Curiositystream Inc ((CURI)) has held its Q3 earnings call. Read on for the main highlights of the call.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
CuriosityStream Inc. recently held its earnings call, revealing a robust performance characterized by significant revenue and cash flow growth, primarily driven by licensing and strategic partnerships. Despite these achievements, the company faces challenges with declining subscription revenue and increased costs, leading to a net loss.
Significant Revenue Growth
CuriosityStream reported a remarkable 46% year-over-year increase in revenue, reaching $18.4 million, surpassing their guidance. This growth was fueled by strong performances across subscriptions, licensing, and advertising sectors, highlighting the company’s effective strategies in revenue generation.
Increase in Adjusted Free Cash Flow
The company demonstrated effective cost management and strategic growth, with adjusted free cash flow rising by 88% to $4.8 million. This increase underscores CuriosityStream’s ability to manage its resources efficiently while expanding its market presence.
Strong Licensing Revenue
Licensing revenue saw a significant increase of over 40% year-over-year, driven by the demand for AI training data and solid partnerships. The company successfully fulfilled 1.5 million distinct assets for nine key partners, reinforcing its position in the market.
Positive Adjusted EBITDA
CuriosityStream reported a positive adjusted EBITDA of $3 million, marking an improvement of $3.4 million from the previous year. This positive shift indicates the company’s progress towards financial stability and profitability.
Expansion of AI Licensing
The company nearly doubled its AI content library, positioning itself as a leader in video licensing for AI development. This expansion is expected to drive future growth and reinforce CuriosityStream’s competitive edge in the industry.
Strong Balance Sheet
CuriosityStream ended the quarter with $29.3 million in liquidity and no debt, providing the company with substantial financial flexibility to pursue strategic initiatives and manage potential challenges effectively.
Subscription Revenue Decline Year-over-Year
Despite a year-over-year decline in overall subscription revenue, CuriosityStream experienced sequential growth each quarter in 2025. This trend suggests potential recovery and growth opportunities in the subscription segment.
Increased G&A and Marketing Costs
The company faced a 52% increase in combined costs for advertising, marketing, and G&A compared to the previous year. This rise was partly due to a noncash charge for stock-based compensation, impacting the overall cost structure.
Net Loss Reported
CuriosityStream reported a net loss of $3.7 million or $0.06 per share, attributed to nonrecurring charges and noncash stock-based compensation. This loss highlights the financial challenges the company needs to address moving forward.
Forward-Looking Guidance
Looking ahead, CuriosityStream anticipates faster subscription revenue growth in 2026, supported by new pricing strategies and a robust launch pipeline. The company projects that licensing revenue will surpass subscription revenue by 2027, driven by potential expansion in AI licensing partners. With a strategic focus on cost discipline, CuriosityStream aims to manage rising content delivery expenses effectively, positioning itself for continued double-digit growth in both revenue and cash flow.
In conclusion, CuriosityStream’s earnings call reflects a positive sentiment with notable achievements in revenue and cash flow growth. However, challenges such as declining subscription revenue and increased costs remain. The company’s strategic initiatives and forward-looking guidance suggest a promising future, with expectations of continued growth and financial stability.