CuriosityStream Inc.

Previous wording

The financial data in the following table sets forth selected financial information derived from our unaudited condensed consolidated financial statements for the three and six months ended June 30, 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:

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 and nine months ended September 30, 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 June 30, 2025, and 2024, the Company reported operating income of $0.5 million and an operating loss of $2.5 million, respectively. The improvement of $3.0 million, or 119%, was primarily due to a $6.6 million, or 53%, increase in total revenues, driven by higher content licensing, partially offset by a a $3.6 million or 24% increase in total operating expenses.

Current wording

For the three months ended September 30, 2025, and 2024, the Company reported operating losses of $4.5 million and $3.3 million, respectively. The increase of operating loss of $1.2 million, or 38%, was primarily due to a $7.0 million or 44% increase in total operating expenses, partially offset by a $5.8 million, or 46%, increase in total revenues, driven by higher content licensing,

Previous wording

For the six months ended June 30, 2025, the Company recorded a net income of $1.1 million, compared to a net loss of $7.1 million for the same period in 2024, representing an improvement of $8.2 million, or 116%.

Current wording

For the nine months ended September 30, 2025, and 2024, the Company recorded net loss of $2.6 million and $10.1 million, respectively, representing an improvement of $7.5 million, or 74%.

Previous wording

For the three months ended June 30, 2025, and 2024, revenues totaled $19.0 million and $12.4 million, respectively, an increase of $6.6 million, or 53%. This increase was primarily driven by increases in Content Licensing and Other of $8.0 million and $0.2 million, respectively, while our Direct Business and Bundled distribution revenue decreased by $1.5 million and $0.2 million, respectively.

Current wording

For the three months ended September 30, 2025, and 2024, revenues totaled $18.4 million and $12.6 million, respectively, an increase of $5.8 million, or 46%. This increase was primarily driven by increases in Content Licensing and Other of $7.0 million and $0.2 million, respectively, while our Direct Business decreased by $1.5 million and Bundled Distribution revenue remained flat.

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 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.

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 our legacy subscribers.

Previous wording

The following table details our Direct Business for the three and six months ended June 30, 2025, and 2024:

Current wording

The following table details our Direct Business for the three and nine months ended September 30, 2025, and 2024:

Previous wording

For the three months ended June 30, 2025, our DTC revenue decreased by $2.0 million, or 25%, compared to 2024, due to a decrease in DTC subscriber count. Partner Direct revenue increased by $0.6 million, or 34%, compared to 2024, driven by continued subscriber growth.

Current wording

For the three months ended September 30, 2025, our DTC revenue decreased by $2.1 million, or 27%, compared to 2024, due to a decrease in DTC subscriber count. Partner Direct revenue increased by $0.6 million, or 32%, compared to 2024, driven by continued subscriber growth.

Previous wording

The following table details our Content Licensing results for the three and six months ended June 30, 2025, and 2024:

Current wording

The following table details our Content Licensing results for the three and nine months ended September 30, 2025, and 2024:

Previous wording

For the three months ended June 30, 2025, compared to 2024, Library sales increased by 697%, while presales declined by 100%.

Current wording

For the three months ended September 30, 2025, compared to 2024, Library sales increased by 425%, while we had no presale activity in either period. For the nine months ended September 30, 2025, compared to 2024, Library sales increased by 534%, while we did not have presale activity during the nine-month period in 2025.

Previous 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. Revenue from barter transactions is included within library sales and represented$1.9 million forthe three months ended June 30, 2025. We may also continue to pursue presale arrangements with select partners for strategic purposes.

Current wording

The increase in Library sales for both periods in 2025 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 may fluctuate from period to period based on demand for our content, while barter activity is primarily driven by 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. Revenue from barter transactions is included within library sales and represented$2.8 million and $6.4 million forthe three and nine months ended September 30, 2025, respectively, and$1.4 million and$2.5 million for the three and nine months ended September 30, 2024, respectively. We may also continue to pursue presale arrangements with select partners for strategic purposes.

Previous wording

For the three months ended June 30, 2025, and 2024, our Bundled Distribution revenue was $0.9 million and $1.1 million, respectively, reflecting a 15% 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.

Current wording

Our Bundled Distribution revenue remained flat at $1.0 million for the three months ended September 30, 2025, and 2024. For the nine months ended September 30, 2025, and 2024, our Bundled Distribution revenue was $2.5 million and $3.2 million, respectively, reflecting a 23% 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

For the three months ended June 30, 2025, Other revenue was $0.4 million, an increase of $0.2 million, or 139%, 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 as well as revenue from licensing proprietary code.

Current wording

For the three months ended September 30, 2025, Other revenue was $0.4 million, an increase of $0.2 million from the same period in 2024. For the nine months ended September 30, 2025, Other revenue was $1.1 million, an increase of $0.7 million from the same period in 2024. In both periods, the increase was due to new FAST and AVOD revenue share arrangements that we entered into during current andprior years.

Previous wording

In the future, we inten to continue developing integrated digital brand partnerships with advertisers. These sponsorship campaigns offer companies the chance to be associated with CuriosityStream content in the forms described above. We believe the impressions accumulated in these multi-faceted campaigns would result in verifiable metrics for the clients.

Current wording

In the future, we intend to continue developing integrated digital brand partnerships with advertisers. These sponsorship campaigns offer companies the chance to be associated with CuriosityStream content in the forms described above. We believe the impressions accumulated in these multi-faceted campaigns would result in verifiable metrics for the clients.

Previous wording

For the three months ended June 30, 2025, and 2024, our operating expenses were $18.5 million and $14.9 million, respectively, an increase of $3.6 million, or 24%.

Current wording

For the three months ended September 30, 2025, and 2024, our operating expenses were $22.9 million and $15.9 million, respectively, an increase of $7.0 million, or 44%.

Previous wording

The following table details cost of revenues for the three and six months ended June 30, 2025, and 2024:

Current wording

The following table details cost of revenues for the three and nine months ended September 30, 2025, and 2024:

Previous wording

For thethree and six months ended June 30, 2025, cost of revenues increased by 48% and 25%, respectively. These increases were primarily driven by increases in distribution costs, the result of higher revenue we have generated from licensing content that we have acquired the rights to through revenue share arrangements compared to the same period in 2024. These increases were partly offset by 23% and 28% declines in content amortization for thethree and six months ended June 30, 2025, primarily due to fewer new productions and a reduction in content acquisitions.

Current wording

For thethree and nine months ended September 30, 2025, cost of revenues increased by 30% and 27%, respectively. These increases were primarily driven by increases in distribution costs, the result of higher revenue we have generated from licensing content that we have acquired the rights to through revenue share arrangements compared to the same period in 2024. These increases were partly offset by 22% and 26% declines in content amortization for thethree and nine months ended September 30, 2025, primarily due to fewer new productions and a reduction in content acquisitions.

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 thethree and six months ended June 30, 2025, advertising and marketing expenses decreased by $0.3 million and$0.1 million, respectively, compared to the same periods in 2024. These decreases reflect our ongoing 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 thethree months ended September 30, 2025, advertising and marketing expenses decreased by $0.1 million, compared to the same period in 2024. These decreases reflect our ongoing efforts to optimize spending while maintaining our market presence and continuing to invest in strategic initiatives aimed at driving growth. For thenine months ended September 30, 2025, advertising and marketing expenses remained flat.

Previous wording

The following table details general and administrative costs for the three and six months ended June 30, 2025, and 2024:

Current wording

The following table details general and administrative costs for the three and nine months ended September 30, 2025, and 2024:

Previous wording

For the three months ended June 30, 2025, the Company recorded a loss of $0.2 million, essentially flat compared to a loss of $0.2 million for the same period in 2024. The Company no longer recognizes its share of losses from the Spiegel Venture, as the investment balance was fully reduced in 2024 due to cumulative losses. The Company continues to record its share of income and losses from Nebula.

Current wording

For the three months ended September 30, 2025, the Company recorded income of $0.1 million, compared to a loss of $0.3 million for the same period in 2024. For the nine months ended September 30, 2025, the Company recorded a loss of $0.2 million compared to a loss of $2.2 million for the same period in 2024. The Company no longer recognizes its share of losses from the Spiegel Venture, as the investment balance was fully reduced in 2024 due to cumulative losses. The Company continues to record its share of income and losses from Nebula.

Previous wording

For the three and six months ended June 30, 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.

Current wording

The Company recorded income tax benefits of $0.2 million and $0.3 million, respectively, for the three and nine months ended September 30, 2025. For each comparative period in 2024, the income tax expense was $0.1 million. 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 June 30, 2025, the Company’s cash, cash equivalents and restricted cash totaled$7.0 million, with an additional $23.7 million held in investments in debt securities that can be readily converted to cash to support ongoing cash flow needs.

Current wording

As of September 30, 2025, the Company’s cash, cash equivalents and restricted cash totaled$14.2 million, with an additional $15.2 million held in investments in debt securities that can be readily converted to cash to support ongoing cash flow needs.

Previous wording

For the six months ended June 30, 2025, the Company generated a net income of $1.1 million, primarily due to additional revenue, while generating $4.7 million of net cash from operating activities. Additionally, the Company generated $8.3 million in net cash for investing activities, mainly related to maturities of investments in debt securities. Net cash used in financing activities was $14.0 million, mainly due to dividends paid.

Current wording

For the nine months ended September 30, 2025, the Company generated $9.1 million of net cash from operating activities. Additionally, the Company generated $16.9 million in net cash from investing activities, mainly related to maturities of investments in debt securities. Net cash used in financing activities was $19.8 million, mainly due to dividends paid and tax withholding.

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 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.

Current wording

We use cash principally to 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 we anticipate to continue to generate positive cash flow from operating activities.

Previous wording

The following table provides details of the dividends declared and paid as of June 30, 2025.

Current wording

The following table provides details of the 2025 dividends declared and paid as of September 30, 2025.

Previous wording

Our Board of Directors has declared the next cash dividend of$0.08 per share to be paid on September 19, 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.

Current wording

Our Board of Directors has declared the next cash dividend of$0.08 per share to be paid on December 19, 2025, for an expected aggregate amount of $4.7 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. Since the program’s inception through June 30, 2025, we had repurchased $251 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. Since the program’s inception through September 30, 2025, we had repurchased $0.3 million of common stock under this program.

Previous wording

The following table presents our cash flows from operating, investing and financing activities for the six months ended June 30, 2025, and 2024:

Current wording

The following table presents our cash flows from operating, investing and financing activities for the nine months ended September 30, 2025, and 2024:

Previous wording

For the six months ended June 30, 2025, our net cash from operating activities was $4.7 million compared to net cash from operating activities of $2.9 million for the same period in 2024.

Current wording

For the nine months ended September 30, 2025, our net cash from operating activities was $9.1 million compared to net cash from operating activities of $5.1 million for the same period in 2024.

Previous wording

For the six months ended June 30, 2025, net income was $1.1 million. Operating cash flows reflected non-cash adjustments, including $7.1 million of amortization of content assets, $3.1 million of stock-based compensation and $0.3 million of equity method investment loss. Cash used during the quarter primarily consisted of a $2.8 million outflow from changes in operating assets and liabilities and $4.2 million of additions to content assets.

Current wording

For the nine months ended September 30, 2025, net loss was $2.6 million. Operating cash flows reflected non-cash adjustments, including $10.7 million of amortization of content assets, $10.1 million of stock-based compensation and $0.2 million of equity method investment loss. Cash used during the quarter primarily consisted of a $1.8 million outflow from changes in operating assets and liabilities and $7.3 million of additions to content assets acquired primarily through barter activities.

Previous wording

For the six months ended June 30, 2025, we recorded a net cash inflow in investing activities of $8.3 million, mainly due to maturities of investments in debt securities.

Current wording

For the nine months ended September 30, 2025, we recorded a net cash inflow in investing activities of $16.9 million, mainly due to maturities of investments in debt securities.

Previous wording

For the six months ended June 30, 2025, and 2024, net cash used in financing activities was $14.0 million and $1.4 million, respectively, reflecting an increase of $12.5 million primarily due to dividends paid and certain tax withholding payments.

Current wording

For the nine months ended September 30, 2025, and 2024, net cash used in financing activities was $19.8 million and $3.7 million, respectively, reflecting an increase of $16.1 million primarily due to dividends paid and certain tax withholding payments.

Previous wording

Going forward, we expect to continue making expenditures for additions to our content assets and purchases of property and equipment, although at a slower rate than in previous periods. The amount, timing and allocation of capital expenditures are largely discretionary and within management’s control. Depending on market conditions, we may choose to defer a portion of our budgeted expenditures until later periods to achieve the desired balance between sources and uses of liquidity and prioritize capital projects that we believe have the highest expected returns and potential to generate cash flow. Subject to financing alternatives, we may also increase our capital expenditures significantly to take advantage of opportunities we consider to be attractive.

Current wording

Going forward, we expect to continue making expenditures for purchases of property and equipment, although at a slower rate than in previous periods. The amount, timing and allocation of capital expenditures are largely discretionary and within management’s control. Depending on market conditions, we may choose to defer a portion of our budgeted expenditures until later periods to achieve the desired balance between sources and uses of liquidity and prioritize capital projects that we believe have the highest expected returns and potential to generate cash flow. Subject to financing alternatives, we may also increase our capital expenditures significantly to take advantage of opportunities we consider to be attractive.