CuriosityStream Inc.
For the period ended Mar 31, 2026. Filed May 14, 2026.
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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, 2026 · Filed May 14, 2026
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 2025-09-30; filed 2025-11-13.
0001628280-25-052108
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-14.
0001628280-26-035211
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 87 current paragraphs.
40 unchanged; 29 reworded; 18 added; 35 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 8 previous and 6 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 (18)
Current report
Subscription Revenue, which includes fees earned from our direct subscriber business and wholesale distribution agreements;
Current report
Licensing Revenue, which reflects fees from content licensing including trade and barter transactions, and AI data licensing; and
Current report
Other Revenue, which primarily consists of advertising, sponsorships, and integrated brand partnerships.
Current report
For the three months ended March 31, 2026, the Company reported an operating loss of $1.5 million, compared to an operating income of $0.1 million for the three months ended March 31, 2025. This $1.6 million decrease in operating results was primarily driven by a $1.7 million, or 11%, increase in total operating expenses, largely due to higher stock-based compensation charges.
Current report
The Company recognized a net loss of $1.3 million for the three months ended March 31, 2026, compared to net income of $0.3 million in the prior year period, resulting in a year-over-year decrease of $1.6 million. The decrease in our net result of $1.6 million, was primarily due to higher general and administrative expenses of $1.5 million.
Current report
For thethree months ended March 31, 2026, total revenue increased slightly by $0.1 million compared to the same period in 2025, as a $0.6 million increase in Licensing revenue was offset by a $0.5 million decline in Subscription revenue.
Current report
Subscription
Current report
The Company’s streaming content is provided to subscribers directly, via the Company’s website, applications, and channel stores offerings, as well as through wholesale distribution agreements.
Current report
Individual customers can purchase subscriptions directly via the Company’s SVOD platform accessible by internet connected devices and applications for such devices as well as through distributor channel stores offering subscriptions to Company products on an a la carte basis. Individual subscriptions may be monthly or annual and pricing may vary based on the customer’s location worldwide. Customers may also subscribe to Company services indirectly via distribution partners who deliver CuriosityStream content via the distributor’s platform or system. Such wholesale distribution agreements typically convey a broad scope of rights, such as access to a 24/7 linear channel and an on-demand content library, with pricing and packaging flexibility, in exchange for an annual fixed fee or per-subscriber fee as part of a multi-year deal. The streaming library is composed of thousands of accessible on-demand and ad-free productions and includes shows and series from leading nonfiction producers.
Current report
The Company continually evaluates pricing structures to align with market conditions, including price adjustments for legacy subscribers initiated in March 2023 as well as March 2026. Alongside standard subscriptions, the Company offers the “Smart Bundle” service, which includes access to Tastemade, Kidstream, SOMM TV, and Curiosity University.
Current report
For the three months ended March 31, 2026, direct business revenue decreased due to a lower overall subscriber count. However, this portion of our business benefited from a strategic price increase implemented in March 2026, which applied to our subscription offerings across our direct business platforms. Additionally, new partnerships and revised affiliate agreements drove a net increase in wholesale distribution revenue for the quarter.
Current report
Licensing
Current report
Through our Licensing business, we license collections of existing titles from our content library to various media companies. These transactions include traditional cash licenses as well as non-cash barter arrangements (whereby we license out our content in exchange for new programming to expand our library while preserving liquidity). Additionally, we license and sublicense high volumes of content and data assets to organizations developing large language models (LLMs) and other artificial intelligence (AI) products.
Current report
The growth in licensing was primarily driven by expanded barter activity. Under these non-cash arrangements, the Company acquires additional content to expand its content library, which consequently required the concurrent recognition of licensing revenue at the estimated fair value of the content received. The volume of these transactions varies based on the timing of content exchanges between the Company and its partners.
Current report
Cost of revenues decreased to $6.7 million for thethree months ended March 31, 2026, a 6% decrease from$7.1 million for the same period in 2025. These decreases were primarily driven by a $1.3 million, or 45% decreases in distribution costs, resulting from reductions in music licensing fees and AI revenue share costs compared to the same period in 2025. These decreases were partly offset by $0.7 million, or 93% increase in Other for thethree months ended March 31, 2026, primarily due to higher storage costs and web service costs directly related to the delivery and management of data assets under our increased AI licensing agreements.
Current report
Equity Method Investment Income
Current report
As of March 31, 2026, we principally use cash to promote our services through advertising and marketing and to provide working capital for our operations. While we have experienced net losses since inception, we have generated positive cash flow from operating activities in 2024 and 2025 and expect this trend to continue. We believe that our current cash levels and investments, supplemented by anticipated operating cash flows and the availability under our new Credit Facility will be adequate tosupport our ongoing operations, capital expenditures, dividend payments, and working capital for at least the next twelve months from the date of this filing.
Current report
Subsequent to March 31, 2026, in April 2026, the minority partners of the Spiegel Venture exercised their respective put options. As a result, the Company is committed to acquiring the remaining 68% ownership interest for an aggregate purchase price of approximately $1.9 million, based on the formula set forth in the relevant Share Purchase Agreement. The Company expects to finalize this transaction in mid-2026 and intends to fund the acquisition using existing cash on hand. Upon closing, the Company will own 100% of the Spiegel Venture and will begin consolidating its financial results.
Removed paragraphs (35)
Previous report
Subscription and license fees earned from our Direct-to-Consumer business and Partner Direct subscribers ("Direct Business"),
Previous report
License fees from content licensing arrangements ("Content Licensing"),
Previous report
Bundled license fees from distribution affiliates (“Bundled Distribution”), and
Previous report
Other revenue, including advertising and sponsorships ("Other").
Previous report
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 report
For the three months ended September 30, 2025, and 2024, the Company recorded net loss of $3.7 million and $3.1 million, respectively, representing an increase in net loss of $0.7 million, or 22%.
Previous report
For the nine months ended September 30, 2025, and 2024, the Company reported operating losses of $3.9 million and $9.5 million, respectively. The improvement of $5.5 million, or 58%, was primarily due to a $15.5 million, or 42%, increase in total revenues, driven by higher content licensing, partially offset by a $9.9 million or 21% increase in total operating expenses.
Previous report
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 report
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 report
For the nine months ended September 30, 2025, and 2024, revenues totaled $52.5 million and $37.0 million, respectively, an increase of $15.5 million, or 42%. This increase was primarily driven by increases in Content Licensing and Other of $19.3 million and $0.7 million, respectively, while our Direct Business and Bundled Distribution revenue decreased by $3.8 million and $0.7 million, respectively.
Previous report
Direct Business
Previous 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.
Previous 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.
Previous report
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 report
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 report
The following table details our Direct Business for the three and nine months ended September 30, 2025, and 2024:
Previous report
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 report
For the nine months ended September 30, 2025, our DTC revenue decreased by $5.7 million, or 24%, compared to 2024, due to a decrease in DTC subscriber count. Partner Direct revenue increased by $1.9 million, or 37%, compared to 2024, driven by continued subscriber growth as well as the price increase.
Previous report
Content Licensing
Previous report
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 to content we create before we begin production, such as in territories or on platforms that are lower priority for us. This model reduces risk in our content development decisions while generating content licensing revenue.
Previous report
The following table details our Content Licensing results for the three and nine months ended September 30, 2025, and 2024:
Previous report
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 report
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 report
Bundled Distribution
Previous report
Our Bundled Distribution business includes affiliate relationships with our bundled MVPD and vMVPD partners, which are broadband and wireless companies in the U.S. and international territories to whom we can offer a broad scope of rights, including 24/7 “linear” channels, our video-on-demand content library, mobile rights and pricing and packaging flexibility, in exchange for an annual fixed fee or fee per subscriber.
Previous report
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 report
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 report
For the nine months ended September 30, 2025, and 2024, our operating expenses were $56.4 million and $46.5 million, respectively, an increase of $9.9 million, or 21%.
Previous report
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 report
For the three months ended September 30, 2025, general and administrative expenses increased to $11.8 million from $6.4 million for the same period in 2024. The increase of $5.4 million, or 84% was primarily driven by $4.3 million higher stock-based compensation expense related to performance-based RSUs granted during the period, $0.7 million higher payroll and related from increased accruals for full-year incentive compensation, and $0.7 million higher professional services, including additional legal and consulting fees associated with the secondary offering completed during the period. These increases were partially offset by a $0.2 million decrease in the Other.
Previous report
Equity Method Investment Income (Loss)
Previous report
As of September 30, 2025, Our cash and cash equivalents mainly consist of investments and short-term deposits held at major global financial institutions. We regularly monitor the creditworthiness of the financial institutions and money market fund asset managers with whom we invest our funds, and we maintain a level of liquidity sufficient to allow us to meet our cash needs in both the short term and long term.
Previous report
We believe that our current cash levels, including investments that are readily convertible to cash, will be adequate to support our ongoing operations, capital expenditures, dividend payments and working capital for at least the next twelve months. We believe that we have access to additional funds in the short term and the long term, if needed, through the capital markets to obtain further financing.
Previous report
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 report
As previously discussed, we began entering into trade and barter transactions in the second quarter of 2023 primarily for the purpose of exchanging content assets through licensing agreements with media counterparties. Our use of these transactions has enabled us to acquire quality content that we can monetize through various distribution channels while preserving our liquidity.
Reworded paragraphs (29)
Previous 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.
Current wording
This Quarterly Report contains certain statements that are, or may be 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 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.
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 31,2025, filed with the SEC on March 12, 2026 (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
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.
Current wording
CuriosityStream’s award-winning content library features 14,000 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 millions 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 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:
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, 2026, and 2025, 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
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.
Current wording
We provide advertising and sponsorship services by developing integrated digital brand partnerships designed to offer CuriosityStream content in a variety of forms. These include short- and long-form program integration, branded social media promotional videos, and broadcast advertising spots within our video and audio programs. Our services are made available via our linear programming channels, in front of the paywall, and through an increasing focus on digital display ads. Additionally, we deliver content through advertising-based video-on-demand (AVOD) and free advertising-supported streaming television (FAST) platforms. This includes our dedicated YouTube channels (Curiosity and Curiosity University), where we generate advertising revenue from our digital content without transactional video-on-demand (TVOD) components. We continue to expand these offerings across YouTube and other similar ad-supported distribution channels to maximize our brand reach and digital ad inventory.
Previous 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%.
Current wording
For the three months ended March 31, 2026, and 2025, our operating expenses were $16.7 million and $15.0 million, respectively, an increase of $1.7 million, or 11%.
Previous wording
Distribution fees include revenue share arrangements with our content, Smart Bundle and digital distributor partners, payment processing fees and fees owed to the Spiegel Venture related to JV's streaming service. We pay a fixed percentage fee to our AI training content partners. We also pay fixed percentage fees to certain distribution partners for allowing their subscriber base to access our subscription platform. 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 back-end costs associated with content distribution through our MVPD, vMVPD and digital distributor partners.
Current wording
Distribution fees include revenue share arrangements with our content, Smart Bundle and digital distributor partners, payment processing fees and fees owed to the Spiegel Venture related to its streaming service. We pay a fixed percentage fee to our AI training content partners. We also pay fixed percentage fees to certain distribution partners for allowing their subscriber base to access our subscription platform.
Previous wording
The following table details cost of revenues for the three and nine months ended September 30, 2025, and 2024:
Current wording
The following table details cost of revenues for the three months ended March 31, 2026, and 2025:
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 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.
Current wording
Our advertising and marketing expenditures are a primary operating cost for our business, focused specifically on the acquisition and retention of Direct subscribers. While these costs may fluctuate based on our specific outreach objectives, we prioritize the allocation of marketing dollars toward efficient customer acquisition methods for our streaming service. For thethree months ended March 31, 2026, advertising and marketing expenses increased by $0.6 million, compared to the same period in 2025. The increase primarily reflects expanded digital advertising efforts targeted at high-growth strategic initiatives. We continue to optimize our marketing mix to balance efficient spending with the maintenance of a robust market presence.
Previous wording
The following table details general and administrative costs for the three and nine months ended September 30, 2025, and 2024:
Current wording
The following table details general and administrative costs for the three months ended March 31, 2026, and 2025:
Previous wording
For the nine months ended September 30, 2025, general and administrative expenses increased to $23.2 million from $18.2 million for the same period in 2024. The increase of $5.0 million, or 28% was primarily driven by $5.3 million higher stock-based compensation expense from the performance-based RSUs granted during the period, and $0.6 million higher payroll and related from increased accruals for full-year incentive compensation. These increases were partially offset by a $1.1 million decrease in Other, mainly due to lower insurance premiums and bad debt expense.
Current wording
For the three months ended March 31, 2026, general and administrative expenses increased to $6.5 million from $5.0 million for the same period in 2025. The increase of $1.5 million, or 31% was primarily driven by $1.4 million higher stock-based compensation expense from the RSUs granted in July 2025 and during the period, and $0.3 million higher payroll and related primarily due to increased accruals for full-year incentive compensation. These increases were partially offset by a $0.1 million decrease in Professional services, mainly due to lower legal expense.
Previous wording
The fair value of our warrant liability is estimated using the Black-Scholes valuation model that takes into account a number of economic assumptions, including the market price of our common stock and its expected volatility. Changes in these inputs from period to period may significantly affect changes in fair values.
Current wording
The fair value of the Company's warrant liability was estimated using the Black-Scholes valuation model, which took into account a number of economic assumptions, including the market price of the Company's common stock and its expected volatility. Changes in these inputs from period to period significantly affected the reported changes in fair value during the periods the warrants were outstanding. As of March 31, 2026, there were no warrants outstanding, and the Company no longer carried a warrant liability on its consolidated balance sheet.
Previous wording
Interest and other income for the three and nine months ended September 30, 2025, was $0.3 million and $1.1 million, respectively, compared to $0.5 million and $1.7 million for the same periods in 2024, respectively. The decrease in 2025 was primarily due to less interest income earned resulting from an overall decrease in investment balance throughout 2025, and other non-recurring items.
Current wording
Interest and other income for the three months ended March 31, 2026, was $0.2 million compared to $0.4 million for the same periods in 2025. The decrease in 2026 was primarily due to less interest income earned resulting from an overall decrease in investment balance starting in 2025 and continued through the first quarter of 2026.
Previous 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.
Current wording
For the three months ended March 31, 2026, the Company recorded an immaterial income compared to a loss of $0.2 million for the same period in 2025. 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
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.
Current wording
For the three months ended March 31, 2026 and 2025 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, 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.
Current wording
As of March 31, 2026, the Company’s cash, cash equivalents and restricted cash totaled$17.0 million, with an additional$6.5 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, 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.
Current wording
For the three months ended March 31, 2026, the Company generated $1.2 million of net cash from operating activities. Additionally, the Company generated $2.5 million in net cash from investing activities, mainly related to maturities of investments in debt securities. Net cash used in financing activities was $5.2 million, mainly due to dividends paid and repurchase of treasury stock.
Previous wording
We have used, and expect to continue to use cash on hand to fund our quarterly dividend, subject to Board approval and market conditions.
Current wording
We have used, and expect to continue to use, cash on hand to fund our quarterly dividend, subject to Board approval and market conditions. As of March 31, 2026, we continue to utilize trade and barter transactions, a strategy initiated in 2023, to exchange content assets through licensing agreements. These transactions allow us to acquire high-quality, monetizable content while preserving our cash liquidity.
Previous wording
The following table provides details of the 2025 dividends declared and paid as of September 30, 2025.
Current wording
The following table provides details of dividends declared and paid as of March 31, 2026.
Previous 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.
Current wording
Our Board of Directors has declared the next cash dividend of$0.085 per share to be paid on June 19, 2026, for an expected aggregate amount of $5.0 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 September 30, 2025, we had repurchased $0.3 million 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 $4.0 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. On March 10, 2026, the Board authorized an additional$2.0 million for the purchase of the Company’s common stock under this existing program, increasing the total authorized amount to$6.0 million. Since the program’s inception through March 31, 2026, we had repurchased$0.6 million of common stock under this program. As of March 31, 2026, $5.4 million remains available for future repurchases under the Board-authorized program.
Previous wording
The following table presents our cash flows from operating, investing and financing activities for the nine months ended September 30, 2025, and 2024:
Current wording
The following table presents our cash flows from operating, investing and financing activities for the three months ended March 31, 2026, and 2025:
Previous wording
Cash flows from operating activities primarily consist of net losses, changes to our content assets (including additions and amortization), and other working capital items.
Current wording
Cash flows from operating activities primarily consist of net (loss) income, changes to our content assets (including additions and amortization), and other working capital items.
Previous 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.
Current wording
For the three months ended March 31, 2026, our net cash from operating activities was $1.2 million compared to $1.9 million for the same period in 2025.
Previous 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.
Current wording
For the three months ended March 31, 2026, net loss was $1.3 million. Operating cash flows reflected non-cash adjustments, including $3.7 million of amortization of content assets, $2.2 million of stock-based compensation and $0.2 million of other depreciation, amortization and non-cash items. Cash used during the quarter primarily consisted of a $4.0 million of additions to content assets acquired primarily through barter activities, and $0.6 million inflow from changes in operating assets and liabilities.
Previous 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.
Current wording
For the three months ended March 31, 2026 and 2025, we recorded a net cash inflow in investing activities of $2.5 million and $2.1 million, respectively, mainly due to maturities of investments in debt securities.
Previous 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.
Current wording
For the three months ended March 31, 2026 and 2025, net cash used in financing activities was $5.2 million and $2.6 million, respectively, reflecting an increase of $2.5 million primarily due to dividends paid.
Previous 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.
Current wording
Going forward, we expect to continue making expenditures for purchases of property and equipment. 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.
Previous 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.
Current wording
The information set forth in Note 2 - Basis of Presentation and Summary of Significant Accounting Policies in the Unaudited Notes to Interim Unaudited Condensed Consolidated Financial Statements is incorporated herein by reference.