Summary

5-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.

+ Strengths

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.

! Risks

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.

Outlook

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.