Curiositystream Inc ((CURI)) has held its Q1 earnings call. Read on for the main highlights of the call.
CuriosityStream Inc. recently held its earnings call, and the sentiment was overwhelmingly positive, driven by record revenue growth, the company’s first positive net income and EBITDA, and a significant increase in dividends. Despite a slight decline in direct subscription revenue and increased cash costs of revenue, these were overshadowed by the company’s overall financial improvements and strategic successes.
Record Revenue Growth
CuriosityStream reported a remarkable revenue growth in the first quarter of 2025, achieving $15.1 million, which represents a 26% increase year-over-year and a 7% rise sequentially. This growth underscores the company’s successful strategies in expanding its market reach and enhancing its service offerings.
First Positive Net Income and Adjusted EBITDA
For the first time, CuriosityStream posted a positive net income, marking a $5.4 million improvement from the previous year. Additionally, the company achieved a positive adjusted EBITDA of $1.1 million, reflecting a $3.9 million increase. These milestones highlight the company’s effective cost management and revenue-generating strategies.
Dividend Increase
In a move that signals confidence in its financial health, CuriosityStream doubled its quarterly dividend to $0.08 per share, or $0.32 annualized. This increase is a testament to the company’s strong cash flow and commitment to returning value to shareholders.
Strong Balance Sheet
CuriosityStream boasts a robust balance sheet with $39 million in liquidity and no debt, providing the company with significant operating flexibility. This financial strength positions the company well for future investments and strategic initiatives.
Gross Margin Improvement
The company reported an improvement in its gross margin, which rose to 53% from 44% a year ago. This enhancement reflects CuriosityStream’s ability to optimize its cost structure and improve operational efficiency.
Continued Positive Cash Flow
CuriosityStream achieved positive free cash flow for the fifth consecutive quarter, with adjusted free cash flow reaching $2 million. This consistent cash flow generation underscores the company’s financial stability and operational success.
Decline in Direct Subscription Revenue
The earnings call revealed a slight decline in direct subscription revenue, attributed to a reduction in marketing spend. While this is a concern, the company is focusing on strategic investments to drive future growth.
Cash Cost of Revenue Increase
The cash cost of revenue increased due to the acquisition of more rights to license content through revenue share arrangements and associated storage costs. This investment is part of CuriosityStream’s strategy to enhance its content library and attract more subscribers.
Forward-Looking Guidance
Looking ahead, CuriosityStream expects its Q2 revenue to be between $16 million and $17 million, with adjusted free cash flow ranging from $2 million to $3 million. The company plans to focus on key growth strategies, including increased content licensing and global expansion, to sustain its positive financial trajectory.
In summary, CuriosityStream’s earnings call highlighted a positive financial outlook, marked by significant revenue growth, the achievement of positive net income and EBITDA, and a substantial dividend increase. The company’s strong balance sheet and strategic focus on content and global expansion position it well for continued success.