0001628280-26-017346
SEC filingCuriosityStream Inc. reported revenue of $71.7 million for FY 2025, a 40% increase from $51.1 million in FY 2024. This growth was primarily driven by a 326% increase in Content Licensing revenue to $33.2 million, partially offset by a 13% decline in Direct Business revenue to $33.6 million. The company reduced its net loss by 50% to $6.4 million from $12.9 million in the prior year, with operating loss improving by 45% to $7.3 million. Net cash provided by operating activities was $13.1 million, marking the second consecutive year of positive operating cash flow. The company ended the period with $18.3 million in cash and cash equivalents, $9.0 million in short-term investments, and total assets of $75.7 million. Management noted the strategic shift toward content licensing, particularly for AI training, as a key growth driver while continuing to manage costs and maintain liquidity.
CuriosityStream Inc. reported FY 2025 revenue of $71.7 million, representing a 40% increase from $51.1 million in FY 2024. The company significantly reduced its net loss to $6.4 million from $12.9 million in the prior year, a 50% improvement. Operating loss decreased by 45% to $7.3 million from $13.3 million. The company generated positive operating cash flow of $13.1 million for the second consecutive year, compared to $8.2 million in FY 2024. Total assets stood at $75.7 million as of December 31, 2025, with cash and cash equivalents of $18.3 million and short-term investments of $9.0 million. Total stockholders' equity was $41.5 million, while total liabilities were $34.2 million.
Revenue growth was primarily driven by Content Licensing, which increased 326% to $33.2 million from $7.8 million in FY 2024, now representing 46% of total revenue. This growth was fueled by new licensing agreements for AI model training and library sales, including $12.6 million from trade and barter transactions. Direct Business revenue declined 13% to $33.6 million, with Direct-to-Consumer revenue decreasing 24% to $23.8 million due to subscriber base reduction, partially offset by a 36% increase in Partner Direct revenue to $9.9 million. Bundled Distribution revenue decreased 14% to $3.4 million due to revised affiliate agreements and non-renewals. Other revenue grew 78% to $1.4 million from new FAST and AVOD arrangements. Geographically, U.S. revenue represented 78% ($55.9 million) of total revenue, up from 65% in the prior year.
Gross margin improved to 56.6% from 50.4% in FY 2024, as revenue growth outpaced the 23% increase in cost of revenues to $31.1 million. Cost of revenues included $14.5 million in content amortization (down 24% from prior year) and $12.9 million in distribution costs (up 276%). Operating expenses increased 22% to $79.0 million, primarily due to a 37% increase in general and administrative expenses to $33.8 million, driven by $14.4 million in stock-based compensation (up 119% from prior year). Advertising and marketing expenses decreased 3% to $14.0 million as the company optimized spending. The operating loss margin improved to -10.2% from -26.1% in the prior year.
Net cash provided by operating activities was $13.1 million, driven by non-cash adjustments including $14.5 million in content amortization and $14.4 million in stock-based compensation, partially offset by $13.9 million in additions to content assets. Investing activities provided $23.1 million in cash, primarily from $30.6 million in maturities and $5.0 million in sales of debt securities, partially offset by $12.3 million in purchases. Financing activities used $25.8 million in cash, including $22.0 million in dividend payments and $3.8 million in tax withholding payments. The company ended the period with $18.4 million in cash, cash equivalents and restricted cash, up from $8.0 million at the beginning of the period. Total current assets were $37.4 million, with accounts receivable of $8.9 million. Total current liabilities were $30.3 million, including deferred revenue of $8.4 million.
Management expects to continue generating positive cash flow from operations and believes current cash levels, investments, and anticipated operating cash flows will be adequate to support operations for at least the next twelve months. The company secured a $10.0 million Senior Secured Revolving Credit Facility in March 2026 to provide additional financial flexibility. Strategic priorities include expanding content licensing efforts, particularly for AI training, while managing the Direct Business subscriber base. The company intends to continue paying regular quarterly cash dividends, subject to Board approval and maintaining liquidity of at least $10.0 million under the new credit facility. Key risks include competition in the SVOD market, reliance on content licensing growth, user churn in the Direct Business, and the need to maintain adequate liquidity while paying dividends.