Curiositystream Inc.

11/13/2025 | Press release | Distributed by Public on 11/13/2025 15:52

Quarterly Report for Quarter Ending September 30, 2025 (Form 10-Q)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
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.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
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.
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 inforward-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.
OVERVIEW
Founded by John Hendricks, former Chairman of Discovery Communications and founder of the Discovery Channel, CuriosityStream is a media and entertainment company that offers premium video and audio programming across the principal categories of factual entertainment, including science, history, society, nature, lifestyle and technology. Our mission is to provide premium factual entertainment that informs, enchants and inspires.
We seek to meet the 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.
The main sources of our revenue are:
1.Subscription and license fees earned from our Direct-to-Consumer business and Partner Direct subscribers ("Direct Business"),
2.License fees from content licensing arrangements ("Content Licensing"),
3.Bundled license fees from distribution affiliates ("Bundled Distribution"), and
4.Other revenue, including advertising and sponsorships ("Other").
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.
CuriosityStream's award-winning content library features more than 15,000programs 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.
RESULTS OF OPERATIONS
The financial data in the following table sets forth selected financial information derived from our unaudited condensed consolidated financial statements for the three and ninemonths 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:
Three Months Ended September 30,
Change
Nine Months Ended September 30,
Change
(unaudited and in thousands)
2025 2024
Total
%
2025 2024
Total
%
Revenues
Direct Business $ 8,335 $ 9,785 $ (1,450) (15 %) $ 25,427 $ 29,238 $ (3,811) (13 %)
Content Licensing 8,694 1,657 7,037 425 % 23,447 4,137 19,310 467 %
Bundled Distribution 978 973 5 1 % 2,471 3,198 (727) (23 %)
Other 352 189 163 86 % 1,116 427 689 161 %
Total revenue
18,359 12,604 5,755 46 % 52,461 37,000 15,461 42 %
Operating expenses
Cost of revenues 7,588 5,840 1,748 30 % 23,532 18,592 4,940 27 %
Advertising and marketing 3,442 3,590 (148) (4 %) 9,651 9,676 (25) - %
General and administrative 11,820 6,426 5,394 84 % 23,210 18,187 5,023 28 %
Total operating expenses 22,850 15,856 6,994 44 % 56,393 46,455 9,938 21 %
Operating loss
(4,491) (3,252) (1,239) 38 % (3,932) (9,455) 5,523 (58 %)
Other income (expense)
Change in fair value of warrant liability 174 (36) 210 n/m 88 (66) 154 n/m
Interest and other income
290 538 (248) n/m 1,140 1,702 (562) (33 %)
Equity method investment income (loss)
76 (267) 343 (128 %) (231) (2,175) 1,944 (89 %)
Loss before income taxes
$ (3,951) $ (3,017) $ (934) 31 % $ (2,935) $ (9,994) 7,059 (71 %)
(Benefit from) provision for income taxes
(207) 45 (252) n/m (294) 134 (428) n/m
Net loss
$ (3,744) $ (3,062) $ (682) 22 % $ (2,641) $ (10,128) 7,487 (74 %)
* n/m = percentage not meaningful
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,
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%.
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.
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%.
Our future operating results and cash flows are dependent upon a number of opportunities, challenges, and other factors, including our ability to efficiently grow our subscriber base, increase our prices and expand our service offerings to maximize subscriber lifetime value.
Revenue
Since the Company was founded in 2015, we have generated the majority of our revenues from consumers directly accessing our content in the form of monthly or annual subscription plans.
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.
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.
Direct Business
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.
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.
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 Bundleservice, 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.
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.
The following table details our Direct Business for the three and ninemonths ended September 30, 2025, and 2024:
Three Months Ended September 30,
Change
Nine Months Ended September 30,
Change
(in thousands) 2025 2024
Total
%
2025 2024
Total
%
Direct-to-Consumer
$ 5,708 $ 7,802 $ (2,094) (27 %) $ 18,291 $ 24,039 $ (5,748) (24 %)
Partner Direct
2,627 $ 1,983 644 32 % 7,136 5,199 1,937 37 %
Total Direct Business
$ 8,335 $ 9,785 $ (1,450) (15 %) $ 25,427 $ 29,238 $ (3,811) (13 %)
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.
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.
Content Licensing
Through our Content Licensing business, we license to certain 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.
The following table details our Content Licensing results for the three and ninemonths ended September 30, 2025, and 2024:
Three Months Ended September 30,
Change
Nine Months Ended September 30,
Change
(in thousands) 2025 2024
Total
%
2025 2024
Total
%
Library sales $ 8,694 $ 1,657 $ 7,037 425 % $ 23,447 $ 3,696 $ 19,751 534 %
Presales
- - - - % - 441 (441) (100 %)
Total Content Licensing
$ 8,694 $ 1,657 $ 7,037 425 % 23,447 4,137 19,310 467 %
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.
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 for the three and nine months ended September 30, 2025, respectively, and $1.4 millionand $2.5 millionfor the three and nine months ended September 30, 2024, respectively. We may also continue to pursue presale arrangements with select partners for strategic purposes.
Bundled Distribution
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.
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.
Other
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.
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 and prioryears.
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.
Operating Expenses
Our primary operating costs relate to the cost of producing and acquiring our content, the costs of advertising and marketing our service, personnel costs, and distribution fees.
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%.
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%.
Cost of Revenues
Cost of revenues encompasses distribution fees, content amortization, hosting and streaming delivery costs, payment processing costs, commission costs, and subtitling and broadcast costs. Producing and co-producing content and commissioned content is generally more costly than content acquired through licenses.
Distribution fees include revenue share arrangements with our content, Smart Bundleand 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.
The following table details cost of revenues for the three and ninemonths ended September 30, 2025, and 2024:
Three Months Ended September 30,
Change
Nine Months Ended September 30,
Change
(in thousands) 2025 2024
Total
%
2025 2024
Total
%
Distribution1
$ 3,041 $ 592 $ 2,449 414 % $ 10,196 $ 1,954 $ 8,242 422 %
Content amortization
3,583 4,569 (986) (22 %) 10,696 14,470 (3,774) (26 %)
Other2
964 679 285 42 % 2,640 2,168 472 22 %
Total cost of revenues
$ 7,588 $ 5,840 $ 1,748 30 % $ 23,532 $ 18,592 $ 4,940 27 %
1 Includes revenue share, payment processing fees, and application service commissions
2 Includes agent commissions, production and broadcast, and other expenses.
For the three 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 the three and nine months ended September 30, 2025, primarily due to fewer new productions and a reduction in content acquisitions.
Advertising and Marketing
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 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 the nine months ended September 30, 2025, advertising and marketing expenses remained flat.
General and Administrative
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.
The following table details general and administrative costs for the three and ninemonths ended September 30, 2025, and 2024:
Three Months Ended September 30,
Change
Nine Months Ended September 30,
Change
(in thousands) 2025 2024
Total
%
2025 2024
Total
%
Payroll and related $ 2,747 $ 2,077 $ 670 32 % $ 7,836 $ 7,233 603 8 %
Professional services 1,374 660 714 108 % 2,818 $ 2,500 318 13 %
Stock-based compensation 6,977 2,720 4,257 157 % 10,054 4,734 5,320 112 %
Technology and subscriptions
283 289 (6) (2 %) 891 971 (80) (8 %)
Other1
439 680 (241) (35 %) 1,611 2,749 (1,138) (41 %)
Total general and administrative
$ 11,820 $ 6,426 $ 5,394 84 % 23,210 18,187 5,023 28 %
1Includes facilities costs, depreciation and amortization, insurance, travel and other expenses.
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.
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.
Other Income (Expense)
Change in Fair Value of Warrant Liability
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.
Interest and Other Income
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.
Equity Method Investment Income (Loss)
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.
Income Taxes
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.
LIQUIDITY AND CAPITAL RESOURCES
Liquidity
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.
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.
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.
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.
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.
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 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.
The following table provides details of the 2025 dividends declared and paid as of September 30, 2025.
Declaration Date Record Date Payment Date Per Share Aggregate Amount
January 30, 2025 March 14, 2025 March 28, 2025 $0.04 $2.3 million
May 5, 2025 June 6, 2025 June 20, 2025 $0.08 $4.6 million
May 8, 20251
June 13, 2025 June 27, 2025 $0.10 $5.8 million
August 5, 2025 September 5, 2025 September 19, 2025 $0.08 $4.6 million
1 Special dividend.
Our Board of Directors has declared the next cash dividend of $0.08per 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.
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.
We cannot predict when or if we will repurchase any additional shares of common stock as this stock repurchase program will depend on a number of factors, including constraints imposed by applicable federal securities laws, price, general business and market conditions, and alternative investment opportunities. This program does not obligate us to acquire any particular amount of common stock. The program has no expiration date and may be modified, suspended or discontinued at any time at our discretion.
Cash Flow Analysis
The following table presents our cash flows from operating, investing and financing activities for the nine months ended September 30, 2025, and 2024:
Nine Months Ended
September 30,
(unaudited and in thousands)
2025 2024
Net cash provided by operating activities
$ 9,088 $ 5,116
Net cash provided by (used in) investing activities
16,916 (29,968)
Net cash used in financing activities (19,787) (3,650)
Net increase (decrease) in cash, cash equivalents and restricted cash
$ 6,217 $ (28,502)
Operating Activities
Cash flows from operating activities primarily consist of net losses, changes to our content assets (including additions and amortization), and other working capital items.
Nine Months Ended
September 30,
(in thousands) 2025 2024
Net loss
$ (2,641) $ (10,128)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Change in fair value of warrant liability (88) 66
Additions to content assets (7,276) (3,412)
Change in content liabilities (196) 92
Amortization of content assets 10,696 14,470
Stock-based compensation 10,054 4,734
Equity method investment loss
231 2,175
Other depreciation, amortization and non-cash items
121 478
Changes in operating assets and liabilities (1,813) (3,359)
Net cash provided by operating activities
$ 9,088 $ 5,116
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.
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.
Investing Activities
Cash flow from investing activities consists of purchases, sales and maturities of investments, business acquisitions and equity investments and purchases of property and equipment.
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.
Financing Activities
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.
Capital Expenditures
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.
OFF BALANCE SHEET ARRANGEMENTS
As of September 30, 2025, we had no off-balance sheet arrangements.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
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.
For more detailed information on our critical accounting policies, including those related to content assets, revenue recognition and trade and barter transactions, refer to the "Summary of Significant Accounting Policies" section in the Annual Report filed with the Securities and Exchange Commission on March 25, 2025. This comprehensive discussion helps to ensure that stakeholders have a complete understanding of the accounting methodologies and principles that influence the financial statements presented herein. During the quarter ended September 30, 2025 2025, there were no significant changes made to the Company's critical accounting policies from those disclosed in our Annual Report.
RECENT ACCOUNTING PRONOUNCEMENTS
The information set forth in Note 2- Basis of Presentation and Summary of Significant Accounting Policiesin the Unaudited Notes to Interim Condensed Consolidated Financial Statements is incorporated herein by reference.
Curiositystream Inc. published this content on November 13, 2025, and is solely responsible for the information contained herein. Distributed via Edgar on November 13, 2025 at 21:53 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]