Core Viewpoint - CuriosityStream Inc. reported quarterly earnings of $0.01 per share, surpassing the Zacks Consensus Estimate of a loss of $0.01 per share, marking a significant improvement from a loss of $0.09 per share a year ago, indicating a 200% earnings surprise [1] Financial Performance - The company achieved revenues of $15.09 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 3.36%, compared to $12 million in revenues from the same quarter last year [2] - Over the last four quarters, CuriosityStream has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - CuriosityStream shares have increased approximately 115% since the beginning of the year, contrasting with the S&P 500's decline of 3.9% [3] Future Outlook - The company's earnings outlook will be crucial for determining the sustainability of its stock price movement, with current consensus EPS estimates for the upcoming quarter at -$0.02 on revenues of $14.2 million, and -$0.05 on revenues of $61.9 million for the current fiscal year [4][7] - The estimate revisions trend for CuriosityStream is currently mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Film and Television Production and Distribution industry, to which CuriosityStream belongs, is currently ranked in the top 28% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - Q1 revenue reached $15.1 million, representing a 26% year-over-year increase and a 7% sequential increase [6] - Net income was positive for the first time, improving by $5.4 million year-over-year [6][13] - Adjusted EBITDA was positive at $1.1 million, an improvement of $3.9 million from the previous year [13][16] - Gross margin improved to 53%, up from 44% a year ago, driven by reductions in content amortization [14] - Adjusted free cash flow was $2 million, the high end of guidance, and an increase of $800,000 compared to last year [13][16] Business Line Data and Key Metrics Changes - Direct subscription revenue was approximately $9 million, showing a slight decline year-over-year, offset by a $4 million increase in licensing revenue [14][26] - Operating expenses declined by $1 million or 11% compared to last year, due to ongoing cost rationalization efforts [15][16] Market Data and Key Metrics Changes - The company reported a strong balance sheet with $39.1 million in liquidity and no debt, providing significant operating flexibility [11][16] - The company anticipates revenue for Q2 to be in the range of $16 million to $17 million [17] Company Strategy and Development Direction - The company is focused on five growth pillars: increased licensing, rationalization of annual expenses, leveraging translation cost reductions, launching new currencies, and enhancing talent density [10] - The company has entered into several new third-party agreements and expanded its library of content significantly [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit growth in both top-line revenue and cash flow for 2025 [9][10] - The company plans to double its quarterly dividend to $0.08, reflecting confidence in future performance [9][34] Other Important Information - The company has implemented a dividend program, returning $6.3 million to shareholders since its inception [16] - Management highlighted the potential of AI licensing opportunities, with expected gross margins of 40% to 50% [46] Q&A Session Summary Question: How has Gen AI contributed to cost reductions? - Management noted that costs were reduced largely without leveraging AI tools, but they see potential for further cost reductions through AI in the future [19][20] Question: What were the key drivers for revenue growth? - Management indicated that while direct subscription revenue was slightly down, licensing revenue saw significant growth due to a broad corpus of content appealing to various companies [25][28] Question: Is the reduction in costs sustainable? - Management confirmed that while some costs may increase seasonally, they expect a continued decline in G&A expenses throughout the year [30][31] Question: How confident is the company in covering the increased dividend? - Management expressed strong confidence in generating sufficient cash flow to cover the dividend, supported by a robust cash reserve [34][35] Question: What consumer trends are observed in the direct business? - Management indicated that direct subscription revenue is largely influenced by marketing spend efficiency, with expectations for opportunistic growth in the future [40][42] Question: What is the pipeline for AI licensing? - Management highlighted a broad set of potential licensees, including tech companies and government agencies, with significant deals expected to impact profitability [46][47] Question: Are the relationships in AI content sustainable? - Management believes that strong relationships and high-quality content will lead to recurring business opportunities, despite the nature of licensing agreements [51][56]

Investment and Ownership - The carrying value of the Company's equity method investment in Nebula decreased from $3,848,000 as of December 31, 2024, to $3,697,000 as of March 31, 2025, reflecting an equity method investment loss of $151,000[37]. - The Company acquired a 32% ownership in the Spiegel Venture for an initial investment of $3.3 million in July 2021, which operates two documentary channels and an SVOD service[38]. - The Company holds a 16.875% ownership interest in Nebula as of March 31, 2025, after making incremental purchases totaling $6.0 million since August 2021[44]. - The Company has a Call Option to acquire the remaining ownership interests in the Spiegel Venture, exercisable after the adoption of the Spiegel Venture's audited financial statements for the fiscal year 2025[40]. - The Company has not received any dividends from either the Spiegel Venture or Nebula as of March 31, 2025[38][44]. Financial Performance - Total revenues for the three months ended March 31, 2025, were $15,090,000, a 25.6% increase compared to $12,001,000 for the same period in 2024[54]. - Direct-to-Consumer revenue decreased to $6,530,000, accounting for 43% of total revenue, down from 68% in the prior year[54]. - The net income for the three months ended March 31, 2025, was $319,000, a significant improvement from a net loss of $5,035,000 in the same period of 2024[72]. - For the three months ended March 31, 2025, the company reported revenues of $15,090,000, an increase of 25.9% compared to $12,001,000 for the same period in 2024[85]. - The company’s international revenue accounted for 29% of total revenue in Q1 2025, with Switzerland contributing 10% of total revenue[86]. Expenses and Liabilities - Total operating expenses for the three months ended March 31, 2025, were $15,011,000, a decrease of 4.1% from $15,655,000 in the same period of 2024[85]. - Content amortization for the three months ended March 31, 2025, was $3,513,000, down from $5,215,000 in the same period of 2024[51]. - Content amortization expenses decreased to $3,513,000 in Q1 2025 from $5,215,000 in Q1 2024, reflecting a reduction of 32.6%[85]. - Total deferred revenues decreased to $10.9 million as of March 31, 2025, from $11.4 million as of December 31, 2024[56]. - The total operating lease cost for the three months ended March 31, 2025, was $133,000, slightly up from $131,000 in 2024[92]. Cash and Investments - As of March 31, 2025, the company's cash and cash equivalents increased to $9,183,000 from $7,826,000 as of December 31, 2024, representing a growth of approximately 17.4%[46]. - The Company’s investments in debt securities are classified as held-to-maturity and reported at amortized cost, with interest income recognized as non-operating income[27][28]. - The fair value of Private Placement Warrants increased to $96,000 as of March 31, 2025, compared to $88,000 as of December 31, 2024[53]. - The fair value of the warrant liability for the Private Placement Warrants was estimated at $0.03 per warrant as of March 31, 2025, compared to $0.02 per warrant as of December 31, 2024[70]. Shareholder Actions - The Company paid a Holdback Payment of $900,000 to Spiegel TV and Autentic in July 2023 due to the Spiegel Venture achieving certain financial targets during its 2022 fiscal period[39]. - The Company declared a quarterly cash dividend of $0.08 per share, totaling approximately $4.6 million, to be paid on June 20, 2025[100]. - The company had repurchased 216,000 shares of its common stock at an average price of $1.16 per share, totaling $0.3 million as of December 31, 2024[64]. - The company had a weighted-average of 57,132,000 shares outstanding for the three months ended March 31, 2025, compared to 53,301,000 shares for the same period in 2024[72]. Future Expectations - The company expects to recognize future revenues of $1,955,000 in 2025 related to remaining performance obligations[55]. - The Company has not yet adopted new accounting pronouncements under the JOBS Act and expects to no longer qualify as an emerging growth company after December 31, 2025[34]. - The company anticipates amortizing $5.3 million, $2.5 million, and $0.7 million of licensed content costs over the next three years[49]. - Future advertising commitments totaled $1.7 million, expected to be paid during the year ending December 31, 2025[98]. Tax and Valuation - Income tax expense for the three months ended March 31, 2025, was immaterial due to a full valuation allowance position[99]. - The weighted average discount rate used for measuring operating lease liabilities was 4.4% as of March 31, 2025[91]. - Total lease payments due are $4.96 million, with a present value of total lease liabilities at $4.187 million[93].

Financial Data and Key Metrics Changes - Q1 revenue reached $15.1 million, representing a 26% year-over-year increase and a 7% sequential increase [5][12] - The company reported positive net income for the first time, improving by $5.4 million year-over-year [11] - Adjusted EBITDA was positive at $1.1 million, an improvement of $3.9 million from the previous year [11][12] - Gross margin improved to 53%, up from 44% a year ago, driven by reductions in content amortization [12] - Adjusted free cash flow was $2 million, the high end of guidance, and an increase of $800,000 compared to last year [11][12] Business Line Data and Key Metrics Changes - Direct subscription revenue was approximately $9 million, showing a slight decline year-over-year, offset by a $4 million increase in licensing revenue [12][26] - Operating expenses decreased by $1 million or 11% compared to last year, due to ongoing cost rationalization efforts [12] Market Data and Key Metrics Changes - The company has entered into several new third-party agreements in the US and internationally, expanding its content library significantly [8] - The company launched 10 new currencies to reduce subscription friction internationally [8] Company Strategy and Development Direction - The company focuses on five growth pillars: increased licensing, rationalization of annual expenses, leveraging translation cost reductions, launching new currencies, and enhancing talent density [8] - The company aims for continued double-digit growth in both top-line revenue and cash flow [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive cash flow and revenue growth, with expectations for Q2 revenue between $16 million and $17 million [14] - The company highlighted its strong balance sheet with $39.1 million in liquidity and no debt, providing significant operational flexibility [12][14] Other Important Information - The quarterly dividend was doubled to $0.08 per share, reflecting confidence in future performance [7][32] - The company has returned $6.3 million to shareholders since the dividend program was announced [12] Q&A Session Summary Question: How has Gen AI contributed to cost reductions? - Management noted that costs were reduced largely without leveraging AI tools, but they see potential for AI in translation and content editing in the future [17][18] Question: What were the key drivers for revenue growth? - Management indicated that while direct subscription revenue was slightly down, licensing revenue saw significant growth due to a broad corpus of content appealing to various companies [22][26] Question: Is the reduction in costs sustainable? - Management acknowledged that while content amortization costs have declined, marketing costs may increase in Q4, but they expect a continued decline in G&A expenses [28][29] Question: Can the company sustain the increased dividend? - Management expressed confidence in generating sufficient cash flow to cover the dividend, supported by a strong cash reserve [30][32] Question: What consumer trends are observed in the direct business? - Management indicated that direct subscription revenue is largely influenced by marketing spend, with plans to be opportunistic in spending to optimize CPA [37][39] Question: What is the pipeline for AI licensing? - Management highlighted a broad set of licensees, including tech companies and public sector agencies, with significant potential for large deals impacting profitability [42][44] Question: Are the relationships with AI content partners sustainable? - Management believes that controlling a large library of content will allow for ongoing monetization and that existing partners have shown interest in further agreements [49][52]

First Quarter 2025 Financial Results ▪ Revenue of $15.1 Million, Increased 26% YoY ▪ $5.4 million Improvement in Net Income YoY ▪ Dividend Program Increased 100% to $0.32 Annually ▪ Guiding Q2 Revenue to 30-37% Growth YoY • Revenue of $15.1 million, compared to $12.0 million in the first quarter of 2024; • Gross profit of $8.0 million or 53.1%, compared to $5.3 million or 43.8% in the first quarter of 2024; • Net income of $0.3 million, compared to net loss of $5.0 million in the first quarter of 2024; • Ad ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________ FORM 10-K ______________________________________ x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2024 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39139 CURIOSITYSTREAM INC. (Exact name of registrant as specified ...

Financial Data and Key Metrics Changes - The company reported a year-over-year cash flow increase of approximately $26 million, moving from a cash loss of $16 million in 2023 to a cash gain of $10 million in 2024 [7] - Adjusted free cash flow for Q4 was $3.3 million, marking the highest quarterly adjusted free cash flow in the company's history and an improvement of $5.7 million from the prior year [21] - For the full year, adjusted free cash flow was $9.5 million, an improvement of $25.5 million from 2023 [21] - Total revenue for the full year was $51.1 million, which was lower than the previous year primarily due to fewer non-cash transactions [22] Business Line Data and Key Metrics Changes - Subscription revenue grew both sequentially and year-over-year, contributing to the overall revenue increase [9] - Direct business revenue for Q4 was $9.4 million, with a full-year total of $38.6 million, demonstrating a predictable, recurring revenue stream [22] - Gross margin for Q4 improved to 52%, up from 45% a year ago, driven by cost control efforts [23] Market Data and Key Metrics Changes - The company has a global subscriber base with subscribers in 176 different countries, indicating strong international appeal [13] - The company plans to add 20 to 30 new currency opportunities for subscribers in 2025, enhancing its global reach [14] Company Strategy and Development Direction - The company aims for double-digit revenue growth in 2025, supported by a strong content library and operational cost reductions [19] - The strategy includes leveraging rights to hundreds of thousands of hours of monetizable video and audio for licensing agreements, particularly with technology partners for AI training [10] - The company is focusing on enhancing talent density to improve productivity and innovation [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to topline revenue growth in 2025, driven by improved visibility and operational efficiencies [19] - The management highlighted the importance of building strong relationships with content partners to secure future licensing deals [36] - The company anticipates that licensing revenue will likely exceed direct revenue in 2025 [37] Other Important Information - The company announced an increase in dividends from $0.10 to $0.12 per share for Q1 2025, with a further increase to $0.16 planned for the year [15][16] - The company ended the year with approximately $40 million in liquidity and no debt [18] Q&A Session Summary Question: Revenue expectations for Q1 and full year - Management discussed the separation of subscription and advertising revenue, indicating that licensing revenue is expected to exceed direct revenue in 2025 [31][37] Question: Subscriber activity management amid macro uncertainty - Management compared the direct subscription business to larger competitors and emphasized the importance of a robust library and exciting specials to attract subscribers [40][46] Question: Update on FAST channels and ad-driven businesses - Management expressed enthusiasm about the high volume of content acquired and the performance of their FAST channels, indicating strong future revenue potential [52][56] Question: Differences in contracts for tech companies versus traditional media licensing - Management explained that tech company contracts often involve larger volumes of content but are typically project-based rather than long-term agreements [57][60]

Revenue Performance - Revenue for Q4 2024 was $14.1 million, a decrease of 4.7% compared to $14.8 million in Q4 2023[6] - Full year 2024 revenue totaled $51.1 million, down from $56.9 million in 2023[6] - Total revenues for 2024 were $51,134, a decrease of 10.4% compared to $56,889 in 2023[24] - CuriosityStream expects Q1 2025 revenue to be in the range of $14.5 - $15.5 million[10] Cash Flow and Financial Health - Free cash flow for 2024 was $9.5 million, an improvement of $25.5 million over 2023[2] - Adjusted free cash flow for Q4 2024 was $3.3 million, an increase of $5.7 million compared to Q4 2023[6] - The company achieved its highest quarterly adjusted free cash flow of $3.3 million in Q4 2024[5] - Cash flows from operating activities generated $8,151 in 2024, compared to a cash outflow of $16,172 in 2023[26] - Adjusted Free Cash Flow for 2024 was $9,507, compared to $(16,033) in 2023, indicating a positive shift[29] Losses and Improvements - Net loss for Q4 2024 was $2.8 million, improved from a net loss of $4.7 million in Q4 2023[6] - Operating loss for 2024 was $13,333, significantly improved from a loss of $44,471 in 2023[24] - Net loss for 2024 was $12,941, compared to a net loss of $48,896 in 2023, reflecting a reduction of 73.5%[24] - Adjusted EBITDA for 2024 was $(6,042), an improvement from $(20,187) in 2023[28] Assets and Equity - Cash and cash equivalents decreased to $7,826 in 2024 from $37,715 in 2023, a decline of 79.3%[22] - Total assets decreased to $86,182 in 2024 from $101,022 in 2023, a reduction of 14.7%[22] - Total stockholders' equity decreased to $57,848 in 2024 from $72,646 in 2023, a decline of 20.3%[22] Expenses and Investments - Total advertising and marketing expenses for 2024 were $39.1 million, a 17% year-over-year reduction[10] - The company incurred $5,698 in additions to content assets in 2024, down from $18,316 in 2023[26] Dividends - The Board of Directors raised the first quarter 2025 cash dividend to $0.04 per share, with an updated annual dividend policy of $0.16 per share[1] Content and Growth - The company launched three new US Hispanic FAST channels and increased content volume by over 200,000 hours[10]

Group 1 - CuriosityStream (NASDAQ: CURI) experienced a strong surge in stock price last fall, but the excitement has cooled during the last two months of 2024 [1] - Since the beginning of the year, bullish sentiment for CURI stock has increased again [1]

Financial Position - The Company reported cash and cash equivalents of $9.588 million as of September 30, 2024, down from $37.715 million as of December 31, 2023[48]. - The Company holds equity investments in Spiegel TV Geschichte und Wissen GmbH and Watch Nebula LLC, with total carrying values of $4.179 million as of September 30, 2024, down from $6.354 million as of December 31, 2023[39]. - The Company’s cash and cash equivalents and restricted cash totaled $9.713 million as of September 30, 2024, compared to $38.215 million as of December 31, 2023[48]. - As of September 30, 2024, total cash and cash equivalents amounted to $36,072,000, with Level 1 securities totaling $18,671,000 and Level 2 securities totaling $20,592,000[50]. - The fair value of Private Placement Warrants was not disclosed but is classified as a non-current liability, indicating potential future financial obligations[57]. - The fair value of the warrant liability for the Private Placement Warrants was estimated at $0.03 as of September 30, 2024, compared to $0.01 at December 31, 2023[77]. - As of September 30, 2024, the company had 3,054,203 publicly traded warrants outstanding with an exercise price of $11.50 per share[72]. - The company had authorized the issuance of 126,000,000 shares of capital stock, including 125,000,000 shares of common stock as of September 30, 2024[69]. - The company incurred a net loss of $10.1 million for the nine months ended September 30, 2024, while generating $5.1 million of net cash from operating activities[154]. - The net loss for the nine months ended September 30, 2024, was $10.1 million, down from a net loss of $44.2 million in the same period of 2023[165][166]. Revenue and Earnings - For the three months ended September 30, 2024, total revenues were $12,604,000, a decrease from $15,630,000 in the same period of 2023, with direct-to-consumer revenue contributing $7,750,000, representing 61% of total revenue[58]. - The company recognized $13,400,000 in revenues for the nine months ended September 30, 2024, related to amounts deferred as of December 31, 2023[62]. - Total trade and barter revenues for the three months ended September 30, 2024, were $1,416,000, a decrease of 71.5% compared to $5,199,000 for the same period in 2023[67]. - For the nine months ended September 30, 2024, total trade and barter revenues were $2,504,000, down 69.5% from $8,190,000 in 2023[67]. - For the three months ended September 30, 2024, total revenue was $12.6 million, a decrease from $15.6 million in the same period of 2023, representing a decline of 19%[91]. - Revenue from the United States accounted for 60% of total revenue in Q3 2024, compared to 57% in Q3 2023[91]. - International revenue totaled $5.1 million in Q3 2024, down from $6.7 million in Q3 2023, marking a decrease of 24%[91]. - The company recognized $0.1 million and $0.2 million in revenue from license fees related to the Spiegel Venture for the three and nine months ended September 30, 2024, respectively[92]. - For the nine months ended September 30, 2024, total revenue was $37.0 million, a decrease of $5.1 million, or 12%, compared to $42.1 million in 2023[120]. Expenses and Losses - Operating loss for the three months ended September 30, 2024, was $3.3 million, a decrease of $20.6 million, or 86%, from a loss of $23.9 million in 2023[116]. - The net loss for the three months ended September 30, 2024, was $3,062,000, compared to a net loss of $26,565,000 for the same period in 2023[79]. - Basic and diluted net loss per share for the three months ended September 30, 2024, was $(0.06), an improvement from $(0.50) in 2023[79]. - Operating expenses decreased by $35.4 million, or 43%, for the nine months ended September 30, 2024, compared to the same period in 2023[116]. - Operating expenses for the three months ended September 30, 2024, decreased to $15.9 million, a 60% reduction from $39.5 million in 2023[136]. - Cost of revenues decreased to $5.8 million for the three months ended September 30, 2024, a 31% reduction from $8.5 million in 2023[142]. - General and administrative expenses decreased to $6.4 million for the three months ended September 30, 2024, an 8% decline from $7.0 million in 2023[146]. - The company recorded no impairment charges for content assets for the three and nine months ended September 30, 2024, compared to a $19.0 million impairment charge in the same periods in 2023[147]. Investments and Assets - The Company made a Holdback Payment of $0.9 million to Spiegel TV and Autentic in July 2023 due to the Spiegel Venture achieving certain financial targets[41]. - The Company has not received any dividends from the Spiegel Venture or Nebula as of September 30, 2024[40][46]. - The Company’s investment in Nebula increased to 16.875% as of September 30, 2024, after multiple incremental purchases totaling $0.8 million each[46]. - The revenue share agreement with Nebula expired at the end of 2023 following a notice of non-renewal received on September 26, 2023[47]. - The total content assets decreased from $44,943,000 as of December 31, 2023, to $33,885,000 as of September 30, 2024, reflecting a reduction in both licensed and produced content[53]. - Content amortization for the three months ended September 30, 2024, was $4,569,000, compared to $5,389,000 for the same period in 2023, showing a decline in amortization expenses[55]. - The company reported $10,300,000 in unamortized costs for licensed content released as of September 30, 2024, with expected amortization of $5,100,000, $3,300,000, and $1,000,000 over the next three years[53]. - Total deferred revenues decreased from $15,200,000 as of December 31, 2023, to $11,800,000 as of September 30, 2024, indicating a reduction in unrecognized subscriber and affiliate license fees[61]. Shareholder Actions - The company repurchased 195,190 shares of common stock at an average price of $1.12 per share, totaling $0.2 million[71]. - A share repurchase program was authorized for up to $4 million, with $218 thousand repurchased as of September 30, 2024[160]. - The company declared a cash dividend of $0.025 per share, with an expected aggregate amount of $1.3 million to be paid on March 28, 2025[159]. Future Outlook - The company expects to recognize future revenues related to remaining performance obligations totaling $2,323,000, with $352,000 expected in 2025[60]. - Future advertising commitments totaled $2.7 million, expected to be paid during the year ending December 31, 2024[104]. - The company plans to continue capital expenditures for content assets and property purchases, albeit at a slower rate than previous periods[170]. - Future operating results will depend on the company's ability to grow its subscriber base and expand service offerings[117]. - The company has begun entering into trade and barter transactions for content assets, which may impact future revenue recognition and asset valuation[63]. Operational Performance - The company operates as a single reporting segment, focusing on premium video and audio programming across various factual entertainment categories[110]. - CuriosityStream's content library features over 15,000 programs, with new titles launched weekly and localized into eleven different languages[113]. - Direct Business revenue increased by $1.1 million, or 13%, to $9.8 million for the three months ended September 30, 2024, compared to $8.7 million in 2023[125]. - Content Licensing revenue decreased by $3.4 million, or 67%, to $1.7 million for the three months ended September 30, 2024, compared to $5.1 million in 2023[128]. - For the three months ended September 30, 2024, Bundled Distribution revenue was $1.0 million, a 33% decline from $1.5 million in the same period in 2023[132]. - For the nine months ended September 30, 2024, Bundled Distribution revenue was $3.2 million, reflecting a 26% decline from $4.3 million in 2023[132]. - Other revenue for the three months ended September 30, 2024, was $0.2 million, a 56% decline from $0.4 million in the same period in 2023[135]. - Interest and other income for the three months ended September 30, 2024, was $0.5 million, compared to a de minimis amount in 2023[149]. Compliance and Controls - The company’s disclosure controls and procedures were deemed effective as of September 30, 2024[177]. - There were no changes in internal control over financial reporting that materially affected the company during the quarter ended September 30, 2024[178].