CuriosityStream Inc.
For the period ended Mar 31, 2025. Filed May 6, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 6, 2025
CURI$2.51-0.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-07.
0001628280-24-046268
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-06.
0001628280-25-022770
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 104 previous paragraphs and 96 current paragraphs.
50 unchanged; 37 reworded; 8 added; 17 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 8 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (8)
Current report
For the three months ended March 31, 2025, and 2024, the Company reported operating income of $0.1 million and an operating loss of $3.7 million, respectively. The improvement of $3.7 million, or 102%, was primarily due to a $3.1 million, or 26%, increase in total revenues, driven by higher content licensing, along with a $0.6 million or 4% decrease in total operating expenses. The reduction in operating expenses reflected lower general and administrative costs and reduced advertising and marketing spend.
Current report
For the three months ended March 31, 2025, the Company recorded a net income of $0.3 million, compared to a net loss of $5.0 million for the same period in 2024, representing an improvement of $5.4 million, or 106%. This change reflects both the improvement in operating income and a $1.6 million reduction in equity method investment loss.
Current report
The Company's streaming content is provided to consumers through two primary distribution channels: (i) direct-to-consumer (“DTC”) and (ii) third-party platforms, referred to as Partner Direct. The DTC channel includes access through the Company’s website and applications developed for electronic device. Collectively, DTC and Partner Direct comprise the Company’s Direct Business.
Current report
DTC includes subscriptions to consumers as well as bulk subscriptions through enterprises, and provides monthly or annual subscription terms. Pricing varies based on the subscriber’s location, the selected subscription tier and term. To ensure wide accessibility, the Company has developed applications for major customer devices, including streaming media players such as Roku, Apple TV, and Amazon Fire TV, and smart TVs from brands including LG, Vizio, and Samsung.
Current report
For the three months ended March 31, 2025, our Direct-to-Consumer (“DTC”) revenue decreased by $1.6 million, or 20%, compared to 2024. The decline was primarily due to a decrease in DTC subscriber count. The positive impact of the pricing changes introduced in 2023 was already fully reflected in the prior year and did not offset the impact of the subscriber decline in the current period. Partner Direct revenue increased by $0.7 million, or 48%, compared to 2024, driven by continued subscriber growth and the ongoing benefit from the price increase.
Current report
For the three months ended March 31, 2025, Other revenue was $0.4 million, an increase of $0.3 million, or 363%, from the same period in 2024. This increase was due to new FAST and AVOD revenue share arrangements that we entered into during the prior year.
Current report
For the three months ended March 31, 2025, cost of revenues increased to $7.1 million from $6.7 million, a 5% increase. This increase was primarily driven by a $2.1 million, or 288%, rise in distribution costs, mainly due to a significant increase in revenue share arrangements compared to the same period in 2024. This was partly offset by a 33% percent decline in content amortization for the three months ended March 31, 2025, primarily due to fewer new productions and a reduction in content acquisitions.
Current report
For the three months ended March 31, 2025, the Company recorded a loss of $0.2 million compared to a loss of $1.8 million for the same period in 2024. The decrease in losses is primarily due to the Company no longer recognizing its share of losses from the Spiegel’s joint venture, as the investment balance was fully reduced in the prior year due to cumulative losses. The Company continues to record its share of losses from Nebula.
Removed paragraphs (17)
Previous report
For the three months ended September 30, 2024, and 2023, operating loss was $3.3 million and $23.9 million, respectively. The decline in operating loss of $20.6 million, or 86%, primarily resulted from the decreases in our operating expenses of $23.7 million, or 60%, which more than offset the decline in revenues of $3.0 million, or 19%, compared to the three months ended September 30, 2023. This significant decrease in operating expenses was mainly due to the absence of prior-year impairment charges recorded in relation to our content assets, as discussed in the section below.
Previous report
For the three months ended September 30, 2024, and 2023, net loss was $3.1 million and $26.6 million, respectively, a decrease in net loss of $23.5 million, or 88%.
Previous report
For the nine months ended September 30, 2024, and 2023, operating loss was $9.5 million and $39.7 million, respectively. The decline in operating loss of $30.3 million, or 76%, primarily resulted from the decreases in our operating expenses of $35.4 million, or 43%, which more than offset the decline in revenues of $5.1 million, or 12%, compared to the nine months ended September 30, 2023. This significant decrease in operating expenses was mainly due to the absence of prior-year impairment charges recorded in relation to our content assets, as discussed in the section below.
Previous report
For the nine months ended September 30, 2024, and 2023, net loss was $10.1 million and $44.2 million, respectively, a decrease in net loss of $34.1 million, or 77%.
Previous report
For the nine months ended September 30, 2024, and 2023, revenues totaled $37.0 million and $42.1 million, respectively, a decrease of $5.1 million, or 12%. This decline was primarily driven by declines in Content Licensing and Bundled Distribution of $6.6 million and $1.1 million, respectively, while our Direct Business revenue increased by $3.5 million, or 13%.
Previous report
Our Direct Business revenue is derived from consumers subscribing directly through our owned and operated website (“O&O Consumer Service”), mobile applications developed for iOS and Android operating systems (“App Services”) and through Partner Direct relationships. Our O&O Consumer Service is available in more than 175 countries to any household with a broadband connection. Our App Services enable access to CuriosityStream on almost every major consumer device, including streaming media players like Roku, Apple TV and Amazon Fire TV, major smart TV brands (e.g., LG, Vizio, Samsung) and gaming consoles.
Previous report
For the three months ended September 30, 2024, our Direct-to-Consumer revenue increased by $0.4 million, or 5%, compared to 2023. For the nine months ended September 30, 2024, our Direct-to-Consumer (or DTC) revenue increased by $1.7 million, or 8%, compared to 2023. Although our overall DTC subscriber count declined, this was more than offset by the higher pricing we began rolling out in 2023. Additionally, our Partner Direct primarily benefited from continued subscriber growth as well as the price increase.
Previous report
For the three months ended September 30, 2024, Other revenue was $0.2 million, a decline of $0.2 million, or 56%, from the same period in 2023. For the nine months ended September 30, 2024, Other revenue was $0.4 million, a decline of $0.9 million, or 67%, from the same period in 2023. These declines were largely due to certain short-term marketing partnerships that we entered into during the early part of 2023, including a campaign that we provided through a trade and barter arrangement that was not renewed in 2024.
Previous report
For the nine months ended September 30, 2024, and 2023, our operating expenses were $46.5 million and $81.8 million, respectively, a decrease of $35.4 million, or 43%.
Previous report
For the three months ended September 30, 2024, cost of revenues decreased to $5.8 million from $8.5 million, a 31% reduction. For the nine months ended September 30, 2024, cost of revenues decreased to $18.6 million from $27.4 million, a 32% reduction. These decreases were primarily driven by declines in content amortization of 15% for the three months ended September 30, 2024, compared to the same period in 2023, and of 18% for the nine months ended September 30, 2024, compared to the same period in 2023, primarily due to fewer new productions, a reduction in content acquisitions and releases during the year and the content impairment recorded in the third quarter of 2023. Additionally, other costs of revenues declined mainly due to a reduction in revenue share arrangements, including our arrangement with Nebula that expired at the end of 2023.
Previous report
For the nine months ended September 30, 2024, general and administrative expenses decreased to $18.2 million from $23.0 million in the same period in 2023. This decrease of $4.8 million, or 21%, was primarily the result of lower payroll and related costs and professional services, which declined by $3.0 million and $2.3 million, respectively. The reduction in payroll costs was mainly driven by a smaller average workforce size and reduced incentive compensation. Additionally, professional services costs decreased by 48% as we streamlined various external services and brought certain finance and operations functions in-house. Stock-based compensation increased by $1.1 million, reflecting performance-based RSUs granted during the nine-month period.
Previous report
Impairment of Content Assets
Previous report
For the three and nine months ended September 30, 2024, no impairment charges were recorded related to our content assets. In comparison, we incurred an impairment charge of$19.0 million for the same periods in 2023. For a more detailed discussion of the 2023 impairment charge and the underlying factors contributing to it, refer to Note 4 - Balance Sheet Components in the Notes to Unaudited Consolidated Financial Statements.
Previous report
Interest and Other Income
Previous report
Interest and other income for the three and nine months ended September 30, 2024, was $0.5 million and $1.7 million, respectively, compared to a de minimis amount and $0.9 million for the same periods in 2023, respectively. The increase in 2024 was primarily due to the absence of certain non-recurring items recorded in 2023.
Previous report
For the three months ended September 30, 2024, the Company recorded a loss of $0.3 million compared to a loss of $2.6 million for the same period in 2023. For the nine months ended September 30, 2024, the Company recorded a loss of $2.2 million compared to a loss of $5.1 million for the same period in 2023 related to its investments in the Spiegel Venture and Nebula. The decrease in losses is primarily due to the $2.0 million impairment charge recorded by the Company to its investment in Spiegel Venture during the nine months ended September 30, 2023.
Previous report
Although we reported a net loss of $10.1 million for the nine months ended September 30, 2024, this amount reflected noncash items such as amortization of content assets, stock-based compensation and equity method investment loss of $14.5 million, $4.7 million, and $2.2 million, respectively. Cash used during the quarter included a $3.4 million change in operating assets and liabilities and additions to content assets and change of content liabilities of $3.4 million and $0.1 million, respectively.
Reworded paragraphs (37)
Previous wording
The following discussion and analysis provides information that management believes is relevant to an assessment and understanding of our results of operations and financial condition. The following discussion should be read in conjunction with the Company’s unaudited consolidated financial statements and notes thereto included elsewhere in this Quarterly Report on Form 10-Q. Unless the context otherwise requires, references in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” to “we,” “us,” “our,” and “the Company” are intended to mean the business and operations of CuriosityStream Inc.
Current wording
The following discussion and analysis provides information that management believes is relevant to an assessment and understanding of our results of operations and financial condition. The following discussion should be read in conjunction with the Company’s unaudited condensed consolidated financial statements and notes thereto included elsewhere in this Quarterly Report on Form 10-Q (“Quarterly Report”). Unless the context otherwise requires, references in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” to “we,” “us,” “our,” and “the Company” are intended to mean the business and operations of CuriosityStream Inc.
Previous wording
This Quarterly Report on Form 10-Q contains certain statements that are, or may deemed to be, “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding the Company’s plans, expectations, thoughts, beliefs, estimates, goals and outlook for the future that are intended to be covered by the protections provided under the Private Securities Litigation Reform Act of 1995.
Current wording
This Quarterly Report contains certain statements that are, or may deemed to be, “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding the Company’s plans, expectations, thoughts, beliefs, estimates, goals and outlook for the future that are intended to be covered by the protections provided under the Private Securities Litigation Reform Act of 1995.
Previous wording
All statements other than statements of historical fact included in this Quarterly Report on Form 10-Q including, without limitation, statements under this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” regarding the Company’s financial position, business strategy and the plans and objectives of management for future operations, such as subscription plan price increases, the development of integrated digital brand partnerships with advertisers and our dividend plans, are forward-looking statements. When used in this Quarterly Report on Form 10-Q, words such as “anticipate,” “attribute,” “believe,” “continue,” “hope,” “estimate,” “expect,” “intend,” “may,” “might,” “potential,” “seek,” “should,” “will” and “would,” and similar expressions, as they relate to us or the Company’s management, identify forward-looking statements. Such forward-looking statements are based on the beliefs of management, as well as assumptions made by, and information currently available to, the Company’s management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors detailed in our filings with the SEC. All subsequent written or oral forward-looking statements attributable to us or persons acting on the Company’s behalf are qualified in their entirety by this paragraph. These forward-looking statements are subject to risks and uncertainties that could cause actual results and events to differ materially from those included in forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, those discussed in our Annual Report on Form 10-K for the year ended December 31,2023, filed with the SEC on March 25, 2024 (the “Annual Report”) and any other subsequent periodic reports and future periodic reports. We assume no obligation to revise or publicly release any revision to any forward-looking statements contained in this Quarterly Report on Form 10-Q, unless required by law.
Current wording
All statements other than statements of historical fact included in this Quarterly Report including, without limitation, statements under this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” regarding the Company’s financial position, business strategy and the plans and objectives of management for future operations, such as subscription plan price increases, the development of integrated digital brand partnerships with advertisers and our dividend plans, are forward-looking statements. When used in this Quarterly Report, words such as “anticipate,” “attribute,” “believe,” “continue,” “hope,” “estimate,” “expect,” “intend,” “may,” “might,” “potential,” “seek,” “should,” “will” and “would,” and similar expressions, as they relate to us or the Company’s management, identify forward-looking statements. Such forward-looking statements are based on the beliefs of management, as well as assumptions made by, and information currently available to, the Company’s management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors detailed in our filings with the SEC. All subsequent written or oral forward-looking statements attributable to us or persons acting on the Company’s behalf are qualified in their entirety by this paragraph. These forward-looking statements are subject to risks and uncertainties that could cause actual results and events to differ materially from those included in forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, those discussed in our Annual Report on Form 10-K for the year ended December 31,2024, filed with the SEC on March 25, 2025 (the “Annual Report”) and any other subsequent periodic reports and future periodic reports. We assume no obligation to revise or publicly release any revision to any forward-looking statements contained in this Quarterly Report, unless required by law.
Previous wording
We seek to meet demand for high-quality factual entertainment via subscription video on-demand (“SVOD”) platforms, content licensing, bundled content licenses for SVOD and linear offerings, talks and courses and partner bulk sales.
Current wording
platforms, content licensing, bundled content licenses for SVOD and linear offerings, talks and courses and partner bulk sales.
Previous wording
We operate our business as a single operating segment that provides premium streaming content through multiple channels, including the use of various applications, partnerships and affiliate relationships.
Current wording
We operate our business as a single operating segment that provides premium content through multiple channels, including the use of various applications, partnerships and affiliate relationships.
Previous wording
CuriosityStream’s award-winning content library features more than 15,000 programs that explore topics ranging from space engineering to ancient history to the rise of Wall Street, and includes shows and series from leading nonfiction producers. Each week we launch new video titles, which are available on-demand in high- or ultra-high definition. Through new and long-standing international partnerships, substantial portions of our video library have been localized from English into eleven different languages.
Current wording
CuriosityStream’s award-winning content library features more than 15,000 programs that explore topics ranging from space engineering to ancient history to the rise of Wall Street, and includes shows and series from leading nonfiction producers. Each week we launch new video titles, which are available on demand in high- or ultra-high definition. Through new and long-standing international partnerships, substantial portions of our video library have been localized from English into eleven different languages. The Company also aggregates rights to hundreds of thousands of video and audio programs, course materials and other assets to utilize on our own services as well as license to other media and technology companies.
Previous wording
The financial data in the following table sets forth selected financial information derived from our unaudited consolidated financial statements for the three and nine months ended September 30, 2024, and 2023, and includes our results of operations as a percentage of revenue or as a percentage of costs, as applicable, for the periods indicated:
Current wording
The financial data in the following table sets forth selected financial information derived from our unaudited condensed consolidated financial statements for the three months ended March 31, 2025, and 2024, and includes our results of operations as a percentage of revenue or as a percentage of costs, as applicable, for the periods indicated:
Previous wording
For the three months ended September 30, 2024, and 2023, revenues totaled $12.6 million and $15.6 million, respectively, a decrease of $3.0 million, or 19%. This decline was primarily driven by declines in Content Licensing and Bundled Distribution of $3.4 million and $0.5 million, respectively, while our Direct Business revenue increased by $1.1 million.
Current wording
For the three months ended March 31, 2025, and 2024, revenues totaled $15.1 million and $12.0 million, respectively, an increase of $3.1 million, or 26%. This increase was primarily driven by increases in Content Licensing and Other of $4.2 million and $0.3 million, respectively, while our Direct Business and Bundled distribution revenue decreased by $0.9 million and $0.6 million, respectively.
Previous wording
We began implementing a price increase for legacy subscribers in March 2023, starting with English-speaking countries, and it has now been applied globally across all markets. This adjustment impacts the majority of our Direct Business revenue. Alongside our standard subscription, we continue to offer the Smart Bundle service, which includes access to Tastemade, Kidstream, SommTV, and Curiosity University, with its current pricing unchanged. Future adjustments to these subscription plans may be considered to further enhance revenue from this segment.
Current wording
We began implementing a price increase for legacy subscribers in March 2023, starting with English-speaking countries, and it has now been applied globally across all markets. This adjustment impacted the majority of our Direct Business revenue. Alongside our standard subscription, we continue to offer the Smart Bundle service, which includes access to Tastemade, Kidstream, SommTV, and Curiosity University, with its pricing unchanged. Future adjustments to these subscription plans may be considered to further enhance revenue from this segment.
Previous wording
The multichannel video programming distributors (“MVPDs”), virtual MVPDs (“vMVPDs”) and digital distributor partners making up our Partner Direct pay us a license fee for sales to individuals who subscribe to CuriosityStream via the partners’ respective platforms. We have affiliate agreement relationships with, and our service is available directly from major MVPDs that include Comcast, Cox, and Dish, and vMVPDs and digital distributors that include Amazon Prime Video Channels, Apple Channel, Roku Channel, Sling TV and YouTube TV.
Current wording
The multichannel video programming distributors (“MVPDs”), virtual MVPDs (“vMVPDs”) and digital distributor partners making up Partner Direct pay us a license fee for subscribers to CuriosityStream via the partners’ respective platforms. We have affiliate relationships with, and our service is available directly from, major MVPDs that include Comcast, Cox, and Dish, and vMVPDs and digital distributors that include Amazon Prime Video Channels, Apple Channel, The Roku Channel, Sling TV and YouTube TV.
Previous wording
The following table details our Direct Business for the three and nine months ended September 30, 2024, and 2023:
Current wording
The following table details our Direct Business for the three months ended March 31, 2025, and 2024:
Previous wording
Through our Content Licensing business, we license to certain media companies a collection of existing titles from our content library. We also pre-sell selected rights (such as in territories or on platforms that are lower priority for us) to content we create before we even begin production. This latter model reduces risk in our content development decisions and creates content licensing revenue.
Current wording
Through our Content Licensing business, we license tocertain media companies a collection of existing titles from our content library. These transactions are reported as library sales. In addition, we license and sublicense hundreds of thousands of content and data assets to companies developing large-language learning models for artificial intelligence (AI) products. We also pre-sell selected rights (such as in territories or on platforms that are lower priority for us) to content we create before we even begin production. This latter model reduces risk in our content development decisions and creates content licensing revenue.
Previous wording
The following table details our Content Licensing results for the three and nine months ended September 30, 2024, and 2023:
Current wording
The following table details our Content Licensing results for the three months ended March 31, 2025, and 2024:
Previous wording
For the three months ended September 30, 2024, compared to 2023, Library sales decreased by 67%. For the nine months ended September 30, 2024, compared to 2023, Library sales decreased by 59%, while presales declined by 74%.
Current wording
For the three months ended March 31, 2025, compared to 2024, Library sales increased by 523%, while presales declined by 100%.
Previous wording
The decrease in Library sales for both periods is primarily due to a higher volume of trade and barter deals in the comparable periods of the prior year, which did not recur at the same level in the reported periods. Content licensing, including barter activity, may vary from period to period based on our content needs as well as those of our partners. Within our content licensing business, our primary focus is on transactions that yield a positive gross margin, particularly those related to our library. However, we may continue to enter into presale arrangements with certain partners for strategic purposes.
Current wording
The increase in Library sales was primarily driven by new licensing agreements related to AI model training, involving both our existing library content and content from our partners under revenue-sharing arrangements. Content licensing revenue, including barter activity, may fluctuate from period to period based on our content needs and those of our partners. Within our content licensing business, we remain focused on transactions that yield a positive gross margin, particularly those involving our library assets. We may continue to pursue presale arrangements with select partners for strategic purposes.
Previous wording
For the three months ended September 30, 2024, and 2023, our Bundled Distribution revenue was $1.0 million and $1.5 million, respectively, reflecting a 33% decline. For the nine months ended September 30, 2024, and 2023, our Bundled Distribution revenue was $3.2 million and $4.3 million, respectively, reflecting a 26% decline. In both periods, the decrease was primarily the result of revised affiliate agreements and the non-renewal of certain partnerships. Bundled Distribution remains a challenging business given the ongoing disruption in the linear pay television business worldwide.
Current wording
For the three months ended March 31, 2025, and 2024, our Bundled Distribution revenue was $0.6 million and $1.1 million, respectively, reflecting a 50% decline. The decrease was primarily the result of revised affiliate agreements and the non-renewal of certain partnerships. Bundled Distribution remains a challenging business given the ongoing disruption in the linear pay television business worldwide.
Previous wording
We provide advertising and sponsorships services through developing integrated digital brand partnerships designed to offer the chance to be associated with CuriosityStream content in a variety of forms, including short- and long-form program integration; branded social media promotional videos; broadcast advertising spots in our video and audio programs that are made available on our linear programming channels or in front of the paywall; and our increasing focus on digital display ads while delivering our content through advertising-based video-on-demand (AVOD), transactional video-on-demand (TVOD), free advertising-supported streaming television (FAST), YouTube and other similar distribution channels.
Current wording
We provide advertising and sponsorships services through developing integrated digital brand partnerships designed to offer CuriosityStream content in a variety of forms, including short- and long-form program integration; branded social media promotional videos; broadcast advertising spots in our video and audio programs that are made available on our linear programming channels or in front of the paywall; and our increasing focus on digital display ads while delivering our content through advertising-based video-on-demand (AVOD), free advertising-supported streaming television (FAST), YouTube and other similar distribution channels.
Previous wording
For the three months ended September 30, 2024, and 2023, our operating expenses were $15.9 million and $39.5 million, respectively, a decrease of $23.7 million, or 60%.
Current wording
For the three months ended March 31, 2025, and 2024, our operating expenses were $15.0 million and $15.7 million, respectively, a decrease of $0.6 million, or 4%.
Previous wording
Distribution fees include payment processing fees and revenue share arrangements with Smart Bundle and digital distributor partners, as well as fees owed to the Spiegel Venture related to JV's streaming service. We pay a fixed percentage distribution fee to our partners for subscribers accessing our platform via App Services to compensate these partners for access to their customer and subscriber bases. The MVPD, vMVPD and digital distributor partners making up our Partner Direct business pay us a license fee, and host and stream our content to their customers via their own platforms, such as set top boxes in the case of most MVPDs. We do not incur billing, streaming or backend costs associated with content distribution through our MVPD, vMVPD and digital distributor partners.
Current wording
Distribution fees include payment processing fees and revenue share arrangements with Smart Bundle and digital distributor partners, as well as fees owed to the Spiegel Venture related to JV's streaming service. We pay a fixed percentage distribution fee to our partners for subscribers accessing our platform to compensate these partners for access to their customer and subscriber bases. The MVPD, vMVPD and digital distributor partners making up our Partner Direct business pay us a license fee, and host and stream our content to their customers via their own platforms, such as set top boxes in the case of most MVPDs. We do not incur billing, streaming or backend costs associated with content distribution through our MVPD, vMVPD and digital distributor partners.
Previous wording
The following table details cost of revenues for the three and nine months ended September 30, 2024, and 2023:
Current wording
The following table details cost of revenues for the three months ended March 31, 2025, and 2024:
Previous wording
Our advertising and marketing expenditures are a primary operating cost for our business. While these costs may fluctuate based on advertising and marketing objectives, we generally focus marketing dollars on efficient customer acquisition methods. For the three and nine months ended September 30, 2024, advertising and marketing expenses decreased by $1.5 million and $2.7 million, respectively compared to the same period in 2023. This decrease reflects our efforts to optimize spending while maintaining our market presence and continuing to invest in strategic initiatives aimed at driving growth.
Current wording
Our advertising and marketing expenditures are a primary operating cost for our business. While these costs may fluctuate based on advertising and marketing objectives, we generally focus marketing dollars on efficient customer acquisition methods. For the three months ended March 31, 2025, advertising and marketing expenses decreased by $0.2 million, compared to the same period in 2024. This decrease reflects our efforts to optimize spending while maintaining our market presence and continuing to invest in strategic initiatives aimed at driving growth.
Previous wording
Our general and administrative costs are associated with certain administrative functions, including corporate governance, executive management, information technology, finance and human resources. These costs consist largely of compensation expense, subscriptions that support our business, professional services, licenses and rent. While personnel levels may fluctuate based on our needs, we tend to focus on hiring and retaining revenue-generating personnel, such as sales staff and roles that support the improvement, maintenance and marketing of our different revenue streams.
Current wording
Our general and administrative costs are associated with certain administrative functions, including corporate governance, executive management, information technology, finance and human resources. These costs consist largely of compensation expense, subscriptions that support our business, professional services, and rent. While personnel levels may fluctuate based on our needs, we tend to focus on hiring and retaining revenue-generating personnel, such as sales staff and roles that support the improvement, maintenance and marketing of our different revenue streams.
Previous wording
The following table details general and administrative costs for the three and nine months ended September 30, 2024, and 2023:
Current wording
The following table details general and administrative costs for the three months ended March 31, 2025, and 2024:
Previous wording
For the three months ended September 30, 2024, general and administrative expenses decreased to $6.4 million from $7.0 million in the same period in 2023. This decrease of $0.5 million, or 8%, was primarily the result of lower payroll and related costs and professional services, which declined by $1.0 million and $0.8 million, respectively. The reduction in payroll costs was mainly driven by a smaller average workforce size and reduced incentive compensation. Additionally, professional services costs decreased by 55% as we streamlined various external services and brought certain finance and operations functions in-house. Stock-based compensation increased by$1.8 million, reflecting performance-based RSUs granted during the period.
Current wording
For the three months ended March 31, 2025, general and administrative expenses decreased to $5.0 million from $5.8 million compared to the same period in 2024. This decrease of $0.8 million, or 14%, was primarily the result of lower professional services, which declined by $0.5 million or 44% as we streamlined various external services and brought certain finance and operations functions in-house. Additionally, technology and subscription costs and other administrative expenses decreased, reflecting the company's broader initiatives to manage costs and drive operational efficiencies.
Previous wording
For the three and nine months ended September 30, 2024, income tax expense was $0.1 million. For the comparative periods in 2023, the provision for income taxes was 0.1 million and 0.5 million, respectively, primarily due to losses generated before income taxes. Our provision for income taxes differs from the federal statutory rate primarily due to the Company being in a full valuation allowance position and not recognizing a tax benefit attributable to generated losses for either federal or state income tax purposes.
Current wording
For the three months ended March 31, 2025 and 2024 income tax expense was immaterial. Our provision for income taxes differs from the federal statutory rate primarily due to the Company being in a full valuation allowance position and not recognizing a tax benefit attributable to generated losses for either federal or state income tax purposes.
Previous wording
As of September 30, 2024, the Company’s cash and cash equivalents and restricted cash totaled$9.7 million, with an additional $30.1 million million held in investments in debt securities that can be readily converted to cash to support ongoing operating cash flow needs.
Current wording
As of March 31, 2025, the Company’s cash and cash equivalents and restricted cash totaled$9.3 million, with an additional $29.7 million held in investments in debt securities that can be readily converted to cash to support ongoing cash flow needs.
Previous wording
For the nine months ended September 30, 2024, the Company incurred a net loss of $10.1 million, primarily due to non-cash expenses, while generating $5.1 million of net cash from operating activities. Additionally, the Company used$30.1 million in net cash for investing activities, entirely related to purchases of debt securities and $3.7 million of net cash for financing activities.
Current wording
For the three months ended March 31, 2025, the Company generated a net income of $0.3 million, primarily due to additional cash revenue, while generating $1.9 million of net cash from operating activities. Additionally, the Company generated $2.1 million in net cash for investing activities, mainly related to maturities of investments in debt securities and $2.6 million of net cash used in financing activities, mainly due to dividends paid.
Previous wording
We use cash principally to acquire content, promote our service through advertising and marketing, and provide for working capital to operate our business. We have experienced significant net losses since our inception, and while we are cash flow positive, we anticipate that we will continue to incur net losses due to the investments needed to support our business plan.
Current wording
We use cash principally to acquire content, promote our service through advertising and marketing, and provide for working capital to operate our business. We have experienced significant net losses since our inception, and while we generate positive cash flow from operating activities, we anticipate that we will continue to incur net losses due to the investments needed to support our business plan.
Previous wording
Our Board of Directors has declared the next cash dividend of $0.025 per share to be paid on March 28, 2025, for an expected aggregate amount of $1.3 million. Subject to future declaration by our Board of Directors, we intend to continue to pay regular quarterly cash dividends.
Current wording
Our Board of Directors has declared the next cash dividend of$0.08 per share to be paid on June 20, 2025, for an expected aggregate amount of $4.6 million. Subject to future declaration by our Board of Directors, we intend to continue to pay regular quarterly cash dividends.
Previous wording
On June 10, 2024, our Board of Directors authorized and approved a share repurchase program for up to $4 million of the then-outstanding shares of our common stock. Under the stock repurchase program, we may repurchase shares through open market purchases, privately negotiated transactions, block purchases, or otherwise in accordance with applicable federal securities laws. As of September 30, 2024, we had repurchased $218 thousand of Common Stock under this program.
Current wording
On June 10, 2024, our Board of Directors authorized and approved a share repurchase program for up to $4 million of the then-outstanding shares of our common stock. Under the stock repurchase program, we may repurchase shares through open market purchases, privately negotiated transactions, block purchases, or otherwise in accordance with applicable federal securities laws. As of March 31, 2025, we had repurchased $251 thousand of Common Stock under this program.
Previous wording
The following table presents our cash flows from operating, investing and financing activities for the nine months ended September 30, 2024, and 2023:
Current wording
The following table presents our cash flows from operating, investing and financing activities for the three months ended March 31, 2025, and 2024:
Previous wording
For the nine months ended September 30, 2024, our net cash inflow from operating activities was $5.1 million compared to net cash used in operating activities of $13.6 million for the nine months ended September 30, 2023, an increase in operating cash outflow of $18.7 million.
Current wording
For the three months ended March 31, 2025, our net cash from operating activities was $1.9 million compared to net cash from operating activities of $0.7 million for the same period in 2024.
Previous wording
For the nine months ended September 30, 2023, we reported a net loss of $44.2 million. This amount reflected noncash items such as amortization of content assets, stock-based compensation and equity method investment loss of $17.7 million, $3.6 million and $5.1 million, respectively. Cash used during the quarter included additions to content assets and changes in content liabilities of $14.1 million and $2.7 million, respectively, and changes in operating assets and liabilities of $1.5 million.
Current wording
For the three months ended March 31, 2025, net income was $0.3 million. Operating cash flows reflected non-cash adjustments, including $3.5 million of amortization of content assets, $0.9 million of stock-based compensation and $0.2 million of equity method investment loss. Cash used during the quarter primarily consisted of a $0.8 million outflow from changes in operating assets and liabilities, $1.8 million of additions to content assets, and a $0.3 million decrease in content liabilities.
Previous wording
For the nine months ended September 30, 2024, we recorded a net cash outflow used in investing activities of $30 million. The net cash outflow used in investing activities was solely due to purchases of investments in debt securities. In contrast, for the same period in 2023, our cash inflows were primarily due to maturities of investments in debt securities.
Current wording
For the three months ended March 31, 2025, we recorded a net cash inflow in investing activities of $2 million. The net cash inflow in investing activities was mainly due to maturities of investments in debt securities.
Previous wording
For the nine months ended September 30, 2024 and 2023, net cash used in financing activities was $3.7 million and $0.1 million, respectively, an increase of $3.6 million primarily due to dividends paid and tax withholding.
Current wording
For the three months ended March 31, 2025 and 2024, net cash used in financing activities was $2.6 million and $0.01 million, respectively, reflecting an increase of $2.6 million primarily due to dividends paid and tax withholding.
Previous wording
Our discussion and analysis of our financial condition and results of operation is based upon our financial statements, which have been prepared in accordance with U.S. GAAP. Certain amounts included in or affecting the financial statements presented in this Quarterly Report on Form 10-Q and related disclosures must be estimated, requiring management to make assumptions with respect to values or conditions which cannot be known with certainty at the time the financial statements are prepared. Management believes that the accounting policies set forth below comprise the most important “critical accounting policies” for the Company. A critical accounting policy is one which is both important to the portrayal of a company’s financial condition and results of operations and requires management’s most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. Management evaluates such policies on an ongoing basis, based upon historical results and experience, consultation with experts and other methods that management considers reasonable in the particular circumstances under which the judgments and estimates are made, as well as management’s forecasts as to the manner in which such circumstances may change in the future.
Current wording
Our discussion and analysis of our financial condition and results of operation is based upon our financial statements, which have been prepared in accordance with U.S. GAAP. Certain amounts included in or affecting the financial statements presented in this Quarterly Report and related disclosures must be estimated, requiring management to make assumptions with respect to values or conditions which cannot be known with certainty at the time the financial statements are prepared. Management believes that the accounting policies set forth below comprise the most important “critical accounting policies” for the Company. A critical accounting policy is one which is both important to the portrayal of a company’s financial condition and results of operations and requires management’s most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. Management evaluates such policies on an ongoing basis, based upon historical results and experience, consultation with experts and other methods that management considers reasonable in the particular circumstances under which the judgments and estimates are made, as well as management’s forecasts as to the manner in which such circumstances may change in the future.
Previous wording
The information set forth in Note 2 - Basis of Presentation and Summary of Significant Accounting Policies in the Unaudited Notes to Interim Consolidated Financial Statements is incorporated herein by reference.
Current wording
The information set forth in Note 2 - Basis of Presentation and Summary of Significant Accounting Policies in the Unaudited Notes to Interim Condensed Consolidated Financial Statements is incorporated herein by reference.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
We seek to meet demand for high-quality factual entertainment via subscription video on-demand (“SVOD”)