What CuriosityStream (CURI) Said on Its Q3 Earnings Call

Key Points

• Revenue rose 13% to $20.7 million, and net income was $4.8 million versus a loss a year earlier. Adjusted EBITDA increased 67% to $5 million, marking the seventh consecutive profitable quarter on that measure.
• AI-developer licensing deals helped drive licensing revenue up 35% to $11.7 million, but partner revenue shares and programming amortization weighed on gross margin, which fell to 49% from 59%. Management cautioned that licensing results may vary with the timing and size of deals.
• CuriosityStream raised its 2026 outlook to revenue of $79 million–$82 million and adjusted EBITDA of $20 million–$22 million. Subscription revenue dipped slightly as the company focused on retention and profitability; it ended the quarter with $10 million in cash and investments and no debt.

CuriosityStream NASDAQ: CURI reported a 13% increase in third-quarter revenue and raised the lower end of its full-year outlook, as licensing agreements with artificial intelligence developers and lower expenses helped lift profitability.

Revenue rose to $20.7 million from $18.4 million a year earlier, Chief Financial Officer Sean Piche said on the company’s earnings call. Net income was $4.8 million, or $0.08 per diluted share, compared with a net loss of $3.7 million, or $0.06 per share, in the prior-year quarter.

Adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, increased 67% to $5 million. It was the company’s seventh consecutive quarter of positive adjusted EBITDA, Piche said.

AI Licensing Drives Revenue Growth

Licensing revenue increased 35% to $11.7 million, accounting for 57% of total revenue. More than $7 million came from cash licensing agreements, led by new AI deals, Piche said. The balance came from barter arrangements in which CuriosityStream exchanged library titles for programming for its subscription service.

Chief Executive Officer Clint Stinchcomb said nearly all cash licensing revenue in the quarter came directly from AI developers, primarily leading developers of large language models. He said the company controls rights to more than approximately 3.4 million hours of content and is also adding code and other operational data to its offerings.

Stinchcomb said scripted entertainment was among the content in high demand. He also cautioned that licensing results can fluctuate because of the timing and size of individual transactions.

AI agreements can include content from partners as well as CuriosityStream’s own library. Piche said the company shares revenue with those partners, sometimes representing 50% or more of a deal. Those payments contributed to a decline in gross margin to 49% from 59% a year earlier, along with amortization of programming acquired through barter.

Cost Cuts and Cash Flow

Advertising, marketing and general and administrative expenses fell by $8.8 million, or 58%, from a year earlier, Piche said. Excluding stock-based compensation and restructuring costs, those expenses declined by $3 million, or 36%.

After the quarter ended, the company completed a reduction in force that it expects to produce $1.2 million to $1.5 million in annualized savings. It expects a one-time charge of approximately $0.6 million in the fourth quarter, primarily for severance and related employee benefits.

Operating activities generated $4.5 million in cash during the third quarter and $1.5 million over the first nine months of 2026. Piche said a traditional licensing agreement signed in the second quarter contributed to a timing gap between reported revenue and cash receipts. The $10 million agreement, for which the company recognized $8.5 million in revenue in the second quarter, is payable in four annual installments beginning in mid-2027.

Responding to an analyst’s question about a decline in cash and short-term investments over nine months, Stinchcomb cited first-half expenses, stock repurchases, a larger bonus and dividend payments. Piche said dividends had historically been funded in part from excess balance-sheet cash. The company aims to fund its entire dividend from free cash flow in 2027.

CuriosityStream paid a quarterly dividend of $0.085 per share, or approximately $5 million, and ended the quarter with $10 million in cash and investments, no debt and an undrawn $10 million credit facility, Piche said. Third-quarter net income included a $0.9 million noncash gain associated with acquiring the remaining interest in the Spiegel venture.

Outlook and Subscription Strategy

The company raised its 2026 revenue guidance to $79 million to $82 million from $77 million to $82 million. It also lifted its adjusted EBITDA outlook to $20 million to $22 million from $18 million to $22 million.

Stinchcomb said subscription revenue declined slightly in the quarter, although the business became significantly more profitable. He said the company is prioritizing subscriber retention and disciplined acquisition spending rather than growth at any cost.

CuriosityStream launched with Amazon in Canada and in several Latin American markets during the quarter, Stinchcomb said. He expects further international distribution opportunities as channel-store partners expand, and said improvements in AI-enabled translation could allow the company to offer content in more languages.

About CuriosityStream (NASDAQ:CURI)

CuriosityStream Inc. is a media and entertainment company that operates a subscription streaming service focused on factual and nonfiction programming. Its content covers subjects such as science, technology, history, nature, space, engineering and society, with documentaries, series and other educational video programs available through digital platforms. The company distributes its programming through its own streaming service and through third-party distribution and technology partners. CuriosityStream has served viewers internationally, offering content through online and connected-TV platforms in multiple markets and making programming available in several languages through subtitles or dubbing.

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