Part I. Condensed Consolidated Financial Information [Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) Net income reached $1.1 million in H1 2025, reversing a $7.1 million loss, driven by 40% revenue growth to $34.1 million [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $78.7 million, and stockholders' equity declined to $49.8 million, mainly due to dividend payments Condensed Consolidated Balance Sheets (in thousands) | Balance Sheet Items | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $40,456 | $39,518 | | **Total Assets** | **$78,652** | **$86,182** | | **Total Current Liabilities** | $24,420 | $23,863 | | **Total Liabilities** | **$28,811** | **$28,334** | | **Total Stockholders' Equity** | **$49,841** | **$57,848** | - Cash, cash equivalents, and short-term investments totaled **$28.2 million** as of June 30, 2025, down from **$32.1 million** at the end of 2024[9](index=9&type=chunk) - Net content assets decreased to **$28.6 million** from **$31.5 million** over the six-month period[9](index=9&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net income reached $1.1 million for H1 2025, reversing a $7.1 million loss, driven by a 53% Q2 revenue increase Q2 2025 vs Q2 2024 Performance (in thousands) | Metric | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $19,012 | $12,395 | $6,617 | 53% | | **Operating Income (Loss)** | $480 | $(2,549) | $3,029 | (119%) | | **Net Income (Loss)** | $784 | $(2,031) | $2,815 | (139%) | | **Diluted EPS** | $0.01 | $(0.04) | $0.02 | $(0.13) | [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity decreased to $49.8 million, primarily due to $11.2 million in dividends declared in H1 2025 - Dividends declared in the first six months of 2025 amounted to **$11.2 million** ($10.388 million in Q2 and $0.862 million in Q1), significantly impacting stockholders' equity[13](index=13&type=chunk) - Stock-based compensation added **$2.1 million** to additional paid-in capital during the first half of 2025[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow was $4.7 million, but financing activities used $14.0 million, mainly due to $12.7 million in dividends Cash Flow Activities (in thousands) | Cash Flow Activities | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $4,711 | $2,856 | | **Net cash provided by investing activities** | $8,303 | $0 | | **Net cash used in financing activities** | $(13,962) | $(1,427) | | **Net (decrease) increase in cash** | $(948) | $1,429 | - The company paid **$12.7 million** in dividends during the first half of 2025, compared to **$1.3 million** in the same period of 2024[18](index=18&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) Notes detail business model, revenue shift to Content Licensing (43% of total), and a subsequent $0.08 dividend declaration Disaggregated Revenues (Six Months Ended June 30, in thousands) | Revenue Stream | 2025 | % of Total | 2024 | % of Total | | :--- | :--- | :--- | :--- | :--- | | **Total Direct Business** | $17,092 | 50% | $19,452 | 80% | | **Total Content Licensing** | $14,753 | 43% | $2,481 | 10% | | **Bundled Distribution** | $1,493 | 4% | $2,226 | 9% | | **Other** | $764 | 2% | $237 | 1% | | **Total Revenues** | **$34,102** | **100%** | **$24,396** | **100%** | - The company's business model includes Direct-to-Consumer (DTC), Partner Direct, Bundled Distribution, and Content Licensing arrangements[20](index=20&type=chunk)[22](index=22&type=chunk)[23](index=23&type=chunk) - As a subsequent event, on August 5, 2025, the Board declared a quarterly cash dividend of **$0.08 per share**, totaling approximately **$4.6 million**, to be paid in September 2025[102](index=102&type=chunk) - As of June 30, 2025, the company had content obligations of **$0.7 million** and advertising commitments of **$1.7 million**, both expected to be paid by year-end 2025[96](index=96&type=chunk)[99](index=99&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q2 operating income improved to $0.5 million, driven by a 53% revenue surge from AI content licensing, despite direct business decline [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Q2 2025 operating income was $0.5 million, a $3.0 million improvement, driven by 53% revenue growth from content licensing Q2 2025 vs Q2 2024 Performance (in thousands) | Metric | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $19,012 | $12,395 | $6,617 | 53% | | **Total Operating Expenses** | $18,532 | $14,944 | $3,588 | 24% | | **Operating Income (Loss)** | $480 | $(2,549) | $3,029 | (119%) | | **Net Income (Loss)** | $784 | $(2,031) | $2,815 | (139%) | [Revenue Analysis](index=31&type=section&id=Revenue%20Analysis) Q2 revenue rose 53% to $19.0 million, primarily from a 609% surge in AI content licensing, offsetting direct business decline - Content Licensing revenue surged **609%** YoY in Q2 2025, driven by new licensing agreements for AI model training[124](index=124&type=chunk)[125](index=125&type=chunk) - Direct Business revenue decreased by **15%** YoY in Q2 2025, as a **34%** increase in Partner Direct revenue was not enough to offset a **25%** decline in Direct-to-Consumer (DTC) revenue from a lower subscriber count[121](index=121&type=chunk)[122](index=122&type=chunk) - Bundled Distribution revenue declined **15%** YoY due to revised affiliate agreements and non-renewals[127](index=127&type=chunk) [Operating Expenses Analysis](index=33&type=section&id=Operating%20Expenses%20Analysis) Operating expenses increased 24% to $18.5 million, driven by a 48% rise in Cost of Revenues from licensing deals Cost of Revenues Breakdown (Q2, in thousands) | Component | 2025 | 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Distribution | $4,319 | $631 | $3,688 | 584% | | Content amortization | $3,600 | $4,685 | $(1,085) | (23%) | | Other | $945 | $688 | $257 | 37% | | **Total Cost of Revenues** | **$8,864** | **$6,004** | **$2,860** | **48%** | - General and Administrative expenses increased **7%** in Q2 2025, driven by a **67%** rise in stock-based compensation expense[137](index=137&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity includes $7.0 million cash and $23.7 million investments, sufficient for operations despite $12.7 million in H1 dividends - The company's liquidity position as of June 30, 2025, includes **$7.0 million** in cash and restricted cash, and **$23.7 million** in investments in debt securities[141](index=141&type=chunk) - In H1 2025, the company paid three dividends: a **$0.04** regular dividend, a **$0.08** regular dividend, and a **$0.10** special dividend, totaling approximately **$12.7 million**[147](index=147&type=chunk) - The company has a **$4 million** share repurchase program, with **$0.25 million** utilized as of June 30, 2025[148](index=148&type=chunk) [Quantitative and Qualitative Disclosures Regarding Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20Regarding%20Market%20Risk) The company deems this item not applicable, providing no disclosures on market risk - No quantitative and qualitative disclosures regarding market risk were provided, as the company deemed them not applicable[161](index=161&type=chunk) [Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the quarter[163](index=163&type=chunk) - No material changes to the internal control over financial reporting were identified during the quarter ended June 30, 2025[164](index=164&type=chunk) Part II. Other Information [Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in any legal proceedings expected to materially impact its business or financials - The company is not presently involved in any material legal proceedings[167](index=167&type=chunk) [Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) A new risk factor addresses the uncertainty of sustaining revenues from AI content licensing due to market evolution and legal issues - A new risk factor was introduced related to the company's business of licensing content for training generative AI models[170](index=170&type=chunk) - The AI content licensing market is new, rapidly evolving, and there is no assurance the company can sustain revenues from it due to potential competition, legal uncertainties regarding intellectual property, and fluctuating demand for AI models[171](index=171&type=chunk)[172](index=172&type=chunk) [Exhibits](index=40&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed, including CEO/CFO certifications and Inline XBRL documents Part III. Signatures

Financial Data and Key Metrics Changes - Quarterly revenue grew by 53% year over year from $12.4 million to $19 million, exceeding guidance [6][27] - Net income improved by nearly $3 million year over year, reaching $800,000 or $0.01 per share [7][28] - Adjusted EBITDA increased by over $4 million year over year from negative $1 million to positive $3 million, marking the highest adjusted EBITDA in company history [7][28] - Adjusted free cash flow was $2.9 million, representing the sixth consecutive quarter of positive adjusted free cash flow [29] Business Line Data and Key Metrics Changes - Subscription revenue was $9.3 million, a decline of $1.7 million from last year but a sequential increase from Q1 [29] - Content licensing revenue was $9.3 million, an increase of over $8 million driven by significant new business from AI licensing [29] - Gross margin improved slightly to 53% from 52% a year ago, with reductions in content amortization [30] Market Data and Key Metrics Changes - The company has entered into new and expanded multiyear wholesale distribution agreements in Asia, Latin America, and the U.S., which are expected to boost subscription revenue [8] - The dataset licensing for AI training has grown substantially for three consecutive quarters, including licensing about 9 million tokens of code for the first time [10][11] Company Strategy and Development Direction - The company aims to have three solid revenue pillars: subscription business, licensing business, and advertising business, with expectations for steady growth in subscriptions and rapid growth in licensing [37] - The company is focused on becoming a dominant AI video licensor, with plans to license more video and data than in 2025 [24][25] - The company emphasizes the importance of its extensive library of over 1 million hours of content and its ability to structure data effectively as competitive advantages [19][21] Management's Comments on Operating Environment and Future Outlook - Management believes the market for high-quality, ethically sourced video and audio content is durable and growing, with estimates of industry-wide needs ranging from billions to tens of billions of hours [14][15] - The company is confident in its ability to navigate the evolving landscape of AI and media, focusing on meaningful information while disregarding distractions [22][23] - The company maintains a strong balance sheet with $31 million in liquidity and no debt, positioning itself as a high-performance outlier amid technological revolution [25][31] Other Important Information - The company paid dividends of $10.4 million in June, including a special dividend of $5.8 million, resulting in a dividend yield of about 6.5% [31] - The company expects third-quarter revenue in the range of $15 million to $18 million and adjusted free cash flow for 2025 in the range of $11 million to $13 million [32] Q&A Session Summary Question: Why is the company in the core media business? - Management stated that the subscription video on demand business is strong and global, representing the core of the company, and that all revenue streams work together synergistically [36][37] Question: What are the expected cost increases as the company pivots towards high-growth licensing? - Management indicated that the primary costs would be related to storage and delivery, but overall costs would remain manageable due to existing revenue-sharing arrangements [40][41] Question: What is the significance of licensing code for AI training? - Management explained that while video is the primary focus, the inclusion of code in licensing is a unique opportunity that reflects the value of owning and controlling intellectual property [49][50] Question: Is the company exploring other types of video content for licensing? - Management confirmed that while the focus remains on building a factual entertainment library, there is potential value in other types of video content, particularly if they are not freely available [53][55]

[Q2 2025 Earnings Overview](index=1&type=section&id=Q2%202025%20Earnings%20Overview) [Executive Summary](index=1&type=section&id=Executive%20Summary) CuriosityStream reported strong Q2 2025 results with a 53% year-over-year revenue increase to $19 million, surpassing guidance and driven by its AI licensing business. The company achieved record net income and Adjusted EBITDA, and declared a cash dividend of $0.08 per share - Revenue increased **53% year-over-year** to **$19 million**, surpassing guidance[1](index=1&type=chunk)[2](index=2&type=chunk) - AI licensing business continues to scale with increasing revenue from new partnerships and repeat customers[2](index=2&type=chunk) - Declared a third-quarter cash dividend of **$0.08 per share**, payable on September 19, 2025[1](index=1&type=chunk)[4](index=4&type=chunk) [Second Quarter 2025 Financial Results](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Results) CuriosityStream achieved significant financial improvements in Q2 2025, including a 53% revenue increase, record gross profit and margin, a shift from net loss to net income, and positive Adjusted EBITDA. Operating cash flow and Adjusted Free Cash Flow also saw increases Q2 2025 Key Financial Metrics (YoY Comparison) | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :--------------------------------- | :---------- | :---------- | :----------- | | Revenue | $19.0 million | $12.4 million | +53.2% | | Gross Profit | $10.1 million | $6.4 million | +57.8% | | Gross Margin | 53.4% | 51.6% | +1.8 pp | | Net Income (Loss) | $0.8 million | $(2.0) million | +$2.8 million | | Adjusted EBITDA | $3.0 million | $(1.0) million | +$4.0 million | | Net Cash provided by Operating Activities | $2.8 million | $2.2 million | +$0.6 million | | Adjusted Free Cash Flow | $2.9 million | $2.5 million | +$0.4 million | - Licensing revenue reached **$9.3 million**, primarily driven by AI partnerships[4](index=4&type=chunk) - Cash, restricted cash, and held-to-maturity securities balance was **$30.7 million** with no debt as of June 30, 2025[5](index=5&type=chunk) [Second Quarter 2025 Business Highlights](index=2&type=section&id=Second%20Quarter%202025%20Business%20Highlights) The company expanded its global reach through new multiyear wholesale distribution agreements in Asia and Latin America, launched new services across Europe including Curiosity University on Amazon Prime, and licensed traditional programs to various media partners. It also continued to expand AI training data and video licensing partnerships for the third consecutive quarter and broadened its partnership with Samsung TV Plus - Secured new and expanded multiyear wholesale distribution agreements in Asia and Latin America[10](index=10&type=chunk) - Launched new services across Europe, including Curiosity University on Amazon Prime in the UK, Netherlands, Finland, and Sweden[10](index=10&type=chunk) - Licensed individual traditional programs and series to new and returning media partners across the US, Europe, Asia, and Latin America[10](index=10&type=chunk) - Expanded data and video licensing partnerships for AI training for the third consecutive quarter[10](index=10&type=chunk) - Expanded partnership with Samsung TV Plus, launching Curiosity Now in Spain[10](index=10&type=chunk) [Financial Outlook](index=2&type=section&id=Financial%20Outlook) [Q3 and Full-Year 2025 Guidance](index=2&type=section&id=Q3%20and%20Full-Year%202025%20Guidance) CuriosityStream provided guidance for Q3 and the full year 2025, expecting Q3 revenue between $15 million and $18 million, and full-year 2025 Adjusted Free Cash Flow between $11 million and $13 million Financial Outlook for Q3 and Full-Year 2025 | Metric | Guidance | | :-------------------------- | :-------------------- | | Q3 Revenue | $15 - $18 million | | Full-Year 2025 Adjusted Free Cash Flow | $11 - $13 million | [Corporate Information](index=4&type=section&id=Corporate%20Information) [About CuriosityStream Inc.](index=4&type=section&id=About%20CuriosityStream%20Inc.) CuriosityStream Inc. is a global factual entertainment company offering award-winning original and curated films, shows, and series across various subjects. It operates multiple platforms including the flagship SVOD service, linear TV channels, Curiosity University, ad-supported channels, an audio network, and Curiosity Studios - CuriosityStream is a global factual entertainment company, home to award-winning original and curated factual content[16](index=16&type=chunk) - Content covers science, nature, history, technology, society, and lifestyle, available to millions of subscribers worldwide[16](index=16&type=chunk) - Operates multiple services: Curiosity Stream SVOD, Curiosity Channel, Curiosity University, Curiosity Now, Curiosity Español, Curiosity Audio Network, and Curiosity Studios[16](index=16&type=chunk) [Contacts](index=4&type=section&id=Contacts) This section provides contact information for CuriosityStream Investor Relations - Investor Relations contact: Brett Maas at IR@CuriosityStream.com[17](index=17&type=chunk) [Legal and Non-GAAP Disclosures](index=2&type=section&id=Legal%20and%20Non-GAAP%20Disclosures) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This section contains cautionary statements regarding future financial or business performance, noting that such statements are subject to inherent risks, uncertainties, and assumptions. It advises readers to review risk factors detailed in SEC filings and emphasizes that the company is not obligated to update these statements - Forward-looking statements are subject to risks, uncertainties, and assumptions that may cause actual events, results, or performance to differ materially[8](index=8&type=chunk)[9](index=9&type=chunk) - Key risk factors include the ability to maintain and develop revenue relationships, subscriber base, competition, litigation, and privacy and data protection laws[11](index=11&type=chunk) - CuriosityStream is not obligated to update, alter, or revise any forward-looking statement, except as required by law[9](index=9&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) CuriosityStream uses non-GAAP measures like Adjusted EBITDA and Adjusted Free Cash Flow to supplement GAAP results for planning, performance evaluation, and peer comparison. These measures exclude specific items such as interest, taxes, depreciation, stock-based compensation, and non-recurring charges, but have limitations as analytical tools [Definition and Calculation](index=3&type=section&id=Definition%20and%20Calculation) This section defines and outlines the calculation methods for Adjusted EBITDA and Adjusted Free Cash Flow - Adjusted EBITDA is calculated by excluding interest and other income (expense), provision for income taxes, depreciation and non-content amortization, loss/(gain) on warrant fair value, equity interests loss (gain), impairment, restructuring charges, and stock-based compensation from net income[14](index=14&type=chunk) - Adjusted Free Cash Flow is calculated as net cash flow used in operating activities less purchases of property and equipment, restructuring charges, and nonrecurring license fees[14](index=14&type=chunk) [Limitations](index=3&type=section&id=Limitations) This section outlines the inherent limitations of non-GAAP financial measures such as Adjusted EBITDA and Adjusted Free Cash Flow - Adjusted EBITDA does not reflect cash capital expenditure requirements for asset replacement or new capital expenditures, changes in working capital needs, or tax payments[15](index=15&type=chunk) - Adjusted Free Cash Flow does not reflect cash available for discretionary payments, future contractual commitments (like debt service or dividends), funds for investment, certain capital expenditure requirements, or the total change in cash balances[15](index=15&type=chunk) [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows a decrease in total assets from $86.18 million at December 31, 2024, to $78.65 million at June 30, 2025. Total liabilities slightly increased, while total stockholders' equity decreased over the same period Condensed Consolidated Balance Sheet Summary (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Total Assets | $78,652 | $86,182 | | Total Liabilities | $28,811 | $28,334 | | Total Stockholders' Equity | $49,841 | $57,848 | - Cash and cash equivalents decreased from **$7,826k** to **$6,943k**[19](index=19&type=chunk) - Accounts receivable, net, increased from **$6,103k** to **$11,354k**[19](index=19&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended June 30, 2025, revenue increased significantly, leading to a positive operating income and net income, a substantial improvement from a net loss in the prior year period. Similar positive trends are observed for the six months ended June 30, 2025 Condensed Consolidated Statements of Operations Summary (in thousands, except per share amounts) | Metric | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------- | :------ | :------ | :------ | :------ | | Revenues | $19,012 | $12,395 | $34,102 | $24,396 | | Operating income (loss) | $480 | $(2,549) | $559 | $(6,203) | | Net income (loss) | $784 | $(2,031) | $1,103 | $(7,066) | | Basic EPS | $0.01 | $(0.04) | $0.02 | $(0.13) | | Diluted EPS | $0.01 | $(0.04) | $0.02 | $(0.13) | - Cost of revenues increased from **$6,004k** in Q2 2024 to **$8,864k** in Q2 2025[21](index=21&type=chunk) - Advertising and marketing expenses slightly increased, while general and administrative expenses remained relatively stable year-over-year for Q2[21](index=21&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash provided by operating activities increased. Investing activities provided significant cash due to sales and maturities of debt securities, while financing activities used substantial cash primarily due to dividends paid Condensed Consolidated Statements of Cash Flows Summary (in thousands) | Metric | 6M 2025 | 6M 2024 | | :--------------------------------- | :------ | :------ | | Net cash provided by operating activities | $4,711 | $2,856 | | Net cash provided by investing activities | $8,303 | $0 | | Net cash used in financing activities | $(13,962) | $(1,427) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $(948) | $1,429 | - Dividends paid significantly increased from **$1,333k** in 6M 2024 to **$12,665k** in 6M 2025[23](index=23&type=chunk) - Additions to content assets were **$(4,179)k** in 6M 2025, compared to **$(1,693)k** in 6M 2024[23](index=23&type=chunk) [Reconciliation from Net Loss to Adjusted EBITDA](index=8&type=section&id=Reconciliation%20from%20Net%20Loss%20to%20Adjusted%20EBITDA) The reconciliation shows a significant improvement in Adjusted EBITDA, moving from a loss of $(1,005)k in Q2 2024 to a positive $3,022k in Q2 2025, and from a loss of $(3,839)k to a positive $4,121k for the six months ended June 30, 2025 Adjusted EBITDA Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------- | :------ | :------ | :------ | :------ | | Net Income (loss) | $784 | $(2,031) | $1,103 | $(7,066) | | Stock-based compensation | $2,214 | $1,325 | $3,077 | $2,014 | | Adjusted EBITDA | $3,022 | $(1,005) | $4,121 | $(3,839) | - Restructuring charges decreased from **$126k** in Q2 2024 to **$13k** in Q2 2025[25](index=25&type=chunk) - Other nonrecurring expenses were **$273k** in Q2 2025[25](index=25&type=chunk) [Reconciliation from Net Cash Flow used in Operating Activities to Adjusted Free Cash Flow](index=9&type=section&id=Reconciliation%20from%20Net%20Cash%20Flow%20used%20in%20Operating%20Activities%20to%20Adjusted%20Free%20Cash%20Flow) Adjusted Free Cash Flow increased to $2,861k in Q2 2025 from $2,462k in Q2 2024, and to $4,866k for the six months ended June 30, 2025, from $3,648k in the prior year period Adjusted Free Cash Flow Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :--------------------------------- | :------ | :------ | :------ | :------ | | Net cash flow used in operating activities | $2,789 | $2,190 | $4,711 | $2,856 | | Restructuring payments | $13 | $247 | $59 | $682 | | Other nonrecurring payments | $59 | $25 | $174 | $110 | | Adjusted Free Cash Flow | $2,861 | $2,462 | $4,866 | $3,648 |

Core Viewpoint - CuriosityStream (NASDAQ: CURI) shares have increased by over 100% since the last analysis, driven by an AI catalyst impacting the stock [1] Company Summary - The significant rise in CURI stock indicates strong market interest and potential growth opportunities within the video streaming sector [1]

CuriosityStream (CURI) Conference Summary Company Overview - CuriosityStream is a subscription-based streaming service focused on factual content, with nearly 20 million paid subscribers across 175 countries [24][45] - The company offers a diverse library of content, including categories such as science, history, nature, technology, and more [25][24] - CuriosityStream aims to be a trusted resource in homes, providing a breadth of factual programming rather than relying on hit content [24] Key Financial Highlights - The company has achieved five consecutive quarters of positive free cash flow [45] - Revenue projections for the second quarter imply a year-over-year growth of 30% to 37% [45] - CuriosityStream pays a special dividend, yielding approximately 8.7% over the year, which is uncommon for growth companies [45][55] Strategic Initiatives - The company is focusing on rationalizing its cost base to become a profitable, cash flow-generating entity [45] - CuriosityStream has a strong balance sheet with under $40 million in cash and no debt [52] - The company is exploring opportunities in licensing content for AI training, which is expected to be a significant growth area [48][78] Content and Distribution - CuriosityStream's content is dubbed or subtitled in about 12 languages, with plans to expand this through AI solutions [32][33] - The company has established partnerships with major distributors, including Signal in the Philippines and Samsung in Spain [32] - CuriosityStream offers various subscription services, including Curiosity University and a premium bundle that includes multiple channels [34][37] Market Position and Competition - The subscription video on demand landscape is dominated by major players like Netflix and Disney, with CuriosityStream positioned as a smaller but growing service [27][28] - The company benefits from the global appeal of factual content, which is less culturally specific than other genres [31] Future Outlook - CuriosityStream anticipates growth in all revenue categories, with content licensing expected to become the largest revenue source in the next three years [79] - The company is committed to ongoing content acquisition and marketing efforts to drive subscriber growth [76][77] - The management team expresses confidence in the company's trajectory and the potential for significant opportunities in the licensing space [78][80] Additional Insights - The company has a unique collection of Catholic courses content, which is being offered as a subscription service [36] - CuriosityStream's audio offerings include over 8,000 titles and are distributed through major platforms like Spotify and Audible [41] - The management emphasizes the importance of shareholder value and considers various strategies, including dividends and potential stock repurchases [61][62] Conclusion - CuriosityStream presents a compelling investment opportunity, with a strong focus on factual content, a solid financial foundation, and significant growth potential in licensing and international markets [80]

Company Overview - Bilibili (BILI) is currently ranked 2 (Buy) in the Zacks Rank system, indicating a positive outlook for the stock based on earnings estimates and revisions [3] - The Zacks Consensus Estimate for BILI's full-year earnings has increased by 79% in the past quarter, reflecting improved analyst sentiment [3] Year-to-Date Performance - Bilibili has achieved a year-to-date return of approximately 7.4%, outperforming the Consumer Discretionary sector's average return of 6.4% [4] - In comparison, CuriosityStream Inc. (CURI) has significantly outperformed with a year-to-date return of 236% [4] Industry Context - Bilibili operates within the Broadcast Radio and Television industry, which consists of 19 stocks and currently holds a Zacks Industry Rank of 65 [6] - The Broadcast Radio and Television industry has an average year-to-date gain of 24.7%, indicating that Bilibili is slightly underperforming its industry [6] - CuriosityStream Inc. is part of the Film and Television Production and Distribution industry, which has 8 stocks and is ranked 150, with an industry return of +8.8% year-to-date [7]

Company Overview - CuriosityStream Inc. (CURI) currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy) [3][4] - The company has shown significant price performance, with shares increasing 175.21% over the past quarter and 522.43% over the last year [7] Price Performance - CURI shares are up 2.02% over the past week, while the Zacks Film and Television Production and Distribution industry is down 0.48% during the same period [6] - The monthly price change for CURI is 103.05%, compared to the industry's performance of 4.6% [6] Trading Volume - The average 20-day trading volume for CURI is 1,102,597 shares, indicating a bullish sign as the stock is rising with above-average volume [8] Earnings Outlook - Over the past two months, one earnings estimate for CURI moved higher, while none moved lower, resulting in an increase in the consensus estimate from -$0.09 to -$0.01 [10] - For the next fiscal year, one estimate has moved upwards with no downward revisions during the same period [10] Conclusion - Considering the positive momentum indicators and earnings outlook, CURI is positioned as a promising investment opportunity with a Momentum Score of B [12]

Industry Overview - The Zacks Film and Television Production and Distribution industry is experiencing increased demand for digital entertainment due to operational constraints in traditional venues like movie theaters and theme parks, driven by the work-from-home trend [1] - Companies such as Live Nation Entertainment, TKO Group Holdings, and CuriosityStream are benefiting from this trend, although rising content costs are pressuring profitability [1] Industry Trends - Over-the-top (OTT) services are gaining prominence as content creators distribute through these platforms to leverage franchise popularity, while streaming companies are producing original programming to reduce reliance on third-party content [3] - Binge-watching and advancements in technology are leading to increased consumption of content on smaller screens, prompting industry players to pivot towards digital distribution [4] - Technological advancements, including laser projection systems and immersive experiences, are enhancing the viewing experience, but alternative distribution channels are challenging traditional exhibitors [5] Financial Performance - The Zacks Film and Television Production and Distribution industry ranks 155, placing it in the bottom 37% of over 246 Zacks industries, indicating a negative earnings outlook [6][8] - Despite a gloomy outlook, the industry has outperformed the broader Zacks Consumer Discretionary sector and the S&P 500, returning 46.8% over the past year compared to 17.3% and 10.9% respectively [10] Valuation Metrics - The industry is currently trading at a trailing 12-month price-to-sales (P/S) ratio of 2.79X, lower than the S&P 500's 5.33X and the sector's 2.31X [12] Company Highlights - **CuriosityStream**: Achieved its first positive net income and adjusted EBITDA, with a 26% year-over-year revenue growth to $15.1 million, driven by a $4 million increase in licensing revenues [15][16] - **Live Nation Entertainment**: Reported record-breaking deferred revenue levels of $5.4 billion for concerts, up 24% year-over-year, with 95 million concert tickets sold for 2025 events [21][22] - **TKO Group Holdings**: Reported revenues of $1.27 billion and adjusted EBITDA of $417.4 million, reflecting a 23% year-over-year growth, bolstered by acquisitions and strong performance from UFC and WWE [26][27]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: CuriosityStream Inc. (CURI) - CURI currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance in the market [3] Performance Metrics - CURI shares have increased by 46.33% over the past week, significantly outperforming the Zacks Film and Television Production and Distribution industry, which rose by 1.74% [5] - Over the past month, CURI's price change is 97.67%, compared to the industry's 8.28% [5] - In the last quarter, CURI shares have surged by 94.64%, and over the past year, they have gained 357.66%, while the S&P 500 has moved -3.09% and 13.39%, respectively [6] Trading Volume - CURI's average 20-day trading volume is 945,447 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, one earnings estimate for CURI has increased, while none have decreased, leading to a consensus estimate improvement from -$0.09 to -$0.01 [9] - For the next fiscal year, one estimate has moved upwards with no downward revisions during the same period [9] Conclusion - Given the strong performance metrics and positive earnings outlook, CURI is identified as a promising momentum pick and is recommended for consideration in the near term [11]

Core Insights - CuriosityStream (NASDAQ: CURI) has experienced a tenfold increase in its stock price since a bullish article was published in March of the previous year [1] - At the time of the initial article, the company was trading below its cash value and was burning cash, although at a decreasing rate [1] - Starting in Q1 2024, the company has shown signs of improvement in its financial performance [1] Company Overview - CuriosityStream is a streaming service focused on documentary and educational content [1] - The company has been under scrutiny due to its cash burn rate, which has been decreasing over time [1] Management Background - Edward Schneider, a managing director of Quan Management LLC, has over 30 years of investment experience, including 25 years managing technology funds [1] - Schneider holds a CFA designation, an MBA from Thunderbird, and a BA from Emory University [1] - Quan Management has generated a 17% annual return since 1995, outperforming the Nasdaq's 11% return [1]