Financial Performance - For the year ended December 31, 2025, CuriosityStream reported revenue of $71.7 million and a net loss of $6.4 million[46]. - The company incurred net losses of $12.9 million and $6.4 million for the years ended December 31, 2024, and December 31, 2025, respectively, with an accumulated deficit of $335.8 million as of December 31, 2025[69]. - The company generated positive cash flow from operations for the years ended December 31, 2024, and December 31, 2025, marking a recent trend, but future sustainability remains uncertain[69]. - The company has historically experienced negative operating cash flows but achieved positive net cash flow from operating activities in 2024 and 2025[145]. - The company announced the initiation of its first-ever quarterly cash dividend on March 13, 2024, but future dividends are subject to financial conditions and other factors[177]. User Growth and Retention - The company has experienced significant user growth over the past several years, but the ability to attract and retain users is critical for continued success[63]. - User churn rates significantly impact revenues, and the company must minimize user loss while adding new subscribers[84]. - The company introduced its first free ad-supported streaming channel, Curiosity Now, in 2022, as part of efforts to expand service offerings[66]. Content and Licensing - CuriosityStream's content library features approximately 14,000 programs, with new video titles launched weekly[29]. - The company acquired One Day University in 2021, adding over 500 lectures, and Learn25, which includes approximately 5,000 audio episodes and 1,250 video episodes[31]. - CuriosityStream's revenue streams include subscription and license fees from Direct Business, content licensing, bundled distribution, and other revenue sources[33]. - Approximately 75% of the titles on the company's CuriosityStream SVOD service are subject to licenses, with 18% expiring in 2026 and 17% in 2027[136]. - The company is in the early stages of licensing content for training generative AI models, with no assurance of sustaining revenues from these efforts[130]. - The company faces risks related to content providers potentially withdrawing licenses or increasing costs, which could adversely affect content availability[137]. Competition and Market Challenges - The company faces intense competition from established players like Netflix and Amazon, which may lead to pricing pressures and reduced profit margins[88]. - The company must navigate competitive pressures from piracy-based offerings and traditional video providers, which could adversely affect market share and profitability[107]. - The company anticipates increased financial and regulatory obligations due to evolving government regulations, particularly in international markets[110]. - The military invasion of Ukraine and subsequent sanctions may lead to greater regulatory burdens and impact the company's operations[111]. Operational and Regulatory Risks - The company is currently involved in a joint venture, Spiegel Venture, which presents various operational and regulatory risks[78]. - The company relies on third-party distributors for billing and payment processing, which poses risks if these partners become unwilling or unable to continue[101]. - The company is subject to payment processing risks, including disruptions and changes in payment ecosystems that could impact revenue[99]. - The company may face reputational risks due to content quality perceptions and regulatory scrutiny, which could adversely affect user attraction and retention[103]. - The company faces significant competition in the global media marketplace, requiring substantial advertising and marketing expenditures to build brand awareness[144]. Cybersecurity and Data Privacy - Cybersecurity risks pose a threat to the company's computer systems, potentially leading to service disruptions and loss of user data[156]. - The company has established a comprehensive cybersecurity program to manage risks and protect sensitive information, integrated into its overall risk management[210]. - Unauthorized access to user data, particularly billing information, could harm the company's reputation and lead to legal claims or regulatory fines[202]. - The company is subject to various privacy laws, including the GDPR, which imposes strict requirements for processing personal data and could lead to significant fines for noncompliance[194]. - The FTC has increased its focus on data privacy, with a recent consent order resulting in a fine of $7.8 million for sharing personal information without user consent[196]. Human Resources and Management - The company employed approximately 44 full-time employees on average in 2025, down from 47 in 2024, with 42 employees as of December 31, 2025, all located in the U.S.[58]. - The company is committed to diversity and inclusion, regularly reviewing its compensation structure to attract and retain qualified employees[60]. - The company relies on key personnel, including its Chairman and CEO, and faces challenges in retaining and recruiting qualified employees due to industry competition[204]. Legal and Compliance - Legal proceedings may lead to unforeseen expenses and management distraction, with an increase in litigation matters observed as the company has grown[205]. - Operating as a public company incurs significant legal, accounting, and compliance costs, which are expected to rise, potentially affecting profitability[206]. - Compliance with the Sarbanes-Oxley Act requires substantial financial and management resources, with potential obligations increasing if the company exceeds certain revenue and public float thresholds[207]. Future Growth Strategies - The company plans to increase revenues by expanding its subscriber base through international markets, mobile video, corporate social responsibility, branded partnerships, content licensing, and in-house production[79]. - The company anticipates that further expansion will require significant managerial, operational, administrative, and financial resources[71]. - The company is exploring AI solutions for subtitling and dubbing to improve operational efficiency and reduce localization costs, although quality standards may not yet be met[80]. Infrastructure and Technology - The company relies heavily on Amazon Web Services (AWS) for its computing infrastructure, with the majority of operations running on AWS, making it vulnerable to disruptions that could adversely affect business operations[160]. - The company's computing needs are primarily serviced by Amazon Web Services, with backup copies retained on its own data center infrastructure[219]. - The company does not maintain live fail-over capability to switch operations from AWS to another cloud provider, increasing the risk of service outages impacting business[162].

Financial Performance - For the three months ended September 30, 2025, total revenues were $18.4 million, compared to $12.6 million for the same period in 2024, representing a year-over-year increase of 46%[57]. - Revenues for the three months ended September 30, 2025, were $18,359,000, a 46% increase from $12,604,000 in the same period of 2024[92]. - Direct-to-Consumer revenue for the three months ended September 30, 2025, was $5.7 million, accounting for 31% of total revenue, down from 62% in the same period of 2024[57]. - Revenue from the United States accounted for 84% of total revenue in Q3 2025, up from 60% in Q3 2024[92]. - Operating loss for the three months ended September 30, 2025, was $(4,491,000), compared to $(3,252,000) for the same period in 2024[92]. - Net loss for the nine months ended September 30, 2025, was $(2,641,000), a decrease from $(10,128,000) in the same period of 2024[92]. Investments and Ownership - The company's total investments in debt securities amounted to $28.5 million as of September 30, 2025, with Level 1 securities valued at $12.1 million and Level 2 securities at $16.4 million[49]. - The carrying value of the company's equity method investment in Nebula decreased to $3.6 million as of September 30, 2025, down from $3.8 million at the end of 2024, reflecting an equity method investment loss of $231,000[40]. - The company holds a 32% ownership in the Spiegel Venture, which operates two documentary channels and an SVOD service, with no dividends received as of September 30, 2025[41]. - The company has invested a total of $6.0 million for a 12% ownership interest in Nebula, which has since increased to 16.875% through additional incremental purchases[46][47]. - The company has a call option to acquire additional ownership in the Spiegel Venture, with an estimated purchase price range of $1.0 million to $2.0 million based on the SPA formula[44]. Cash and Assets - As of September 30, 2025, the company's cash and cash equivalents increased to $14.1 million from $7.8 million as of December 31, 2024, representing an increase of 80.5%[49]. - As of September 30, 2025, total content assets amounted to $28.1 million, a decrease from $31.5 million as of December 31, 2024[52]. - The Company held operating lease ROU assets of $2.8 million as of September 30, 2025[96]. - The Company’s total lease payments due as of September 30, 2025, amounted to $4,676,000[98]. Revenue Recognition and Deferred Revenues - The Company expects to recognize $3.1 million in future revenues related to unsatisfied performance obligations as of September 30, 2025[58]. - Total deferred revenues decreased to $8.7 million as of September 30, 2025, from $11.4 million as of December 31, 2024[59]. Expenses and Liabilities - Total operating expenses for the three months ended September 30, 2025, were $22,850,000, compared to $15,856,000 in the same period of 2024[92]. - Accrued expenses and other liabilities increased to $12.3 million as of September 30, 2025, from $7.0 million as of December 31, 2024[55]. - Content amortization for the three months ended September 30, 2025, was $3.6 million, compared to $4.6 million for the same period in 2024[54]. Stock and Compensation - The Company recognized $6.977 million in stock-based compensation expense related to RSUs for the three months ended September 30, 2025, compared to $2.720 million in 2024[89]. - The Company had unrecognized compensation cost of $9.0 million expected to be recognized over a weighted-average period of approximately five to six months as of September 30, 2025[81]. Future Commitments and Dividends - The Board declared a quarterly cash dividend of $0.08 per share, totaling approximately $4.7 million, to be paid on December 19, 2025[107]. - Future advertising commitments totaled $1.8 million, expected to be paid in Q1 2026[103]. Accounting and Regulatory Changes - The company expects to no longer qualify as an emerging growth company after December 31, 2025, which will affect its adoption of new accounting standards[36]. - The company is currently assessing the impact of ASU 2025-05 on its consolidated financial statements, which relates to the measurement of credit losses for accounts receivable[39].

Financial Performance - Revenue for Q3 2025 reached $18.4 million, representing a 46% year-over-year increase[5] - Adjusted EBITDA improved to a positive $3 million, compared to a loss of $0.4 million in Q3 2024[6] - Operating cash flow increased by 101% to $4.5 million, up from $2.3 million in Q3 2024[5] - Gross margin improved to 59%, up from 54% in the same quarter last year[5] - Revenues for the three months ended September 30, 2025, increased to $18,359,000, up 45.5% from $12,604,000 in the same period of 2024[22] - Operating loss for the three months ended September 30, 2025, was $(4,491,000), compared to $(3,252,000) in 2024, indicating a deterioration in operational performance[22] - Net loss for the nine months ended September 30, 2025, was $(2,641,000), a significant improvement from $(10,128,000) in the same period of 2024[24] - Adjusted EBITDA for the three months ended September 30, 2025, was $2,978,000, compared to a loss of $(407,000) in 2024, reflecting improved operational efficiency[26] Cash Flow and Liquidity - As of September 30, 2025, the company reported a cash balance of $29.3 million and no debt[6] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $9,088,000, an increase from $5,116,000 in 2024[24] - Cash, cash equivalents, and restricted cash at the end of the period were $14,168,000, up from $9,713,000 in 2024[24] - Adjusted Free Cash Flow for the nine months ended September 30, 2025, was $9,554,000, compared to $6,220,000 in 2024, showing improved cash generation capabilities[27] - Adjusted Free Cash Flow for Q4 2025 is projected to be between $2.5 million and $3.5 million[11] Market Expansion and Investments - The company launched subscription services in the U.S., Australia, New Zealand, and Germany, expanding its market reach[11] - CuriosityStream has built a nearly 2-million-hour library of video and audio for AI training, enhancing its content offerings[11] - Total operating expenses for the three months ended September 30, 2025, were $22,850,000, up from $15,856,000 in 2024, reflecting increased investment in operations[22] - Stock-based compensation for the nine months ended September 30, 2025, was $10,054,000, compared to $4,734,000 in 2024, indicating increased investment in employee incentives[26] Future Projections - The company expects Q4 2025 revenue to be between $18 million and $20 million, indicating year-over-year growth of 27% to 42%[11] - The company declared a cash dividend of $0.08 per share, payable on December 19, 2025[2] - The weighted average number of common shares outstanding for the three months ended September 30, 2025, was 57,930,000, compared to 54,850,000 in 2024, indicating potential dilution[22]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q _____________________ (MARK ONE) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 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 in It ...

Revenue Performance - Revenue increased 53% year-over-year to $19 million for Q2 2025, surpassing guidance [2] - Revenues for Q2 2025 reached $19,012,000, a 53.5% increase from $12,395,000 in Q2 2024 [21] - Licensing revenue reached $9.3 million, driven by AI partnerships [4] - Q3 revenue is expected to be in the range of $15 million to $18 million [10] Profitability Metrics - Record net income of $0.8 million, an improvement of $2.8 million compared to a net loss of $2.0 million in Q2 2024 [5] - Operating income improved to $480,000 in Q2 2025, compared to a loss of $2,549,000 in Q2 2024 [21] - Net income for the first half of 2025 was $1,103,000, a significant recovery from a net loss of $7,066,000 in the same period of 2024 [23] - Record Adjusted EBITDA of $3.0 million, an improvement of $4.0 million compared to an Adjusted EBITDA loss of $1.0 million in Q2 2024 [5] - Adjusted EBITDA for Q2 2025 was $3,022,000, compared to a loss of $1,005,000 in Q2 2024 [25] Cash Flow and Financial Position - Full-year 2025 Adjusted Free Cash Flow is projected to be between $11 million and $13 million [10] - Net cash provided by operating activities for the first half of 2025 was $4,711,000, up from $2,856,000 in the first half of 2024 [23] - Adjusted Free Cash Flow for the first half of 2025 was $4,866,000, compared to $3,648,000 in the first half of 2024 [26] - Total cash, restricted cash, and held-to-maturity securities balance was $30.7 million with no debt as of June 30, 2025 [5] - Cash, cash equivalents, and restricted cash at the end of the period were $7,003,000, down from $39,644,000 at the end of the same period in 2024 [23] Operating Expenses and Stock Compensation - Total operating expenses for Q2 2025 were $18,532,000, an increase from $14,944,000 in Q2 2024 [21] - The company incurred $3,077,000 in stock-based compensation in the first half of 2025, compared to $2,014,000 in the same period of 2024 [25] Shareholder Information - The weighted average number of common shares outstanding for Q2 2025 was 57,585,000, compared to 53,613,000 in Q2 2024 [21] New Initiatives and Partnerships - New service launches include Curiosity University's launch on Amazon Prime in multiple European countries [10] - Expanded partnerships for AI training data and video licensing for the third consecutive quarter [10]

Investment and Ownership - The Company reported a carrying value of its equity method investment in Nebula at $3,697,000 as of March 31, 2025, down from $3,848,000 at December 31, 2024, 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, which operates documentary channels and an SVOD service in Germany[38]. - The Company holds a 16.875% ownership interest in Nebula as of March 31, 2025, after making incremental purchases totaling $6.4 million since its initial investment[44]. - The Company has not received any dividends from either the Spiegel Venture or Nebula as of March 31, 2025[38][44]. Revenue and 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 company expects to recognize $1,955,000 in revenue related to remaining performance obligations for the year ending December 31, 2025[55]. - Revenue from the United States accounted for 71% of total revenue in the three months ended March 31, 2025, up from 62% in the same period of 2024[86]. - For the three months ended March 31, 2025, revenues were $0, a decrease from $111,000 in the same period of 2024[88]. Expenses and Liabilities - Total accrued expenses and other liabilities increased to $7,484,000 as of March 31, 2025, from $7,003,000 as of December 31, 2024, representing a rise of 6.9%[52]. - The company’s total operating expenses for the three months ended March 31, 2025, were $15,011,000, a decrease from $15,655,000 in 2024[85]. - Content amortization for the three months ended March 31, 2025, totaled $3,513,000, down from $5,215,000 in the same period of 2024, indicating a reduction of 32.6%[51]. - Content obligations increased to $0.6 million as of March 31, 2025, from $0.4 million as of December 31, 2024[95][96]. Cash and Investments - Cash and cash equivalents increased to $9,183,000 as of March 31, 2025, from $7,826,000 as of December 31, 2024, representing a growth of 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 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]. Net Income and Operating Income - 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]. - The company’s operating income for the three months ended March 31, 2025, was $79,000, compared to an operating loss of $3,654,000 for the same period in 2024[85]. Future Commitments and Dividends - Future advertising commitments totaled $1.7 million, expected to be paid during the year ending December 31, 2025[98]. - 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]. Other Financial Metrics - The Company expects to no longer qualify as an emerging growth company after December 31, 2025, which will affect its adoption of new accounting pronouncements[34]. - The Company’s financial instruments are subject to concentration of credit risk, primarily from cash, cash equivalents, and accounts receivable, with the majority of customers located in the United States[25][26]. - The weighted average discount rate used for measuring operating lease liabilities was 4.4% as of March 31, 2025[91]. - The total operating lease cost for the three months ended March 31, 2025, was $133,000, slightly up from $131,000 in 2024[92].

Financial Performance - Revenue for Q1 2025 was $15.1 million, representing a 26% increase year-over-year from $12.0 million in Q1 2024[5] - Net income improved to $0.3 million in Q1 2025, compared to a net loss of $5.0 million in Q1 2024[6] - Adjusted EBITDA for Q1 2025 was $1.1 million, a significant turnaround from an adjusted EBITDA loss of $2.8 million in Q1 2024[6] - Revenues for the three months ended March 31, 2025, increased to $15,090,000, up 25.6% from $12,001,000 in the same period of 2024[23] - Operating income improved to $79,000 compared to a loss of $3,654,000 in the prior year, marking a significant turnaround[23] - Net income for Q1 2025 was $319,000, a recovery from a net loss of $5,035,000 in Q1 2024, resulting in a basic and diluted net income per share of $0.01[23] - Adjusted EBITDA for Q1 2025 was $1,102,000, compared to a loss of $2,848,000 in Q1 2024, indicating improved operational efficiency[27] - Net cash provided by operating activities increased to $1,922,000 from $666,000 year-over-year, reflecting stronger cash generation[29] - Adjusted Free Cash Flow for Q1 2025 was $2,005,000, up from $1,186,000 in the same quarter of 2024, demonstrating enhanced cash management[29] Guidance and Future Outlook - The company has guided for Q2 2025 revenue growth of 30-37% year-over-year[5] - The annual dividend was increased by 100% to $0.32, reflecting the company's confidence in future growth[5] Cost Management and Expenses - Total advertising and marketing expenses decreased by 11% year-over-year to $7.9 million[6] - Total operating expenses decreased slightly to $15,011,000 from $15,655,000, indicating cost control efforts[23] - The company incurred $863,000 in stock-based compensation, up from $689,000 in the previous year, reflecting ongoing investment in talent[27] Assets and Cash Position - CuriosityStream's cash, restricted cash, and held-to-maturity securities balance was $39.1 million with no debt as of March 31, 2025[6] - CuriosityStream's total assets as of March 31, 2025, were $85.3 million, a slight decrease from $86.2 million at the end of 2024[21] - Cash, cash equivalents, and restricted cash at the end of the period totaled $9,308,000, compared to $38,875,000 at the end of Q1 2024[25] Investment and Content Acquisition - The company launched new services including Curiosity University and secured rights to over 210,000 hours of video and audio content[10] - The company reported a loss of $151,000 from equity method investments, a significant improvement from a loss of $1,756,000 in the prior year[23]

Financial Performance - For the year ended December 31, 2024, CuriosityStream reported revenue of $51.1 million and a net loss of $12.9 million[42]. - The company reported an accumulated deficit of $308.4 million as of December 31, 2024, and incurred a net loss of $12.9 million for the year[64]. - The company generated positive cash flow from operations for the first time in 2024, but future sustainability of this cash flow is uncertain[64]. - The company achieved positive net cash flow from operating activities in 2024, reversing a trend of negative operating cash flows historically[133]. - The company anticipates continued net losses in the foreseeable future due to significant operating and capital expenditures associated with its business plan[64][76]. Business Operations - The company operates its Direct Business in over 175 countries, providing subscription services through its website and mobile applications[34]. - CuriosityStream's content library features more than 15,000 programs, with new titles launched weekly in high or ultra-high definition[28]. - The company has expanded its offerings through acquisitions, including over 500 lectures from One Day University and approximately 5,000 audio episodes from Learn25[30]. - CuriosityStream's revenue sources include Direct Business, Content Licensing, Bundled Distribution, and Other revenue, such as advertising and sponsorships[32]. - The company began implementing a price increase for legacy subscribers in March 2023, impacting the majority of Direct Business revenue[36]. Market Strategy - The company aims to broaden and stabilize revenue sources, increase the number of paying subscribers, and potentially raise subscription prices to achieve profitability[65]. - The company plans to expand into international markets and develop new content offerings, including a free ad-supported streaming channel and a Smart Bundle plan[61][74]. - The company has partnerships with major MVPDs and vMVPDs, including Comcast and Amazon Prime Video Channels, to enhance distribution[37]. - The company is investing in original programming to differentiate its service and enhance brand loyalty, but faces risks related to production costs and potential liabilities[86]. User Growth and Retention - The company has experienced significant user growth but faces challenges in attracting and retaining users due to competition and macroeconomic conditions[58][60]. - The company has experienced a decline in subscribers following the termination of its agreement with Nebula, which may lead to increased user churn[80]. - The company must continually add new users to replace those who cancel subscriptions and to grow its business, as user churn is influenced by various factors including subscription type and pricing[79]. Competition and Market Challenges - The company faces intense competition from established players like Netflix and Amazon, which have greater resources and broader user bases, potentially impacting market share and profitability[83]. - The company is facing challenges from piracy-based video offerings, which could capture significant market segments and threaten its business model[101]. - The company may face increased programming costs as competition rises and content providers withdraw content on short notice[125]. Regulatory and Compliance Risks - The company is subject to regulatory changes that could increase operational costs or alter business practices, particularly in international markets[104]. - The company faces significant compliance obligations related to data privacy laws, including the GDPR and CCPA, which could increase operational costs and legal risks[187]. - The company has been sued under the VPPA, with potential statutory damages of up to $2,500 per violation being sought[185]. Financial and Operational Risks - The company may incur substantial indebtedness in the future, which could adversely affect its financial position and ability to generate sufficient cash to service obligations[137]. - The company relies heavily on Amazon Web Services (AWS) for its computing infrastructure, making it vulnerable to disruptions or interference that could impact operations[149]. - The company has obligations related to streaming content that may not be tied to user base size, potentially impacting margins if user acquisition and retention do not meet expectations[139]. Employee and Organizational Structure - The company employed an average of 47 full-time employees in 2024, down from 57 in 2023, with a total of 45 employees as of December 31, 2024, following a restructuring that eliminated 4 positions[53]. - The company is committed to diversity and inclusion, with a compensation program designed to attract and retain qualified employees, including equity grants for almost all current employees[55]. - The company may face challenges in recruiting and retaining key employees, which could disrupt operations and increase expenses[193]. Stock and Shareholder Information - The company received a notice from Nasdaq on September 19, 2023, indicating non-compliance with the $1.00 minimum bid price requirement for continued listing[164]. - On April 19, 2024, the company regained compliance with the Bid Price Rule after the closing bid price was at $1.00 or greater for 10 consecutive business days[164]. - The company has 7,725,000 shares reserved for future issuance under its Omnibus Incentive Plan, which may lead to dilution for existing shareholders[170]. - The company declared a cash dividend of $0.025 per share on November 5, 2024, which was subsequently increased to $0.040 per share, amounting to an expected aggregate of $2.3 million[214]. Cybersecurity and Data Privacy - The company has established a comprehensive cybersecurity program to manage risks, which includes regular risk assessments and advanced security measures[201]. - The company’s cybersecurity measures are overseen by a Vice President with 17 years of experience in software and security[204]. - The company relies on third parties for payment processing and data security, which poses risks of unauthorized access to user data[191]. Miscellaneous Risks - The military invasion of Ukraine and subsequent sanctions may disrupt the company’s operations and reputation in affected regions[99]. - Changes in U.S. and non-U.S. tax laws could materially impact the company's cash flow and results of operations[159]. - The company is classified as an "emerging growth company" and may remain so until December 31, 2025, unless it achieves total annual gross revenue of at least $1.235 billion[174].

Revenue Performance - Revenue for Q4 2024 was $14.1 million, a 12% increase from $12.6 million in Q3 2024, but a decrease from $14.8 million in Q4 2023[6] - Full year 2024 revenue totaled $51.1 million, down from $56.9 million in 2023[6] - CuriosityStream expects Q1 2025 revenue to be in the range of $14.5 - $15.5 million[10] - Total revenues for 2024 were $51,134, a decrease of 10.4% compared to $56,889 in 2023[24] Cash Flow and Losses - Generated significant free cash flow of $9.5 million for 2024, an improvement of $25.5 million over 2023[2] - Achieved highest quarterly adjusted free cash flow of $3.3 million in Q4 2024, an improvement of $5.7 million from Q4 2023[6] - 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, down from $48,896 in 2023, representing a reduction of 73.5%[24] - Adjusted Free Cash Flow for 2024 was $9,507, a significant improvement from $(16,033) in 2023[29] Expenses and Cost Management - Total advertising and marketing and general and administrative 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] 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 fell to $57,848 in 2024 from $72,646 in 2023, a decrease of 20.3%[22] Subscriber Growth and Content Expansion - Launched three new US Hispanic FAST channels and increased content volume by over 200,000 hours[10] - Grew Curiosity University partner subscribers by approximately 50%[10] Dividend Information - New dividend program increased to $0.16 per share annually, with a cash dividend of $0.04 per share for Q1 2025[1][5] EBITDA Performance - Adjusted EBITDA for 2024 was $(6,042), an improvement from $(20,187) in 2023[28] - Net cash provided by operating activities was $8,151 in 2024, compared to $(16,172) in 2023[26]

Equity Method Investments - The Company reported a balance of equity method investments totaling $4.179 million as of September 30, 2024, down from $6.354 million at December 31, 2023, reflecting an equity method investment loss of $2.175 million[43]. - The Company made a Holdback Payment of $0.9 million in July 2023 related to its 32% equity ownership in the Spiegel Venture, which achieved certain financial targets during its 2022 fiscal period[45]. - The Company holds a 16.875% ownership interest in Nebula as of September 30, 2024, after making incremental purchases totaling $2.4 million since its initial investment of $6.0 million[50]. - The revenue share agreement with Nebula expired at the end of 2023 following a notice of non-renewal received on September 26, 2023[51]. - The Company has not received any dividends from either the Spiegel Venture or Nebula as of September 30, 2024[44][50]. Financial Performance - For the three months ended September 30, 2024, total revenues were $12.604 million, a decrease of 19.4% compared to $15.630 million for the same period in 2023[59]. - Direct-to-Consumer revenue for the three months ended September 30, 2024, was $7.750 million, accounting for 61% of total revenue, compared to 47% in the same period of 2023[59]. - The net loss for the three months ended September 30, 2024, was $3,062,000, compared to a net loss of $26,565,000 in 2023, indicating an improvement of 88.5%[77]. - The net loss per share for the three months ended September 30, 2024, was $0.06, significantly better than the $0.50 loss per share reported in 2023[77]. - Total revenue for the nine months ended September 30, 2024, was $37.00 million, compared to $42.11 million for the same period in 2023, indicating a decline of 12%[89]. Cash and Cash Equivalents - As of September 30, 2024, the company's cash and cash equivalents decreased to $9.588 million from $37.715 million as of December 31, 2023, representing a decline of approximately 74.5%[52]. - The Company’s cash and cash equivalents are maintained with high credit quality financial institutions, with balances sometimes exceeding FDIC-insured limits[31]. Deferred Revenues and Future Obligations - Total deferred revenues were $11.8 million as of September 30, 2024, down from $15.2 million as of December 31, 2023, indicating a decrease of approximately 22.4%[61]. - The company expects to recognize $2.323 million in future revenues related to remaining performance obligations as of September 30, 2024[60]. Content and Amortization - Total content assets decreased to $33.885 million as of September 30, 2024, down from $44.943 million as of December 31, 2023, reflecting a reduction of about 24.7%[54]. - Content amortization for the three months ended September 30, 2024, totaled $4.569 million, compared to $5.389 million for the same period in 2023, a decrease of about 15.2%[56]. - The company anticipates amortizing $5.1 million, $3.3 million, and $1.0 million of licensed content costs over the next three years[54]. Stock and Share Repurchase - As of September 30, 2024, the company had repurchased 195,190 shares of its common stock at an average price of $1.12 per share, totaling $0.2 million[69]. - The company authorized a share repurchase program for up to $4 million of its common stock on June 10, 2024[68]. Liabilities and Fair Value Measurements - The Company’s liabilities measured at fair value include Private Placement Warrants, valued using the Black-Scholes model, classified as Level 3[38]. - The fair value of Private Placement Warrants increased to $110,000 as of September 30, 2024, from $44,000 as of December 31, 2023[58]. - 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[75]. Operating Costs and Lease Obligations - The company's total operating lease cost for Q3 2024 was $134,000, slightly up from $133,000 in Q3 2023[96]. - The company held operating lease ROU assets of $3.1 million as of September 30, 2024, with current lease liabilities of $0.4 million[95]. - Future advertising commitments totaled $2.7 million as of September 30, 2024, all expected to be paid within the year ending December 31, 2024[102]. Tax and Related-Party Transactions - Income tax expense for Q3 2024 was $0.1 million, consistent with the same period in 2023[103]. - The company recognized $0.1 million in revenue from related-party transactions for Q3 2024, with a total of $0.2 million for the nine months ended September 30, 2024[90]. - As of September 30, 2024, accounts receivable related to related-party transactions was $265,000, down from $811,000 as of December 31, 2023[92]. Segment Reporting - The company operates as one reporting segment, with financial information reviewed on an entity-wide basis[88]. - The Company is currently evaluating the impact of adopting ASU 2023-07 and ASU 2023-09, which will require enhanced disclosures regarding segment reporting and income taxes, respectively[41][42].