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CuriosityStream (CURI)
NASDAQ:CURI

CuriosityStream (CURI) AI Stock Analysis

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CuriosityStream

(NASDAQ:CURI)

Rating:61Neutral
Price Target:
$6.00
▲(6.19%Upside)
CuriosityStream's overall score of 61.45 reflects a mix of improving financial performance, positive technical trends, and encouraging earnings call outcomes. The main strengths are recent cash flow improvements and strategic financial decisions, while valuation concerns and historical profitability issues remain challenges.
Positive Factors
Financial Performance
CURI reported a positive net income after tax for the first time in its history.
Financial Stability
The company has a clean balance sheet with $30 million in cash and no debt, providing financial stability.
Revenue Growth
CURI's revenue grew by 26%, driven by licensing of films and TV programs for AI training and media distribution.
Negative Factors
Price Increase Limitation
Macro uncertainty limits the ability to institute additional price increases.
Revenue Risk
The softening in the Direct Business is a risk as that is an important part of the long-term health of the business.

CuriosityStream (CURI) vs. SPDR S&P 500 ETF (SPY)

CuriosityStream Business Overview & Revenue Model

Company DescriptionCuriosityStream Inc. is a global independent media company that operates in the streaming media sector. It provides a subscription-based video-on-demand service that offers a library of non-fiction documentaries and series, focusing on topics such as science, history, technology, nature, and lifestyle. The company aims to provide factual entertainment and educational content to a worldwide audience, catering to the increasing demand for high-quality, informative streaming content.
How the Company Makes MoneyCuriosityStream generates revenue primarily through its subscription-based model. Users pay a monthly or annual fee to access its extensive library of non-fiction content. The company offers different subscription tiers, providing various levels of access and features, enabling it to cater to a wide range of customer preferences and budgets. Additionally, CuriosityStream may engage in licensing agreements to distribute its content through third-party platforms or networks, expanding its reach and securing additional revenue streams. Strategic partnerships with educational institutions, organizations, and businesses also contribute to its earnings by facilitating content distribution in bulk or through tailored packages. Advertising and sponsorships may also play a role, though they are not the primary revenue drivers for the company's direct-to-consumer model.

CuriosityStream Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: 73.85%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Positive
The earnings call presented a largely positive outlook, highlighted by record revenue growth, the first positive net income and EBITDA, and a significant dividend increase. While direct subscription revenue saw a slight decline and cash cost of revenue increased, these were outweighed by the overall financial improvements and strategic achievements.
Q1-2025 Updates
Positive Updates
Record Revenue Growth
Q1 2025 revenue of $15.1 million, up 26% year-over-year and 7% sequentially.
First Positive Net Income and Adjusted EBITDA
Net income was positive for the first time, improving $5.4 million year-over-year. Adjusted EBITDA was positive at $1.1 million, an improvement of $3.9 million from the previous year.
Dividend Increase
Quarterly dividend increased to $0.08, or $0.32 annualized, doubling from previous levels.
Strong Balance Sheet
$39 million in liquidity with no debt, providing significant operating flexibility.
Gross Margin Improvement
First-quarter gross margin improved to 53% from 44% a year ago.
Continued Positive Cash Flow
Adjusted free cash flow came in at $2 million, marking the fifth consecutive quarter of positive free cash flow.
Negative Updates
Decline in Direct Subscription Revenue
Direct subscription revenue was down slightly, attributed to a reduction in marketing spend.
Cash Cost of Revenue Increase
Cash cost of revenue increased due to acquiring more rights to license content through revenue share arrangements and associated storage costs.
Company Guidance
During the Q1 2025 earnings call, CuriosityStream reported notable financial achievements, including a 26% year-over-year revenue increase to $15.1 million, and a 7% sequential rise. The company posted its first-ever positive net income of $0.3 million, marking a $5.4 million improvement from the previous year, and achieved a positive adjusted EBITDA of $1.1 million, up by $3.9 million. Adjusted free cash flow was $2 million, representing a $0.8 million improvement. The company also doubled its quarterly dividend to $0.08 per share, reflecting a strong cash position with $39.1 million in liquidity and no debt. Looking ahead, CuriosityStream expects Q2 revenue between $16 million and $17 million, with adjusted free cash flow ranging from $2 million to $3 million, while focusing on key growth strategies, including increased content licensing and global expansion.

CuriosityStream Financial Statement Overview

Summary
CuriosityStream faces significant financial challenges, with consistent operational losses impacting income statement metrics. The balance sheet reflects a strong equity position aided by low debt, although asset decline is concerning. Recent improvements in cash flow are positive signs, but sustaining this trend will be crucial for long-term stability and growth.
Income Statement
46
Neutral
CuriosityStream has shown fluctuating revenue growth rates with a decline in total revenue from 2022 to 2023. The company struggles with negative net profit margins and consistently negative EBIT and EBITDA margins, indicating ongoing operational challenges. Despite these issues, the gross profit margin remains relatively stable, suggesting some operational efficiency in controlling production costs.
Balance Sheet
55
Neutral
The company's debt-to-equity ratio remains low, benefiting from minimal debt levels, while equity provides a strong base. However, a declining equity ratio over the years indicates a shrinking asset base relative to equity, potentially impacting future leverage and funding flexibility. Return on equity is negative due to persistent losses, indicating a need for improved profitability.
Cash Flow
52
Neutral
CuriosityStream displayed improvement in operating cash flow in 2024, turning positive after years of negative figures. Free cash flow also turned positive, driven by better cash management, but past negative trends highlight a need for consistent improvement. The company has managed cash effectively despite negative net income, indicating potential for future operational improvements.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
51.13M56.89M78.04M71.26M39.62M
Gross Profit
25.77M21.34M26.51M34.59M24.20M
EBIT
-13.33M-25.50M-51.68M-52.48M-38.80M
EBITDA
6.66M-2.10M-10.56M-23.99M-29.87M
Net Income Common Stockholders
-12.94M-48.90M-50.92M-37.63M-48.60M
Balance SheetCash, Cash Equivalents and Short-Term Investments
32.06M37.72M54.99M81.05M33.37M
Total Assets
86.18M101.02M154.11M217.58M88.59M
Total Debt
4.28M4.28M4.65M0.000.00
Net Debt
-3.54M-33.43M-35.36M-15.22M-11.20M
Total Liabilities
28.33M28.38M36.49M55.64M43.62M
Stockholders Equity
57.85M72.65M117.63M161.94M44.97M
Cash FlowFree Cash Flow
8.15M-16.18M-39.65M-73.59M-53.88M
Operating Cash Flow
8.15M-16.17M-39.52M-73.24M-53.51M
Investing Cash Flow
-31.41M14.00M62.70M-74.94M25.45M
Financing Cash Flow
-7.01M-123.00K-218.00K148.34M36.62M

CuriosityStream Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price5.65
Price Trends
50DMA
4.23
Positive
100DMA
3.34
Positive
200DMA
2.55
Positive
Market Momentum
MACD
0.57
Positive
RSI
52.70
Neutral
STOCH
16.66
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CURI, the sentiment is Neutral. The current price of 5.65 is below the 20-day moving average (MA) of 6.04, above the 50-day MA of 4.23, and above the 200-day MA of 2.55, indicating a neutral trend. The MACD of 0.57 indicates Positive momentum. The RSI at 52.70 is Neutral, neither overbought nor oversold. The STOCH value of 16.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CURI.

CuriosityStream Risk Analysis

CuriosityStream disclosed 58 risk factors in its most recent earnings report. CuriosityStream reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

CuriosityStream Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$1.15B17.7621.67%13.18%
GTGTN
62
Neutral
$414.19M1.579.92%8.79%9.08%
61
Neutral
$327.92M-12.13%1.56%-4.04%84.17%
61
Neutral
$14.59B5.85-4.31%3.69%2.76%-30.36%
SSSSP
60
Neutral
$185.95M2.3411.23%6.28%
EVEVC
54
Neutral
$189.23M-82.15%9.62%-66.94%-52.19%
53
Neutral
$204.69M86.54%3.31%-39.47%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CURI
CuriosityStream
5.65
4.73
514.13%
SSP
E. W. Scripps Company Class A
2.16
-0.23
-9.62%
EVC
Entravision
2.08
0.11
5.58%
GTN
Gray Television
3.81
-1.31
-25.59%
IHRT
iHeartMedia
1.50
0.34
29.31%
FUBO
fuboTV
3.41
2.26
196.52%

CuriosityStream Corporate Events

DividendsFinancial Disclosures
CuriosityStream Announces Special Cash Dividend
Positive
May 9, 2025

On May 8, 2025, CuriosityStream Inc. announced a special cash dividend of $0.10 per share, payable on June 27, 2025, as a reflection of the company’s strong financial position and future prospects. This decision highlights the company’s commitment to returning value to shareholders and marks a significant milestone following its achievement of positive net income and EBITDA for the quarter ended March 31, 2025.

DividendsFinancial Disclosures
CuriosityStream Reports First-Ever Positive Net Income
Positive
May 6, 2025

On May 6, 2025, CuriosityStream announced its first-ever positive net income for Q1 2025, with a 26% year-over-year increase in revenue to $15.1 million. The company also reported a significant improvement in net income and adjusted EBITDA, alongside a 100% increase in its annual dividend program to $0.32. This financial milestone reflects CuriosityStream’s growth trajectory and its efforts to reward shareholders, while expanding its content offerings and market presence.

Business Operations and StrategyFinancial Disclosures
CuriosityStream Corrects 2024 Earnings Call Error
Neutral
Mar 12, 2025

On March 11, 2025, CuriosityStream Inc. clarified an error from its fourth quarter and full year 2024 earnings call, correcting that licensing revenue is expected to be more than half of its direct subscription revenue in 2025, aligning with previous statements and strategic forecasts. This correction ensures accurate communication with stakeholders and reflects the company’s strategic planning, though it highlights the inherent risks and uncertainties in forward-looking statements, as well as the competitive nature of the industry.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.