Curiosity(CURI) - 2025 Q2 - Quarterly Results

Q2 2025 Earnings Overview Executive Summary 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][2] - AI licensing business continues to scale with increasing revenue from new partnerships and repeat customers[2] - Declared a third-quarter cash dividend of $0.08 per share, payable on September 19, 2025[1][4] Second Quarter 2025 Financial Results 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] - Cash, restricted cash, and held-to-maturity securities balance was $30.7 million with no debt as of June 30, 2025[5] Second Quarter 2025 Business Highlights 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] - Launched new services across Europe, including Curiosity University on Amazon Prime in the UK, Netherlands, Finland, and Sweden[10] - Licensed individual traditional programs and series to new and returning media partners across the US, Europe, Asia, and Latin America[10] - Expanded data and video licensing partnerships for AI training for the third consecutive quarter[10] - Expanded partnership with Samsung TV Plus, launching Curiosity Now in Spain[10] Financial Outlook Q3 and Full-Year 2025 Guidance 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 About CuriosityStream Inc. 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] - Content covers science, nature, history, technology, society, and lifestyle, available to millions of subscribers worldwide[16] - Operates multiple services: Curiosity Stream SVOD, Curiosity Channel, Curiosity University, Curiosity Now, Curiosity Español, Curiosity Audio Network, and Curiosity Studios[16] Contacts This section provides contact information for CuriosityStream Investor Relations - Investor Relations contact: Brett Maas at IR@CuriosityStream.com[17] Legal and Non-GAAP Disclosures Forward-Looking Statements 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][9] - Key risk factors include the ability to maintain and develop revenue relationships, subscriber base, competition, litigation, and privacy and data protection laws[11] - CuriosityStream is not obligated to update, alter, or revise any forward-looking statement, except as required by law[9] Non-GAAP Financial Measures 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 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] - 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] 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] - 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] Condensed Consolidated Financial Statements Condensed Consolidated Balance Sheets 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] - Accounts receivable, net, increased from $6,103k to $11,354k[19] Condensed Consolidated Statements of Operations 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] - Advertising and marketing expenses slightly increased, while general and administrative expenses remained relatively stable year-over-year for Q2[21] Condensed Consolidated Statements of Cash Flows 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] - Additions to content assets were $(4,179)k in 6M 2025, compared to $(1,693)k in 6M 2024[23] Reconciliation from Net Loss to Adjusted EBITDA 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] - Other nonrecurring expenses were $273k in Q2 2025[25] Reconciliation from Net Cash Flow used in Operating Activities to Adjusted Free Cash Flow 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 |