Film cost amortization as well as participation liabilities are based on management’s estimates. Costs to produce films are amortized and estimated liabilities for participations are accrued using the individual film forecast method, based on the ratio of the current period’s revenues to management’s estimated remaining total gross revenues to be earned (“ultimate revenue”). The Company’s judgment is required in estimating ultimate revenue and the costs to be incurred throughout the life of each film.

The Company estimates ultimate revenue based on historical experience with similar titles or the title genre, the general public appeal of the cast, actual performance (when available) at the box office or in markets currently being exploited, and other factors such as the quality and acceptance of motion pictures or programs that our competitors release into the marketplace at or near the same time, critical reviews, general economic conditions, and other tangible and intangible factors, many of which we do not control and which may change. For feature films, ultimate revenue includes estimates over a period not to exceed 10 years following the date of initial release of the motion picture.

The Company amortized $0.8 million of film costs for the three months ended March 31, 2026, and had no material amortization of film costs for the three months ended March 31, 2025. Film cost amortization is included in cost of revenue, excluding depreciation and amortization, in the condensed consolidated statements of operations.

The Company enters into co-financing arrangements with third parties to jointly finance or distribute certain of its film productions. These arrangements can take various forms, but in most cases involve the grant of an economic interest in a film to an investor who owns an undivided copyright interest in the film. The number of investors and the terms of these arrangements can vary, although investors generally assume the full risks and rewards of ownership proportionate to their ownership in the film. The Company accounts for the proceeds received from the investor under these arrangements as a reduction of its capitalized film costs (which approximated $4.5 million and $4.7 million as of March 31, 2026 and December 31, 2025, respectively), and the investor’s interest in the profit or loss of the film is recorded as either a charge or a benefit, respectively, in cost of revenue, excluding depreciation and amortization, in the condensed consolidated statements of operations. The investor’s interest in the profit or loss of a film is recorded each period using the individual film forecast computation method.

Production tax incentives reduced capitalized film costs by $3.5 million and $2.6 million as of March 31, 2026 and December 31, 2025, respectively. Production tax incentives resulted in a reduction of cost of revenue, excluding depreciation and amortization, in the condensed consolidated statements of operations of approximately $0.2 million for the three months ended March 31, 2026 (none for the three months ended March 31, 2025). The Company had receivables


	Three Months Ended March 31,
	2026		2025
Cash paid (received) for income taxes, net	$	28	$	(9)
Cash paid for interest	1,744		5
Non-cash investing and financing activities:




Accrued debt issuance / modification costs for Term Loan	865		—
Accrued deferred offering costs	—		68
Accounts payable and accrued expenses related to property and equipment	89		33
Non-cash contingent consideration for business combination	—		481

Reconciliation of cash and cash equivalents and restricted cash within the condensed consolidated balance sheets to the amounts shown in the condensed consolidated statements of cash flows:
Cash and cash equivalents	6,846		15,052
Restricted cash	15,750		—
Noncurrent restricted cash	3,524		19,274
Total cash and cash equivalents and restricted cash	$	26,120	$	34,326