Loading...
01/10 19:54
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call presented strong financial performance, with significant growth in licensing revenue and improved gross margins. Despite a net loss, the company maintains a strong balance sheet with no debt. The Q&A section revealed plans for future growth through strategic hires and new partnerships, addressing concerns about revenue lumpiness. While some responses were vague, overall sentiment was positive with strong revenue growth projections and strategic expansions in AI licensing and subscription services.
Revenue Revenue grew 46% year-over-year to $18.4 million, exceeding guidance. This growth was driven by strong performance in licensing and subscription businesses.
Adjusted Free Cash Flow Adjusted free cash flow rose 88% to $4.8 million year-over-year. This increase reflects a focus on cost discipline and rationalizing the cost base, despite higher storage and delivery expenses.
Adjusted EBITDA Adjusted EBITDA improved by $3.4 million year-over-year, reaching $3 million. This improvement was attributed to positive revenue growth and cost management.
Licensing Revenue Licensing revenue increased over 40% year-over-year, driven by demand for AI training data and partnerships with traditional media and hyperscalers.
Subscription Revenue Subscription revenue was $9.3 million, showing sequential growth every quarter in 2025, although it was down year-over-year. Growth was driven by operational focus rather than price increases.
Content Licensing Content licensing revenue increased by over $7 million or 425% year-over-year, driven by growth in AI training fulfillments.
Gross Margin Gross margin improved to 59% from 54% last year, supported by reductions in noncash content amortization, despite increased distribution and storage costs.
Net Loss Net loss was $3.7 million compared to $3.1 million in the prior year. The loss was driven by noncash stock-based compensation and onetime expenses related to a secondary stock offering.
Cash and Securities The company ended the quarter with $29.3 million in cash and securities and no outstanding debt, reflecting a strong balance sheet.
AI Training Data: CuriosityStream has assembled a nearly 2-million-hour library of video and audio content for AI training, which cannot be scraped from the open web. They have also expanded data structuring and metadata capabilities to meet partners' volume and bespoke requirements.
Subscription Services: Launched all three subscription services in key English-speaking markets (U.S., Australia, New Zealand) and Germany. Sequential growth in subscription revenue was achieved without price increases.
Global Partnerships: Broadened partnerships with global broadcasters and streamers, including AMC, Netflix, Foxtel, and licensees across Asia.
Advertising Expansion: Launched U.S. Hispanic and flagship FAST channels on Amazon, Roku, LG, and Truth+. Also launched a 2-hour branded block on Australia's free-to-air broadcast channel.
Revenue Growth: Revenue grew 46% year-over-year to $18.4 million in Q3 2025, driven by licensing and subscription services.
Cost Management: Achieved an 88% increase in adjusted free cash flow to $4.8 million through disciplined expense management, despite higher storage and delivery costs.
Licensing Revenue Focus: Licensing revenue is expected to grow faster than subscription revenue, potentially exceeding it by 2027. The company aims to double or triple its AI licensing partners in 2026.
Advertising Leadership: Plans to appoint a proven leader to run the advertising business in early 2026 to capture opportunities across various platforms.
Subscription Revenue Decline: Overall subscription revenue, retail and wholesale combined, was down year-over-year, despite sequential quarterly increases in 2025. This indicates potential challenges in sustaining subscription growth.
Increased Costs: Higher storage and delivery expenses were incurred due to managing a large content library. Additionally, advertising, marketing, and G&A costs increased by 52% compared to last year, driven by noncash stock-based compensation and onetime expenses.
Net Loss: The company reported a net loss of $3.7 million in Q3 2025, compared to a $3.1 million net loss in Q3 2024. This was attributed to noncash stock-based compensation and onetime charges, which could impact financial stability.
Dependence on Licensing Revenue: Licensing revenue is expected to exceed subscription revenue by 2027, indicating a shift in revenue dependency. This reliance on licensing, particularly for AI training data, could pose risks if demand fluctuates or competition intensifies.
Regulatory and Compliance Risks: Forward-looking statements and references to SEC filings highlight potential regulatory and compliance risks that could materially affect results.
Dilution and Share Overhang: The expiration of 6.7 million outstanding warrants reduced potential dilution, but lingering concerns about share overhang and its impact on stock performance remain.
Subscription Revenue Growth: Overall subscription revenue, retail and wholesale combined, is expected to grow faster in 2026 than in 2025, supported by a strong launch pipeline and new pricing and packaging across services, including a premium tier.
Licensing Revenue Growth: High-growth licensing is anticipated to continue, with expectations that licensing revenue will exceed subscription revenue in 2027, possibly earlier. Significant year-over-year growth with existing partners is expected, and the roster of AI licensing partners could double or triple in 2026.
AI Licensing Leadership: The company expects to solidify its position as a leader or among the top 2 or 3 video licensors for AI development, with the corpus expected to more than double in 2026.
Advertising Business Expansion: Plans to install a proven leader to run the advertising business in early 2026, with meaningful advertising and sponsorship opportunities across FAST, AVOD, social, pay-TV, and free-to-air channels.
Revenue and Cash Flow Growth: Double-digit growth in both revenue and cash flow is expected, driven by subscriptions, licensing, and advertising.
Dividend Payments: The company intends to pay 2026 dividends from cash generated by operations, as was done in 2024.
Fourth Quarter 2025 Revenue and Free Cash Flow: Revenue is expected to range between $18 million and $20 million, implying full-year 2025 revenue of $70 million to $72 million. Adjusted free cash flow for Q4 is expected to be $2.5 million to $3.5 million, implying full-year 2025 adjusted free cash flow of $12 million to $13 million.
Dividend Payment in 2025: In September, the company paid a regular $4.6 million dividend.
Dividend Yield: The company offers a dividend yield of over 8% based on the current share price.
Future Dividend Plans: The company intends to fully cover its 2026 dividends from operating cash, as it did in 2024.
The earnings call presented strong financial performance, with significant growth in licensing revenue and improved gross margins. Despite a net loss, the company maintains a strong balance sheet with no debt. The Q&A section revealed plans for future growth through strategic hires and new partnerships, addressing concerns about revenue lumpiness. While some responses were vague, overall sentiment was positive with strong revenue growth projections and strategic expansions in AI licensing and subscription services.
The earnings call summary shows strong financial performance with a 53% revenue increase, positive net income, and record adjusted EBITDA. Despite a decline in subscription revenue, new business from AI licensing and cost rationalization improved margins. The Q&A highlighted growth pillars and cost management, with management's confidence reflected in increased dividends. The market may react positively to the strong financial metrics, optimistic guidance, and shareholder returns, leading to a stock price increase.
The earnings call reflects strong financial performance with record revenue growth, positive net income, and improved margins. The company increased its dividend, signaling confidence in financial health. Despite competitive and regulatory challenges, the company has a strong balance sheet with no debt. The Q&A section revealed optimism in AI licensing and cost management, though some concerns about subscription revenue and marketing costs were noted. The overall sentiment is positive, supported by optimistic guidance for 2025. Given these factors, the stock price is likely to react positively over the next two weeks.
The earnings call reveals strong financial performance, including record free cash flow, improved gross margins, and a significant increase in adjusted EBITDA. Despite an EPS miss, optimistic guidance and strategic partnerships suggest a positive outlook. The dividend increase and share repurchase program further boost investor sentiment. While competitive and regulatory risks exist, the company's focus on cost containment and revenue diversification through licensing and subscriptions are promising. Given these factors, the stock is likely to see a positive movement, potentially between 2% to 8%.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
