Executive Summary

Q3 revenue beat and improved profitability metrics: CuriosityStream delivered $18.4M revenue, up 46% YoY and above its prior guide, with gross margin at 58.7%, Adjusted EBITDA at $3.0M, and Adjusted FCF at $4.8M . Versus S&P Global consensus, revenue beat ($18.36M actual vs $16.35M estimate*) while EPS missed (-$0.06 actual vs -$0.03 estimate*) [GetEstimates].
Guidance implies continued momentum: Q4 revenue guided to $18–$20M and Q4 Adjusted FCF to $2.5–$3.5M, with CFO noting this implies FY25 revenue of $70–$72M and FY25 Adjusted FCF of $12–$13M .
AI licensing is scaling: Licensing revenue rose ~425% YoY to $8.7M in Q3 on 18 fulfillments across 9 partners, underpinned by a nearly 2M-hour licensed library and upgraded data-structuring capabilities .
Capital returns and balance sheet remain supportive: The Board declared another $0.08 dividend payable Dec 19, 2025; liquidity stood at $29.3M (cash, restricted cash, and securities) with no debt; warrants expired post-quarter reducing overhang .
Near-term stock reaction catalysts: Clear revenue beat, expanding AI licensing pipeline and Q4 guide could support sentiment; EPS miss was driven by non-cash SBC and one-time offering costs, which management flagged as non-recurring drivers of the GAAP loss .

What Went Well and What Went Wrong

What Went Well
- AI licensing acceleration: Q3 licensing revenue reached $8.7M (+~425% YoY), with 18 fulfillments across 9 partners and a nearly 2M-hour library positioned for AI training; CEO: “we believe we will solidify our position as the leader or among the top two or three video licensors for AI development” .
- Profitability and cash generation: Gross margin improved to 58.7%; Adjusted EBITDA was $3.0M (third straight positive quarter); Adjusted FCF was a record $4.8M; operating cash flow was a record $4.5M .
- Subscription momentum and distribution: Subscription revenue was $9.3M (sequential increase) with launches across the U.S., Australia, New Zealand, and Germany; FAST/AVOD distribution expanded on Amazon, Roku, LG, and Truth+ .
What Went Wrong
- GAAP loss on non-cash/one-time items: Net loss was $3.7M (vs. -$3.1M LY), driven by ~$7.0M non-cash SBC and one-time costs tied to an August secondary; CFO said G&A would have declined excluding these .
- Operating expense optics: Combined A&M + G&A were $15.3M in Q3; CFO cited a ~~52% YoY increase due primarily to non-cash SBC (~~$7M) and offering-related costs .
- EPS miss vs Street: EPS was -$0.06 vs S&P Global consensus of -$0.03*, reflecting the above SBC/one-time items [GetEstimates].

Financial Results

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Millions)	$15.09	$19.01	$18.36
Gross Margin (%)	53.1%	53.4%	58.7%
Net Income ($USD Millions)	$0.32	$0.78	-$3.74
Diluted EPS ($)	$0.01	$0.01	-$0.06
Adjusted EBITDA ($USD Millions)	$1.10	$3.02	$2.98
Net Cash from Operating Activities ($USD Millions)	$1.92	$2.79	$4.54
Adjusted Free Cash Flow ($USD Millions)	$2.01	$2.86	$4.85

Segment revenue breakdown (where disclosed):

Segment Revenue ($USD Millions)	Q2 2025	Q3 2025
Subscriptions	$9.3	$9.3
Licensing	$9.3	$8.7

KPIs and balance sheet highlights:

KPI / Balance Sheet	Q1 2025	Q2 2025	Q3 2025
AI licensing fulfillments (cumulative)	—	18	18
AI licensing partners (cumulative)	—	8	9
Licensed library size	“over 1 million hours”	1.8M+ hours	nearly 2M hours
Liquidity: cash, restricted cash & securities ($M)	$39.1	$30.7	$29.3
Dividend declared per share	$0.08	$0.08 (ordinary) + $0.10 (special total $0.18) paid in Jun	$0.08 declared, payable Dec 19

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	Q4 2025	—	$18–$20M	New
Adjusted Free Cash Flow	Q4 2025	—	$2.5–$3.5M	New
Adjusted Free Cash Flow	FY 2025	$11–$13M (as of Q2)	$12–$13M implied by Q4 guide	Raised (narrowed/up)
Revenue	FY 2025	—	$70–$72M implied by Q4 guide	New (implied)
Dividend	Ongoing	$0.08/quarter (Q2)	$0.08/quarter reaffirmed; Q4 payable Dec 19	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3)	Trend
AI licensing scale and durability	Q1: Multi-format licensing; argued de facto recurring as partners “want seconds and thirds” and highlighted need for billions of video hours . Q2: Leadership focus, >1M hours library, improving data-structuring capabilities .	18 fulfillments across 9 partners; “nearly 2M hours” licensed library; higher cost-per-minute bespoke deals; expects partners to double/triple in 2026; aiming among top 2–3 licensors .	Accelerating
Subscription trajectory	Q1: Direct subscriptions tied to disciplined marketing; wholesale launches expected to support growth . Q2: Sequential growth; multiyear wholesale deals in Asia/LatAm/U.S. .	Sequential increase again; launches in U.S., Australia, NZ, Germany; expects faster subscription growth in 2026 with new pricing/packaging and premium tier .	Improving
Advertising/FAST	Q2: Expanding FAST presence (Samsung TV Plus Spain) .	U.S. Hispanic and flagship FAST channels launched on Amazon, Roku, LG, Truth+; planning to hire proven leader for business in early 2026 .	Building
Cost discipline and SBC	Q1: Opex rationalization; GM improvement on lower content amortization . Q2: A&M+G&A down YoY excl. SBC; GM 53% .	Q3 GM 58.7%; but SBC ~$7M and one-time offering costs lifted G&A; CFO detailed market-based awards’ accounting .	Mixed (core efficiency up; SBC spike)
Capital allocation/dividends	Q1: Dividend doubled to $0.08; intent to pay from operations over time . Q2: Ordinary plus special dividend paid; ~6.5% yield at time .	Q3: Declared $0.08 payable Dec 19; CFO intends to cover 2026 dividends from operating cash .	Shareholder-friendly
Balance sheet & dilution	Q2: ~$30.7M liquidity, no debt .	Q3: $29.3M liquidity, no debt; 6.7M warrants expired post-quarter, reducing potential dilution/overhang .	Stable to improving

Management Commentary

CEO on AI leadership and opportunity: “we believe we will solidify our position as the leader or among the top two or three video licensors for AI development” and expect double-digit growth in revenue and cash flow driven by subscriptions, licensing, and advertising .
CEO on smoothing licensing volatility: Pursuing operationally more partners and contractually content-as-a-service (subscription-like access with minimums) to reduce lumpiness .
CFO on Q3 loss drivers and expense optics: “non-cash SBC of $7,000,000… and a number of one-time expenses associated with our August secondary stock offering… Were it not for these… we would have posted our third quarterly net income this year” .
CEO on subscriptions outlook: Expects overall subscription revenue to grow faster in 2026 than 2025, aided by launches and new pricing/packaging (including a premium tier) .
CFO on capital returns: Intends to fully cover 2026 dividends from operating cash (as in 2024) .

Q&A Highlights

Smoothing AI licensing revenue: Management plans to add partners and use CAS (content-as-a-service) structures with minimums to reduce quarter-to-quarter lumpiness .
SBC details and G&A: Market-based awards drove unusually high SBC; majority of the year’s grants expensed in Q3; G&A would have declined excluding SBC and offering costs .
Q4 FCF guide timing: Limited growth vs revenue guide primarily due to timing, per management .
Library composition and rights depth: Overwhelming majority of the nearly 2M hours corpus is aimed at AI licensing; expanding into general entertainment and sports to enhance breadth and value .
Dilution and overhang: ~6.7M warrants expired unexercised post-quarter, reducing potential dilution and eliminating overhang from those instruments .

Estimates Context

Q3 results versus S&P Global consensus:

Metric	Actual	Consensus	Beat/Miss
Revenue ($USD Millions)	$18.36	$16.35*	Beat
Primary EPS ($)	-$0.06	-$0.03*	Miss

Q4 setup (consensus vs company guidance):

Metric	Company Guidance	Consensus	Context
Revenue ($USD Millions)	$18–$20	$18.91*	Guidance brackets Street
Primary EPS ($)	—	-0.0067*	No EPS guide provided

Values retrieved from S&P Global.

Key Takeaways for Investors

Revenue trajectory is intact and diversified: Q3 beat on revenue with strong gross margins and cash generation; AI licensing is scaling alongside subscription momentum and nascent advertising .
EPS miss was non-cash driven: The GAAP loss and EPS miss stemmed from ~$7M non-cash SBC and one-time offering costs; Adjusted EBITDA/FCF were solid, supporting the quality of earnings narrative .
AI licensing moat expanding: Nearly 2M hours of rights-cleared content, bespoke data structuring, and repeat fulfillments position CURI among top licensors; management is moving to CAS structures to smooth revenue .
4Q guide supports FY acceleration: Q4 revenue $18–$20M and Adjusted FCF $2.5–$3.5M, implying FY25 revenue $70–$72M and FY25 Adjusted FCF $12–$13M; potential estimate revisions upward on revenue/FCF .
Capital returns sustained: Another $0.08 dividend declared (Dec 19) with management intent to cover 2026 dividends from operating cash; warrants expiration reduces dilution risk .
Watch items: Path to GAAP profitability as SBC normalizes; progress on subscription growth into 2026 with pricing/packaging changes; further partner adds and CAS adoption to reduce licensing lumpiness .
Trading lens: Revenue beat and AI momentum are near-term positives; clarity on SBC normalization and sustained cash flow should drive multiple support; any incremental AI partner announcements could act as catalysts .

Appendix: Additional Quantitative Detail

YoY growth context (management disclosures):

Q1 revenue +26% YoY; first-ever positive net income and Adjusted EBITDA .
Q2 revenue +53% YoY; record net income and record Adjusted EBITDA .
Q3 revenue +46% YoY; Adjusted EBITDA turned to +$3.0M; Adjusted FCF up 88% .

Forward-looking guidance and commentary:

Q4 revenue $18–$20M; Q4 Adjusted FCF $2.5–$3.5M .
FY25 revenue implied $70–$72M; FY25 Adjusted FCF implied $12–$13M .
2026: management expects subscription growth to accelerate; intends to cover 2026 dividends from operating cash .

CuriosityStream Inc. (CURI)·Q3 2025 Earnings Summary