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].
CURIOSITYSTREAM EQ. WARRT(CURIW) - 2025 Q3 - Quarterly Report